More than 100 development projects worth $550 million have been suspended in Bangladesh after USAID halted funding in January 2025. The cuts have shut down programs supporting healthcare, clean water, disaster response, education, and income opportunities, according to a press-release by Caritas. Additionally, over 20,000 people working for NGOs and local organizations have lost their jobs as a result of the aid cuts.
As the funding halt has disrupted services across the country, healthcare systems face growing pressure with disease tracking and emergency response projects on pause during monsoon season (June – mid October, with the rainfall during this season accounting for 75% of annual precipitation in the country). Water and sanitation projects in coastal areas have stopped, leaving communities more exposed to contamination and health risks during floods.
Programs supporting women and children have also been cut dramatically, according to Caritas. Child protection funding dropped 36% while services addressing gender-based violence were reduced by half. Food insecurity in Bangladesh is becoming more visible as household incomes fall and food prices rise. Some families are selling essential items to buy food, and children are being pulled from school to work.
Caritas says that despite ongoing work with partners to support communities where possible, the gaps left by the aid cuts are significant.
In fiscal year 2024, Bangladesh received $371 million from USAID, including $47 million for humanitarian assistance, $16 million for emergency food assistance, and $11 million for TB health projects, according to ForeignAssistance.gov. In 2025, U.S. aid disbursements to the country dropped to $164 million.
