Thousands of development workers in Bangladesh face uncertainty as USAID halts funding

The suspension of USAID funding has left thousands of development professionals in Bangladesh without jobs, creating a wave of uncertainty in the sector. 

This decision has affected nearly 100 of the organization’s projects across the country, many of which were implemented through 400 local non-governmental organizations (NGOs). 

These projects had been vital in providing employment and supporting key development activities across Bangladesh for a long time.

While there is no official data from the government on how many people have already lost or might lose their jobs due to these funding cuts, experts in the field estimate that the number could range from 30,000 to 40,000.

Diplomatic sources indicate that USAID has been an essential financial partner for Bangladesh, annually providing between $300 million and $400 million for crucial sectors such as health, nutrition, agriculture, livelihoods, labor rights, anti-human trafficking, and democratic development.

The shift in USAID’s funding strategy came after the inauguration of U.S. President Donald Trump on January 20. 

The new administration ordered the suspension of USAID’s funding worldwide, except for emergency food aid for Rohingya refugees in Bangladesh.

As part of these measures, all U.S. staff members at the USAID office in Bangladesh were placed on administrative leave. 

A portion of the staff is now working on sending documents to USAID’s Washington D.C. office.

Following the Trump administration’s decision to cancel more than 90% of foreign aid agreements and reduce the U.S. budget by nearly $60 billion, around 10,000 contracts were terminated globally on February 25, including those with NGOs working under USAID.