U.S. Halts USAID funding for 90 Days

The United States government has announced a 90-day pause on foreign development assistance programs, a decision that could have far-reaching implications for countries like Uganda, which rely heavily on U.S. aid to support key sectors such as health, education, and infrastructure.
According to the executive order by Trump, all departments and agencies responsible for U.S. foreign development assistance must immediately halt new obligations and disbursements of funds to foreign governments, non-governmental organisations, international organisations, and contractors.
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This pause allows for a comprehensive review of the efficiency and alignment of these programs with U.S. foreign policy.
The reviews, to be conducted under the guidance of the U.S. Secretary of State and the Office of Management and Budget (OMB), aim to determine whether ongoing programs should continue, be modified, or be terminated.
Departments and agencies are expected to submit their recommendations within 90 days, with the Secretary of State making final decisions on the fate of paused programs.
This development raises concerns in Uganda, where U.S.-funded programs, including USAID initiatives, play a critical role in driving socio-economic development.
Uganda has been a significant beneficiary of U.S. foreign aid, with funding supporting a wide range of programs, from combating HIV/AIDS through PEPFAR to advancing education, agricultural productivity, and democratic governance.
Uganda’s health sector has heavily relied on USAID funding, particularly for immunisation programs and combating infectious diseases like malaria and tuberculosis
While the pause is intended to ensure efficiency and alignment with U.S. policy, it introduces a level of uncertainty for beneficiaries and implementing partners in Uganda.
Key questions remain about whether critical programs will resume in their original form or face significant cuts or modifications.
The executive order allows for the resumption of funding before the 90-day period if programs are reviewed and approved for continuation.
However, the process requires sign-off from the U.S. Secretary of State in consultation with the OMB, adding another layer of scrutiny.