Explainer: What Trump's freeze on USAID cost beneficiaries

FILE PHOTO: The USAID building sits closed to employees after a memo was issued advising agency personnel to work remotely, in Washington
Protesters at the USAID building, Washington, D.C., February 3, 2025. REUTERS/Kent Nishimura
Source: REUTERS

The Trump administration’s decision to freeze foreign aid for 90 days had widespread consequences, disrupting essential humanitarian programs worldwide.

As the largest single donor funding global aid initiative, the United States Agency for International Development (USAID) plays a critical role in supporting vulnerable populations.

If USAID funding were paused for a full year, the economic shock would exceed 1% of Gross National Income (GNI) in 23 countries, with eight experiencing losses of 3% or more. 

Among the 26 poorest countries, eight—South Sudan, Somalia, the Democratic Republic of Congo, Liberia, Afghanistan, Sudan, Uganda, and Ethiopia—rely on USAID for over 20% of their assistance. The freeze left these nations struggling to sustain vital programs

A week into the pause, Secretary of State Marco Rubio issued a waiver for lifesaving humanitarian aid and medications. However, the damage had already begun.

The impact extended beyond budget cuts. The Trump administration initiated the closure of USAID offices and programs worldwide, severely affecting efforts to combat HIV, polio, mpox, and bird flu.

According to the World Health Organization (WHO), the freeze on tens of billions of dollars in foreign aid disrupted HIV treatments and health services across 50 countries. Clinics closed, and health workers were placed on leave. 

The consequences of the aid freeze have rippled across the globe, threatening lives, livelihoods, and progress in public health and education.

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