By Esneyder Negrete
Americas Desk, Feb 8 (EFE).- Latin America is facing the consequences of the suspension and cuts to the United States Agency for International Development (USAID), which contributed 2.3 billion dollars to the region in 2024, a decision by President Donald Trump that threatens the continuity of programs in 130 countries and will harm millions of people who have benefited from US cooperation.
What started as a temporary 90-day measure to reduce government spending and bureaucracy, re-evaluate program effectiveness, and prevent potential misuse of funds has turned into an uncertain situation for USAID.
Although a federal judge temporarily blocked the decision on Friday, Trump plans to reduce its staff of 10,000 to just 290 positions considered “essential,” according to the New York Times.
The US head of State has transferred its control to the State Department, ending six decades of operation of the agency that has allocated billions of dollars to humanitarian programs around the world, including Latin America, an office expected to be reduced to eight people.
According to official US government data, USAID distributed more than 44 billion dollars in global aid in 2024. Some 2.3 billion dollars of this was earmarked for initiatives in Latin America, a key point of various programs.
“The US is a major donor, and its absence is irreplaceable. Even if you added up all the European contributions in Colombia, they wouldn’t amount to half of US aid,” Crisis Group’s senior analyst for the Andean region, Elizabeth Dickinson, told EFE.
In Colombia, USAID contributions to 2024 amount to almost 400 million dollars, earmarked for humanitarian programs, judicial cooperation, security, education, health, peace, gender, environment, culture, and migration. The situation is similar in other countries in the region.
Impact on the migration crisis
One of the programs most affected by funding cuts across the region is the migration budget, which also happens to be one of the key issues of the Trump istration.
In this regard, Stephani López, a migration policy consultant, warned that the reduction in funding “directly affects entities such as Migration Colombia and the State Department’s Migrants and Refugees Program,” limiting operational capacity in key areas such as the borders with Venezuela and Ecuador.
In addition, the US policy of outsourcing migration, which delegated part of the management to countries such as Colombia, Mexico, and Panama, now faces an uncertain future.
“The closure of the Safe Mobility Offices, which facilitated permits and visas, creates more obstacles for migrants,” explained López, who also warned that the lack of funding for reintegration strategies “makes returnees more vulnerable, without effective programs to facilitate their social and economic integration.”
Although there are other funding sources, such as loans from multilateral organizations, these “are not enough to fill the gap left by USAID,” forcing governments to take a more active role in ing migrants.
A halt on technical assistance
The reduction in US cooperation also affects key technical areas in Brazil and Peru, where the authorities have expressed concern about a likely reduction in funding for the protection of the Amazon and the fight against drug trafficking.
In Brazil, USAID signed an agreement with the government in 2015 to provide 300 million dollars until 2030 for Amazon’s ecosystem conservation and the well-being of rural communities.
Meanwhile, in Peru, the suspension could affect access to 630 million dollars until 2030 and some 60 NGOs that depend on this funding.
Health, education, and rural development also affected
In Guatemala, the freezing of 275.3 million dollars puts at risk projects in areas such as justice, education, health, women’s rights, and agriculture.
Despite the ideological closeness between Nayib Bukele and the Trump istration, the withdrawal of funds also jeopardizes initiatives focused on human development, employment, education, transparency, innovation, investment, and partnerships for economic growth in El Salvador.
In Mexico, in the south of the country, USAID has mobilized nearly 30 million dollars for projects that will generate 250 million dollars in investment between 2021 and 2023, according to official figures.
In 2012 USAID closed its doors in Panama, after 50 years of cooperation, when then US President Barack Obama recognized the country’s economic growth under the Ricardo Martinelli istration. However, numerous foundations in the country still receive funding for minority rights, mental health and sexually transmitted diseases projects.
In the Dominican Republic, President Luis Abinader urged US Secretary of State Marco Rubio to restore humanitarian aid to Haiti to avoid a migration crisis and the Multinational Security Mission, warning that the situation poses a regional threat that requires a coordinated response.
The cut will leave a huge gap for governments to fill, as the US contribution has ed for 47% of global humanitarian spending, “a significant budgetary challenge in a context of shared fiscal challenges across the region,” warned Elizabeth Dickinson. EFE
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