Millions of people across the globe are facing a disruption in vital services as the U.S. Agency for International Development (USAID) terminates contracts for numerous projects. These projects, which provide critical aid in countries such as Sudan and South Africa, received sudden termination notices on Thursday, sparking concern and uncertainty in the global aid community.
The cancellations come amid the Trump administration’s ongoing review of foreign aid, as part of its “America First” policy. This review was initiated after President Donald Trump ordered a 90-day pause in January to assess whether foreign aid projects align with U.S. national interests.
U.S. Secretary of State Marco Rubio previously downplayed fears that foreign aid would be cut, stating that waivers had been granted for life-saving services. However, on February 25, a court document revealed that the administration decided to cut more than 90% of USAID’s programs, including those related to HIV treatment and other health initiatives. It remains unclear whether any of these projects can be reinstated.
Among the programs affected are major United Nations health initiatives, including UNAIDS, the Stop TB Partnership, and Scaling Up Nutrition. These programs, which provide essential support for millions of displaced people, have now been left vulnerable. Lucica Ditiu, executive director of the Stop TB Partnership, assured that the organization would continue its work, despite having to sever ties with 140 global partners due to the funding cuts. The organization will rely on alternative funding sources to procure essential tuberculosis tests and treatments.
Outcry from Aid Organizations
The termination of contracts has drawn outrage from global humanitarian groups. Charlotte Slente, secretary general of the Danish Refugee Council, condemned the move, calling it an “egregious breach of contracts” that would endanger the lives of millions in vulnerable regions, including conflict zones in Sudan, Yemen, and Colombia. Slente also criticized the abrupt and unilateral nature of the cuts, which have left aid organizations scrambling to fill the gap.
Smaller organizations have also been deeply impacted, with many in South Africa, Cambodia, and other regions losing critical support. UNAIDS, which has long worked in partnership with USAID, called the termination a “serious development” that would disrupt lifesaving services and called for further clarification from the U.S. government. While Reuters has yet to confirm the full scope of the cuts, USAID has now eliminated nearly 30% of the U.S. State Department’s foreign assistance grants, totaling $4.4 billion.
The notices received by organizations, some of which were already working under waivers, stated that the programs no longer aligned with USAID’s priorities and that continuing them was not deemed to be in the national interest. For many of these groups, USAID funding represents a significant portion of their financial support, and the cuts threaten their ability to continue operating.
Impact on Health Programs
The cuts to health services, especially in HIV and tuberculosis treatment, have alarmed experts. Beatriz Grinsztejn, president of the International AIDS Society, described the U.S. funding reductions as a dismantling of the global health system. In South Africa, where approximately 8 million people live with HIV, experts warned that the cuts could reverse years of progress in fighting the epidemic. Linda-Gail Bekker, chief operating officer of the Desmond Tutu HIV Foundation, expressed concern that lives would be lost and the epidemic could worsen due to the funding reductions.
The U.S. contributes about 17% of South Africa’s HIV/AIDS budget, and experts noted that the cuts would severely hamper testing and treatment programs for vulnerable groups, including women, children, and the LGBT+ community.
Francois Venter, executive director of the Ezintsha Research Centre in Johannesburg, described the cuts as a “devastating blow” for South Africa’s HIV response, highlighting that many of the affected programs were among the country’s most effective in delivering health services.
Widespread Consequences
The cuts are not limited to health programs. Humanity & Inclusion, an organization that provides services to people with disabilities in various countries, had over 30 contracts with the U.S. government. The organization reported that about half of these contracts have been canceled, affecting hundreds of thousands of people. Hannah Guedenet, the U.S. executive director of Humanity & Inclusion, expressed outrage at the abrupt nature of the cuts, accusing the U.S. government of a complete disregard for human life.
As the global aid community grapples with the consequences of these decisions, the future of countless programs that provide lifesaving care remains uncertain.
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