February 2, 2026 – The global humanitarian system is facing one of its most disruptive periods in modern history, following the cancellation of roughly 83% of grants by the United States Agency for International Development (USAID) in January, with other donor governments following suit. These historic cuts are forcing the closure of health facilities, nutrition programs, and classrooms, leaving millions at risk of losing access to lifesaving services.
Jeannie Annan, Chief Research and Innovation Officer for the International Rescue Committee (IRC), noted that the scale of this funding shock presents a rare and urgent opportunity to rebuild a humanitarian system that is more adaptive, resilient, and evidence-driven. In response, the IRC’s Airbel Impact Lab released its Innovation Report, outlining five key ideas to guide the evolution of humanitarian aid under tighter financial constraints.
The report emphasizes that the sector can no longer operate as usual. Humanitarian actors must become more selective and innovative, prioritizing interventions that deliver the greatest outcomes per dollar, reaching populations that are typically underserved, and leveraging solutions from academia, government, and the private sector. Drawing on over a decade of research, including 20% of all impact evaluations and 25% of cost analyses in the sector, Airbel’s findings are based on operations in 40 countries, reaching more than 35 million people.
The report highlights cost-effectiveness as critical in the current funding climate. Airbel-led research demonstrates that rigorously tested interventions can outperform average programs at equal or lower cost. For instance, the Learning through Play initiative in Ethiopia significantly improved social-emotional learning and numeracy skills among refugee children, achieving results at $40 per child that could allow aid to reach up to six times more beneficiaries. Similarly, a simplified malnutrition treatment approach has reduced costs by over 20% while maintaining recovery outcomes.
The report also underscores the role of AI in identifying populations left behind. With outdated census data in many conflict-affected regions, AI tools such as ReachMap combine satellite imagery and route planning to better target vaccine delivery, potentially reaching 10–20% more zero-dose and under-immunized children while reducing costs by 15–25% per child.
Flexible funding is another priority, enabling a shift from reactive to proactive aid. Initiatives like Follow the Forecast use predictive data and real-time vulnerability analysis to trigger early interventions, helping families protect livelihoods and prevent deeper crises. The report notes that strategic deployment of limited resources is essential in this constrained funding environment.
The distance between aid providers and recipients remains a key challenge. Research shows that populations living far from treatment centers face higher risks and dropout rates. To address this, IRC is exploring private-sector partnerships to shorten supply chains and bring essential services closer to remote and conflict-affected communities, improving access and impact without increasing costs.
Finally, the report highlights the potential of private-sector innovation in sustaining humanitarian aid. Airbel Ventures invests in scalable solutions for crisis settings, such as Signalytic’s solar-powered connectivity devices, which enhance healthcare delivery in facilities with unreliable electricity. By recycling investment returns, this model creates multiple cycles of impact per dollar and complements traditional aid in a post-funding-cut landscape.
In this era of reduced funding, the IRC remains committed to evidence-driven, high-impact interventions, prioritizing programs such as malnutrition treatment and cash assistance for the most vulnerable populations while optimizing resource use.
Airbel Impact Lab, the research and innovation arm of the IRC, focuses on designing, testing, and scaling evidence-based solutions to improve outcomes for people affected by crises, ensuring that scarce resources deliver the maximum possible impact.
