A significant portion of US humanitarian aid is at risk following recent funding and staffing cuts at USAid, the primary agency responsible for foreign assistance. According to a new report from the Office of Inspector General (OIG), nearly $500 million worth of food aid is in jeopardy due to logistical challenges and an inability to properly monitor distribution.
The report highlights the consequences of widespread staff reductions and funding freezes, which have hindered the agency’s ability to deliver essential aid to vulnerable populations. The situation has raised concerns over the potential for food spoilage, unanticipated storage costs, and even the misuse of taxpayer-funded assistance in conflict-prone regions.
Widespread Staff Reductions and Operational Challenges
The report, released on Monday, details how USAid’s operational capacity has been significantly degraded following recent budgetary constraints and administrative decisions. The agency, which employs around 10,000 personnel, has been forced to put a large portion of its workforce on administrative leave, creating severe disruptions in aid distribution.
According to USAid staff, these reductions have left humanitarian aid—valued at $489 million—stranded in ports, transit hubs, and warehouses. Without adequate personnel to oversee its distribution, the risk of spoilage and mismanagement has dramatically increased.
Additionally, these challenges have complicated efforts to prevent aid diversion, particularly in regions where humanitarian assistance is at risk of falling into the hands of militant groups. USAid’s vetting unit, which ensures that funding is not misused, has reportedly been told not to report to work, creating further security concerns.
Impact on Global Aid Recipients and Security Concerns
The suspension of USAid operations has already had severe consequences for aid-dependent nations. In Malawi, one of the most heavily reliant countries on US foreign assistance, disruptions in food aid distribution have led to chaos and uncertainty.
Furthermore, the freeze on funding and oversight has impacted security measures in high-risk regions. According to the OIG report, USAid is required to vet all assistance programs in Afghanistan, Iraq, Lebanon, Pakistan, Yemen, Syria, the West Bank, and Gaza. However, with vetting procedures now stalled due to staffing issues, the risk of funding being unintentionally diverted to extremist organisations has increased.
