The Trump administration announced that it would put an end, at least temporarily, to the USAID (United States Agency for International Development) international aid program, which has played a key role in the development and stability of Southeast Asia, particularly in the areas of health, education, and humanitarian crisis management.
The end of the program would have immediate repercussions in the health sector, as well as in managing the refugee issue, particularly those from Myanmar, who find refuge in camps along the Thai border and in Bangladesh. In a context where international aid is likely to shrink, the challenge is to find sustainable solutions that are less dependent on NGOs and external aid, while promoting more resilient and long-lasting local initiatives.
However, the “end” of USAID in Southeast Asia is not absolute. Some programs deemed critical to U.S. interests have been spared or transferred to the State Department’s oversight. The exact scope of what remains is unclear as of now, with confusion persisting among NGOs and local partners scrambling to adapt.
What does USAID stand for and what does it do?
The United States Agency for International Development (USAID) is a government agency responsible for international aid and development. Of the 40 billion dollars managed in 2023, a significant portion was invested in humanitarian and development aid in Southeast Asia.
The initiatives supported by USAID are of considerable scale, involving nearly 10,000 employees and operating in numerous countries. The recent reduction in U.S. funding calls into question the sustainability of these programs and raises concerns about the impact on public health, particularly in Southeast Asia.
USAID’s Impact in Southeast Asia
USAID maintains a partnership with ASEAN countries aimed at implementing policies at the national and regional levels, and combating various threats such as human trafficking. A new agreement with the Trump administration in 2020 further strengthened this partnership.
In 2024, USAID allocated nearly 860 million dollars to Southeast Asia, a large portion of which was dedicated to defending democracy, human rights, and governance in six countries in the region: Cambodia, Laos, Myanmar, the Philippines, Thailand, and Vietnam. Aid is primarily distributed through NGOs working closely with local communities.
USAID has historically played a major role in Southeast Asia, supporting initiatives in economic development, health, environmental sustainability, and governance. The agency operates through bilateral missions in countries like Cambodia, Indonesia, Philippines, Timor-Leste, and Vietnam, as well as through the Regional Development Mission for Asia (RDMA) based in Bangkok, Thailand.
The Suspension of the USAID Program
Shortly after taking office on January 20, the Trump administration announced, through Secretary of State Marco Rubio, that following recommendations from the Department of Government Efficiency (DOGE) led by billionaire Elon Musk, the U.S. would end 5,200 of USAID’s 6,200 programs. The remaining 18% will now be managed “more efficiently” by the State Department.
This decision, strongly opposed, particularly by Democrats, raises legal concerns since these funds are allocated by Congress, and their suspension could be considered illegal. Despite this, the Trump administration has withheld the funds and ceased disbursing them.
The administration justifies this measure by citing its priority to put “America first” and defend the interests of American citizens. Rubio stated that USAID had consumed tens of billions of dollars without real efficiency, sometimes even to the detriment of U.S. interests. A 90-day reassessment of each program was announced, but so far, it has mainly served to block the arrival of capital.
Effects of the Suspension Across Southeast Asia
The abrupt cessation of aid has global repercussions. In Sudan, assistance to victims of the civil war has stopped. In Oman, dozens of Afghan women who fled the Taliban are at risk of being sent back to Afghanistan, as their USAID-funded scholarships have been canceled.
The impact is particularly severe in Southeast Asia, where tens of millions of dollars were allocated to local NGOs to address humanitarian crises, manage the influx of refugees, particularly from Myanmar, support international advocacy, organize the recovery of displaced persons, and strengthen health systems.
In 2023, total aid to the region amounted to 922 million dollars, of which 168 million was dedicated to governance and human rights. Today, most of the programs have been shut down, while thousands of refugees are still waiting for assistance at the Thai borders.
Klaus Dik Nielsen, co-secretary general of the Asia Pacific Refugee Rights Network (APRRN), an organization with 300 members in 28 countries working for the protection of refugees, stateless people, and internally displaced persons, expresses concern about the deep consequences of this suspension on the entire humanitarian sector. According to him, the region is already largely neglected by international donors, with priorities given to other crises, such as those in Ukraine and Gaza.
