A new programme to boost the climate resilience of drought-hit farmers in Iraq. Electricity installations that would give millions across Southern Africa access to clean energy. The conservation of critical ecosystems in Honduras to help local communities improve their livelihoods at home instead of needing to migrate to countries like the United States.These and hundreds more climate programmes funded by the US government risk disappearing as an administration led by President Donald Trump and tech billionaire Elon Musk threatens to shutter the state aid agency, USAID, and slash overseas development assistance.
“I think this is the end of US [government] climate funding,” predicted Karen Mathiasen, a project director with the Center for Global Development, a Washington-based think-tank. In an interview with Climate Home, she described as “shocking” the speed and brazenness with which the government is attempting to dismantle its foreign aid arm.
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Aid organisations and contractors have been grappling with an unprecedented crisis since, on his first day in office, Trump ordered a 90-day funding freeze during which a programme-by-programme review would be carried out.
As the world’s largest bilateral development assistance agency, USAID is a major provider of grant-based finance for climate action in the Global South. Its climate programmes – amounting to close to half a billion dollars in 2024 – help countries cut greenhouse gas emissions and protect their citizens from the escalating effects of global warming.
Secretary of State Marco Rubio – who is now in charge of USAID’s work – said last week that only projects that make “America safer, stronger or more prosperous” will survive the cull, without explaining which criteria would be used for the assessment.
‘Devastating’ consequences
The sudden move has thrown the development world into disarray, with organisations forced to halt their operations overnight and furlough or lay off staff without being able to obtain clear information or guidance from US officials.
A USAID project in Honduras strengthens the sustainability of coffee farming. Credit: USAID/Honduras Transforming Market
Speaking to Climate Home, aid workers involved in USAID-funded climate projects in the Global South painted a picture of bewilderment and confusion.
“We are no longer able to transfer funds to our local partners – and it will be really hard for them to manage costs,” explained one senior official at a global humanitarian group, underscoring the “devastating” consequences of the funding freeze for frontline organisations.
Working in conflict-afflicted regions, the aid group supports projects to build climate resilience that struggle to attract any financing outside of development money, said the official, adding “that has all gone away now”.
“For many programmes a 90-day pause is as good as a cancellation because you
