# USAID Could Be Closing Its Chapter in Southeast Asia

- Link: https://www.thailand-business-news.com/education/207431-usaid-could-be-closing-its-chapter-in-southeast-asia
- Published: 2025-04-12T10:35:27+07:00
- Author: Bastien Guillemain

The Trump administration announced that it would put an end, at least temporarily,
to the USAID (United States Agency for International Development) international 
aid program, which has played a key role in the development and stability of Southeast
Asia, particularly in the areas of health, education, and humanitarian crisis management.

The end of the program would have immediate repercussions in the health sector, 
as well as in managing the refugee issue, particularly those from Myanmar, who find
refuge in camps along the Thai border and in Bangladesh. In a context where international
aid is likely to shrink, the challenge is to find sustainable solutions that are
less dependent on NGOs and external aid, while promoting more resilient and long-
lasting local initiatives.

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However, the “end” of USAID in Southeast Asia is not absolute. Some programs deemed
critical to U.S. interests have been spared or transferred to the State Department’s
oversight. The exact scope of what remains is unclear as of now, with confusion 
persisting among NGOs and local partners scrambling to adapt.

## What does USAID stand for and what does it do?

The United States Agency for International Development (USAID) is a government agency
responsible for international aid and development. Of the 40 billion dollars managed
in 2023, a significant portion was invested in humanitarian and development aid 
in Southeast Asia.

The initiatives supported by USAID are of considerable scale, involving nearly 10,000
employees and operating in numerous countries. The recent reduction in U.S. funding
calls into question the sustainability of these programs and raises concerns about
the impact on public health, particularly in Southeast Asia.

## USAID’s Impact in Southeast Asia

USAID maintains a partnership with ASEAN countries aimed at implementing policies
at the national and regional levels, and combating various threats such as human
trafficking. A new agreement with the Trump administration in 2020 further strengthened
this partnership.

In 2024, USAID allocated nearly 860 million dollars to Southeast Asia, a large portion
of which was dedicated to defending democracy, human rights, and governance in six
countries in the region: Cambodia, Laos, Myanmar, the Philippines, Thailand, and
Vietnam. Aid is primarily distributed through NGOs working closely with local communities.

USAID has historically played a major role in Southeast Asia, supporting initiatives
in economic development, health, environmental sustainability, and governance. The
agency operates through bilateral missions in countries like Cambodia, Indonesia,
Philippines, Timor-Leste, and Vietnam, as well as through the Regional Development
Mission for Asia (RDMA) based in Bangkok, Thailand.

## The Suspension of the USAID Program

Shortly after taking office on January 20, the Trump administration announced, through
Secretary of State Marco Rubio, that following recommendations from the Department
of Government Efficiency (DOGE) led by billionaire Elon Musk, the U.S. would end
5,200 of USAID’s 6,200 programs. The remaining 18% will now be managed “more efficiently”
by the State Department.
This decision, strongly opposed, particularly by Democrats,
raises legal concerns since these funds are allocated by Congress, and their suspension
could be considered illegal. Despite this, the Trump administration has withheld
the funds and ceased disbursing them.

The administration justifies this measure by citing its priority to put “America
first” and defend the interests of American citizens. Rubio stated that USAID had
consumed tens of billions of dollars without real efficiency, sometimes even to 
the detriment of U.S. interests. A 90-day reassessment of each program was announced,
but so far, it has mainly served to block the arrival of capital.

## Effects of the Suspension Across Southeast Asia

The abrupt cessation of aid has global repercussions. In Sudan, assistance to victims
of the civil war has stopped. In Oman, dozens of Afghan women who fled the Taliban
are at risk of being sent back to Afghanistan, as their USAID-funded scholarships
have been canceled.

The impact is particularly severe in Southeast Asia, where tens of millions of dollars
were allocated to local NGOs to address humanitarian crises, manage the influx of
refugees, particularly from Myanmar, support international advocacy, organize the
recovery of displaced persons, and strengthen health systems.

In 2023, total aid to the region amounted to 922 million dollars, of which 168 million
was dedicated to governance and human rights. Today, most of the programs have been
shut down, while thousands of refugees are still waiting for assistance at the Thai
borders.

Klaus Dik Nielsen, co-secretary general of the Asia Pacific Refugee Rights Network(
APRRN), an organization with 300 members in 28 countries working for the protection
of refugees, stateless people, and internally displaced persons, expresses concern
about the deep consequences of this suspension on the entire humanitarian sector.
According to him, the region is already largely neglected by international donors,
with priorities given to other crises, such as those in Ukraine and Gaza.

