The closure of the U.S. Agency for International Development (USAID) is dealing a severe blow to essential programs in Latin America, threatening humanitarian aid in Colombia, conservation efforts in the Brazilian Amazon, and anti-narcotics initiatives in Peru. The freezing of international funds has already affected projects aiming to reduce hunger, corruption, and inequality and will impact millions across the region, experts and NGOs warn.
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In 2023 and 2024, USAID allocated approximately US$1.7 billion to Latin America and the Caribbean, according to ForeignAssistance, an official U.S. platform that tracks international aid investments. This funding supported NGOs, public institutions, and UN programs, with a particular focus on violence-stricken and unstable countries such as Colombia and Haiti.
Colombia
In Colombia, about 25% of USAID’s resources were dedicated to implementing the 2016 peace agreement with the now-defunct Revolutionary Armed Forces of Colombia (FARC). Although this funding accounts for less than 1% of Colombia’s GDP, its absence is already having serious consequences.
In 2024, the approved USAID budget for Colombia was US$413.2 million which was distributed across at least 14 sectors. If the agency’s closure continues, the country stands to lose this vital funding.
“This is a drastic decision, as there are no recent precedents for such severe measures, and it has caused major alarm because numerous community, farming, and Indigenous organizations have benefited from USAID’s work,” says David Varela, a doctor in international affairs at Johns Hopkins University.
Recent USAID funding also provided emergency humanitarian aid to over 2.8 million Venezuelans fleeing economic collapse. In 2024 alone, the agency transferred around US$45 million to the UN World Food Programme, primarily to support these refugees.
In Bucaramanga, in northeastern Colombia, the Entre Dos Tierras Foundation – dedicated to assisting the homeless and Venezuelan migrants – has been forced to shut down.
“Everything is paralyzed because there are no funds, and the situation in the city is worsening,” lamented Alba Pereira, the foundation’s director.
The organization, which relied on USAID for 80% of its budget, used to distribute about 600 meals daily and employed 16 people.
The humanitarian crisis is escalating on multiple fronts.
“Pregnant migrant women will only receive medical care during childbirth. They will have no access to prenatal check-ups or medical attention during pregnancy,” warns Pereira, calling the situation “alarming.”
Commenting about the economic repercussions for Colombia, Andrés Felipe López, a Professor at Universidad de La Sabana, said:
“More than 75% of the international aid received comes through USAID.”
Peru
In Peru, where USAID allocated approximately US$135 million in 2024, NGOs are already struggling to sustain programs in food security, anti-narcotics operations, job creation, environmental protection, public health, and democracy-building.
“If these cuts persist, programs will have to be drastically reduced,” warned Susana Chávez of the feminist organization, Promsex. “And this is happening in a country where every day, 47 children and teenagers experience sexual violence in their homes and schools”, she added.
One of USAID’s primary missions in Peru has long been the eradication of coca by funding alternative crops like coffee and cocoa. These efforts date back to the 1980s but are now at risk of being abandoned. Peru is the world’s second-largest cocaine producer, trailing only Colombia, which also relies on similar U.S.-funded initiatives. Despite these challenges, Peruvian Prime Minister Gustavo Adrianzén has given assurances that the government will continue crop-substitution programs even without U.S. support.
Environmental concerns are also growing in the Amazon.
“Deforestation, drug trafficking, and illegal mining will intensify,” warned Oswaldo Muca Castizo, general coordinator of the National Organization of Indigenous Peoples of the Colombian Amazon (Opiac).
Without funding, vulnerable youth in indigenous communities may be recruited by criminal groups that destroy the rainforest to expand coca cultivation.
Brazil
In Brazil, USAID runs the Amazon Biodiversity Conservation Partnership, which focuses on protecting the rainforest and promoting sustainable income for indigenous communities. One of the key beneficiaries has been the Roraima Indigenous Council, which operates across 35 territories, including the Yanomami Indigenous Land – an area larger than Greece. With funding halted, initiatives that support small-scale farming, climate adaptation, and indigenous autonomy are under threat.
“If the partnership ends, it will shake the foundation of our organization and undermine essential initiatives,” explained Edinho Macuxi, a leader in the Indigenous Council.
In recent months, the council has already had to lay off staff and suspend activities due to a lack of funds.
The call to maintain funding extends beyond Brazil.
“Our message to President Trump is that he must uphold these resources – not just here, but in other countries as well. Indigenous peoples are the main guardians of the forest, ensuring the survival of not only Brazilians but the entire planet,” Macuxi emphasized.
The suspension of USAID has also brought the U.S. Forest Service (USFS) to a standstill which has impacted the Forest Management and Fire Prevention Program in Brazil. This partnership, which has been in place since 2021, primarily focuses on training professionals and conducting technical studies.
The program is a collaboration between the Brazilian Cooperation Agency (ABC) and USAID and aims to equip professionals to tackle wildfires. Funded by USAID, its implementation is undertaken by the U.S. Forest Service together with Brazilian institutions.
“The suspension of USAID operations does not have a direct impact on wildfire response efforts in Brazil. However, the setback lies in the interruption of technical initiatives that could have contributed to restructuring Brazilian institutions, particularly in terms of professional training,” Ibama, the Brazilian Institute of Environment and Renewable Natural Resources, explained in a statement.
Experts argue that the impact of USAID’s suspension will vary by region. Ricardo Falcão, a former USAID official and international funding specialist, explained that the agency’s presence in Brazil has always been linked to environmental issues, but the most significant consequences of the cuts will be felt in countries such as Bolivia and Paraguay.
“In Brazil, the amount invested is relatively small. The real problem is in other Latin American nations,” he commented.
Leonardo Letelier from Sitawi points out that the repercussions could be even wider, particularly given the shifts in U.S. foreign policy.
“USAID had a budget of about $30 million for Brazil. If we consider indirect projects and other changes in the U.S. government’s strategy, the number of affected organizations could be much higher,” he said.
Regardless of any possible revisions to the decision, the landscape for international funding has already changed.
“The future is clear: there will be budget restrictions and a redefinition of priorities. Even if USAID continues operating, its focus and funding levels will certainly shift,” Letelier concluded.
