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3 min read | Updated on February 27, 2025, 16:49 IST
SUMMARY
President Donald Trump’s sweeping foreign aid cuts, slashing over $60 billion in US assistance, could leave aid-dependent nations struggling to sustain health, economic, and security programs.
The Trump administration said it is eliminating more than 90% of the US Agency for International Development’s foreign aid contracts and $60 billion in overall US assistance around the world.
The Trump administration’s sweeping cuts to foreign assistance could leave some of the world’s most aid-dependent nations scrambling to sustain health programs, economic development initiatives and peacekeeping efforts.
The administration announced it is slashing more than 90% of the US Agency for International Development’s (USAID) contracts and reducing overall US foreign aid by $60 billion. The Supreme Court temporarily blocked a lower court order requiring the administration to release billions of dollars in assistance.
If implemented, the freeze could disrupt critical programs in several countries.
Sub-Saharan Africa, which receives substantial US aid for health and humanitarian efforts, is expected to be among the hardest-hit regions.
Kenya and Ghana had received $434 million and $334 million respectively to combat malaria, but those programs have come to a standstill, reported Reuters quoting data from foreignassistance.gov. The World Health Organization reported that African children under five accounted for the vast majority of the 597,000 malaria deaths in 2023.
HIV/AIDS treatment programs, credited with saving over 20 million lives in Africa, have been spared immediate cuts, but uncertainty about future funding looms large. The United Nations AIDS agency has warned that more than 6 million people could die in the next four years if US funding is withdrawn. South Africa, Kenya and Tanzania have been among the largest recipients of US HIV/AIDS assistance.
"That's 6.3 million people, 6.3 million AIDS-related deaths that will occur in future...Any penny, any cut, any pause, will matter for all of us," Christine Stegling, the deputy executive director of UNAIDS, told reporters in Geneva.
Israel, Afghanistan and Egypt are the top beneficiaries, and military aid to Israel and Egypt has been exempted from cuts. However, countries such as Jordan and Iraq, which rely on US support across various sectors—including economic development, health and education—could face budget shortfalls. Jordan, in particular, has been a key ally in regional stability and has benefited from significant USAID funding.
Ukraine has depended heavily on US financial assistance to rebuild its economy following Russia’s invasion. Since 2022, the US has provided nearly $40 billion in aid, a sharp increase from the $4 billion it received between 2014 and 2021. Much of this funding has gone toward non-military programs, including infrastructure development, healthcare, and agriculture. The abrupt halt in aid could slow Ukraine’s recovery and strain its ability to support displaced populations.
Afghanistan has been the single largest recipient of US aid over the past decade, receiving $53.1 billion. Most of this assistance supported stabilisation operations, security sector reform, and governance programs. However, since the US troop withdrawal in 2020, aid has steadily declined. Other major recipients, including Pakistan, Bangladesh, and the Philippines, also rely on US assistance for economic development and health initiatives.
Small island nations such as the Marshall Islands and Micronesia receive more than half of their total foreign aid from the US. The cuts could severely impact their ability to sustain basic services and disaster response efforts.
For decades, US foreign assistance has been a cornerstone of its diplomatic strategy, helping to stabilise economies, improve health conditions, and maintain alliances. The Trump administration argues that the cuts are necessary to reduce government spending and eliminate what it calls “institutional drift” in aid programs. However, development experts warn that reducing assistance could create security risks and economic instability in key regions.
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