On 28 January, US President Donald Trump’s decision to halt all federal grants and loans sparked wide controversy internationally, as this decision covered funding for education, healthcare, housing and disaster relief programmes and other initiatives that rely on billions of dollars of US funding. The decision disrupted hundreds of organisations and civil society bodies and halted vital services benefiting millions of people in various parts of the world, in addition to closing existing projects and postponing others that were under way, and this decision cast heavy shadows over organisations and bodies in the Middle East and Africa.
A comprehensive review of NGO funding. On the day after the announcement, Matthew Vaeth, acting director of the US Office of Management and Budget, confirmed that the decision to halt the disbursement of federal funding is a temporary measure, pending the completion of a comprehensive review targeting federal grants and loans and ensuring that they are consistent with the priorities set by President Trump. Vaeth explained that this measure comes in implementation of the executive orders Trump signed in mid-February, which provided for the cancellation of diversity, equity and inclusion programmes, considering that the use of federal resources for policies that contradict the President’s priorities constitutes “a waste of American taxpayers’ money and does not serve the interests of citizens”.
The Office of Management and Budget memo stated that the freeze decision covers funds allocated to foreign aid and non-governmental organisations, along with other funding categories. According to observers, this review indicates the US administration’s orientation towards restructuring federal spending in line with its political vision, which raises wide fears about the future of many projects, especially in sensitive sectors such as education, health and housing, which rely heavily on US funding.
Wide cancellation of US Agency for International Development programmes. On 10 March, US Secretary of State Marco Rubio announced via his official account on the “X” platform that the Trump administration had already cancelled 83% of the programmes of the US Agency for International Development (USAID), with the intention of transferring the remaining programmes to the US State Department. Rubio indicated that the cancelled contracts, numbering 5,200, had spent tens of billions of dollars “without serving American national interests, and in some cases even harming them”, without clarifying specific details about the nature of the contracts and the reasons for their cancellation.
Rubio revealed the US administration’s plan, in consultation with Congress, to administer the remaining share of the programmes, amounting to about 18% (about 1,000 programmes), more efficiently under the supervision of the State Department. Rubio thanked the staff of the “Department of Government Efficiency”, overseen by Elon Musk, for their efforts in implementing these reforms, which aim to cut federal spending and restructure government agencies.
Wide effects on anti-poverty and development programmes. The US Agency for International Development distributes billions of dollars annually around the world with the aim of fighting poverty, responding to natural disasters, treating diseases, and promoting democracy and development by supporting civil society organisations and independent media. Most of these activities stopped suddenly because of the Trump administration’s recent decisions, which the administration justified with allegations of misuse of funds and cases of fraud, according to what CNN reported in a report on the crisis.
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How Does the Decision Affect Organisations Working in Egypt?
The volume of the partnership between the US Agency for International Development (USAID) and the Egyptian government, in the various projects the agency has implemented over 40 years, reached USD 30 billion as of 2024, according to statements by Sean Jones, director of the USAID mission in Egypt. In June 2024, the US government and the Ministry of International Cooperation announced new investments in Egypt worth USD 130 million, within the framework of bilateral funding agreements provided by the American people.
Michael Makram Nassif, a general development consultant and chairman of the board of the National Association for Community Development and Environmental Protection, tells Zawia3 that the recent international decisions to cut development and humanitarian aid will have direct repercussions on the institutions working in this field, as these bodies are losing major sources of funding that allowed them to implement vital projects in the fields of healthcare, education and emergency relief, which may lead to the suspension of many of these projects or even the closure of some field offices, particularly in the areas most in need.
In addition, the institutions’ ability to retain specialised work teams will be affected, which may lead to a reduction in the services provided to beneficiaries. In the long term, this sudden interruption may shake the confidence of local and international partners in the institutions’ ability to meet their commitments, which increases the difficulty of attracting alternative funding in the future.
As for the most affected groups, according to Nassif, they include refugees and displaced people who rely on food and medical aid, in addition to women and children who may lose their opportunities for protection from violence or for education, which may push them into child labour or early marriage. Also, people with chronic diseases who rely on health aid programmes may face the danger of interruption of essential medicines, which puts their lives at risk. If urgent alternatives are not provided, we may witness a worsening of poverty rates and social instability, and a rise in illegal migration as a result of the blocked horizons of development and a decent living.
