The China Mail - US funding freeze is 'bombshell' for world aid sector

USD -
AED 3.67305
AFN 63.483762
ALL 83.130011
AMD 368.260537
ANG 1.790403
AOA 917.468877
ARS 1477.237062
AUD 1.445714
AWG 1.8
AZN 1.700783
BAM 1.724631
BBD 2.015008
BDT 123.052911
BGN 1.69088
BHD 0.377023
BIF 2985
BMD 1
BND 1.298014
BOB 6.913275
BRL 5.195399
BSD 1.000494
BTN 94.394378
BWP 13.651955
BYN 2.847191
BYR 19600
BZD 2.012169
CAD 1.419865
CDF 2269.000308
CHF 0.810045
CLF 0.023336
CLP 918.490322
CNY 6.790501
CNH 6.801705
COP 3445.39
CRC 455.363127
CUC 1
CUP 26.5
CVE 97.375019
CZK 21.332097
DJF 177.720399
DKK 6.571161
DOP 58.949976
DZD 133.428028
EGP 49.519702
ERN 15
ETB 158.649936
EUR 0.87914
FJD 2.26175
FKP 0.75995
GBP 0.757655
GEL 2.639619
GGP 0.75995
GHS 11.225014
GIP 0.75995
GMD 72.501353
GNF 8774.99992
GTQ 7.632888
GYD 209.329395
HKD 7.84075
HNL 26.719808
HRK 6.627197
HTG 130.762583
HUF 311.387015
IDR 17961.8
ILS 2.982925
IMP 0.75995
INR 94.44965
IQD 1310
IRR 1375050.000114
ISK 126.551286
JEP 0.75995
JMD 157.684032
JOD 0.709022
JPY 161.802041
KES 129.394249
KGS 87.450127
KHR 4009.999932
KMF 433.999994
KPW 900.00035
KRW 1544.784972
KWD 0.30963
KYD 0.833737
KZT 484.885895
LAK 22065.000044
LBP 89549.999705
LKR 337.175056
LRD 182.25009
LSL 16.590354
LTL 2.95274
LVL 0.60489
LYD 6.405043
MAD 9.415501
MDL 17.758476
MGA 4224.999809
MKD 54.198171
MMK 2099.534862
MNT 3583.823146
MOP 8.07945
MRU 40.069702
MUR 48.193657
MVR 15.450309
MWK 1736.99973
MXN 17.51417
MYR 4.122031
MZN 63.909553
NAD 16.590352
NGN 1375.66987
NIO 36.609878
NOK 9.853235
NPR 151.027498
NZD 1.769895
OMR 0.384502
PAB 1.000485
PEN 3.422021
PGK 4.38325
PHP 61.338504
PKR 278.050222
PLN 3.766665
PYG 6113.48706
QAR 3.645011
RON 4.601199
RSD 103.21099
RUB 75.703359
RWF 1466
SAR 3.754957
SBD 8.051953
SCR 14.696907
SDG 600.000269
SEK 9.732975
SGD 1.296301
SHP 0.746601
SLE 24.80389
SLL 20969.503664
SOS 571.503468
SRD 37.320338
STD 20697.981008
STN 22
SVC 8.754541
SYP 110.532098
SZL 16.590103
THB 33.371953
TJS 9.249239
TMT 3.5
TND 2.937502
TOP 2.40776
TRY 46.514204
TTD 6.795175
TWD 31.821502
TZS 2618.935975
UAH 44.986949
UGX 3701.80946
UYU 40.139678
UZS 12015.000196
VES 620.752985
VND 26320
VUV 119.820737
WST 2.777776
XAF 578.419823
XAG 0.017201
XAU 0.000248
XCD 2.70255
XCG 1.803071
XDR 0.718004
XOF 572.999659
XPF 105.501968
YER 238.625001
ZAR 16.4793
ZMK 9001.200492
ZMW 18.058287
ZWL 321.999592
  • RBGPF

