On January 20, 2025, US President Donald Trump issued an Executive Order (EO) mandating a 90-day suspension of U.S.-funded foreign aid, including humanitarian operations, with the stated aim of evaluating the alignment of US foreign development assistance with the administration’s foreign policy priorities (White House, 2025). On January 24, 2025, the United States Agency for International Development (USAID), the agency responsible for distributing civilian foreign aid on behalf of the US government, announced to all its global partners a pause on all new funding obligations and sub-obligations under Development Objective Agreements (DOAGs) (USAID, 2025)
The United States is the world’s largest donor of international aid. Established in 1961, USAID serves as the US government’s primary agency for funding international development and humanitarian assistance and is globally recognized for its leadership in delivering growth and humanitarian aid (FY 2024 International Affairs Budget, n.d.). Several government agencies are involved in US foreign assistance, with USAID accounting for approximately 60% of the total, followed by the Department of State, which manages nearly 30% (Brookings, 2024).
In fiscal year 2024, the United States allocated $54 billion in global assistance, supporting various international programs. Of this amount, $13 billion was explicitly directed to sub-Saharan Africa, addressing critical needs such as humanitarian aid, economic development, and infrastructure projects. Additionally, a significant portion of the remaining funds was invested in global programs, including health initiatives to combat diseases and improve medical access and climate-related efforts crucial for achieving environmental protection and sustainability. Africa has become a primary beneficiary of these broader programs, receiving substantial support to enhance resilience and development (Foreign Assistance, 2024).
The suspension of US Government funding, particularly through USAID, caused widespread disruption in ongoing and planned humanitarian programs, such as health and nutrition programs, which are critical for the health, welfare, and livelihoods of vulnerable communities worldwide. The disruption has affected millions of people, particularly in vulnerable and crisis-affected regions in the world, by cutting off essential services such as HIV treatment, tuberculosis care, and food aid (New York Times, 2025). Africa has been significantly impacted by the suspension of USAID funding, where many countries depend heavily on USAID for essential programs, with healthcare being the most significant component of US aid to Africa (ISSAfrica, 2025).
Somalia, a Horn of Africa nation facing challenges such as conflict, drought, and economic instability, relies heavily on aid. USAID funding has been a crucial lifeline, supporting essential areas such as food security, healthcare, education, and governance. The United States has provided nearly $2.3 billion for humanitarian assistance in Somalia since Fiscal Year 2022, supporting programs ranging from emergency nutrition and sanitation projects to education, skills, and livelihood programs (Reliefweb, 2024). In 2025, Somalia was set to receive $125 million in USAID funding for similar programs (AP, 2025).
A recent survey by the Somali NGO Consortium on the impact of the US aid suspension in Somalia revealed significant disruptions to humanitarian efforts. Hundreds of NGO staff have been affected, and millions have been left without essential services. According to the survey, over 60% of NGOs operating in Somalia counted on USAID as their leading donor to address humanitarian needs. Approximately 70% of national and international NGOs in Somalia receive funding from the Bureau for Humanitarian Assistance (BHA) and USAID, with more than half receiving stop-work orders, including those with indirect funding. The most affected sectors are health, nutrition, WASH, food security, education, and protection. Over 10,000 beneficiaries have been directly impacted, with one organization reporting disruptions affecting over 1.6 million people. Staff layoffs and unpaid leave have become common, leaving many NGOs in a state of uncertainty (Somali NGO Consortium, 2025).
SIDRA Institute has produced this policy brief against the backdrop of the omnipresent concern about the US funding freeze to highlight its effects on the delivery of essential services for vulnerable communities, the impact on NGO staff and employment, disruptions to economic development, and the broader implications of the sudden withdrawal of assistance in the context of aid dependency.
