The sudden suspension of U.S. foreign aid under President Donald Trump has triggered a global humanitarian crisis. To be clear, a US court has held that the abrupt shuttering of USAID, a congressionally created agency, by the political executive likely violated the Constitution. But as the case winds itself through the court system, the human impacts are immense.
The abrupt halt to funding has led to the collapse of vital healthcare programs, the closure of democracy initiatives, and the abandonment of vulnerable communities that relied on U.S. support. This move reflects a broader trend of closing civic space and helps authoritarian regimes and populist political parties to tighten their grip on governance worldwide. Civil society organizations (CSOs) are forced to urgently seek alternative funding to sustain their life affirming work.
Immediately after taking office on January 20, President Trump imposed a 90-day freeze on all U.S. foreign aid—amounting to over $40 billion—to reassess spending and cut funding that did not align with his administration’s priorities. Elon Musk, who has taken an active and prominent role in shaping U.S. government policies, has been a vocal critic of the U.S. Agency for International Development (USAID), calling it a “criminal organization” and advocating for its dissolution. While the phenomenon of democracy being menaced by oligarchs who have come to control wide swathes of the media and tech landscape is fast becoming a global phenomenon, in the United States under Donald Trump, it has reached epic proportions.
The consequences of the aid freeze have been swift and severe
The consequences of the aid freeze have been swift and severe. Lifesaving programs that provide emergency food supplies, HIV treatments, and vaccines for diseases like malaria, polio, and tuberculosis have been thrown into jeopardy. Many CSOs, particularly those working in the global south, lack alternative funding sources and have been forced to scale back or shut down operations altogether. The freeze has also had a profound impact on organizations focused on human rights, independent media, LGBTQI+ advocacy, women’s rights, and environmental protection—many of which are at risk of closure. Without this support, millions of people worldwide face heightened vulnerability.
Since its founding in 1961 during the Cold War, USAID has played a crucial role in U.S. foreign policy, operating in 177 countries with approximately 10,000 staff members, two-thirds of whom are stationed abroad. The U.S. has historically been the largest contributor to international development, providing 40% of all humanitarian aid in 2024. USAID alone disbursed around $40 billion last year, supporting countless CSOs engaged in humanitarian and development efforts across Africa, Asia, and Latin America.
In terms of democracy support, the Trump administration has also discontinued funding of Freedom House and froze congressionally approved funding for the National Endowment for Democracy, both of which are well known for their work worldwide. The Lifeline Embattled CSO Fund, which provides emergency assistance to organisations facing the brunt of civic space, restrictions has also been negatively impacted.
Freeze of U.S. support is part of an international shift
The recent freeze of U.S. support is part of a growing international shift away from foreign aid toward nationalist policies. As governments prioritize domestic interests over global engagement, organized civil society faces an existential challenge. The sustainability of human rights and humanitarian work now hinges on innovative funding strategies, including philanthropic partnerships, diversified revenue streams, and local fundraising efforts, all of which are not easy to action, especially at short notice.
The international community must recognize the gravity of this crisis and act swiftly to support civil society organizations in their fight for human rights, democracy, and sustainable development. Without urgent intervention, the progress made over the past decades in health, human rights, and poverty reduction could be undone, leaving millions without essential support.
A longer version of this blog originally appeared on CIVICUS Lens.