United States Chargé d’Affaires Catherine Rodriguez at LICOSESS, one of eight Liberian universities partnering with USAID’s teacher training program (TESTS) in 2024. Photo credit: USAID/ Liberia Facebook page
- Thousands of Liberian NGOs reeling from USAID cuts; job cuts, programs end
- Finance ministry and central bank brace for cuts to World Bank funding
- Hotels, real estate owners, caterers, car hire, airlines will take major hit
By Nemenlah Cyrus Harmon with New Narratives
The sun was just coming up one morning last week when the chief of one local NGO received the email that threatens to have upended her life’s work. The email subject line “A Memo of Our Project, Stop Work Order Notice,” with the letter subject “Suspension Notice” was clear. The executive director felt the weight of uncertainty settle over her organization, which has helped more than 9000 children in schools across Liberia over the last decade.
Hers was one of thousands of organizations around the world left in limbo following the recent decision by the United States Trump administration to suspend all foreign assistance programs for 90 days. Announcements from Marco Rubio, Trump’s Secretary of State put in charge of the United States Agency for International Development, makes it clear that it’s unlikely funding will be reinstated after the 90 days.
Hundreds of Liberian NGOs left in debt with job losses and shuttered programs
The local NGOs activities have found to a halt. This year, the director’s NGO had plans to engage with 1,000 public schools, building teacher skills. Additionally, 75 village saving clubs were set to receive $US1,000 each as a loan to support their communities. Now that money is off the table. Her name is being withheld because the Trump administration has directed all aid recipients not to speak to the media.
“The implications are huge,” said the NGO boss. “Our organization’s education plan requires about $US1 million plus for full implementation. The bulk of that funding was coming from USAID.”
For small Liberian organizations the impacts are devastating. The director’s organization works on a reimbursement model. They complete their work and then get paid.
“Now they owe us money for services already rendered,” she said. The prospects of being repaid are now uncertain. USAID’s Liberian mission staff are among USAID 1400 foreign service officer – all of whom have been recalled. Most will be laid off. The Trump administration is promising to slash USAID’s workforce from 14,000 to just 290. Just 12 staff will be left for Africa.
The major implementing partners, which will also likely slash thousands of jobs in the US and face massive costs themselves, are beginning to bring legal action. But for local NGOs the prospects of repayment may be slim.
Impacts Will Be Felt Across Education Sector
Historically, the U.S. has been the world’s biggest foreign aid donor, contributing more than $43 billion in 2024. In recent years Liberia has been allocated as much as $100m a year from USAID, about half the annual aid budget. Critics argue that major American implementing partners like FHI360, Chemonics and DAI, take 88 percent of each project’s funds leaving just 12 percent to reach local partners. Even so, in a low-income country like Liberia where little government money makes it to the ground, experts say 12 percent can have real impact.
An under resourced school in rural River Cess. Credit: Eric Opa Doue/New Narratives
There will be devastating consequences for Liberia’s education system, the director says. In the education sector alone there are currently five active USAID-funded education projects totaling $US261m over about five years according to the Liberia Project Dashboard. With $US128m yet to be disbursed, the halt in financial support means jobs will be lost and programs unfulfilled. Much of the Liberian government’s $US114m annual education budget is allocated to salaries and operational costs, leaving donor-funded non-governmental organizations like hers to supplement the government’s meager spending.
“All of the major activities outlined in our educational sector plan will not be funded,” said the NGO chief.
After a decade building an organization that brought local knowledge to understand the needs of Liberians and solutions that work best in a Liberian context, her prospects for continuing her work may be limited. Other major funders including the EU and Swedish government have cut funding. There is growing concern in finance ministries and central banks around the world that US support for World Bank – another major funder of Liberia’s education sector – will also soon be slashed. “Project 2025”, a suggested blueprint for the Trump presidency drawn up by many members of his new administration, recommended withdrawal from the World Bank and the International Monetary Fund. The US provides more than half the funding for the World Bank’s fund for lowest-income countries the International Development Association. It provided $150m funding to Liberia in 2024 according to the Liberia Dashboard.
“For me, I am down hearted, I am scared, I am apprehensive about this,” the NGO director said.
Some vulnerable children are already feeling the impact of those suspended projects. “Some of the children on the Liberia Foundational Scholarship program have already been sent back home,” she added.
A Blow to the Entire Economy
The broader economic implications are equally concerning. Many of USAID’s international implementing organizations such as FHI360, Mercy Corps, Chemonics, DAI and Internews, which spend millions in Liberia each year, will slash their expenditure.
“Hotels and restaurants that rely on NGO staff for business will also feel the pinch,” said the director. “Car rental companies, catering services—everyone is going to be impacted.”
The National Civil Society Council of Liberia echoed these concerns.
In his State of the Nation address last month President Joseph Boakai estimated cost of his so-called “ARREST Agenda”, the government’s six-year national development plan, is $8.4 billion. Of this total, 60 percent of the funding was projected to come from the government and international donors, with the remaining from private investment. The Liberian Senate has now begun emergency investigations to assess the impact on Liberia’s development.
For now Liberia’s nonprofit sector is reeling and leaders are struggling to plan their future without their biggest and most reliable financial backer.
This story was a collaboration with New Narratives as part of the Investigating Liberia Project. Funding was provided by the Swedish Embassy in Liberia. The funder had no say in the story’s content.
