Many Organizations Planning Staff Reductions During 90-Day Review
Many NGOs in a recent survey reported receiving “stop work” orders from US government sources, as the White House put foreign aid on hold for 90 days and closed a major aid agency.
In Kenya, these orders could interrupt HIV/AIDS prevention programs, with around 30,000 workers potentially losing their jobs. This includes doctors, nurses, clinical officers, and community health workers who now face uncertainty while the Trump administration reviews and likely reduces funding through the United States Agency for International Development (USAID).
The International Council of Voluntary Agencies (ICVA) found that more than 60% of non-governmental organizations (NGOs) that received over $1 million from US aid programs expect to face money problems during this freeze.
While the US government has described this as a temporary review to determine which programs should continue, many experts believe funding will be significantly reduced when the review ends.
“In financial terms, U.S. foreign aid has typically been less than 1% of the federal budget but has produced remarkable results,” Dr. Jamie Munn, ICVA’s Executive Director, said in late January.
“This aid freeze, and possible longer-term cuts to critically needed programs, risks damaging strategic partnerships and weakening the soft power that has long been central to U.S. global influence.
Such actions could reduce the United States’ influence and credibility, leading to a more unstable and divided world,” he added.
Last year, USAID provided 19 billion Kenyan shillings (approximately $150 million) to programs in Kenya, supporting both public health initiatives and NGO activities.
Kenya’s National Treasury has announced plans to shift some development funds toward critical health programs affected by the aid suspension. The country’s health system depends heavily on foreign support for treating malaria, tuberculosis, and HIV/AIDS.
The affected organizations are not just considering staff cuts – they’re also looking at scaling back their activities, reviewing their programs, and reconsidering partnerships with other organizations.
Some essential healthcare services and diversity programs may be completely eliminated, the survey found.
The uncertainty has pushed some organizations to quickly seek new donors, use their emergency funds, and change their legal status to avoid potential lawsuits when layoffs begin.
According to the United Nations, the US provides over 40% of global humanitarian aid, and this withdrawal will create a funding gap that will be very difficult to fill.
The funding suspension will also affect many smaller organizations that don’t receive direct US funding. Among the organizations that do get US aid, 61% report they will have to suspend partnerships with smaller dependent groups. This will mostly impact local educational and health initiatives in specific regions.
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