The US’s announcement to suspend aid activities globally has cast uncertainty over key projects in Bangladesh, including education, healthcare, food security, democracy, and good governance. The suspension has raised concerns about the thousands of Bangladeshi officials, employees, and beneficiaries dependent on nonprofit organizations funded by US aid. However, the US has decided to continue humanitarian assistance for Rohingya refugees, considering the crisis’s urgency.
Experts warn that if US aid does not resume after the 90-day suspension and review period, it could spell trouble for Bangladesh. Historically, when the US withdraws financial assistance from a country, other developed nations and international organizations often follow suit. This puts the Bangladeshi government in a challenging position to ensure the country is removed from the suspension list after the review period, leveraging its diplomatic ties with the US.
Kazi Khaliquzzaman Ahmad, economist and chairman of the Palli Karma-Sahayak Foundation (PKSF), emphasized that the suspension impacts not only Bangladesh but also other countries worldwide. He added, “The real concern arises if US aid is reduced after the 90-day review. If the US cuts funding, other developed nations usually follow suit. Therefore, ensuring continued assistance must be a priority for Bangladesh.”
The suspension stems from an executive order issued by US President Donald Trump shortly after taking office, halting financial aid for 90 days across multiple countries. On Saturday, the United States Agency for International Development (USAID) announced the suspension of its aid programs in Bangladesh. USAID, which oversees US aid activities globally, issued letters to local implementing organizations, signed by Bryan Aaron, the agency’s acquisition and assistance oversight officer.
The letter instructed partners to halt or suspend all work under contracts, task orders, grants, cooperative agreements, or other forms of assistance. It also directed organizations to reduce expenditures from allocated funds and cease operations until further written notice. The letter cited President Trump’s executive order as the basis for the decision.
Annually, the US allocates billions of dollars in international aid. According to data, the US spent $52 billion on aid in 2020, $53 billion in 2021, $76 billion in 2022, $68 billion in 2023, and $39 billion in 2024. Bangladesh received $449 million in 2023 and 2024. US aid to Bangladesh has steadily increased since the influx of Rohingya refugees from Myanmar in August 2017.
Asif Mohammad, a professor in the Department of Development Studies at Dhaka University, stressed the significance of the suspension, saying, “This aid is primarily spent on service delivery, human rights, and democracy. The suspension will have both direct and indirect impacts, with losses that are immeasurable, particularly for projects related to democracy and human rights. The entire country will feel the effects, from employees to beneficiaries.”
While no officials have commented publicly on the matter, several aid-receiving organizations have expressed concerns over the challenges they face in implementing projects without US funding. They noted that while the continuation of aid for Rohingya refugees will somewhat ease the crisis, the overall situation remains dire. Many NGOs, both local and international, depend heavily on US funding for Rohingya humanitarian efforts.
At a press conference yesterday, Deputy Press Secretary to the Chief Adviser, Apurba Jahangir, stated, “The US has announced a 90-day suspension of financial aid globally. However, aid for Rohingya refugees in Bangladesh will not be halted.”