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31 January 2025

USAID Disrupted By Foreign Aid Freeze Amid Staff Layoffs

Uncertainty looms over humanitarian efforts as U.S. adjusts funding strategies to align with new policies.

The U.S. Agency for International Development (USAID) is facing significant disruption following the imposition of a sweeping foreign aid freeze by the Trump administration. This move has led to dozens of senior officials being placed on leave and thousands of contractors laid off, creating confusion and concern among aid organizations tasked with delivering humanitarian assistance around the world.

According to various reports, the freeze on foreign assistance, which began on January 20, 2025, has froze billions of dollars originally earmarked for programs assisting vulnerable populations. Secretary of State Marco Rubio defended the decision, stating plainly, "the U.S. government is not a charity." His comments came amid widespread criticism from humanitarian groups worried about the potential fallout from halted aid initiatives.

Aid organizations have expressed urgent alarm over the impact of this freeze, which has left them grappling with whether they can continue operations. Programs providing nutritional support to critically malnourished infants and children are now under threat, with many at risk of being left without necessary services. The confusion is not limited to non-profits; current and former USAID officials describe the aid freeze as ushering in chaos within the agency.

After the executive order was signed, more than 56 senior career USAID staff were abruptly put on administrative leave, many of whom were integral to evaluating which programs might qualify for exemptions from the freeze. Several of these individuals had been working closely with aid organizations to navigate the complex waiver process for life-saving projects, such as securing clean water for displaced persons.

Internal communications from acting USAID administrator Jason Gray reveal the administration's intent to clamp down on what it perceives as actions aimed at circumventing the President’s directives. Gray stated, “We have placed a number of USAID employees on administrative leave with full pay and benefits until...,” indicating the agency is thoroughly investigating the matter before making any definitive moves on resuming staff and programs.

Conditions have only worsened with the abrupt layoffs of contractors who supported about half of USAID’s humanitarian bureau workforce. These cuts not only halted administrative and operational support but also resulted in individuals getting disconnected from videoconferences mid-meeting due to their sudden dismissal, illustrating the chaos ensuing from the swift changes.

The flow of aid has stuttered under this uncertainty, as the State Department outlined specific guidelines only days after the freeze took effect. Initially, exemptions were limited to military aid for Israel and Egypt, alongside emergency food programs. Over time, Rubio has acknowledged the necessity of waivers for other life-saving initiatives, including medical services. Yet, as Rubio pointed out, there continues to be significant ambiguity surrounding which programs can legally operate under the new restrictions.

Rubio emphasized the importance of reviewing projects to determine which were aligned with the “America First agenda.” During his interview with SiriusXM host Megyn Kelly, he stated, “We don’t want to see people die and the like,” reinforcing the conflicting narrative where life-saving aid is seemingly at odds with political directives.

The broader consequences of this foreign aid freeze extend significantly beyond bureaucratic reshuffling. Hundreds of thousands lack access to basic medical supplies, with reports surfacing of clinics unable to receive timely deliveries of necessary medications. Aid organizations warn this shortfall will inevitably lead to devastating outcomes for those who rely on U.S. funding for their survival.

For those on the ground—whether it’s health professionals or organizational leaders—the uncertainty and operational paralysis pose grave challenges. The ramifications of these changes may reverberate globally, shrinking the U.S.'s role as a leading humanitarian aid provider.

With the country grappling with its humanitarian commitments, the direction set by the Trump administration may alter the fabric of international aid significantly, raising questions about future interventions. The operational freeze, compounded by personnel changes at USAID, threatens the very foundation of U.S. foreign assistance, leaving many to wonder what lies next for the nation’s global impact.