THE crisis is disproportionately affecting women and children, who are already the most vulnerable in humanitarian emergencies. ...听report highlights increased risks of gender-based violence, child labour and early marriage as families struggle to survive without aid, writes Mohammed Norul Alam Raju
IN JANUARY 2025, the Trump administration made an unprecedented move: freezing all USAID foreign aid, effectively disrupting global humanitarian operations. The decision sent immediate shockwaves through the sector, leading to the agency鈥檚 website being taken offline, workforce reductions and plans to dismantle USAID under Elon Musk鈥檚 leadership of the Department of Government Efficiency. By February, secretary of state Marco Rubio sought to merge USAID鈥檚 functions into the State Department, leaving oversight of $8.2 billion in aid in limbo. A federal judge ordered the freeze to be lifted on 14 February, yet administration officials refused to comply, prompting legal battles and growing uncertainty about the future of US foreign assistance. Meanwhile, aid-dependent projects worldwide were already terminating their contracts 鈥� including a $29 million initiative in Bangladesh.
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Bangladesh: workers at risk
A BBC Bangla report, citing a national daily newspaper, detailed how the funding cuts have left NGO workers in crisis. According to the NGO Affairs Bureau, 274 NGOs in the country receive international funding, with 87 directly supported by USAID. These organisations collectively ran projects with a network of 327 NGOs, now left without crucial financial support.
As a direct consequence, over 10,000 employees working on USAID-funded projects have lost their jobs. Many were employed on a contractual basis, meaning they received no severance or financial compensation. The result is widespread financial uncertainty, compounded by the collapse of essential services. Healthcare, education, agriculture, food security, democracy and governance, environmental protection, energy and humanitarian assistance programmes have all been severely affected.
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Global crisis
BEYOND Bangladesh, the funding freeze has set off a global humanitarian emergency. A survey conducted by the International Council for Voluntary Agencies, a global NGO network, found large-scale disruptions to health, nutrition, education and protection services. Of the 246 NGOs responding to the survey, 67 per cent reported receiving stop-work orders, resulting in immediate programme shutdowns, staff layoffs and increased risks for already vulnerable populations.
The worst-affected regions include Africa, Asia, the Middle East and Latin America, where thousands of humanitarian projects have been abruptly terminated. The survey found that many NGOs relied heavily on US funding 鈥� primarily through USAID鈥檚 Bureau for Humanitarian Assistance and the Bureau of Population, Refugees and Migration 鈥� to sustain their operations. One national NGO in Asia reported that the freeze had led to a 鈥榮udden stop in lifesaving support鈥� for over three million internally displaced people in a single country.
Health systems in collapse
MEDICAL services have been among the hardest hit. In Africa, children living with HIV have dropped out of treatment programmes due to medication shortages. In Asia, efforts to prevent cholera and malaria outbreaks have been halted, dramatically increasing public health risks. Meanwhile, in the Americas, the closure of sanitation facilities providing clean water and hygiene services has placed thousands of Venezuelan refugees in peril.
A staff member from a community-based organisation in Africa described the crisis in stark terms: 鈥榃e have orphans for whom we pay school fees and provide scholastic materials. We are confused about how they will return to school under these circumstances. Directors are planning to solicit funds from personal savings where possible to ensure these innocent children do not miss school.鈥�
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Humanitarian system in jeopardy
THE repercussions of the funding freeze extend beyond service disruptions. The International Council for Voluntary Agencies findings indicate that trust between NGOs, governments and local communities has been deeply eroded. Many NGOs are now in financial distress, with the US government owing millions in unpaid reimbursements. Without these funds, organisations have been forced to downsize, scale back operations, or shut down entirely.
Over half of the surveyed NGOs reported significant impacts on their workforce, with mass staff terminations and unpaid leave becoming the norm. The loss of trained humanitarian personnel threatens to undo years of progress in crisis response and capacity-building, leaving future humanitarian efforts severely weakened.
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Women and children
THE crisis is disproportionately affecting women and children, who are already the most vulnerable in humanitarian emergencies. The International Council for Voluntary Agencies report highlights increased risks of gender-based violence, child labour and early marriage as families struggle to survive without aid. One NGO in Latin America reported that the cessation of advocacy programmes has made it harder for survivors of domestic and sexual violence to seek justice, further entrenching impunity for perpetrators. In Africa, orphans and children affected by HIV/AIDS have lost access to education and nutrition programmes, putting them at even greater risk of exploitation.
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Call for action
IF THE funding freeze is not reversed, humanitarian needs will escalate due to ongoing conflicts, climate change and economic instability. The ICVA report makes clear that the longer this suspension continues, the harder it will be to rebuild the humanitarian infrastructure that has taken decades to establish.
Immediate action is required to restore funding, ensure timely reimbursements and protect the most vulnerable from the devastating consequences of these decisions. This crisis is not just about money 鈥� it is about human lives. The international community must step up to prevent further suffering and ensure that humanitarian aid remains apolitical, neutral and accessible to those who need it most.
Furthermore, long-term strategies must be developed to help local NGOs survive without excessive dependence on foreign aid. In Bangladesh, where NGOs have played a critical role in improving human development indicators, the government must take responsibility for supporting the sector in its time of crisis.
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Mohammed Norul Alam Raju is a researcher and development activist currently pursuing higher studies in Belgium.