CARE International has faced significant setbacks due to funding cuts linked to the U.S. withdrawal from foreign aid initiatives. The impact has been particularly felt in the Pacific region, where vital programs aimed at enhancing climate resilience, agriculture, and nutrition have been affected.
In January of the previous year, Havini Vira was managing a crucial climate resilience agriculture project in Papua New Guinea, which was nearing its conclusion with the distribution of seedlings to approximately 20,000 community members across Bougainville and the highlands. Tragically, the project was abruptly terminated following the U.S. government’s decision to cut foreign assistance as part of a broader withdrawal spearheaded by former President Donald Trump. The change resulted in USAID halting over 80 percent of its humanitarian programs as of September, leaving countries like Papua New Guinea reeling from the financial void.
CARE International lost approximately $190 million (US$131 million) in funding, leading to the cancellation of 49 programs across 32 countries, affecting an estimated 18.4 million individuals who depended on these crucial services. Vira, who is based in Goroka, expressed the shock and disappointment felt by his team and the local communities that had invested time and hope in the project, stating that a more gradual exit with prior notice would have allowed for better transition planning and support for the communities impacted.
The repercussions of the U.S. funding cuts were not isolated to Papua New Guinea. Other significant initiatives, including a school lunches program in East Timor that provided high-protein meals to 70,000 students daily, faced similar fates. While Australia stepped in to partially fill the void, the scale of support fell drastically, resulting in the program now reaching only 12,000 of the most vulnerable children.
Various other projects, including communications networks in disaster-prone Vanuatu and support for local NGOs, have also been severely impacted. A year after the funding cuts, professionals in the sector are grappling with uncertainty and demoralization, raising concerns about the future of aid in the region.
With the upcoming budget from the Albanese government, there is a glimmer of hope among aid workers and organizations. Many are urging the government to recognize the importance of foreign aid not only in providing immediate assistance to struggling communities but also as a tool of soft diplomacy, fostering goodwill and stability in the region. Australia’s annual contribution to official development assistance in Papua New Guinea is substantial, amounting to nearly $640 million (US$440 million), alongside significant budget support loans. The hope remains that these figures will increase, providing desperately needed support to communities affected by the cascading impacts of the funding cuts.
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