Thousands of families and students along with multiple NGO’S and USAID-funded projects in Lebanon are expected to be impacted by the recent decision from the Trump administration mandating a three-month suspension of all global aid provided by the state department.

USAID is a key supporter of Lebanese initiatives in education, water access, and economic opportunities, in addition to funding local non-governmental organizations.

According to the U.S. Embassy in Beirut, USAID has spent approximately $123 million in Lebanon since 2023.

The funding freeze is expected to last for 90 days while a review is conducted to assess the efficiency of these programs and their alignment with Trump’s foreign policy.

USAID employs over 10,000 people, including more than 1,900 Americans working abroad.

The agency was expected to continue creating economic opportunities for low-income communities by funding projects aimed at improving infrastructure and essential services, as well as providing scholarships.

One of the initiatives that benefited from USAID’s support was Lebanon’s Waste Management Project, led by environmental activist Pierre Baaklini, who highlighted the impact of the funding suspension.

Baaklini told local media sources: “USAID has supported many startups, enabling young people to create a positive environmental impact by funding various sectors. Some entrepreneurs used the funding to develop machinery, allowing them to make a lasting difference in multiple areas.”

He added that these projects generate millions of dollars for Lebanon’s struggling economy.

Baaklini noted that the funding suspension also impacts non-governmental organizations (NGOs) operating in Lebanon, many of which receive U.S. government support. He highlighted that the U.S. government directly accounts for 22 per cent of the total funding for these organizations, which received approximately $293 million in 2024.

Additionally, the U.S. contributed $128 million representing 40.1 per cent of total international aid received by Lebanon toward “rapid response” efforts through international organizations working in the country.

The impact felt in Lebanon

This crisis has placed Lebanon’s NGOs, whether funded by USAID or other U.S. government sources, in a challenging position. They now face at least three months of financial uncertainty, with the potential for significant budget cuts, forcing them to lay off employees and suspend projects.

The decision to suspend USAID funding has directly affected around 2,000 employees working on agency-funded projects, according to local news sources.

However, the impact extends far beyond these workers, indirectly affecting thousands of Lebanese families, including those employed by international organizations and NGOs running USAID-funded initiatives.

Various sectors in Lebanon have been hit hard by the decision, including water, electricity, energy, wastewater treatment, and rural development projects.

Local NGOs that rely on USAID funding have also been affected, with many already informing employees that their contracts will either be temporarily frozen or terminated without prior notice.

Notably, these dismissals were not legally justified, as Lebanese labor laws require a two-month notice to the Ministry of Labor before mass layoffs, according to an employee working in an NGO mainly funded by USAID, who wished to keep her name and the organization name unnamed.

At the Ministry of Education, while the impact is indirect, the consequences are still significant. The Kitaabi project, funded by USAID with a $97 million budget has been particularly affected, with around 100 employees receiving notices of temporary contract suspensions pending further clarity after three months.

Although these employees are not directly affiliated with the ministry, the decision has disrupted ongoing training programs, as dozens of trainers assigned to assist the ministry have now been laid off.

Uncertainly looms

Employees are still in the dark about their future as the decision suspends all projects for three months, during which a full reassessment will determine which initiatives will receive continued funding and which will be permanently shut down.

“In the mid of the economic crisis in Lebanon, we still got paid in USD and this was something that everyone in the country was wishing for, it was almost like a luxury and something that made a lot of individuals hope to get jobs with NGOS funded by the US in Lebanon to make their life easier,” said the employee from North of Lebanon who worked on several agriculture projects in Akkar and beyond.

Another major impact on the education sector stems from the funding cuts to UNICEF and the UNHCR. “We cannot immediately speak to what the effects would be at this point until we know what it actually means for UNICEF.” The agency told L’Orient Today.

A particularly critical area of concern is scholarships. Thousands of university students risk losing their financial aid at key institutions, including the American University of Beirut (AUB), the Lebanese American University (LAU), Haigazian University, Notre Dame University (NDU), and others.

These universities rely on USAID and other U.S.-based organizations to fund scholarships. While universities have been informed of the decision, they have yet to receive details on its implementation, leaving students and administrators awaiting further clarification.

As the world’s largest provider of humanitarian aid, the United States allocated approximately $13 billion for global assistance in 2024.

The funding requested by USAID for humanitarian aid in Lebanon for 2025, amounting to $72.245 million will be suspended in connection with Trump’s executive order.