The impact of the USAid funding freeze: what we know so far
As the disruption of the US government’s 90-day suspension of humanitarian assistance and development ripples across the sector, Bond has been working closely with members to assess both the immediate and long-term impact.
Here’s what we know so far:
- Approximately 14,000 USAid staff have been placed on leave.
- A freeze on new programs has been implemented.
- Existing programs have received stop-work orders.
The US spent $72 billion (£55 billion) on international humanitarian assistance and development in 2023; by comparison, the UK spent £15.3 billion, and in 2023, the EU’s collective ODA reached EUR 95.9 billion (approx. £79bn). It’s also important to note that most USAid-funded programs are concentrated in Sub-Saharan Africa, but significant impacts are also being reported in Latin America and across Asia and the Pacific.
Humanitarian Impact
One of the most severe immediate consequences has been on women’s health services. According to The Independent:
- Around 912,730 women per week are being denied contraception due to the freeze.
- An estimated 3.8 million women have already lost access to contraceptive care (between January 20 and February 18, 2025).
- Nearly 2 million women and girls lost access to contraceptive treatments within the first two weeks of the freeze.
Essential assistance such as food distribution, medical support, and education programs are also experiencing significant disruptions:
- Food and shelter programs in refugee camps have been reduced or stopped entirely.
- U.S. withdrawal has led to increased influence from China in affected regions.
Which programs are most at risk?
While some programs might be reinstated after the 90-day review, those that do not align with the new government’s priorities face a higher risk of closure. Programs that focus on gender equity, family planning, and diversity, equity, and inclusion (DEI) initiatives are particularly vulnerable.
For an updated list of affected programs, take a look at Devex’s tracking tool.
Waivers: who qualifies?
Humentum has very helpfully provided guidance on the waiver process. Waivers are not automatic but have been issued for:
- Emergency food assistance and administrative expenses related to its distribution.
- Salaries and travel expenses for some personal service contractors (this does not include implementing partners).
- Legitimate expenses incurred prior to January 24, 2025, or expenses related to stop-work orders.
- Exceptions approved by the Director of Foreign Assistance.
Secretary of State Marco Rubio also issued a memo on January 28, 2025, exempting:
- Lifesaving medicine, food, shelter, and basic subsistence assistance.
However, this does not apply to programs related to abortions, family planning, gender/DEI initiatives, or transgender-related services.
For more information do look at Humentum’s Navigating the USG Funding Pause for Foreign Assistance Programs: Guidance Document
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Find out moreWhat is Bond doing?
Bond is actively working to support affected organisations by:
- Supporting and providing media responses – Bond has provided commentary and press responses to outlets including Politico, LBC, PA, and the Daily Mail.
- Conducting a sector-wide survey – We have launched a survey to assess the impact of the funding freeze. If your organisation is affected, please complete the survey here to help strengthen our advocacy efforts.
- Advocating to the UK government – We have organised a private sector-wide sign-on letter to the Foreign Secretary, urging the UK to take action to mitigate the damage. The letter has now been sent, and we will keep Bond members updated. We will also be working with parliamentary allies.
- Monitoring legal and UK sector developments – On February 14, 2025, a federal judge in Washington, D.C., issued a temporary halt to the USAid freeze, mandating the restoration of funding for previously active programs. We are closely watching for further developments.
What can you do?
If your organisation is impacted by the USAid funding freeze, here are things you can do
- Stay informed: Humentum are putting out a number of helpful resources and Devex are tracking latest updates and Bond will continue to share helpful resources via our newsletter, LinkedIn and social media.
- Tell your FCDO contacts and MPs: Let your contacts in parliament and government know how this is affecting your organisation and your programs, even if you can only do it privately and if there is anything they can do to support, ask them.
- Document impact: Track and report how the freeze is affecting your programs to strengthen advocacy efforts, and you can share this information with Bond colleagues, confidentially, to help inform our advocacy efforts on behalf of the sector.
Additional resources
- Humentum’s Guide: Navigating the USG Funding Pause for Foreign Assistance Programs
- Humentum’s Guide: Navigating USG Executive Orders on Diversity, Equity, and Inclusion
- Devex’s List: Tracking affected USAID programs
- A list of terminated USAID contracts and grants can be found here
If you or your organisation are facing challenges due to the funding freeze, please reach out to Bond for support. We will continue to update our members as new information emerges.
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