The decision to drastically reduce funding for programs run by the U.S. Agency for International Development (USAID) has resulted in significant changes to American international development efforts. The Trump administration’s move to halt over six decades of developmental work placed tremendous pressure on the remaining USAID staff, who have been informed that their positions will be terminated by September. Elon Musk, a prominent billionaire advisor to the president, orchestrated the deconstruction of USAID, labeling it as corrupt and criminal. Similarly, Secretary of State Marco Rubio criticized many USAID programs for failing to support U.S. interests. Efforts to dismantle the agency continue, with plans to transition any remaining initiatives under the State Department, including humanitarian and food aid programs.
When such funding cuts became a reality, numerous organizations and former staff who once facilitated these programs began exploring alternative strategies to bridge gaps left by the dismantling of U.S. foreign aid. Laura Meissner, a veteran contractor with USAID specializing in direct cash assistance for humanitarian needs, initiated efforts to provide financial relief for displaced USAID employees facing job loss. Joined by fellow organizers, Meissner helped establish The Solidarity Fund in conjunction with the Greater Washington Community Foundation. This initiative aims to distribute grants starting at $650 to affected workers, adjustable based on household size, to help cover essential living costs like groceries, medical bills, and housing expenses. To date, the fund has attracted $16,000 in donations from 140 supporters, and has extended support to ten applicants.
In parallel, organizations such as the think tank Rethink Priorities have been analyzing the broader implications of USAID’s dismantling. In efforts to aid philanthropists looking to fill funding voids, they offer a comprehensive understanding of the cuts’ impacts on various development fields. By providing insights into the relative importance and urgency of different funding areas, they hope to direct donor contributions effectively, even advocating for emergency funds where critical needs exist.
Following the curtailment of USAID operations, emergency funds were established promptly by nonprofit organizations to support life-saving initiatives and assure organizational sustainability. The United Nations World Food Programme (WFP) has also launched campaigns to offset losses by aiming to collect $25 million from American contributors. Although emergency funds have garnered between several hundred thousand and over three million dollars predominantly from individual donors, these efforts only provide a fraction of the massive budget shortfall resulting from USAID cuts. Beneficiaries of these emergency funds include organizations delivering crucial aid across conflict zones and areas experiencing severe humanitarian crises, such as Yemen, the Democratic Republic of Congo, Kenya, and Ethiopia.
Despite these efforts, the sheer scale of U.S. aid cuts exceeds the capacities of bridge funds to fully compensate for lost billions. For many development entities, even those without direct USAID funding, the uncertainty regarding long-term financial stability is looming. Blair Glencorse, co-CEO of the Accountability Lab, highlights that more than a third of surveyed nonprofits expect their funds will run out in less than three months. His organization has been approached by over 70 nonprofits, predominantly from the Global South, seeking advice on mergers, program spins-offs, and other strategic organizational changes to preserve valuable resources, including talent, infrastructure, and expertise.
Glencorse estimates that facilitating organizational transitions might cost between $30,000 and $50,000 per arrangement. With some support from foundations, his team is providing a ‘partnership matching service’ to help nonprofits navigate this pivotal period, though the window for making these significant changes is limited to about 6 to 9 months. The snowball effect of the U.S. aid reduction is increasingly visible, with cascading repercussions across the sector as organizations struggle to adapt to this new landscape of international aid.