Thursday

08-14-2025 Vol 2052

Impact of U.S. Foreign Aid Cuts on Humanitarian Efforts in Lebanon, Iraq, and Jordan

The U.S. administration’s executive order issued on January 20 to freeze all government foreign assistance has shaken the humanitarian sector globally, with profound implications for crucial projects.

This initiative, which initially intended to last three months, stems from a statement asserting that the “foreign aid industry and bureaucracy are not aligned with American interests and in many cases antithetical to American values.”

At St. Anthony Community Health Center, located six miles north of Beirut, the ramifications of this decision were felt almost immediately.

The center, managed by the Sisters of the Good Shepherd, previously received significant funding from International Medical Corps, which had been supporting it since 2008.

On a Sunday night, the health center was notified that all funding would cease the following day, affecting consultations, blood tests, medicines, medical equipment, and imaging services.

Dr. Joelle Khalife, the medical director of the dispensary, shared the center’s alarming transition as it shifted from receiving aid to charging patients for services that previously had no cost.

As a result, some patients ceased attending the health center, unable to afford the new charges, which devastated a facility serving about 2,000 people monthly.

“It was hard to explain to our patients how a decision taken in the United States leads to their health care expenses not being covered anymore,” Dr. Khalife stated, maintaining faith that their service would continue despite the challenges.

Good Shepherd Sister Antoinette Assaf, who oversees international partnerships in Lebanon, highlighted that access to funding has become increasingly precarious, worsened by the COVID-19 pandemic and evolving donor requirements.

In March, U.S. Secretary of State Marco Rubio confirmed that 83 percent of USAID contracts were terminated, following the integration of USAID into the State Department earlier that year.

reports from Geneva Solutions indicated a staggering breakdown of 77 percent of USAID grants, translating to $36 billion in aid cuts.

Affected organizations included the World Health Organization, United Nations Development Program, and UNICEF, with some seeing reductions of up to 98 percent in funding.

Despite a partial restoration of funding in April for some programs, many organizations continue to face significant challenges.

The cuts prompted harsh criticisms regarding their detrimental impact on human development, particularly among vulnerable communities.

Karim el-Mufti, a professor at the Jesuit-run St. Joseph University in Beirut, asserted that these budget reductions would greatly hinder programs supporting refugees and other at-risk populations, revealing the dependency of Lebanon on foreign aid amidst its state collapse.

In the context of ongoing conflicts in Lebanon, where U.S. assistance reached nearly $390 million in 2024, the destruction brought by the war with Hezbollah and Israel highlights the need for continued support for basic services such as health care, education, and economic resolution.

Countries like Iraq and Jordan, which historically rely on U.S. foreign aid, are facing similar detrimental effects.

In 2024, Iraq received $333 million while Jordan received $1.75 billion, but the anticipated funding cuts threaten both nations’ capacities to provide essential public services, leading to increased unemployment and exacerbating challenges already faced by their populations.

Mr. Alajlouni observed that the national budget of Jordan heavily depends on U.S. assistance, signifying potentially dire consequences including reduced access to health care, education, and basic necessities.

While more than 100 projects in Jordan and Iraq remained unaffected by funding losses at CNEWA, other organizations like World Food Program and Caritas are facing reduced capacities, causing significant strain on their services.

The ramifications of such cuts are being felt acutely within minority Christian communities in both Iraq and Jordan, with leaders warning these changes threaten the very foundations of their presence and aid capacity within struggling areas.

“Communities rely heavily on our services,” noted Karam Abi Yazbeck of Caritas Internationalis, as they are in the process of identifying new funding streams amidst a troubling economic landscape.

Additionally, Caritas Iraq experienced a significant budget cut, resulting in layoffs and a forced pivot to more affordable project initiatives to ensure operational survival.

The socio-economic repercussions of U.S. foreign aid reductions carry widespread implications beyond individual organizations.

As funding sources dwindle, humanitarian groups are urgently seeking alternatives, with many looking to European partners to fill the gaps left by U.S. withdrawal, though it is anticipated that significant gaps will remain due to the magnitude of the cuts.

The experience in Lebanon serves as a stark reminder of how foreign aid is integral to maintaining basic human services in regions marked by conflict and instability.

image source from:vaticannews

Charlotte Hayes