    0.0000

    61.3

    0%

  • BCC

    0.9150

    78.575

    +1.16%

  • BCE

    0.0350

    23.235

    +0.15%

  • JRI

    0.1100

    12.68

    +0.87%

  • NGG

    0.5700

    83.4

    +0.68%

  • RYCEF

    0.5900

    18.75

    +3.15%

  • CMSD

    -0.1500

    21.87

    -0.69%

  • CMSC

    -0.0250

    22.04

    -0.11%

  • GSK

    0.9600

    52.05

    +1.84%

  • AZN

    2.2600

    185.28

    +1.22%

  • VOD

    0.0500

    13.86

    +0.36%

  • BTI

    0.7400

    62.13

    +1.19%

  • RELX

    -0.1200

    31.03

    -0.39%

  • BP

    0.0900

    37.95

    +0.24%

  • RIO

    1.0600

    95.09

    +1.11%

US funding freeze is 'bombshell' for world aid sector
US funding freeze is 'bombshell' for world aid sector / Photo: © AFP

US funding freeze is 'bombshell' for world aid sector

US President Donald Trump's order to suspend most foreign aid has sent shock waves through the humanitarian sector, threatening to trigger mass layoffs at many NGOs and possibly destroy others altogether.

Text size:

Less than a week after Trump returned to power, the US Agency for International Development told NGOs they would have to cease operations immediately because the new administration had frozen USAID's budgets.

The US president has ordered a 90-day review of USAID -- which runs health and emergency programmes in around 120 countries, including the world's poorest.

The campaign is being spearheaded by his billionaire ally Elon Musk, who has boasted of feeding USAID "through the wood-chipper".

Trump's administration has since issued waivers for some "life-saving" aid, while the freeze included exceptions to funding for Israel and Egypt.

But confusion reigns over how those waivers will be implemented and the uncertainty has already taken its toll.

The order to stop work immediately hit "like a bombshell", said a source at an NGO in Kenya.

He asked to remain anonymous out of fear his charity could be punished by the Trump administration.

"It threw people into panic mode," the aid worker said of the freeze, pointing out that the lack of notice meant staff had no time to adapt.

They were instantly put on compulsory unpaid leave and the organisation was no longer able to pay their rents or salaries, he said.

"What's that going to mean for people who have children?" he asked, aghast.

- Impossible to compensate -

According to aid network ALNAP, more than 630,000 people were employed in the aid sector in 2020, more than 90 percent of them local staff.

For many locals, the US freeze spells unemployment in countries with fragile economies where finding another job is almost impossible.

Expatriates working for aid agencies also face disruption.

"We notified everyone on US budgets that they had been suspended temporarily," said a source at the European headquarters of an NGO mostly financed by US funds.

The consequence for expatriates, she said on condition of anonymity, is that "they put you on a plane and you go back home".

Except, she added, "you don't necessarily have a home" because many expat aid workers go from mission to mission, with no home base in their country of origin.

USAID manages a budget of $42.8 billion -- representing 42 percent of humanitarian aid disbursed worldwide.

NGOs will have to "lay off employees in proportion to their dependence on US funds", she said.

"If an NGO depends 60 percent on USAID, it will have to lay off 60 percent of its employees. If it depends 40 percent, it will lay off 40 percent."

It would be "impossible to compensate for the loss of US funds", she said.

- 'Brutal' -

The Norwegian Refugee Council, one of the world's largest aid agencies, said on Monday it was forced to abruptly suspend US-funded "urgent humanitarian work for hundreds of thousands of people in nearly 20 countries affected by wars, disasters and displacement".

Just under 20 percent -- $150 million -- of its funding came from the United States last year, providing vital support for 1.6 million people.

While the initial US funding freeze was set to last 90 days, the administration has already begun slashing USAID's workforce, and many in the aid sector fear a drastic long-term drop in US support.

Trump and Musk have publicly vowed to shutter USAID for good.

"We're not so vulnerable that we'll just fold in 90 days. The problem is, will this last 90 days or go on much longer?" said Kevin Goldberg, head of Solidarites International, which is 36 percent US-funded.

Local partners of international NGOs, "who depend on our ability to transfer part of the US aid allocated to us", would also suffer, he added.

Goldberg said he "feared for the entire humanitarian chain".

"There are a lot of players in the aid sector that will disappear" because European state funding is also decreasing, warned Jean-Francois Corty, head of Medecins du Monde.

He told AFP the US decision was an "apocalyptic revolution" for a humanitarian ecosystem that was "being... strangled to death".

An executive from another international NGO said she feared the "brutal" Trump method would have repercussions in Europe, where far-right parties drawing from the US president's playbook are gaining ground.

"This earthquake... forces us to rethink everything," she told AFP.

dl-fv-al-jf/mr/gil

T.Wu--ThChM