The Ripple Effect: U.S. Foreign Aid Cuts Force Non-Profits to Adapt in Crisis

The abrupt cessation of USAID programs by the Trump administration has led to multiple initiatives to bridge the funding gap. While some organizations strive to provide support to displaced workers, others conduct research to guide future funding. Non-profits are exploring mergers and emergency fundraising to offset billions in lost aid.


Devdiscourse News Desk | Washington DC | Updated: 08-04-2025 18:01 IST | Created: 08-04-2025 18:01 IST
The Ripple Effect: U.S. Foreign Aid Cuts Force Non-Profits to Adapt in Crisis
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The abrupt halting of USAID funded programs by the Trump administration has sparked a significant shift in the landscape of international development work. With the agency's operations winding down after more than 60 years, laid-off workers and organizations are crafting solutions to fill the void left by these cuts.

Elon Musk, instrumental in the dismantling of USAID, has labeled the agency as corrupt, while Secretary of State Marco Rubio noted many of its programs failed the U.S.'s interests. As aid initiatives terminate, humanitarian and food programs are now redirected under the State Department.

Meanwhile, grassroots efforts are underway. Former USAID contractor Laura Meissner established 'The Solidarity Fund' to aid ex-workers financially. Think tank Rethink Priorities analyzes funding gaps for potential donors, attempting to redirect resources efficiently. Bridge funds and emergency efforts aim to keep critical programs alive, while many non-profits consider partnerships or mergers to survive the financial shortfall.

(With inputs from agencies.)

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