May 28, 2025 4:27 pm
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US Aid Suspension Threatens Rohingya Assistance Amid Bangladesh’s Financial Strain

Bangladesh is seeking increased contributions from the European Union for humanitarian assistance to the Rohingya. This message was delivered during a meeting of the EU-Bangladesh Joint Commission with the visiting EU delegation in Dhaka last week.

But the real question is: what’s new in this? And why is there increasing concern about it now? Firstly, the United States, the largest donor to Bangladesh in assisting over a million Rohingya refugees, has suspended all its existing foreign aid. Washington’s recent ‘suspension’ has already created a risk of further weakening the fragile financing situation for assisting the Rohingya.

Secondly, Bangladesh’s own financing capacity is also in a tight spot. Economic activities have slowed down, inflation is a problem, job creation is sluggish, and revenue collection is not meeting targets. In such an internal financial crunch, allocating funds for the Rohingya becomes a significant challenge.

Why US Relief Aid is Crucial for Rohingya Refugees:

The Joint Response Plan (JRP) formulated by the United Nations High Commissioner for Refugees (UNHCR) for assisting the Rohingya reveals a harsh reality; funds are depleting, and they are depleting rapidly.

In 2024, an appeal was made for approximately 852.4 million dollars in funding under the JRP, but only 64.4 percent of this target was received. Among this, the United States alone provided 301 million dollars in relief aid, which was 55 percent of the total funds. Before Donald Trump came to the White House, USAID did not face any obstacles. Additionally, in 2024, the EU provided only 62.47 million dollars in aid, which was 11 percent of the JRP, and in 2023, provided only 46.7 million dollars in disaster preparedness and emergency assistance, which was 7.5 percent of the JRP.

According to documents compiled by Bangladesh’s Ministry of Finance’s Economic Relations Division, UNHCR estimates that more than 934 million dollars will be needed for 2025.

To understand the impact of the recent decision by the United States, you can look at the following information:

Since August 2027, the US government has provided more than 2.5 billion dollars in regional Rohingya assistance, including 2.1 billion dollars specifically for Bangladesh. Approximately 1.3 billion dollars have come through the country’s Bureau of Population, Refugees, and Migration (PRM). This information was revealed in a statement by the US Embassy in Dhaka on September 25, 2024.

On the same day, at a high-level meeting on the sidelines of the UN General Assembly session regarding the Rohingya crisis, US Under Secretary of State Uzra Zeya announced nearly 199 million dollars in new aid. This package includes approximately 70 million dollars through PRM and approximately 129 million dollars through USAID, with 78 million dollars allocated through the Commodity Credit Corporation of the US Department of Agriculture for the purchase and distribution of food.

What the United Nations Told:

A UN spokesperson provided the following statement:

She said the suspension of US aid is affecting humanitarian and development programs in many countries, including the response to Rohingya refugees in Bangladesh. Despite some progress in achieving resilience, the Rohingya remain heavily dependent on relief aid. The UN is extremely grateful for the generosity of governments, donors, and partners in meeting their needs.

Since 2017, the United States has been the most steadfast partner in providing assistance and one of the largest donors for Bangladesh. The humanitarian aid community is grateful for this support and hopes that the country will soon resume its critical assistance to refugees and their host communities.

(There is a disruption in providing essential services in the Rohingya camps due to the funding shortage), including life-saving services. Sectoral coordinators and partners responding to the Rohingya crisis are identifying these challenges and taking temporary measures where possible to mitigate their impact.

Many sectors have been affected. For example, health (purchase of hepatitis C vaccine, purchase of reproductive health products, services for people with disabilities, etc.); water and sanitation (soap, water supply or drainage management), protection (GBV and CP services), education (suspending educational activities in Rohingya camps and host communities), livelihoods (halting various vocational training programs). Beyond the deprivation of these services, many areas will have far-reaching impacts, raising serious concerns about overall security and safety among the host community and the Rohingya.

The humanitarian aid community is currently focused on monitoring the ongoing situation. Based on this, efforts are underway to meet the most critical shortfalls (if necessary, with existing resources from other sectors) and continue to enhance efficiency in providing humanitarian aid. These steps are being taken through close engagement with the Government of Bangladesh, refugees, and relevant humanitarian and development partners.

Reduction in Funding for the Rohingya is Concerning:

In 2023, Bangladesh received only 50 percent of the requested funds—this shortfall has been increasing for several years. Since 2017, the gap between the required funding and the actual funding has been growing. In 2017, this shortfall was 27 percent, which reached 41 percent in 2020 and 51 percent in 2022. This is part of a broader global trend where the demand for humanitarian aid is outstripping the available funds, putting vulnerable communities at greater risk.

NGO Lay-Offs, Employee Dismissals:

After taking the oath for his second term, US President Donald Trump issued an executive order suspending the country’s foreign aid provision for 90 days. This news created a stir among governments and NGOs worldwide, from Africa to Palestine, Syria to Myanmar, and Bangladesh.

The impact was immediate. On January 31, the International Centre for Diarrhoeal Disease Research, Bangladesh (icddr,b) issued lay-off notices to more than a thousand employees. Several more NGOs funded by the United States have had to dismiss employees. However, insiders in Bangladesh’s NGO sector say the most significant impact will be on the Rohingya taking shelter in Bangladesh.

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