Picture this: you’re struggling, and in walks a partner—not just with help, but with optimism, experience, and a track record for progress. That was USAID – United States Agency for International Development –  for more than 60 years. Since 1961, it offered practical help and hopeful vibes to over 100 countries, jumping into classrooms, clinics, forests, and voting booths with solutions and support. But 2025 flipped the script. In a swift and sweeping move, the majority of USAID’s programs were shut down, leaving nonprofits and communities reeling. This sudden withdrawal left more questions than answers – what changed, and why? What happens to those who still need help? Who’s left picking up the pieces? Let’s dive into the details and decode this development drama.

USAID – The U.S.’s Global Superhero

In 1961, President John F. Kennedy gave global aid a makeover and introduced USAID—the friendly fixer-upper of international development. He brought together scattered programs under one cheerful, can-do agency with a clear mission: help out where help was needed, and do it with a toolbox full of smarts and compassion.

Humanitarian Aid

From bustling cities to remote villages across Africa, Asia, and beyond, USAID showed up with both technical skills and financial assistance. It worked its magic across continents—relieving disasters, fighting poverty, boosting education, improving health, and offering clever solutions to tricky global problems. It wasn’t just a helping hand; it was the wise sidekick cheering, teaching, and walking beside nations on their road to progress.

Global Hero Hangs Up Their Cape

Jar of Hope

In March, an announcement was made to withdraw 83% of USAID programs worldwide, leading to the 2025 suspension of funding that has severely disrupted vital initiatives in health, education, governance, and humanitarian aid across numerous countries.

Health and Humanitarian Programs On Hold

  • In northern Syria, where recovery was already a tall order, Doctors of the World Turkey had to shut down 12 field hospitals and let go of 300 team members. With USAID once covering 60% of its funding, the group has cut back from 5,000 daily consultations to just 500.
  • In South Africa, PEPFAR (President’s Emergency Plan for AIDS Relief) funding from the U.S. covers nearly a fifth of the $2.3 billion needed each year to fight HIV/AIDS, and now that lifeline is hanging by a thread.

Shifts in Nutrition Support

  • Due to the USAID withdrawal, 13,000 people in Haiti have lost access to vital nutritional support, and approximately 550,000 people are expected to be affected in the coming months.
  • According to the International Rescue Committee, with USAID pulling back, 25,000 kids in Nigeria struggling with severe malnutrition won’t get food assistance anymore by April 2025.

Governance and Civil Society Programs Disrupted

  • In Myanmar, just as the voices of democracy were starting to grow louder, $39 million in support was frozen mid-note. But even with the funding paused, hope is still fluttering somewhere just above the clouds.
  • In Armenia and Georgia, USAID programs that once painted a brighter picture for civil society and press freedom have paused mid-stroke due to the recent USAID withdrawal announcement.

Environmental and Conservation Efforts Halted

  • In Brazil, where USAID disbursed $22.6 million in 2024, with nearly $14 million dedicated to protecting the Amazon, the sudden funding halt has left major conservation efforts hanging. With programs now suspended, Amazon’s biodiversity and indigenous communities face growing threats without the crucial shield they once had.
  • In Peru, where USAID’s $135 million once helped plant dreams of coffee and cacao instead of coca, the recent withdrawal has reignited fears of a return to old, illicit paths—namely, the cultivation and trafficking of coca for cocaine production, a route many farmers once relied on in the absence of better options.

Economic and Investment Implications

  • In 2024, USAID’s $1.2 billion uplifted Jordan, covering more than 2% of its GDP and sparking real change. But this unexpected funding halt has strained public finances, endangered essential services, and led to layoffs in development programs.
  • In 2024, Ukraine remained the largest recipient of USAID support, receiving $5.8 billion. With the recent withdrawal, though, the government’s scrambling to fill gaps, and investors and donors might get nervous about the uncertainty without strong USAID support.

The Search For A New Hero

Next Superhero After USAID

With USAID pulling back, it’s a tough spot to be in, but the good news is, there’s still hope on the horizon! There are plenty of potential heroes out there who could step in.

Private organizations could step in to fill the gap — the Gates Foundation could boost health and development projects, while the Ford Foundation might focus on strengthening civil society and human rights initiatives. Corporations with strong CSR programs might look to ramp up their efforts, using their resources to fill the gap where needed. Local governments can also rise to the occasion by reallocating resources, building strategic partnerships, and investing in the right causes. With a focus on resilience, they have the power to keep essential programs afloat—even without international aid in the picture.

Impact investors and social enterprises could bring in sustainable solutions that provide long-term benefits. United Nations agencies, such as UNDP (United Nations Development Programme) and WFP (World Food Programme), might also be able to rally together resources to continue crucial work. Even European nations, with their long-standing commitment to development cooperation, could play a pivotal role in bridging the funding gap. It’s all about new collaborations and innovative thinking to step in when the old guard takes a step back.

From Foreign Aid To Local Action: The India Chapter

Local Action

If major funding like the $151 million from USAID to India slows down or stops, it could seriously impact progress—especially in healthcare, maternal health, and environmental programs. And it’s not just India—many countries that rely on USAID face the same challenge. But all is not lost.

This is where CSR can shine. Indian companies or MNCs with a presence in India can step up and make a difference by supporting the programs and institutions impacted by these funding shifts. NGOs like Epic Foundation, SNEHA, SEWA, Raksha Foundation, and Kalpavriksh are already doing the groundwork—this is the moment to help them go further. With added support, SNEHA can reach more mothers and children, SEWA can expand its livelihood programs, Raksha can boost its animal and child welfare efforts, and Kalpavriksh can scale up environmental advocacy.

Additionally, organizations like Epic Foundation can connect more donors with nonprofits that support children, youth, and the planet—with heart, purpose, and a commitment to keeping the spirit of hope and hustle alive.

Whether it’s boosting grassroots healthcare, backing environmental protection projects, or supporting education and family planning programs—NGOs, local governments, and corporate partners together can step in to keep these efforts thriving. 

Supporting these causes not only keeps vital programs running but also creates a more local, sustainable impact. 

Looking to make a difference? Check out Green Pistachio and discover how you can be part of the solution. Let’s fill that funding gap together—one pistachio at a time!

References:

  1. https://apnews.com/article/usaid-hiv-humanitarian-assistance-disease-spending-20f9cb969ffb6773e57886e34bf69165 
  2. https://www.marketscreener.com/news/latest/Emerging-economies-most-vulnerable-to-USAID-elimination-49062420/ 
  3. https://www.cp24.com/news/world/2025/03/01/usaid-cuts-are-already-hitting-countries-around-the-world-here-are-20-projects-that-have-closed/ 
  4. https://www.financialexpress.com/world-news/us-pulls-plug-on-83-percent-of-usaid-programmes-how-will-india-cope/3773547/ 
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