Nassif says in his conversation with us: “In the face of this crisis, alternative funding mechanisms must be sought to guarantee the continuation of development work, through cooperation with regional institutions such as Gulf development funds or Asian financial institutions, in addition to launching national donation campaigns and activating the social responsibility of large companies. Islamic finance models, such as social sukuk or zakat, can also be adopted to support humanitarian projects and guarantee their continuity away from dependence on foreign aid.”
He adds: “At the same time, efforts must be intensified to put pressure on American decision-makers, through cooperation with American rights organisations to convey a clear picture of the suffering of the affected groups, and producing media campaigns that show the repercussions of the decision on the most vulnerable groups, with a focus on its effect on American interests themselves, such as increased illegal migration and rising extremism in marginalised areas. Likewise, the Egyptian community in the United States can be used to put pressure on their representatives in Congress, in addition to organising visits by American delegations to the affected areas to persuade them of the need to review this decision”, noting that this crisis may represent an opportunity to reshape the development funding model in a more sustainable and independent way, and to stimulate cooperation between the government, the private sector and civil society to confront the challenges more effectively.
For his part, Mohamed Saeed, director of the refugee rights programme at the Egyptian Commission for Rights and Freedoms, explains in a conversation with Zawia3 that the US decision to halt funding for international organisations represents a major shock, given that a large part of these organisations rely on US aid to fund their activities, noting that such decisions directly affect global trends regarding human rights and democratic transitions, as US policies often set the directions of the international community in this field.
Saeed points out in his conversation with us that the decision to halt funding will have serious repercussions, citing what happened previously when the administration of former US President Donald Trump stopped its support for the United Nations Relief and Works Agency for Palestine Refugees (UNRWA), which led to a reduction in international funding for the organisation and a worsening of the humanitarian crisis.
Saeed stresses in his conversation with us that the impact of this decision on Egypt will be great, especially on refugees and migrants, given that most international organisations working in Egypt rely mainly on US funding, explaining that the Egyptian state provides limited support to these groups due to limited resources, which makes international organisations such as the United Nations, the International Organization for Migration and women’s and children’s organisations the main source of services and support.
Saeed warns that halting funding will lead to a reduction in the basic services provided to refugees and migrants, such as food support, healthcare and housing, and will also result in cutting staff numbers and reducing the available service resources, and that this situation may lead to a worsening of the illegal migration crisis, as individuals who have lost support and services will have no choice but to attempt to migrate by irregular means, which may increase the flow of illegal migrants to Europe.
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Save the Children Among the First Affected
A few days ago, Save the Children announced that it had been greatly affected by the decisions to cut funding. The organisation said in a statement that the recent international decisions to cut development and humanitarian aid have greatly affected its activities in Egypt, leading to the termination of some projects and partnerships.
The organisation has worked in Egypt since 1982 providing education, health and protection services to the children most in need. It has 5 field offices, with a staff of 337 employees, including 5 international staff and 6 persons with disabilities, in addition to a team of 140 volunteers, most of them refugees. More than 51,000 children in several governorates benefited from its programmes during 2024 alone, according to data published on its official website. In the statement, it affirms that it ” has put in place a series of cost-cutting measures in the face of “an unprecedented funding gap”, along with its search for other sources of funding to continue its development and humanitarian work.
The organisation’s programmes focus on increasing access to quality educational services; improving the health and nutrition of mothers, newborns, infants and children in schools; building stronger services for children and those at risk of violence and abuse; encouraging children’s participation and protecting them at the personal, family and community levels; and promoting economic and educational options and safe participation for adolescents and young people. The number of children the organisation supported reached 211,566 children in 2024 alone.
The organisation says in its statement that over four decades it has worked with local associations and community civil society organisations in Egypt within a framework of partnership, cooperation and capacity building, adding that “these partnerships lie at the heart of our commitment to meeting children’s needs and as part of our strategy to support our local partners”. It noted that it appreciates the extent of the harm done to our partners among community civil society organisations as a result of halting the implementation of the projects affected by the sudden cut of foreign aid provided by the US government specifically. It also points to taking a set of measures, including “restructuring, halting most recruitment, restricting international and domestic travel by air, and working to reduce costs in the implementation of our projects and programmes while adhering to quality standards”.
