The US President Trump administration has slashed 83 per cent of the US foreign aid policy. This has cut out billions of dollars previously channelled through non-governmental organisations, dealing a devastating blow to the global aid sector.
US foreign aid policy: Trump’s Executive Order 14169 axes 83% of USAID grants
President Donald Trump’s Executive Order 14169, signed hours after he took office on 20 January 2025, has triggered a 90-day pause on all US foreign development assistance. As a result, the aid industry is now counting its dead.
The order is titled “Reevaluating and Realigning United States Foreign Aid.” It has also effectively axed 83 per cent of America’s relief portfolio.
However, in a dramatic overhaul of decades-long US foreign policy, the new administration has eliminated 5,200 out of 6,200 USAID grants. It effectively scrapes the lion’s share of America’s relief portfolio.
Foreign aid will now flow directly to national governments. It bypasses NGOs that Washington accuses of turning taxpayer dollars into a bloated business model.
For NGOs, the consequences will be swift and brutal. Many will see their funding evaporate overnight, triggering mass layoffs, shrinking budgets, and outright closures across the sector.
Data from USAspending.gov shows that as of 20 January 2025, 54 organisations held 241 active US grants worth approximately $20.6 billion. Also, $4.1 billion is still awaiting disbursement.
Aid responses in conflict zones risk collapse
The vast majority of US funding granted to Geneva-based organisations supports programmes serving vulnerable populations worldwide. Iraq, Syria, Turkey, Ukraine, and the Democratic Republic of Congo each received over $20 million in grants for humanitarian relief and refugee processing.
Without US funding, aid responses in these conflict-stricken nations risk crumbling. This will be another blow to the already desperate communities.
Organisations are now scrambling to shift resources and slash expenses to salvage whatever posts they can. But beyond internal survival, aid workers express deep concern about the immediate and long-term impacts on the populations who depend on their operations.
In response, US Representative Tim Burchett welcomed the move. He applauded President Trump.
“Last December, I wrote to the White House urging the suspension of funding to NGOs until we could determine exactly where our foreign aid was going…I applaud the Trump Administration for ensuring American taxpayer dollars will no longer flow through ungoverned NGOs,” he said.
Meanwhile, the State Department announced an expansion of its partnership with Gilead Sciences and The Global Fund. This is to increase access to lenacapavir (LEN), a twice-yearly injectable HIV prevention medication shown to be 99.9 per cent effective in large-scale trials.
The United States has committed to reaching an additional one million people in high-burden countries. This is the aim for three million people by 2028.
The Department will prioritise countries based on HIV burden and existing health infrastructure. This is to work with national governments under the Trump administration’s America First Global Health Strategy.
Meanwhile, senior democratic lawmakers have urged the State Department to reconsider plans to cut lifesaving foreign aid assistance to several African countries. They warn that the move could have devastating humanitarian and security consequences.