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In an executive order signed by President Donald Trump just after he took office, he suspended USAID (United States Agency for International Development) foreign aid programs because they were not “aligned with U.S. interests.” The only programs that kept their funding were those directed to Israel and Egypt.
Donald Trump’s order to freeze resources for foreign aid programs for 90 days has paralyzed the operations and activities of the thousands of initiatives managed by foundations and non-governmental organizations (NGOs) operating in Latin America with USAID contributions. This has the additional consequence of forcing these organizations to lay off their staff. In this context, and with a view to reorganizing USAID, Trump appointed Secretary of State Marco Rubio as the acting administrator of the agency, a move that has set off alarm bells throughout Latin America.
Why is USAID so important in Latin America?
The humanitarian cooperation agency dates back to the presidency of John F. Kennedy in 1961 and has around 10,000 employees, about 6,500 of whom work in 60 missions around the world. In 2023, according to a report by the Congressional Research Service of the United States (CRS), the Agency disbursed around $43.4 billion in international assistance. This aid is implemented through cooperation agreements, contracts, and grants with a wide range of actors –not just NGOs, but also private-sector companies, universities, foundations, and governments from all over the world, including the United States itself. According to the same report, the largest part of the resources went to governance programs ($16.8 billion), followed by humanitarian support ($10.5 billion) and health ($7 billion).
While Latin America is not the region receiving the largest portion of the budget (in contrast to Europe, Eurasia, or Sub-Saharan Africa), the funding is vital for countries such as Colombia, which received the most aid ($389.4 million), followed by Haiti ($316 million), Venezuela ($205 million), Guatemala ($178 million), Honduras ($144 million), and El Salvador ($138 million).
Countries such as Peru ($111.5 million), Mexico ($71.35 million), the Dominican Republic ($49 million), and Ecuador ($46.5 million) are also on the list of recipients of USAID funds. Only Argentina and Uruguay did not receive aid from the agency in 2024, according to official data.
Source: ForeignAssistance.gov
Why is USAID so important in Ecuador?
USAID has played a crucial role in the socioeconomic development of Ecuador. Since it was established in 1961, USAID has worked together with the Ecuadorian government and various local organizations to address a range of challenges in areas such as health, education, the environment, and governance. Of the $46.5 million received in 2023, many projects focusing on different issues – including the environment – were funded. According to most of the national and international environmental NGOs consulted, between 50 percent and 75 percent of their budgets depend on the assignment of these resources or use them as a matching fund.
One example of the latest projects funded by USAID is for the Galapagos Islands, carried out jointly with the United Nations Office to promote environmental education for children in the archipelago. And for 2025, which has only just begun, there were already about ten projects registered in the U.S. federal assistance system.
Protecting the environment is a key priority for USAID in Ecuador. The agency has collaborated with the government and local organizations on thousands of conservation and sustainable resource-management projects, including protecting vulnerable ecosystems such as mangroves, the páramo, and the Amazon region, as well as promoting sustainable agricultural practices and preparing for natural disasters.
Ecuador is one of the most biodiverse countries in the world, and USAID has played an important role in conserving this natural wealth. Through biodiversity conservation projects, the agency has helped protect critical habitats along the coast, in the highlands, and in the Amazon region, benefiting Indigenous peoples, local communities, and endangered species. It has also promoted alternative income-generating strategies such as ecotourism to create sustainable sources of income for local communities and has supported new financial mechanisms to safeguard natural heritage.
What does freezing these funds imply?
International cooperation – regardless of the country from which it originates – entails identifying resources to improve the quality of life in developing countries, which also involves the thousands of direct and indirect jobs that depend on these funds and thus affect the national economy. Many of these programs are key to generating economic alternatives for local communities, which – without this aid – could continue harmful deforestation processes, or leave young people without employment opportunities, pushing them into criminal activities like drug trafficking or illegal mining.
Ecuador, currently amid a security crisis and overcoming long-term democratic governance challenges, will be deeply impacted by any reduction in aid. These funds simply represent life or death for civil society organizations that do what the Ecuadorian state cannot or does not manage to do.
Conclusion
USAID’s impact on Ecuador is broad and profound. Through its various initiatives in health, education, the environment, and governance, the agency has made significant contributions to the country’s sustainable development.
According to Rubio, the goal of the freeze is to review funding “program by program” to align them with the new Trump administration policies. However, USAID’s work – ranging from responses to humanitarian emergencies to long-term development – goes beyond this. It directly reflects the global leadership of the United States. By undermining this agency, the current administration risks not only the stability and well-being of millions of vulnerable people around the world but also Washington’s own projection of power and influence. Chinese investment already makes up nearly half of foreign direct investment in Ecuador (45.6 percent, compared to 17.9 percent from the U.S.), most of which is in manufacturing, critical minerals, and strategic sectors, according to Ecuador’s Central Bank. Washington still leads in humanitarian and nonprofit spending and risks losing a valuable soft power advantage by freezing operations.
A legal battle is now looming over the president’s authority to dismantle USAID, and the international community is watching with growing concern. The fundamental question is whether the United States of America is prepared to abandon its role as the world’s leading provider of aid and development, relinquishing ground to authoritarian rivals eager to fill that vacuum.
In times of deep global uncertainty, defending and strengthening institutions like USAID – which embody the values and principles of U.S. foreign policy – has never been more important.
Verónica Arias is a Senior Fellow at Global Americans and a highly experienced attorney and consultant in environmental issues, with over 20 years of experience in the environmental, international, and senior management sectors. She holds a master’s degree in International Environmental Law from American University.
