One of the most controversial executive orders signed by Donald Trump following his return to the White House was dismantling the United States Agency for International Development (USAID). Its headquarters has been closed, the website has gone offline, and most staff made redundant. As the U.S. is the world’s leading international humanitarian donor, this decision sparked sharp criticism from humanitarian organizations, lawmakers, experts, and civil society, as millions of people around the globe will be affected. Latin Americans are not exempt from this impact.
In 2024, the U.S. provided over 40% of all humanitarian aid recorded by the United Nations. The country spends around $72 billion on aid annually, with $40 billion allocated through USAID. However, these figures are likely to change significantly. A key point of the executive order involves freezing foreign aid spending for 90 days to review and align programs with the U.S. national interest.
Over the past decade, U.S. foreign assistance priorities in Latin America have focused on diverse issues, including addressing migration drivers, combating drug production, supporting peace deal implementation in Colombia, and enhancing security and the rule of law in Mexico and the Caribbean. Other efforts have targeted HIV/AIDS in Haiti and the political and humanitarian crises in Venezuela.
Colombia
Colombia has been the largest recipient of U.S. foreign aid in Latin America. This funding has primarily supported over 2.8 million Venezuelans who fled the humanitarian crisis in their homeland, with Colombia becoming their main destination. In 2024, the USAID budget for the country reached $413.2 million and was allocated across various sectors. Last year, the agency allocated $45 million to the UN World Food Programme, mainly to support Venezuelan migrants. Besides that, USAID’s resources were used to support justice and reconciliation efforts within implementing the 2016 peace agreement with the FARC guerilla group, which is now defunct. The freezing of funding significantly impacts the migrant’s and citizen’s security, potentially deepening the existing political instability.
Brazil
In 2024, USAID allocated $22.6 million to Brazil, with nearly $14 million focused on environmental protection related to the Amazon rainforest. USAID’s largest initiative in Brazil is the Partnership for the Conservation of Amazon Biodiversity, which aims to protect the rainforest and enhance the livelihoods of Indigenous peoples and forest communities. Another key beneficiary of the USAID support has been the Roraima Indigenous Council. Operating across 35 territories in the region vulnerable to drug trafficking and illegal gold mining, this organization focuses on small-scale farming, climate adaptation, and the autonomy of the indigenous tribes. All these initiatives are now under threat.
The USAID shutdown has also affected the assistance to Venezuelan migrants coming to Brazil. The Brazilian government will have to find other ways to fund Operation Welcome, a joint operation with UN agencies to integrate and resettle Venezuelan migrants in Brazil. The program currently offers humanitarian assistance to approximately 15,000 Venezuelans each month as they arrive in the northernmost state of Roraima.
Peru
Peru has been using the USAID funding of $135 million primarily for coca-eradication programs. Occupying the infamous 2nd rank in world cocaine production, behind Colombia, the country has used this support to finance alternative crops such as coffee and cocoa. Although the Peruvian government announced it would continue the substitution efforts even without U.S. funding, there are other areas where the consequences of halted funds are drastic. Many NGOs have struggled to maintain initiatives related to food security, anti-drug efforts, employment creation, environmental conservation, public health, and democracy-building. The suspension of funds is another blow to the survival of these projects.
Mexico and Central America
Recent U.S. assistance to Mexico, reaching $58 million in 2024, has primarily aimed to strengthen the rule of law and address crime. USAID has supported Mexican institutions in tackling the disappearance crisis, enhancing human rights, protecting journalists and defenders, promoting economic development, and fostering justice institutions. The suspension of funding hinders the efforts to combat transnational crime, especially drug trafficking.
However, the U.S. government’s priority focus has been placed on the northern countries of Central America (Guatemala, Honduras, El Salvador), as these countries are significant sources of migration to the United States. Funding has been used to support civil society and government institutions in targeting economic insecurity and corruption, as well as promoting democracy and human rights. The efforts fall under the U.S. Strategy for Addressing the Root Causes of Migration.
The halting of funds severely impacts the functioning of numerous initiatives across Latin America, which depend on U.S. assistance. Due to the lack of funds, hundreds of organizations from various sectors now face existential challenges and uncertain futures. Even if some foreign aid resumes, many recipients of USAID funding, especially those addressing climate change, biodiversity, and minority and women’s rights, fear their projects may cease to exist, as they relate to areas Trump has criticized as ideological. The suspension of funding threatens environmental protection and the safety of millions of Latin Americans. It may also fuel migration, as many programs that address its root causes have been drastically reduced and may soon be permanently cancelled.
Author: Adela Sadloňová
Picture Source: Pixabay