Addressing the Refugee Crisis
Life Within Refugee Camps
For decades, minorities persecuted by the military junta have been fleeing Myanmar, and approximately 110,000 refugees live in nine camps along the Thai border, a number that has increased by 20% since the 2021 coup.
Deprived of the right to work and without legal status, they depend on NGOs such as the International Rescue Committee (IRC) and the United Nations High Commissioner for Refugees (UNHCR) to survive, while access to healthcare remains difficult and resettlement options are limited.
Even before the suspension of U.S. aid, these camps were underfunded by 65%. The halt of aid from the U.S. Bureau of Population, Refugees, and Migration (PRM) in January, totaling 1.3 million dollars per month, has plunged the NGO The Border Consortium (TBC) – responsible for food supply and refugee management – into uncertainty, exacerbating the threat of famine for these refugees, who are considered illegal immigrants in Thailand.
In Bangladesh, where nearly 900,000 Rohingya refugees from Myanmar live, the suspension of U.S. aid has led to the halt of mechanisms for monitoring violence and abuse. In the Cox’s Bazar camps, living conditions are rapidly deteriorating due to budget cuts, while insecurity continues to rise. According to UNICEF Bangladesh, child malnutrition has increased by 27%, reaching a record level since 2017: more than 15% of children in the camps are malnourished.
The suspension of U.S. aid has major consequences for displaced populations and Burmese civil society. Aid of 1.4 million dollars, intended to support 60,000 people stranded at the Burmese border, was canceled. Cross-border operations also had to cease.
Without international support, human rights defenders find themselves isolated. Lawyers who represented political prisoners now have to fund their clients’ defense themselves. Independent media, deprived of resources, are forced to lay off staff or shut down. This situation gives the military junta the opportunity to intensify its repression tactics, increasing food, electricity, and essential service deprivations to weaken civil resistance. The suspension of U.S. aid further empowers the regime’s crackdown.
Refugee Integration and Resettlement
A recent survey by APRRN among its members revealed alarming consequences. Klaus Dik Nielsen notably mentions the case of an Afghan woman in Malaysia, who was supposed to be resettled in the U.S. but whose departure was canceled just ten days before her flight.
The suspension of the U.S. Refugee Admissions Program (USRAP) has blocked all possibilities of departure to the United States, leaving many refugees in uncertainty. In Myanmar, repatriations are impossible due to the conflict, leaving refugees in a legal deadlock. In Thailand, like in Cox’s Bazar and elsewhere, refugees remain waiting for a legal solution.
Given the limited possibilities for refugee reintegration in Southeast Asia due to the lack of adapted legal frameworks, resettlement in third countries like Canada, Australia, or Scandinavia remains an alternative. However, according to Prima Sukmanop from the Resettlement Support Center Asia, managed by the International Rescue Committee (IRC) in Bangkok, quotas remain very limited, further reducing the future prospects for these vulnerable populations.
Critically Limited Healthcare Access
The halt in USAID funding has major repercussions on the healthcare sector, forcing several organizations to reduce or close their programs, particularly those aimed at survivors of trauma and sexual and gender-based violence. Psychological distress is also increasing due to growing uncertainty and precariousness.
The impact is particularly evident in the fight against hepatitis. Around 300 million people worldwide live with hepatitis B or C, two-thirds of them in Asia. USAID is the primary funder of the hepatitis B vaccination program, and the cessation of its funding jeopardizes screening and prevention efforts, especially as other countries, such as the UK, may also reduce their support.
Efforts to combat malaria in Southeast Asia are also at risk, particularly in the Mekong region. USAID has played a key role in reducing cases, particularly in Myanmar, where the epidemic has worsened due to civil war. With the cessation of these programs, the disease risks spreading again in areas that had managed to eradicate it, such as parts of Thailand, largely due to the influx of refugees. Alexandra Wharton-Smith, who worked on USAID’s Myanmar program before being laid off by the Trump administration, told Al Jazeera, “Without the necessary resources, malaria will return to Southeast Asia and the Mekong region.”