## Addressing the Refugee Crisis

### Life Within Refugee Camps

For decades, minorities persecuted by the military junta have been fleeing Myanmar,
and approximately 110,000 refugees live in nine camps along the Thai border, a number
that has increased by 20% since the 2021 coup.

Deprived of the right to work and without legal status, they depend on NGOs such
as the International Rescue Committee (IRC) and the United Nations High Commissioner
for Refugees (UNHCR) to survive, while access to healthcare remains difficult and
resettlement options are limited.

Even before the suspension of U.S. aid, these camps were underfunded by 65%. The
halt of aid from the U.S. Bureau of Population, Refugees, and Migration (PRM) in
January, totaling 1.3 million dollars per month, has plunged the NGO The Border 
Consortium (TBC) – responsible for food supply and refugee management – into uncertainty,
exacerbating the threat of famine for these refugees, who are considered illegal
immigrants in Thailand.

In Bangladesh, where nearly 900,000 Rohingya refugees from Myanmar live, the suspension
of U.S. aid has led to the halt of mechanisms for monitoring violence and abuse.
In the Cox’s Bazar camps, living conditions are rapidly deteriorating due to budget
cuts, while insecurity continues to rise. According to UNICEF Bangladesh, child 
malnutrition has increased by 27%, reaching a record level since 2017: more than
15% of children in the camps are malnourished.

The suspension of U.S. aid has major consequences for displaced populations and 
Burmese civil society. Aid of 1.4 million dollars, intended to support 60,000 people
stranded at the Burmese border, was canceled. Cross-border operations also had to
cease.

Without international support, human rights defenders find themselves isolated. 
Lawyers who represented political prisoners now have to fund their clients’ defense
themselves. Independent media, deprived of resources, are forced to lay off staff
or shut down. This situation gives the military junta the opportunity to intensify
its repression tactics, increasing food, electricity, and essential service deprivations
to weaken civil resistance. The suspension of U.S. aid further empowers the regime’s
crackdown.

### Refugee Integration and Resettlement

A recent survey by APRRN among its members revealed alarming consequences. Klaus
Dik Nielsen notably mentions the case of an Afghan woman in Malaysia, who was supposed
to be resettled in the U.S. but whose departure was canceled just ten days before
her flight.
The suspension of the U.S. Refugee Admissions Program (USRAP) has blocked
all possibilities of departure to the United States, leaving many refugees in uncertainty.
In Myanmar, repatriations are impossible due to the conflict, leaving refugees in
a legal deadlock. In Thailand, like in Cox’s Bazar and elsewhere, refugees remain
waiting for a legal solution.

Given the limited possibilities for refugee reintegration in Southeast Asia due 
to the lack of adapted legal frameworks, resettlement in third countries like Canada,
Australia, or Scandinavia remains an alternative. However, according to Prima Sukmanop
from the Resettlement Support Center Asia, managed by the International Rescue Committee(
IRC) in Bangkok, quotas remain very limited, further reducing the future prospects
for these vulnerable populations.

### Critically Limited Healthcare Access

The halt in USAID funding has major repercussions on the healthcare sector, forcing
several organizations to reduce or close their programs, particularly those aimed
at survivors of trauma and sexual and gender-based violence. Psychological distress
is also increasing due to growing uncertainty and precariousness.

The impact is particularly evident in the fight against hepatitis. Around 300 million
people worldwide live with hepatitis B or C, two-thirds of them in Asia. USAID is
the primary funder of the hepatitis B vaccination program, and the cessation of 
its funding jeopardizes screening and prevention efforts, especially as other countries,
such as the UK, may also reduce their support.

Efforts to combat malaria in Southeast Asia are also at risk, particularly in the
Mekong region. USAID has played a key role in reducing cases, particularly in Myanmar,
where the epidemic has worsened due to civil war. With the cessation of these programs,
the disease risks spreading again in areas that had managed to eradicate it, such
as parts of Thailand, largely due to the influx of refugees. Alexandra Wharton-Smith,
who worked on USAID’s Myanmar program before being laid off by the Trump administration,
told Al Jazeera, “Without the necessary resources, malaria will return to Southeast
Asia and the Mekong region.”

Other diseases are also affected, including HIV, tuberculosis, and programs for 
reducing risks for people who inject drugs. The interruption of these initiatives
increases the risk of transmission and further limits access to care for vulnerable
populations. According to Dee Lee, elected president of the World Hepatitis Alliance,
at least 20 local NGOs working in the medical field have already had to close due
to a lack of funding.

