Global Aid Crisis Looms As US And EU Slash Development Budgets

Global aid cuts by the US and EU threaten vulnerable populations, with significant consequences for humanitarian efforts, poverty eradication, and global security, according to experts.

- TDG NETWORK

The world's most vulnerable populations are facing an uncertain future as the United States and several European Union (EU) member states scale back their foreign aid budgets. USAID (the US Agency for International Development) has historically been one of the largest contributors to global development and humanitarian aid, funding projects that support everything from health care and education to disaster relief. However, its recent budget cuts, along with significant reductions in European aid contributions, are raising alarms among global development experts and organizations. As the gap left by these budget cuts grows wider, there are concerns that millions of people in some of the world's most fragile and conflict-ridden regions will no longer receive the support they desperately need.

IMPACT OF USAID CUTS

In 2017, as soon as Donald Trump took office, he made sweeping changes to the United States' foreign aid policy, including a 90-day freeze on all US foreign assistance. The freeze affected over $40 billion in international development aid allocated through USAID. This move marked the beginning of a series of decisions that would ultimately reduce US foreign assistance, contributing to a rapid decline in global humanitarian support. In 2023, USAID's funding fell by a significant margin, creating a gap in funding for essential programs that aid vulnerable populations around the world. USAID had long been a support for organizations working on the ground in regions suffering from conflict, poverty, and natural disasters. For example, the Danish Refugee Council (DRC), one of Europe's largest humanitarian NGOs, had historically received significant funding from USAID to implement its programs in Sudan, Cameroon, Colombia, Afghanistan, and many other countries. USAID funding supported over 20 of DRC's 40 ongoing projects. When USAID cuts began, the DRC was forced to shut down numerous programs, leaving millions of people without crucial aid.