Key Facts:
- USAID funding cuts impact a child’s health, education, and nutrition
- Funding cuts have led to the suspension of many health services, income support for families, and school feeding programs.
- Cuts in school feeding programs contribute to higher rates of malnutrition among children.
- Foreign aid suspension increases the risk of school dropout, illness from unsafe water, and early marriage for girls.
Foreign aid is not just a diplomatic gesture. It plays a vital role in supporting the health, education, and nutrition of children in many low- and middle-income communities.
In 2023, the United States disbursed over $72 billion in foreign aid, with more than $43.8 billion managed through the U.S. Agency for International Development (USAID). However, recent executive decisions to suspend portions of USAID and NGO funding have affected numerous development programs, particularly in Bangladesh and the Philippines.
Bangladesh has historically received between $300 million and $400 million annually from USAID, accounting for over 50% of the country’s NGO funding. This support has contributed to a 60% reduction in maternal and child mortality, improved nutrition services, and expanded access to education and family planning.
However, more than 100 development projects worth $550 million were suspended immediately following the abrupt suspension of USAID funding-leading to forced layoffs of over 1,000 employees at icddr,b, a world-renowned public health institute that relied on USAID for 20% of its funding.
According to the United Nations Population Fund, the effect this leaves is that over 600,000 women and children will lose access to critical maternal health care, protection from violence, reproductive health services, and other lifesaving care.
The situation is especially dire, given that Bangladesh is currently in a political transition following Sheikh Hasina’s removal, while experiencing recent floods and cyclones that have led to a 2.66 million increase in unemployment rates as of September 2024—a 6% rise from the previous year.
In Cox’s Bazar, home to hundreds of thousands of Rohingya refugees in Bangladesh, the suspension has crippled healthcare, placing seven clinics at risk of closure and affecting over 300,000 individuals.
In 2024, USAID provided over $180 million in the Philippines, including $42.79 million for health and $25.02 million for education and social services. Programs funded by USAID have supported initiatives such as the 1970 Nutribun program and the Water, Sanitation, and Hygiene (WASH) initiative, which aimed to reduce child malnutrition and improve school environments.
Despite economic progress in the Philippines, significant challenges remain after the USAID cuts. In 2023, 15.5% of the population—approximately 17.5 million people—lived below the poverty line. Malnutrition remains widespread, with 26.7% of children under five experiencing stunting and rates as high as 39% in the Bangsamoro Region.
Approximately 18% of school-aged kids in the Philippines are severely food poor. Four out of five children in severe food poverty are fed only breastmilk/milk and/or starchy staples like rice, corn, or wheat, and less than 10% of these children regularly consume fruits and vegetables.
The impact of these funding cuts extends far beyond immediate health services for school-aged kids. School feeding programs that once provided nutritional support to thousands of children are now at risk of being cut. In Bangladesh, the World Food Programme has reduced food rations for over 400,000 children in 2,000 schools due to underfunding.
Admissions for severe acute malnutrition have risen by over 27%, with more than 38 children requiring emergency care daily. Micronutrient deficiencies contribute to an increase in cases of anemia and impaired immunity. Cognitive impairments due to deficiencies in vitamin A, iron, iodine, and other micronutrients are also on the rise among school-aged kids.
Programs like WASH (Water, Sanitation, and Hygiene) in the Philippines, which ensure access to clean drinking water and safe school environments, may also be impacted. Reductions in foreign aid mean that school-aged children will lack access to clean drinking water and become increasingly vulnerable to waterborne illnesses and childhood stunting. Cuts to education initiatives may also disrupt efforts to support girls’ access to learning opportunities and increase their vulnerability to early marriage.
Despite widespread concerns over the suspension of foreign aid, Thrive is committed to ensuring no child is left behind. As many organizations that relied on USAID turn to alternative funding sources, Thrive works with local food manufacturers to ensure a steady supply of ready-to-cook meals, particularly in remote or disaster-impacted areas.
In remote island communities like Dawahon, where typhoons can cut off access to the mainland, Thrive aims to provide pre-positioned food stockpiles in schools to mitigate the risk of sudden food shortages.
