Image: A health worker in Myanmar uses a stethoscope to check on a patient’s breathing. (CPI)
The abrupt shutdown of the United States Agency for International Development (USAID) has sent shockwaves through the global aid community. As a cornerstone of international aid since 1961, USAID has played a critical role in advancing public health, supporting democratic governance, and delivering humanitarian assistance worldwide. Its cessation now threatens both immediate and long-term stability across some of the world’s most vulnerable regions.
Founded by President John F. Kennedy, USAID has long served as the United States’ lead agency for foreign aid, channeling billions into programs to reduce poverty, improve health systems, and support sustainable development. With specialized bureaus and deep geographic expertise, the agency was instrumental in global successes – eradicating smallpox, expanding access to clean water, and combating diseases like HIV/AIDS, tuberculosis (TB), and malaria.
In FY2024, USAID operated on a $44.2 billion budget – just 0.4% of total U.S. federal spending – yet it accounted for over 40% of global humanitarian aid tracked by the UN. This investment yielded enormous returns in lives saved and systems strengthened.
In March 2025, the U.S. State Department announced the termination of 83% of USAID’s 6,300 global initiatives. While the available data is often inconsistent and incomplete, the Center for Global Development tentatively estimates a 38% reduction in USAID contract values for the 2025 fiscal year, with profound impacts across all sectors, including maternal and child health, pandemic preparedness, reproductive health, basic education, governance, human rights, water and sanitation, and nutrition. Programs targeting HIV, TB, and malaria have also been heavily impacted. These cuts are expected to deepen significantly moving forward.
The consequences are stark:
While data is incomplete, Foreignassistance.gov reports that USAID obligations have been cut by 98% in Myanmar and 84% in Bangladesh between fiscal years 2024 and 2025. In Myanmar, the cuts threaten HIV, TB, and malaria efforts and vital humanitarian aid for more than 20 million people in need. In Bangladesh, one million Rohingya refugees from Myanmar risk malnutrition and disease without continued support.
Beyond the immediate disruptions, the shutdown may trigger cascading global effects:
In Myanmar, the aid vacuum may further destabilize an already fragile political landscape. For Rohingya refugees in Bangladesh, shrinking aid could deepen crises across generations.
While the challenges are significant, they are not insurmountable. Strategic shifts can help mitigate the damage:
At Community Partners International (CPI), our focus has long been on empowering local actors in crisis-affected regions. By investing in community-led health, humanitarian, and sustainable development systems, we help lay the foundation for enduring stability.
The USAID shutdown underscores the vulnerability of global aid systems that are overly reliant on single sources. It also presents a call to action. By broadening funding bases, championing local leadership, and prioritizing resilience, the international community can shape a more sustainable and inclusive aid framework.
USAID’s legacy is profound. Its absence will be felt for years. But in response, we must forge a path that ensures continuity, empowers communities, and safeguards progress made over decades.
Community Partners International (CPI) empowers vulnerable communities in Asia affected by conflict, disasters, and poverty to meet their essential health, humanitarian, and sustainable development needs.
Support our mission — donate today.
Δ
Thank you for subscribing! We will update you on impacts and milestones as we empower vulnerable communities in Asia to meet their essential health, humanitarian, and sustainable development needs.
