From Lifeline to Limbo: 90 Days of U.S. Funding Cuts Leave Millions Vulnerable Without Vital Support

After initial review period, Humanity & Inclusion reports 19 terminated awards.

In January, the U.S. government froze all foreign aid and announced a 90-day review period. Thousands of U.S. government-funded foreign assistance programs were terminated in February and March. USAID has been effectively shuttered, and massive cuts are still anticipated at the U.S. Department of State. Humanity & Inclusion and other INGOs are still owed payment by the U.S. government for contracted work completed in 2024 and waived work resumed in 2025. That 90-day review period has been extended by an additional month. These decisions have forced the suspension of critical humanitarian and development projects, putting millions of lives in danger.   
    
The U.S. government has historically been the largest funder of humanitarian aid worldwide and supported a significant amount of Humanity & Inclusion’s work alongside people with disabilities in times of peace, conflict, and disaster. It's imperative to recognize that these funding cuts are more than just numbers on a screen. Real people all over the globe are being left without the services and care they need to survive and thrive now and in the future.  

“More than 90 days into this unprecedented decimation of U.S. foreign aid, we are witnessing a humanitarian crisis unfold in real time,” says Hannah Guedenet, U.S. Executive Director for Humanity & Inclusion. “The termination of life-changing programs has left millions of people, including those with disabilities, conflict survivors, and families enduring disaster, without critical support. For decades, the U.S. government has been a vital partner in our mission to deliver hope and dignity to communities in need. Today, that partnership is fraying, and the consequences are devastating.”   

Where Do We Stand? A Snapshot of Impacts at HI 

The consistently changing and sometimes contradictory status of terminations, waivers, and re-terminations has left HI and the broader INGO sector stranded and confused. Where are we now after 90 days of unprecedented action? 

• In January 2025, HI had 32 active awards from the U.S. government as either a prime or sub-recipient. These represented awards from USAID, U.S. Department of State and U.S. Department of Labor. 
• 19 awards have been terminated in countries such as Cambodia, Nepal, Rwanda, and Syria.  
• 10 awards have received waivers to resume or have been “unterminated” in countries such as Bangladesh, Burkina Faso, Colombia, Iraq, and Ukraine. 
• 3 awards expired during the 90-day review period.  

“We’re still left with so many unanswered questions,” Guedenet continues. “Will more awards be terminated? Will there be future opportunities for U.S. government funding? How will the elimination of USAID and restructuring of the State Department affect our work now and in the future? Without answers to these questions, we are facing difficult decisions in budgeting, staffing and programming. And those most affected by this uncertainty are the individuals that look to HI for prosthetic limbs and rehabilitation services, job training, and education spaces that welcome students with disabilities.”  

Key Figures: 

• Nearly 500 positions have been terminated in HI’s program teams; 25% of HI’s U.S.-based staff has also been laid off. 
• We estimate that the activities of more than 100 local partners have been negatively impacted. 
• Around 300,000 people in the communities we support have lost access to some or all services provided by HI. 
• We estimate a loss of roughly $20 million in critical funding for HI programs and the communities we serve. 
• We are still awaiting payment for $10 million of contracted work completed in 2024, in addition to work resumed this year.  

To further illustrate the chaos of the last three months, just look to the example of HI’s physical rehabilitation and mental health support project in Syria, funded by the USAID Bureau of Humanitarian Assistance: 

• January 24: Frozen by Secretary of State Marco Rubio’s stop-work order 
• February 12: Restarted life-saving activities under a waiver 
• February 26: Termination letter received and all activities stopped 
• March 3: Letter received suspending the termination and allowing life-saving activities to continue  
• March 21: Authorization received to restart all activities  
• April 4: Termination letter received  

“The constant shifts in guidance—terminations, waivers, re-terminations—have had a whiplash effect,” Guedenet adds. “How can organizations like Humanity & Inclusion plan our activities when the rules change daily? How can we maintain trust with the communities we serve if they can't rely on us to show up from one day to the next? The U.S. must act swiftly to resolve this chaos, honor its prior commitments, and restore foreign aid funding. We urge leaders to recognize the human cost of these cuts and prioritize the values of compassion and global solidarity that have long defined American leadership.”  

HI has launched an appeal to help fill this funding gap at https://www.hi-us.org/en/donate-foreign-aid