USAID Funding Cuts and Their Implications Explained

Annabel Gabriel

Introduction

The United States Agency for International Development (USAID) is a U.S. agency that aims to develop under-developed countries through funding healthcare, education, food security, and advocating for rights. In 2025, the USAID was defunded by the Trump Administration through their changes to foreign aid. This not only affected many organizations and initiatives, but affected disability advocacy organizations as well. Previously funded initiatives such as inclusive education and disability rights advocacy are now without funding because of this initiative [1][2].

What is USAID?

USAID is working with over 100 countries to encourage global economic development, assist food security, defend human rights, improve education, and aid public health. USAID encompasses 0.2% of the federal workforce. It is led by the administrator of the Agency for International Development–nominated by the president [2][3].

USAID Spending in 2024

From 1980 to 2024, USAID’s federal spending has increased 106.6%. While this is true, overall federal spending has increased by 193.7%. This means USAID’s share of the federal budget has decreased overall. Currently, USAID accounts for 0.3% of all federal spending. That is 0.1 points lower than in 1980 [2]. 

USAID Funding Cuts

On January 20, 2025, United States President Donald Trump issued an executive order that required a halt of all foreign aid. Following this, the U.S. government brought about substantial changes to foreign assistance. This included all global health programs. On July 1st, Secretary of State Marco Rubio announced that USAID will not continue to provide foreign assistance. It was stated that only programs that advance American interests would be administered by the State Department [3][4]. 

The U.S. government spends approximately $80 billion annually on foreign aid. Approximately 20% of this is spent on global health. These initiatives are used to prevent the spread of diseases like malaria, tuberculosis and HIV. They are also used for maternal and child health and education. The U.S. made up about 25% of total global health program aid before the funding cuts [5]. 

Disability and Inclusion within USAID

USAID has previously committed itself to inclusivity within people with disabilities. In 2024, the USAID Disability Policy “Nothing Without Us” was created to bring respect, engage, and include people with disabilities. Under this policy, USAID aimed to foster inclusion, empower individuals, and dismantle discrimination through respect. Additionally, this policy aimed to advance disability-inclusive education through effective programing and accountability to people with disabilities. The policy goes on to explain that USAID plans on implementing this process during decision-making, implementation, and evaluations. Overall, USAID through this policy aimed to commit itself to promoting and enforcing inclusive environments in all programming for people with disabilities [6][7].

USAID has worked in over 50 developing countries to ensure equitable and quality education. They primarily focus on people with disabilities and marginalized groups of people. In the past, USAID has claimed to bring equity and inclusion in education for approximately 900,000 people with and without disabilities [8]. 

Inclusive education is better for all parties. It promotes mutual respect, reduces bullying, and gives students with disabilities a sense of belonging. Through inclusive education, individuals are able to feel safe and supported while developing essential teamwork and communication skills. It destigmatizes disabilities and grants a positive attitude towards them. This reduces feelings of loneliness and diversifies perspectives of others, enhancing empathy and deeper thinking [9].

USAID has employment initiatives in place that aim to create inclusive work opportunities making it so people with disabilities are able to have jobs that pay the same rate as people without disabilities and have benefits. Such initiatives include special training and partnerships to ensure competitive integrated employment allowing for people with disabilities to work with people without disabilities and have the same opportunities for growth [10]. 

USAID has programs that allow increased access to specialized healthcare like occupational and speech therapy that otherwise would not be accessible. USAID aims to continue working with local governments to improve healthcare access for people with disabilities [11].

USAID has an emphasis on advocacy and inclusion. It works with organizations that protect and advocate for inclusion. They make sure inclusion policies are not only enacted but enforced. This is essential to making sure people with disabilities are supported [11]. 

USAID Involvement in Assistive Technology (AT)

In the past, organizations such as ATscale have worked globally to promote and provide the resources for AT. Only about 10% of all individuals in low-income countries with needs for AT have been able to receive the technology they need. This is compared to the 90% of people in high-income countries that have access to technology. Over 2.5 billion people globally require assistive products. When individuals with disabilities are unable to have their AT needs met, these outstanding needs end up worsening existing inequalities such as restricted education, employment, and lower quality of life. People that benefit from AT include people with disabilities, older populations, and people with mental and physical health conditions. To aid in these initiatives, organizations such as ATscale have funded the development of tools that support inclusive AT integration. In addition, such initiatives also work with policy and advocacy to bring about change world-wide [12]. 

Previously, USAID had been very involved in ATscale. USAID, amongst the United Nations Special Envoy for Health and the Boston Consulting Group had seen the success of other global health initiatives and saw how those same strategies could be applicable to AT. All three international organizations aimed to find a way to make AT more accessible and cheaper globally. Through their collaboration, ATscale was able to introduce existing life-changing AT to more people. ATscale aims to continue to bring about action through their partners, actions, and amplification of existing work and AT. This is to ensure that more people worldwide are able to be provided with the technology they need [12][13].