The statement said that the recent international decisions to cut development and humanitarian aid led to the closure of five of the organisation’s international offices, in Sri Lanka, Poland, Brazil, Georgia and Liberia, the laying off of more than 2,300 staff and the termination of contracts with local civil society partners in these countries, as well as significant reductions in many other offices around the world, and that this situation comes at a time when children’s needs are greater than ever, according to the statement.
Zawia3 wrote to the organisation to find out more details, but we had not received a response at the time of writing this report. In addition, we contacted a number of employees working inside the organisation, who avoided talking about any details and said the statement had clarified everything related to the matter. In light of our concern to cover all the details, we spoke to a number of employees affected by the crisis, who spoke to us and preferred that their names not be mentioned.
One of the employees affected by the halting of the “Educated Village” project, one of the projects the organisation worked on that stopped because of the funding crisis, explains in a conversation with Zawia3 that ” the project is a pioneering development experiment that aimed to improve the lives of children, mothers and the local community in a number of Egyptian villages. Save the Children implemented it with funding from the US Agency for International Development (USAID), in cooperation with community associations, with the aim of strengthening the quality of community education, supporting women’s empowerment and changing community perceptions of education and participation. However, the project, which seemed promising at its start, collapsed suddenly with the halt of funding, leaving behind negative effects on its beneficiaries and workers, after they lost basic opportunities that were supposed to continue or be integrated into the local development system.
He adds: “The project focused on improving the learning environment for children, as it included multiple activities such as maintaining community schools, equipping them with interactive screens and libraries, and providing teachers with training in modern teaching methods. Summer camps were also organised to promote learning during the holidays, in addition to awareness campaigns such as “Tomorrow Is Better with Reading” and “Back to School”, which aimed to encourage children to complete their education. But these activities stopped suddenly with the end of funding, leaving the schools in a state of unreadiness, the students without support and the teachers without resources or guidance.
In addition to supporting children, the project sought to empower women through literacy classes, and many women passed the exams of the “Adult Education Authority”, but the surprise was that they did not receive their certificates, which deprived them of the opportunity to prove their educational attainment. In addition, female coordinators from the community were trained to run these classes, but these women did not receive their dues despite the efforts they made. Support for women was not limited to education but extended to empowering them economically and socially through awareness sessions and training aimed at strengthening their role in society, but all these efforts have been left suspended with no tangible results after the project stopped.
He continues in his conversation with us: “The project sought to raise their awareness through the “Zein El-Regal” sessions, which focused on changing the traditional view of women’s role in education and work. Community education teams were also formed from village residents to guarantee the sustainability of educational activities after the end of the project, but with the halt of funding, these trainings were not completed, and the local communities did not receive the support that was supposed to make them able to continue on their own.”
He says: “Despite the slogans Save the Children raises about protection, integrity and sustainability, it did not adhere to any of them when it ended the project. Its workers were left without prior warning, and the contracts of more than 2,000 employees were terminated without compensation or even notice, while many of them did not receive their financial dues for the last months of their work. As for the children who were benefiting from the project, they found themselves outside the educational system they had relied on, in the absence of any plan to guarantee the continuity of the alternative education services the project provided.
The employee points out that the damage was not limited to individuals only but extended to the grassroots associations that were a key partner in implementing the activities, as they suddenly found themselves without support or resources, which made it impossible for them to continue providing services. No expertise was transferred and no alternatives were provided to guarantee the sustainability of the work, so everything that had been built over the previous years collapsed in a single moment.
He adds: “The project, which represented a glimmer of hope for many villages, ended in a way that reflects the absence of planning and sustainability in foreign-funded development projects. The problem was not only the halt of funding, but the absence of any vision to guarantee the continuation of the benefit that had been achieved, which raises questions about how serious the donor and implementing bodies are in their real commitment to sustainable development, and about the fate of the villages that, after having been “educated”, have become stuck between unfulfilled promises and a reality more difficult than it was before the project.”
We were unable to reach any of the organisation’s officials to find out the details, but data published on the organisation’s website and its (Facebook) page indicate that the project continued to operate until July 2024, while many comments pour in demanding the payment of the dues of the employees who were laid off. What we know is that the continuation of the funding crisis may lead to the halting of more projects, according to the employees who spoke to us.
