USAID Closure and Consequences - Some Reports Suggest 14 Million May Die

1st July 2025

The U.S. Agency for International Development officially ceased to operate as an independent agency on March 28, 2025. At that point, 83 percent of its programs were discontinued, some 5,200 contracts were cancelled, and remaining functions began transferring to the State Department for oversight.

Immediate Humanitarian Impacts
Disruption of life-saving programs such as famine relief, refugee support, and disease control, leaving vulnerable populations without aid.

The Food for Peace initiative—procuring roughly $2 billion of food annually, about 7 percent of that from U.S. farmers—was halted, harming both recipients abroad and domestic agricultural suppliers.

Suspension of HIV/AIDS treatment funding under PEPFAR risks increased infection rates and mortality in high-burden countries.

Economic and Domestic Effects
Cancellation of 5,200 contracts inflicts losses on U.S. businesses and nonprofits that relied on USAID awards.

Thousands of employees and contractors worldwide have been laid off, creating gaps in expertise and institutional memory.

Domestic agricultural sectors, particularly those supplying humanitarian food aid, face sudden revenue shortfalls.

Geostrategic and Political Ramifications
A void in U.S. development leadership invites rival donors—such as China, the EU, and Gulf states—to expand influence through infrastructure financing and bilateral aid.

USAID's closure weakens American "soft power," undermining long-standing efforts to promote democracy, human rights, and stable governance in developing regions.

Legal challenges question the constitutionality of dismantling a congressionally-mandated agency by executive decision—litigation that could reshape future executive-legislative relations over foreign-aid authority.

Top Countries Receiving USAID Assistance
A review of USAID disbursements in fiscal year 2023 shows a clear focus on crisis-affected and geopolitically strategic regions. Ukraine tops the list by a large margin, with several African and Middle Eastern nations following.

Top Recipients by Funding
Rank Country Aid Received
1 Ukraine $16.2 billion
2 Ethiopia $2.0 billion
3 Jordan $1.2 billion
4 Afghanistan $1.2 billion
5 Somalia $1.1 billion
6 Yemen $1.1 billion
7 DR Congo $982 million
8 Syria $894.7 million
9 Nigeria $824 million
10 South Sudan $740 million

These figures are drawn from USAID disbursement data compiled by Data Pandas and BusinessDay NG.