From USAID to USAIHA
What Changes? What Next?
This week, official memos from the U.S. Department of State and the U.S. Agency for International Development (USAID) confirmed a major reorganization of U.S. foreign assistance.
USAID is expected to be replaced by a new agency: the U.S. Agency for International Humanitarian Assistance (USAIHA).
Key figures reported as of March 21, 2025:
• 5,341 programs terminated since January.
• $75.9 billion in programs closed.
• $27.7 billion in unobligated funds returned.
898 programs remain active, primarily in emergency food assistance and global health.
869 employees are on active duty, while 3,848 are currently on administrative leave.
1,602 people are expected to be laid off by May.
- Nearly all funding has been cut in the following areas:
- Basic Education
- Civil Society
- Conflict Mitigation
- Family Planning
- Good Governance
- Higher Education
- Infrastructure
- Political Consensus Building
- Private Sector Development
- Trade and Investment
47 countries will see their program funding almost entirely eliminated.
The reorganization introduces three main pillars:
USAIHA will focus on humanitarian assistance, disaster response, food security, and global health, in line with U.S. strategic priorities.
The U.S. International Development Finance Corporation will absorb the Millennium Challenge Corporation and the U.S. Trade and Development Agency, aligning development finance with infrastructure, energy, and private investment.
The U.S. State Department will manage politically oriented programs, including those focused on democracy, governance, and human rights.
A new analysis from the Center for Global Development suggests that Ukraine, Ethiopia, the Democratic Republic of the Congo, and Colombia could see the largest reductions in absolute terms, while Liberia, Palestine, and Somalia could see the largest declines relative to their gross national income.
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