In response to this situation, refugees in Thailand have set up makeshift hospitals
within the camps, using their medical skills to treat others. 

### Myanmar Students at Risk

The 45-million-dollar Diversity and Inclusion Scholarship Program (DISP), funded
by USAID, was also interrupted by the Trump administration, leaving more than 400
Burmese students without their scholarships. This program, launched in February 
2024, aimed to offer higher education to students from marginalized backgrounds,
allowing them to study in several Asian countries, including Thailand, the Philippines,
Cambodia, and Indonesia.

These students were selected for their potential to become future leaders of Myanmar
and because of the obstacles they face in their country, where the military regime
severely restricts access to education.

Now without financial support, these students may have to abandon their studies 
and, for some, return to Myanmar, where they could face persecution. Students benefiting
from similar programs in the 1990s were key to the 2012 democratic breakthrough 
when the National League for Democracy entered Parliament.

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The cessation of this program could also weaken U.S. influence and soft power in
the region, which could benefit China. The change of the program’s name, replacing“
Diversity” with “Development,” along with the sudden cancellation of these scholarships
suggests more of an ideological decision than a genuine re-evaluation of foreign
aid.

### Fragile Humanitarian Aid

International aid is going through a critical period: after the United States, other
countries may also suspend their funding. The World Food Programme (WFP) had to 
reduce its food aid from 12 dollars to only 8 dollars per person per month, exacerbating
an already dire situation. Officially, this reduction is attributed to global tensions
and the lack of funds, but the sudden halt of USAID certainly plays a role.

This crisis highlights the vulnerability of a humanitarian system reliant on foreign
funding. The challenge is to strengthen local structures and prioritize sustainable
solutions to no longer depend solely on NGOs and unstable international funding.
Refugee protection can only be guaranteed by robust and autonomous local initiatives.

## Redefining Humanitarian Aid Funding Strategies in Asia

While the abrupt cessation of U.S. funding jeopardizes many programs, it could also
be an opportunity for Asian countries to take control of humanitarian aid and seek
more sustainable financing. Private donations are a potential solution, but they
are not sufficient to replace the hundreds of millions of dollars withdrawn from
the global system.

Regarding the Burmese refugee camps in Thailand, a viable solution would be to allow
refugees to work legally outside the camps. A survey reveals that 50% of them are
qualified and willing to integrate into sectors such as agriculture, tourism, and
trade, but remain restricted.

Klaus Dik Nielsen highlights the resilience of refugees and their willingness to
contribute to the societies that host them. He emphasizes the importance of involving
the people affected directly in developing solutions. A priority remains to combat
hate speech targeting refugees, especially on social media, where misinformation
campaigns fuel tensions.
Finally, the lack of regional coordination and political
will hinders any progress in migration governance. If they want to ensure a more
stable future, it is essential for the countries in the region to develop a collective
and proactive approach, free from fluctuating financial dependencies.

Sources : 

[https://www.unicef.org/press-releases/27-cent-surge-number-children-admitted-severe-acute-malnutrition-treatment-rohingya](https://www.unicef.org/press-releases/27-cent-surge-number-children-admitted-severe-acute-malnutrition-treatment-rohingya)

[https://www.aljazeera.com/news/2025/3/13/across-global-south-usaids-demise-raises-fears-of-malaria-tb-resurgence](https://www.aljazeera.com/news/2025/3/13/across-global-south-usaids-demise-raises-fears-of-malaria-tb-resurgence)

[https://www.wfp.org/news/wfp-appeals-urgent-funding-prevent-ration-cuts-over-one-million-rohingya-refugees-bangladesh#:~:text=In%202023%2C%20severe%20funding%20constraints,percent%20%E2%80%93%20above%20the%20emergency%20threshold.](https://www.wfp.org/news/wfp-appeals-urgent-funding-prevent-ration-cuts-over-one-million-rohingya-refugees-bangladesh#:~:text=In%202023%2C%20severe%20funding%20constraints,percent%20%E2%80%93%20above%20the%20emergency%20threshold.)

[https://www.lesechos.fr/monde/asie-pacifique/birmanie-une-fragile-democratie-1286641](https://www.lesechos.fr/monde/asie-pacifique/birmanie-une-fragile-democratie-1286641)

[https://www.voanews.com/a/trump-s-funding-freeze-hits-program-for-burmese-students-scholars/7959215.html](https://www.voanews.com/a/trump-s-funding-freeze-hits-program-for-burmese-students-scholars/7959215.html)

[https://www.bbc.com/news/articles/cdx2401vn5ro](https://www.bbc.com/news/articles/cdx2401vn5ro)