One of those affected by the halting of the Educated Village project points out that ” under the Egyptian Labour Law No. 12 of 2003, we have legal rights that cannot be bypassed, including the payment of all financial dues upon termination of the contract and compensation for arbitrary dismissal. The Social Insurance Law No. 148 of 2019 also obliges the employer to insure all workers and compensate them in the event of job loss. In addition, the international conventions Egypt has signed prohibit terminating contracts without justification and give employees the right to appeal and claim their dues.”
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Controversy Inside the United States.. Will Trump Back Down?
The US President’s decisions sparked wide controversy inside the United States, particularly over the legal repercussions. Amir Ali, a federal judge, issued a temporary order in mid-February halting the implementation of the President’s executive order that led to cutting off funding for foreign aid programmes run by the US Agency for International Development (USAID), expressing his conviction that “unless the US administration’s measures are stopped, the scale of the enormous harm that has already occurred will certainly increase”. The court decision came after the agency laid off thousands of employees or placed them on compulsory leave, in addition to removing its name from its headquarters in Washington.
According to a report issued by the agency’s Office of Inspector General, about USD 500 million of emergency food aid, funded by American taxpayers, became at risk of obstruction because of the administration’s decision to freeze all foreign aid, including that provided through “USAID”. After the report was issued, the White House dismissed the agency’s inspector.
The ruling came after two separate lawsuits were filed, the first by the “AIDS Vaccine Advocacy Coalition” and the “Journalism Development Network”, which receive funding from the agency, and the second by a group of legal associations, global health organisations and international business groups, which claimed that the decision was arbitrary and forced them to lay off staff and cut budgets, affecting their core missions. Although the judge found that the plaintiffs had presented “strong evidence” of harm, he rejected their request to halt the administration’s review of the agency’s programmes, and also refused to halt the modification or termination of contracts concluded with the agency, as long as this is done in accordance with the terms of the existing agreements.
In a case linked to the same file, federal judge Carl J. Nichols issued a decision in February extending the halt on implementing US President Donald Trump’s directive, which would have placed more than 2,000 employees of the US Agency for International Development on administrative leave and required staff working abroad to return to the United States, according to a report published by The New York Times.
On 6 March, a federal judge in Rhode Island ruled to extend the ban preventing the Trump administration’s attempt to freeze payments for federal grants and other government programmes approved by Congress from taking effect. It represented a victory for Democrats from 22 states and the District of Columbia, who had filed a lawsuit against the Trump administration. In his ruling, US District Court Judge John McConnell said that the spending freeze “fundamentally undermines the distinct constitutional roles of each branch of our government”.
Commenting on the decisions, Renee Willis, interim chief executive of the NLIHC, said: “Even a short pause in funding could do severe harm to low-income households and their communities. The longer the freeze lasts, the greater the risk of eviction for low-income households receiving federal rental assistance, and in the worst cases, homeless shelters may be forced to close their doors and non-profit organisations may have to lay off their staff”.
For her part, Senator Patty Murray, Democratic member of the Senate for Washington State and the top Democrat on the Senate Appropriations Committee, said: “The scope of this illegal action is unprecedented and could have devastating consequences across the country. For people, we could see a sudden halt to resources for childcare, cancer research, housing, police officers, opioid addiction treatment, rebuilding roads and bridges, and even disaster relief efforts”.
Previous presidential administrations have tried to impose more control over spending, and President Richard Nixon went to the US Supreme Court to cut funding. But his administration argued, unsuccessfully, on legal grounds. David Super, professor of constitutional law at Georgetown University Law Center, stated that no administration has found a constitutional argument convincing enough to present to the US Supreme Court.
Amid the accelerating repercussions of the decision to halt federal funding, development and humanitarian organisations in Egypt and the world face a fateful challenge that threatens to halt vital projects on which millions depend. While some bodies are seeking to find alternative funding, the future of these institutions remains dependent on the ability to adapt to the new reality, away from dependence on foreign aid. With mounting warnings of the social and economic repercussions of this decision, putting pressure on American decision-makers and pursuing sustainable funding solutions become an urgent necessity to guarantee the continuation of basic services and not leave vulnerable groups to face an unknown fate.
