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Millions Affected As USAID Cuts Health Aid Contracts Worldwide

Projects worldwide funded by the U.S., including those offering essential care to millions in countries like Sudan and South Africa, were halted on Thursday, sending shockwaves through the international aid community.

These abrupt cancellations coincide with the nearing end of a review by President Donald Trump’s administration, which aims to align grants with the “America First” agenda. This follows a 90-day freeze on all foreign aid that started in January to evaluate whether the projects were in line with his policy goals.

Secretary of State Marco Rubio reassured that U.S. foreign aid was not ceasing, noting that waivers had been issued for essential services.

However, just weeks later, the Trump administration chose to end over 90% of the programs by the U.S. Agency for International Development, as revealed in a court document from February 25.

This termination included many initiatives previously exempt under waivers, such as those tackling HIV and broader health issues. The possibility of reinstating these projects remains uncertain.

Termination notices were also sent to significant United Nations health initiatives such as UNAIDS, the Stop TB Partnership, and Scaling Up Nutrition, impacting aid to millions of displaced individuals.

“We are hit, but we will continue to be there,” stated Lucica Ditiu, executive director of Stop TB.

Ditiu explained that the organization would rely on alternate funding sources to acquire TB tests and treatments, though it would need to end partnerships with 140 global entities that assist in diagnosing and treating TB patients.

Charlotte Slente, secretary general of the Danish Refugee Council, expressed her dismay after receiving over 20 termination notices for projects spanning Sudan, Yemen, and Colombia.

“These terminations are not only egregious breaches of contracts but also endanger the lives of millions of the world’s most vulnerable people,” Slente commented, highlighting the impact on displaced populations in conflict areas.

“While it is understood that incoming governments want to review their overseas development assistance, the decisions from the U.S. government over the last month are abrupt and unilateral, and the rationale for these is unfathomable,” Slente added.

A global non-profit focused on malaria and newborn health stated that most of its contracts had been canceled. Similarly, smaller entities like Khana in Cambodia, an organization working on TB and HIV, and numerous South African HIV and AIDS groups were also severely affected.

UNAIDS described the cessation of its partnership with USAID as a “grave development” on its website, impacting crucial services, and requested further information from the U.S. government.

Moreover, the Trump administration cut nearly 30% of the State Department’s foreign assistance grants, amounting to $4.4 billion.

The State Department has not provided reasons for discontinuing these vital aid programs.

The notice to organizations stated, “Secretary Rubio and USAID Deputy Administrator Peter Marocco have determined that your award is not aligned with Agency priorities and have decided that continuing this program is not in the national interest.”

For many groups, USAID funds constitute a significant portion of their budget, and losing it could jeopardize their operations. Others rely on multiple funding sources.

International AIDS Society President Beatriz Grinsztejn described the funding reductions as a systemic dismantling. “U.S. funding cuts are dismantling the system. HIV treatment is crumbling. TB services are collapsing.”

In South Africa, home to the largest HIV-positive population globally at about 8 million, health professionals warned that these cuts could reverse significant progress made against the epidemic.

“We will see lives lost. We are going to see this epidemic walk back as a result of this,” stated Linda-Gail Bekker, COO of the Desmond Tutu HIV Foundation, emphasizing the broad impact, including on programs for LGBT+ individuals and sex workers.

The U.S. contributes about 17% to South Africa’s HIV/AIDS budget, which is crucial for testing and initiating treatment for new patients.