How the USAID cuts under Trump impact Moroccan development efforts

The recent decisions made by the Trump administration to drastically reduce funding for foreign aid through USAID are poised to have significant implications for humanitarian and economic development in Morocco. With the administration cutting over 90% of its foreign aid contracts and grants, various programs that have been vital to socio-economic progress now face existential threats.

The announcement, made on February 27, was framed by President Trump as part of a cost-cutting initiative designed to eliminate “waste” in the federal budget, underscoring an “America first” approach to foreign policy. This sweeping withdrawal of support comes at a time when organizations across the globe, particularly in Morocco, have come to rely heavily on USAID for their operations.

In the wake of this funding freeze, NGOs and health organizations are grappling with layoffs and the dismantling of essential services that directly impact the well-being of the population. Vital initiatives, which provide access to food, clean water, sanitation improvements, and HIV/AIDS prevention, are now in jeopardy. The shocking reduction in support not only threatens the livelihood of workers within these organizations but also the very communities they serve.

According to a Congressional Research Service report, USAID employs more than 10,000 individuals globally, with a significant number operating in over 60 countries. In 2023, U.S. foreign aid expenditures totaled $71.9 billion, with a considerable portion directed toward economic development and humanitarian efforts across the Middle East and North Africa (MENA) region, where Morocco was allocated $45 million.

One organization facing immediate consequences is the Mobilising for Rights Associates (MRA), a Rabat-based NGO dedicated to advocating for women’s legal rights. The U.S. Department of State issued a stop-work order affecting one of MRA’s critical projects on violence against women, effectively putting these important activities on hold. Stephanie Willman Bordat, a founding partner of MRA, expressed concerns over the uncertain nature of this order, highlighting its detrimental effects on their work.

MRA’s initiatives aim to empower marginalized communities and elevate women’s rights through targeted research and projects. Their collaborations, such as producing gender analysis reports for the U.S. government and hosting workshops, represent significant steps towards enhancing advocacy in Morocco.

Nongovernmental organizations like MRA are not alone; various groups have benefited from USAID funding to further their humanitarian goals and economic development strategies in the region. One notable program is the Morocco Inclusive Socioeconomic Development (ISED), focused on fostering small businesses and improving local economic conditions.

As the ISED program in Beni Mellal-Khénifra completed its five-year plan in early 2025, the ongoing ISED project in Marrakech-Safi, which commenced in 2022, is now at risk. These projects primarily support small enterprises, particularly those led by underrepresented groups, by fostering transparency and promoting civic engagement—an approach vital for sustaining economic growth in Morocco.

The uncertainty surrounding the future of these initiatives raises alarm bells about mounting debts among recipients who previously relied on USAID support. With local entrepreneurs often required to make upfront investments to participate in these programs, fears are growing that the cancellation of funding will lead to a deterioration of their financial status and debt accumulation.

A recent ruling by a U.S. federal judge has provided some respite, blocking the Trump administration from terminating or suspending contracts that were already in place prior to February 13. However, this decision does not apply to any future grants or contracts, leaving a significant gap in expected resources for ongoing and future projects.

The ripple effects of cutting USAID funding are anticipated to be severe, with many small business owners and cooperatives fearing they may not be able to meet their financial obligations. As Willman Bordat poignantly noted, rather than alleviating poverty, these funding cuts risk exacerbating economic challenges for the most vulnerable populations, not only in Morocco but globally.