By:
Meriel Hahn
The withdrawal of $8.3 billion in U.S. foreign assistance funding has left nonprofits and government contractors scrambling to sustain the progress they once facilitated. This abrupt and sweeping reduction has underscored the extent to which many fragile communities rely on consistent U.S. support. In the absence of ongoing engagement and financial backing, years of development gains are rapidly eroding. Now more than ever, nonprofits and aid programs must view this moment as a critical opportunity—to pivot toward bottom-up, locally led initiatives that are resilient, self-sustaining, and built to endure.
The foreign aid cuts enacted under the Trump Administration have had far-reaching consequences. Maternal mortality, food insecurity, and preventable diseases are all expected to rise as a result of the sudden rollback. The removal of the U.S. foreign assistance framework makes clear that future programs must prioritize localization to build durable and independent development outcomes.
Localization generally refers to shifting of funding and decision-making power to local actors in developing countries, rather than relying solely on external international organizations. This approach enables communities to foster stability and economic growth from the ground up. USAID had only just begun to focus on localization as a development strategy before its work was halted. Congress has historically limited the possibility of localized development efforts by regulating how organizations like USAID are allowed to distribute funding.
There is strong evidence that localization is an effective development strategy. Increasingly, the international community views the localization of development funding as a way to “decolonize” foreign aid by shifting power and resources into the hands of local actors. This approach not only fosters more sustainable, community-driven solutions but also helps empower historically underrepresented groups.
While USAID is gone and unlikely to return under the current administration, other organizations are continuing to do valuable international development work. Action in Africa, a Uganda-based non-profit, can serve as a model for organizations navigating a new landscape of federal funding and foreign assistance. Action in Africa focuses on providing scholarships, establishing rewards-based services, and uplifting local leaders to ensure that these communities have the capacity to support themselves, even if aid were to be removed in the future.
Action in Africa exemplifies the strength and staying power of locally led development. Research shows that foreign aid contributes to healthier communities, increased global economic stability, and reduced political unrest. Localization amplifies these effects by fostering cost-effective, culturally relevant programs and more collaborative donor-recipient relationships. Moreover, as recipients express increasingly clear preferences about the type and delivery of aid, locally designed programs are better positioned to meet those needs.
The rescission of U.S. foreign aid has devastated communities that relied on this support. Restoring these programs is essential to preserving decades of development progress. But this moment also presents an opportunity to reform how assistance is delivered. Future U.S. foreign aid must not only return—it must evolve, with a renewed focus on empowering local actors to lead the way.
The views expressed in this piece are those of the author and do not necessarily represent the position of the Alliance 4 American Leadership (A4AL) alone. Alliance 4 American Leadership would like to acknowledge the many generous supporters who make our work possible.
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