The Impact of USAID Funding Suspension on Somalia’s Humanitarian Crisis

Author: Abdullahi Ciid

In a country like Somalia, where 54% of the population lives below the national poverty line, 78% lacks access to healthcare, and 70% of children have no access to primary education, the abrupt suspension of aid programs has dire consequences. This is especially true when a major donor like USAID, which contributed approximately $1.2 billion in assistance, halts funding. In such cases, the most vulnerable communities bear the brunt of the crisis.

Every sector in Somalia is intrinsically tied to foreign aid—government revenue, food security, healthcare, education, and beyond. No sector functions independently of external assistance. The sudden withdrawal of aid would strip families of feeding programs, access to healthcare, and education, creating an immediate humanitarian emergency. The government, already struggling to meet public needs, would be unable to fill the gap, triggering widespread panic. The risk of famine looms large, and once it takes hold, reversing its effects becomes exponentially more difficult.

From an economic perspective, Somalia faces a trade deficit exceeding 60.2% of its GDP, meaning it relies heavily on imports to meet domestic demand. Furthermore, the absence of a national currency forces reliance on the U.S. dollar for international trade. If USAID funding is cut, the supply of U.S. dollars in circulation will shrink, likely triggering high inflation. As a result, the purchasing power of the average Somali will decline drastically, making essential goods unaffordable and deepening the economic crisis.

Security gains made over the years are also at risk. Despite limited progress in job creation and economic development, Somalia has been making strides in counterterrorism, significantly weakening extremist groups and reducing piracy threats. However, a drastic aid cut would undermine these hard-fought security improvements. Economic instability, food insecurity, and a surge in unemployment create fertile ground for extremist recruitment, potentially undoing years of counterterrorism efforts.

If the government identified certain programs as ineffective, it is crucial to distinguish between ineffective programs and those that have demonstrably improved lives. Programs like Bar ama Baro, which I had the privilege of working on a year ago and which enabled 100,000 children to access primary education in Somalia, or those providing life-saving food aid to internally displaced persons affected by drought and insecurity, must not become collateral damage in bureaucratic restructuring.

I urge President Trump and Secretary Rubio to consider the catastrophic humanitarian and economic repercussions of suspending USAID programs. If reforms are necessary, they must be implemented without harming the aid recipients whose survival depends on these programs.

When help stops, suffering begins. When aid is cut, lives are on the line.

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Abdullahi Ciid is an experienced Finance and Grants Manager with over seven years of expertise in humanitarian and development programs, including USAID-funded projects. Feel free to contact him at Abdullahi9.asi@gmail.com