The dismantling of USAID by former President Donald Trump has created a ripple effect across the Pacific, leaving those involved in over 100 regional projects facing uncertainty about their future.
While analysts believe the Pacific region is generally resilient and won’t be severely impacted by the withdrawal, many working on USAID-funded initiatives say their lives and communities have already been disrupted.
The Lowy Institute ranks the US as the fifth-largest donor to the Pacific, following Australia, China, Japan, and New Zealand.
Dr. Lefaoalii Dion Enari, a Pacific expert from Auckland University of Technology, emphasized that individuals in the region are significantly affected. “US-funded projects are well paid, and in places like Papua New Guinea, a single income often supports extended families and entire communities,” he explained. Enari further noted that this decision could harm US-Pacific relations more than it would impact the region itself.
USAID supports programs in health, climate resilience, and economic development. It funds climate action plans, community disaster preparedness, and sustainable energy projects. For instance, USAID’s Climate Ready for Big Ocean State Sustainability program helps 12 Pacific nations secure financing for crucial climate adaptation and mitigation projects.
Although USAID does not release a full list of its Pacific-funded projects, estimates from its documents, regional bodies, and analysts suggest there are over 100 initiatives, both large and small, across the region.
The Guardian interviewed 12 individuals involved in USAID-funded projects, all of whom expressed fears about losing their jobs and future income. Some have already been laid off, while others remain uncertain about their employment status. One estimate suggests around 600 Pacific islanders are directly employed by USAID projects, with thousands more engaged as contractors or partners.
A worker from an organization in Papua New Guinea that relies on USAID funding voiced concerns about sustainability. “We employ four people, and right now, we don’t know how long we can continue operating,” they said.
According to the Lowy Institute, between 2008 and 2024, the US spent $3.4 billion on aid in the Pacific Islands, including $249 million in 2022. The majority of these funds were directed to the Compact of Free Association (COFA) nations—Federated States of Micronesia, the Marshall Islands, and Palau.
Alexandre Dayant, deputy director of the Indo-Pacific Development Centre at the Lowy Institute, noted that 80% of US aid to the Pacific is allocated to COFA nations, while the remaining 20% primarily benefits Papua New Guinea and other Melanesian countries. He added that COFA nations are unaffected by the USAID freeze, as their funding comes through the US Department of the Interior and was approved by Congress.
Although the US pledged $600 million in 2022 to strengthen its engagement in the Pacific— including plans to open embassies in Tonga and Kiribati and appoint a US envoy to the Pacific Islands Forum— many Pacific-based program participants say the funds have yet to reach them.
Several projects are now seeking alternative funding sources. The Adventist Development and Relief Agency (ADRA) in Samoa received $532,608 from USAID in 2023 to promote women’s empowerment, expand economic opportunities, and address disaster risk management in 20 rural villages, benefiting around 14,000 people. ADRA also runs workshops on mental health, domestic violence, and family health, supported by USAID and the Pacific American Fund.
In a recent statement, ADRA confirmed it is actively looking for new funding to sustain its critical programs. The organization is working to keep essential initiatives operational while awaiting further decisions on funding.
Despite the challenges, Lefaoalii believes the Pacific’s strong community networks will provide support. “Though this is initially shocking for our people, we are resilient. Many of our islands have built-in social safety nets to help in times like this,” he told media.
However, he also noted that Trump’s decision is widely perceived in the Pacific as “disrespectful.”
“We highly value loyalty and respect. This move was not consultative and has directly impacted livelihoods. Pacific leaders will not forget this easily,” he added.
