One year after the United States Government dismantled the United States Agency for International Development (USAID), the global development landscape has experienced significant shifts. According to Thomas Mélonio, Chief Economist at AFD, the immediate aftermath in 2025 was marked by uncertainty, rapid budget cuts, and a cultural struggle in the United States and, to a lesser extent, in Europe, where priorities shifted toward military support for Ukraine. These changes led to sharp reductions in international solidarity budgets, interrupting development programs and creating medium-term consequences that are already being felt.
Despite the initial disruption, the United States has begun to reassert its development influence through targeted initiatives. Significant health agreements were signed, including $1.7 billion in grants for Uganda and $1.5 billion for Kenya, as well as support for Côte d’Ivoire and Rwanda to strengthen allied countries and prevent pandemics. The US International Development Finance Corporation expanded its lending opportunities more than fourfold, particularly in economic cooperation, while Congress added nearly $20 billion to the government’s original development budget. Although the system now looks different and arguably provides less support overall, it continues to maintain a high level of engagement internationally.
Certain sectors have been disproportionately affected by the budget shifts, with social agendas, women’s rights, LGBTQ+ rights, and climate change initiatives experiencing substantial cuts. This reflects a new, more conservative approach to funding priorities. While no single actor can replace the void left by USAID’s $42 billion annual budget, other players, such as the Gates Foundation, are stepping in to increase funding, and early signs suggest that the United States may not reduce its civil cooperation tools as drastically as initially feared.
