Secretary of State Marco Rubio's recent announcement that humanitarian work would be exempt from a freeze on foreign aid brought optimism among global health workers. However, a new directive has temporarily halted these exemptions.
On Tuesday, senior employees at the U.S. Agency for International Development (U.S.A.I.D.) Bureau of Global Health were informed via email to “please hold off on any more approvals” until further notice from the acting chief of staff. Similar instructions were communicated to senior officials at the Bureau of Humanitarian Assistance during a meeting.
U.S.A.I.D. officials, along with partner organizations, have been grappling with the continuation of lifesaving services as defined by Rubio, which include essential medical services, food, and shelter. While some waivers have been issued, the agency's payment system, known as Phoenix, has been inaccessible for weeks, complicating the disbursement of funds even for programs that have received waivers.
The State Department did not respond to requests for comments regarding the situation.
On the same day, Elon Musk, appointed by President Trump to oversee the agency, stated that funding for Ebola and HIV prevention had been “turned on.” However, reports from U.S.A.I.D. employees and aid groups indicate that funding for these programs remains frozen.
Musk's team has taken control of the agency's payment system, and under his oversight, the State Department has circulated plans to drastically reduce U.S.A.I.D.'s workforce from approximately 10,000 employees to just 611 essential personnel.
Without access to funding, organizations that depend on U.S.A.I.D. have reported being unable to pay their workers or suppliers. The Norwegian Refugee Council, involved in humanitarian efforts in around 20 countries, announced it could be forced to halt U.S.-funded programs if an immediate solution is not found, citing millions of dollars in outstanding payment requests.
New political appointees have also created additional obstacles. For instance, officials at one mission in Asia, despite receiving waivers for malaria eradication programs, were informed that individual project waivers were still necessary.
U.S.A.I.D. staff expressed concerns that the current pause on waivers signifies a potential end to vital projects. This week, agency officials were informed that around 350 awards would be canceled, although the exact number of affected contracts remains unclear.
Political appointees have accused U.S.A.I.D. officials of attempting to delay or obstruct the termination of programs by reassessing contracts necessary for granting waivers. Meanwhile, unions representing U.S.A.I.D. staff and partner organizations are pursuing legal action against the cuts, claiming they violate constitutional and legal provisions regarding appropriated funds.
One lawsuit highlighted that $250 million worth of health supplies are currently delayed or stranded due to funding freezes, resulting in significant furloughs at companies like Chemonics, which has laid off about two-thirds of its U.S.-based workforce.
In response to the lawsuits, lawyers for the Trump administration stated that the president possesses broad discretion over aid provision terms.
The ongoing legal disputes coincide with significant changes within U.S.A.I.D. On Tuesday, the administration dismissed the agency's inspector general, Paul K. Martin, shortly after he released a report indicating that staff reductions and spending freezes could lead to the misuse of taxpayer funds. The report also warned that substantial food aid could spoil without proper management.
Additionally, the agency has made further cuts to contractors and has seen the termination of its headquarters lease in Washington, D.C., with plans for the space to be repurposed for other government needs.
U.S.A.I.D. employees have largely been barred from their headquarters for over a week, with limited access to their work email accounts to prepare for impending departures. Foreign Service officers are also being ordered back to the U.S., while a federal judge has temporarily delayed these orders.
Employees anticipate that most of the agency's workforce may be terminated or reassigned to the State Department, as both President Trump and Musk have expressed intentions to dismantle U.S.A.I.D.