USAID dissolution causes major humanitarian and economic shifts

The dissolution of the United States Agency for International Development (USAID) by the Trump administration has led to significant global humanitarian consequences. Supporters previously viewed the agency as a vital tool for soft power diplomacy and disease prevention, with studies attributing its programs to the prevention of 91 million deaths in the early 21st century.

In Nepal, the cuts directed by the Department of Government Efficiency resulted in the loss of approximately $329 million in humanitarian aid. This reduction has impacted foundational educational programs, including teacher training and literacy support across all 35 districts, and led to an estimated 30,000 direct job losses.

While the funding cuts have been linked to increased hunger, medicine shortages, and spikes in child trafficking, Nepal is attempting to pivot toward its private sector. The country is leveraging a large youth population to drive economic growth amidst the loss of U.S. bilateral aid, which has been a staple for Nepal since 1951.