The efforts by the Trump administration to downsize the United States Agency for International Development (U.S.A.I.D.) have jeopardized essential funding for food, tents, and medical treatment for hundreds of thousands of Palestinians in Gaza, according to U.S. officials and humanitarian workers.
Officials indicated that threats to the aid supply chain could destabilize the fragile cease-fire agreement between Hamas and Israel, which relies on the weekly entry of 4,200 aid and commercial trucks into the territory.
With nearly all U.S.A.I.D. staff expected to be placed on administrative leave by Friday night, only a few officials will remain to approve and audit hundreds of millions of dollars in outstanding payments to the agency’s partners operating in Gaza. This situation raises concerns regarding the funding of their operations.
According to an internal email, out of more than 200 officials in the agency’s Mideast team, only 21 will remain to manage the entire regional portfolio. The team responsible for organizing emergency aid supplies globally has decreased from over 1,000 staff members to just 70.
This reduction is anticipated to slow or prevent the delivery of vital supplies, including food packages, tents, blankets, hygiene kits, and medical treatment, affecting hundreds of thousands of Palestinians, as reported by several anonymous officials and an aid worker.
Although U.S.A.I.D. does not operate directly in Gaza, it has allocated approximately $1 billion in aid to international aid organizations in the region since the war began in October 2023, accounting for about a third of the total aid response, according to the United Nations. However, hundreds of millions of dollars remain undisbursed and may not be transferred to major aid organizations.
Dave Harden, a former U.S.A.I.D. mission director for Gaza and the West Bank, expressed concern that the current situation is making an already fragile cease-fire even more precarious, stating that lifesaving aid to Gaza will be disrupted.
The State Department, which oversees U.S.A.I.D., declined to comment on the matter. The agency’s director in Jerusalem directed inquiries to the U.S.A.I.D. press department, which did not respond to requests for comment.
Secretary of State Marco Rubio stated in a recent television interview that the administration's actions were not aimed at eliminating foreign aid but rather at addressing issues of “rank insubordination” among uncooperative employees.
The Trump administration has criticized U.S.A.I.D. for allegedly wasting taxpayer money on ineffective overseas programs, claiming that agency employees spend taxpayer funds without regard for national interests.
Officials noted that aid to Gaza exemplifies how the agency's efforts align with President Trump’s foreign policy goals, including the extension of the cease-fire, which is partly dependent on the smooth flow of aid.
The ongoing reduction in U.S.A.I.D. staff is expected to diminish oversight of aid delivery. The agency plans to lay off officials responsible for monitoring supply distribution within Gaza, complicating the U.S. assessment of aid control and distribution in areas governed by Hamas.
This situation is likely to hinder coordination between the Israeli military, the Egyptian government, the United Nations, and private aid groups, which previously facilitated problem-solving in the supply chain and ensured the safety of aid convoys.
Some aid and development initiatives in Gaza and the West Bank have already faced restrictions following a freeze on most U.S.A.I.D. programs since January. By the beginning of this week, more than half of the approximately 50 officials working on the Gaza response in Jerusalem and Washington had been placed on leave or had their contracts terminated.
Among those affected was a U.S.A.I.D. representative who coordinated between the Israeli military and aid organizations from an Israeli military control room in Tel Aviv.
Funding freezes have already halted tens of millions of dollars intended for Gaza, including for water infrastructure and medical support programs.
The International Medical Corps, a medical aid group funded by U.S.A.I.D. that operates two large field hospitals in Gaza, indicated that it may struggle to maintain its emergency services, which treat up to 200 patients daily, serve 2,000 outpatients, and deliver approximately 20 babies each day.
Anera, another aid organization, reported that a freeze on a $50 million U.S.A.I.D. grant has forced it to suspend efforts to restore Gaza’s health services.
Additionally, tens of millions of dollars allocated for projects in the West Bank and East Jerusalem have been frozen, jeopardizing crucial funding for several hospitals that President Biden had pledged to support during a visit to the region in 2022.