Words by EMJ GOLD newsdesk
The Trump administration has announced plans to eliminate more than 90% of the US Agency for International Development’s (USAID) foreign aid contracts, cutting a total of $60bn in US assistance worldwide.
The move signals a major shift in policy, with significant implications for international health initiatives supporting disease prevention, vaccine distribution and access to essential medicines.
The cuts, detailed in an internal memo obtained by The Associated Press and court filings from ongoing legal battles, leave only a handful of USAID projects funded. The Supreme Court temporarily blocked a lower court’s order on 26 March that would have forced the administration to release billions in foreign aid by midnight, adding further uncertainty to the future of global health programmes dependent on funding from the US.
UNAIDS reports that 55 countries have published at least one status report on the impact of previous USAID cuts in the past year, including 42 projects supported by the US President’s Emergency Plan for AIDS Relief (PEPFAR). This number is likely to increase.
USAID has historically played a critical role in supporting the pharmaceutical industry’s mission to improve global health, helping to combat infectious diseases and funding vaccine programs in low-income countries. These efforts that will now face distinct disruption.
On 20 January 2025, Trump issued an executive order ordering an immediate halt to all foreign aid – launching a 90-day review to determine which programs should continue. The abrupt freeze stalled thousands of US-backed global health and humanitarian initiatives, impacting disease prevention efforts and vaccine supply chains.
As legal battles over the funding cuts continue, the pharmaceutical sector faces potential ripple effects, particularly in areas where US assistance supports research, drug access and pandemic preparedness.
