USAID Freeze Creates Mistrust Between Humanitarian Organizations And Recipients: Report

A new report reveals that Washington’s freeze on aid and the subsequent project terminations in Ethiopia have caused significant disruption to relationships of trust between the humanitarian community and aid recipients.

The sudden nature of the funding suspension has forced organizations to halt programs without sufficient notice, severely limiting their ability to close projects ethically and to communicate effectively with those reliant on their support, says a report published by Assessment Capacities Project (ACAPS), an independent analytical institution, this week.

ACAPS indicates the US funding cut has had a cascading effect, not just on USAID-funded organizations, but also on other humanitarian entities. Communities, left grappling with unmet urgent needs like food and healthcare, are increasingly pressuring these organizations to fill the void created by the halted American funding.

This mounting challenge threatens to erode the trust and acceptance humanitarian responders have worked hard to build, the report added.

Moreover, the freeze jeopardizes the humanitarian information space in Ethiopia, curbing access to critical data and analysis needed for effective decision-making, according to the report.

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ACAPS indicates the country’s reliance on external funding is stark—54.8 percent of its food security budget and 8.5 percent of its overall budget for the 2024/2025 fiscal year were projected to come from foreign aid, with the US and multinational institutions such as the UN among the largest contributors.

Inconsistent application of waivers for the funding freeze has compounded these difficulties, creating critical gaps in the delivery of life-saving assistance, the report noted. Many humanitarian organizations are facing liquidity crises due to delayed US payments, forcing them to terminate programs. Uncertainty has further been fueled by fluctuating grant decisions, where some notices of termination were later rescinded, deepening confusion and operational disruptions.

The report described the consequences of aid termination as devastating; including the suspension of food distribution under the Joint Emergency Operation Program (JEOP) due to payment delays, leaving warehouses stocked but inaccessible to the two million people who depend on them.

The effects have been mounting since late January, when US President Donald Trump issued an executive order that paused US foreign development assistance for 90 days, instigating a comprehensive review of foreign aid programs, including humanitarian initiatives.

According to the report, the scale of this aid suspension cannot be overstated. In 2024, the US was the largest donor to Ethiopia, contributing 41 percent of the country’s total humanitarian funding across all sectors, far surpassing other major contributors such as the UK (14% percent), the EU (9 percent), and Germany (7 percent).

The impact of this aid disruption is reverberating across a country already grappling with compounding crises, says the report.

Over the past eight years, poverty has escalated, especially in urban and conflict-affected regions, while agricultural output has declined due to natural and human-made hazards. This dual pressure limits access to basic goods and services, making it harder for families to meet their needs.

Malaria cases are on the rise, and the discontinuation of efforts to mitigate the disease’s spread will likely worsen its impact. Meanwhile, the national HIV response stands at a tipping point, with over 503,000 people at risk of losing access to life-saving treatments.

ACAPS cautions that without consistent HIV medication, individuals face rapid health deterioration, leaving them vulnerable to AIDS and opportunistic infections. Likewise,the  education sector is set to lose an estimated USD 18 million in US funding for 2025, further exacerbating vulnerabilities in a nation where needs are escalating.

The report indicated that the US aid freeze has far-reaching and immediate consequences, not just for Ethiopia’s humanitarian operations but also for the lives of millions of crisis-affected people.

ACAPS underline the need for urgent reconsideration of policies that prioritize accountability to affected populations while preserving critical humanitarian assistance.