On February 26^th, 2025, the Trump administration eliminated more than 90% of the U.S. Agency for International Development (USAID)’s foreign aid contracts and $60 billion in overall assistance “From The American People” around the world. This is a disaster of existential proportions for the humanitarian world, leaving a $60 billion hole in the annual funding for projects like ours. The U.S. government, through USAID, is the single-largest aid donor in the world, accounting for more than 40% of all humanitarian aid in 2024 according to the UN.

This cut has also forced thousands of employees and their families at American embassies around the world to return home within 30 days and left countless NGOs and humanitarian organisations without funding. Sure it’s now a lot easier to rent an apartment in Kyiv, however, the entire recovery of Ukraine is in peril.

Gimme shelter

Musk and his DOGE team have slashed USAID to the bone and there are rumours of a blacklist for any organisation that has ever received money from USAID. This neutering has also effectively halted all international development projects because USAID is omnipresent as a co-funder. A typical USAID 40% contribution pretty much guarantees that every project takes leadership from the U.S. State Department.

Foreign aid for emergency food, water, healthcare, shelter and sanitation will still be funded as needed but the development aspect of foreign aid has been virtually wiped out. So where will the money for development projects like the recovery and reconstruction of Ukraine going to come from?

Over 37 nations have joined a Coalition of the Willing to support Ukraine. Ostensibly created to take up the slack if the U.S. pulls its military support, it’s unclear if this will include replacing the approximately $40 billion annual Ukraine funding gap left by USAID’s departure. Supplanting American funding is one thing, but replacing the intangible aspects of USAID will be much more difficult.

Culture Club

It's not just about money, USAID is also the primary cultural expansion tool for the American-led capitalist, democratic world order. All the grain bags and water bottles handed out in UN camps around the world are proudly emblazoned with the Stars and Stripes and the USAID ‘From the American People’ logo. The biggest American export is its culture, and USAID is the tip of the culture spear, ensuring all those starving and traumatised refugees know that America is their saviour and American culture is their reward.

Beijing calling

Without USAID and the implicit U.S. backing it conveys, climate change, international development and post-war recovery funding risks being taken over by China. Money from China comes with a lot fewer strings attached, like the democracy, gender, inclusion and environmental requirements for which USAID is famous. Money from China is always available, as long as you can make the interest payments.

NGOs and development agencies who’ve lost USAID funding will now start looking elsewhere. But where? Most existing aid is connected to USAID in some way, India has no money to spare, and Europeans are raiding development budgets to facilitate domestic military spending.

China may not be the best partner from a humanitarian perspective, but when you’re desperate, you’ll take money from anyone to survive. Since USAID has closed up shop, Beijing is now open for business.

Slava Ukraini!  Heroaim Slava!