USAID Funding Cuts Impact on Disability Rights

After the Trump Administration’s announcement to apply funding cuts on foreign policy, the Disability Rights International and The United States International Council on Disabilities met to discuss the impact. At this meeting it was announced that 50% of disability organizations reported loss in funding and 80% of organizations reported that work and rights protection would be affected by the U.S. policy changes [1].

It was reported that certain disability rights and inclusion projects in developmental countries have been stopped abruptly. Some grassroot disability organizations have been completely defunded. Additional effects on developing countries include: reduced social protection, hospitals, schools, inclusive education programs, and humanitarian aid. The reduced funding for these initiatives impact the ability to ensure inclusion, advocate rights, and provide services for people with disabilities [1][14]. 

Without these services, individuals with disabilities are unable to have the support needed to advance within education and the workforce. This supports individuals academically and socially by giving them an environment to develop personal and problem-solving skills–both essential to every-day interactions [15].

Conclusion

As global disability rights conversations continue, the USAID’s role in advocating for inclusive programming becomes more necessary. It ensures that funding and policies are properly procured and prioritized. By continuing to invest in inclusive education, inclusion, advocacy, and healthcare, it molds communities and fosters a sense of belonging. These endeavors are essential to giving people with disabilities the opportunities necessary to succeed.

References

[1] “Community Forum on US Foreign Policy and Funding Cuts: Understanding the Impact on the Global Disability Community | Disability Rights International,” Driadvocacy.org, Feb. 13, 2025. https://www.driadvocacy.org/news/community-forum-us-foreign-policy-and-funding-cuts-understanding-impact-global-disability

‌[2] “What does USAID do? | USAFacts,” USAFacts, 2025. https://usafacts.org/explainers/what-does-the-us-government-do/agency/us-agency-for-international-development/

‌[3] M. Johnston, “U.S. Agency for International Development (USAID) | History, Spending, Projects, & Facts,” Encyclopedia Britannica, Feb. 19, 2025. https://www.britannica.com/topic/US-Agency-for-International-Development

‌[4] E. McCabe, “U.S. Agency for International Development: An Overview,” Congress.gov, Mar. 14, 2025. https://www.congress.gov/crs-product/IF10261

‌[5] “USAID Funding Cuts: Our Response and Ways to Help,” GiveWell, 2025. https://www.givewell.org/research/funding-cuts

‌[6] “NOTHING WITHOUT US USAID DISABILITY POLICY,” 2024. Available: https://www.disabilitydebrief.org/content/files/2025/02/2024-USAID-Disability-Policy-508-FINAL.pdf

‌[7] Disability, “USAID announces new disability policy,” Disability Insider, Nov. 05, 2024. https://disabilityinsider.com/2024/11/05/misc/usaid-announces-new-disability-policy/ (accessed Jan. 30, 2026).

‌[8] USAID Office of Education, “USAID EDUCATION: ACCESS TO QUALITY EDUCATION FOR MARGINALIZED CHILDREN AND YOUTH ,” Apr. 17, 2019. https://files.eric.ed.gov/fulltext/ED609707.pdf (accessed Jan. 30, 2026).

‌[9] V. Traylor, “What Are the Benefits of Inclusive Education? - Resources on Disability Assistance: Your Rights and Benefits,” Disabilityhelp.org, Sep. 11, 2024. https://www.disabilityhelp.org/what-are-the-benefits-of-inclusive-education/

‌[10] “Diversity, Equity, Inclusion, and Accessibility in USAID Programs.” Accessed: Jan. 30, 2026. [Online]. Available: https://assets.performance.gov/APG/files/FY2024/Q3/FY2024_Q3_USAID_Progress_Diversity_Equity_Inclusion_and_Accessibility_DEIA_in_Programs.pdf

‌[11] “USAID DISABILITY POLICY PAPER,” 1997. Available: https://hpod.law.harvard.edu/pdf/USAID-Disability-Policy-Paper.pdf

[12] “ATscale Global Partnership,” ATscale. https://atscalepartnership.org/

[13] I. Hub, “Partnership launched with ATScale,” Global Disability Innovation Hub, 2018. https://www.disabilityinnovation.com/news/partnership-launched-with-atscale (accessed Feb. 09, 2026).

‌[14] B. Luscombe, “Her Small Business Helps Disabled Kids Learn. USAID Cuts Have Pushed It Toward Bankruptcy,” TIME, Mar. 04, 2025. https://time.com/7263808/usaid-cuts-disability-inclusive-development-partners-interview/

‌[15] W. Westerlund, “Importance of Community: Why It Matters and Its Purpose,” Suptask.com, Sep. 19, 2024. https://www.suptask.com/blog/importance-of-community