What's Happening?
In January 2025, President Trump began his second term by issuing an executive order that froze foreign aid for 90 days, followed by a significant reduction of 83% in U.S. Agency for International Development (USAID) programs. This decision has had a profound
impact on Jewish humanitarian aid and international development organizations, which are still grappling with the consequences a year later. These organizations, along with their non-Jewish counterparts, are facing challenges as they attempt to adapt to the funding shortfall. According to Dyonna Ginsburg, CEO of OLAM, a network of Jewish organizations involved in international aid, the effects of these cuts are still unfolding. Alternative funders, including those affiliated with the United Nations, have tried to compensate for the loss but have been unable to fully bridge the gap. As a result, grants to international aid organizations are being canceled, and private philanthropy is struggling to fill the void.
Why It's Important?
The reduction in foreign aid has significant implications for global humanitarian efforts, particularly for organizations that rely heavily on U.S. funding. The cuts have forced these groups to seek alternative funding sources and adapt their strategies to continue supporting vulnerable populations worldwide. The Jewish philanthropic community, although relatively small, is being called upon to step up and ensure the sustainability of their aid ecosystem. This situation highlights the broader challenges faced by international aid organizations in maintaining operations amid fluctuating government support. The cuts also underscore the importance of private philanthropy in filling gaps left by government funding reductions, emphasizing the need for diversified funding strategies to ensure the continuity of critical humanitarian work.
What's Next?
In response to the funding cuts, former USAID employees, including Ariella Bock, have founded Aid on the Hill, an organization advocating for foreign assistance. They are lobbying Congress to approve a bill that would allocate $50 billion to the State Department for foreign aid. This advocacy effort represents a proactive approach to securing future funding and ensuring that international aid remains a priority for the U.S. government. The outcome of these lobbying efforts will be crucial in determining the future landscape of U.S. foreign aid and the ability of humanitarian organizations to continue their work. The situation also presents an opportunity for the Jewish philanthropic community to strengthen its role in supporting global aid initiatives.
