The Trump administration’s cuts to USAID have halted hundreds of millions of dollars in aid payments to humanitarian organizations working in Gaza, endangering the fragile ceasefire and worsening the humanitarian crisis.
USAID had initially approved over $383 million in funding on January 31, following the U.S.-brokered ceasefire between Israel and Hamas. However, aid groups have not received any payments since then, despite having already spent millions on supplies and services.
Several NGOs have reported layoffs and reductions in operations due to the funding freeze. The International Medical Corps, which was awarded $12 million to support two hospitals in Gaza, has had to lay off 700 staff members and reduce services to a minimal level. A program treating malnutrition has also been severely impacted.
USAID’s ability to distribute funds has been significantly affected by broader efforts from the Trump administration and Elon Musk’s Department of Government Efficiency (DOGE) to cut federal spending. The administration initially approved a waiver to allow aid to Gaza, but organizations have since been left waiting for reimbursement.
The situation has led to growing concerns that the lack of humanitarian assistance could destabilize the ceasefire, which hinges on aid delivery, prisoner exchanges, and hostage releases.