Other diseases are also affected, including HIV, tuberculosis, and programs for reducing risks for people who inject drugs. The interruption of these initiatives increases the risk of transmission and further limits access to care for vulnerable populations. According to Dee Lee, elected president of the World Hepatitis Alliance, at least 20 local NGOs working in the medical field have already had to close due to a lack of funding.
In response to this situation, refugees in Thailand have set up makeshift hospitals within the camps, using their medical skills to treat others.
Myanmar Students at Risk
The 45-million-dollar Diversity and Inclusion Scholarship Program (DISP), funded by USAID, was also interrupted by the Trump administration, leaving more than 400 Burmese students without their scholarships. This program, launched in February 2024, aimed to offer higher education to students from marginalized backgrounds, allowing them to study in several Asian countries, including Thailand, the Philippines, Cambodia, and Indonesia.
These students were selected for their potential to become future leaders of Myanmar and because of the obstacles they face in their country, where the military regime severely restricts access to education.
Now without financial support, these students may have to abandon their studies and, for some, return to Myanmar, where they could face persecution. Students benefiting from similar programs in the 1990s were key to the 2012 democratic breakthrough when the National League for Democracy entered Parliament.
The cessation of this program could also weaken U.S. influence and soft power in the region, which could benefit China. The change of the program’s name, replacing “Diversity” with “Development,” along with the sudden cancellation of these scholarships suggests more of an ideological decision than a genuine re-evaluation of foreign aid.
Fragile Humanitarian Aid
International aid is going through a critical period: after the United States, other countries may also suspend their funding. The World Food Programme (WFP) had to reduce its food aid from 12 dollars to only 8 dollars per person per month, exacerbating an already dire situation. Officially, this reduction is attributed to global tensions and the lack of funds, but the sudden halt of USAID certainly plays a role.
This crisis highlights the vulnerability of a humanitarian system reliant on foreign funding. The challenge is to strengthen local structures and prioritize sustainable solutions to no longer depend solely on NGOs and unstable international funding. Refugee protection can only be guaranteed by robust and autonomous local initiatives.
Redefining Humanitarian Aid Funding Strategies in Asia
While the abrupt cessation of U.S. funding jeopardizes many programs, it could also be an opportunity for Asian countries to take control of humanitarian aid and seek more sustainable financing. Private donations are a potential solution, but they are not sufficient to replace the hundreds of millions of dollars withdrawn from the global system.
Regarding the Burmese refugee camps in Thailand, a viable solution would be to allow refugees to work legally outside the camps. A survey reveals that 50% of them are qualified and willing to integrate into sectors such as agriculture, tourism, and trade, but remain restricted.
Klaus Dik Nielsen highlights the resilience of refugees and their willingness to contribute to the societies that host them. He emphasizes the importance of involving the people affected directly in developing solutions. A priority remains to combat hate speech targeting refugees, especially on social media, where misinformation campaigns fuel tensions.
Finally, the lack of regional coordination and political will hinders any progress in migration governance. If they want to ensure a more stable future, it is essential for the countries in the region to develop a collective and proactive approach, free from fluctuating financial dependencies.
Sources :
https://www.unicef.org/press-releases/27-cent-surge-number-children-admitted-severe-acute-malnutrition-treatment-rohingya
https://www.aljazeera.com/news/2025/3/13/across-global-south-usaids-demise-raises-fears-of-malaria-tb-resurgence
https://www.wfp.org/news/wfp-appeals-urgent-funding-prevent-ration-cuts-over-one-million-rohingya-refugees-bangladesh#:~:text=In%202023%2C%20severe%20funding%20constraints,percent%20%E2%80%93%20above%20the%20emergency%20threshold.
https://www.lesechos.fr/monde/asie-pacifique/birmanie-une-fragile-democratie-1286641
https://www.voanews.com/a/trump-s-funding-freeze-hits-program-for-burmese-students-scholars/7959215.html
https://www.bbc.com/news/articles/cdx2401vn5ro
www.thailand-business-news.com (Article Sourced Website)
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