Back US aid freeze is leaving a void. Europe must fill it.

Commissioner's Shout Out
US aid freeze is leaving a void. Europe must fill it.

The decision by the Administration of the United States of America to suspend international aid has a negative impact on millions of people around the world, including in Europe. In response, Council of Europe member states should redouble their efforts to uphold the Organisation’s principles. I call on them to ensure that human rights and democracy do not wither under financial pressure.

Humanitarian consequences

The crisis set in motion by the US suspension of funds for international aid is of alarming proportions. In 2023, Europe and Eurasia received $17.2 billion from USAID alone, around 40% of the agency’s total budget allocated to these regions. A significant portion of this went to operations in Ukraine, where $5 billion had also been allocated for 2024. This funding has supported a wide range of life-saving and rights-focused initiatives, from humanitarian assistance to crucial support for civil society. Some humanitarian NGOs there and in neighbouring countries report losing up to 25% of their total funding, forcing them to freeze or halt critical operations such as providing food and shelter to internally displaced people, repairing damaged housing, and supporting vital medical services.

Civil society under pressure

The consequences of the US aid freeze go far beyond humanitarian concerns. I have already seen a significant impact on human rights work on the ground. According to various civil society actors working in Eastern Europe and the Western Balkans, some 80% of these NGOs report being directly affected by the USAID freeze, in some cases losing almost all of their funding. Some partners tell me they may need to close as they are struggling to pay rent and cover basic operations. Others have been forced to lay off staff or cancel planned activities because promised funds, although formally approved, are no longer available. Several NGOs have told my Office that their core projects, such as those protecting minority rights or supporting victims of war crimes, will disappear if alternative funding is not forthcoming soon. This is extremely worrying. Civil society organisations are the pillars of any free society and should be supported.

Human rights defenders are affected too. For example, those working in environments where hostility towards LGBTI people remains high now face a reduction in funding that threatens crisis hotlines, shelter programmes and other activities to protect the rights of these people. Without viable alternatives, it will be impossible to avert a further intensification of the backlash against equality we are witnessing.

The independent media sector is at unprecedented risk. U.S. funds have helped to sustain investigative journalism that uncovers corruption, exposes human rights abuses, and counters disinformation.  Several of those in the sector are now struggling to continue their work, or risking to shut down altogether as a consequence of the freeze. This provides a golden opportunity for those determined to suppress the truth or stifle dissent and it emboldens those who have long peddled false narratives and tried to undermine the democratic fabric of European societies.

The impact is also felt in projects that support the rights of minorities, including Roma communities, by reducing educational initiatives, social services and even litigation in anti-discrimination cases. Social rights programmes designed to strengthen health systems or respond to potential epidemics have also been disrupted. Across the board, organisations working on women's rights, transitional justice and support for persons with disabilities are facing budget cuts or freezes that could roll back significant breakthroughs achieved in recent years.

Pressure on states and international organisations

The risks for the sustainability of democratic systems in many regions are very real. Several member states in Eastern Europe and in the Balkans have received funding to modernise judicial systems, fight corruption and improve the efficiency of public administration. With the abrupt loss of this support, reforms are stalling.

The funding freeze is also affecting international organisations. Some UN agencies depend on US contributions for almost half of their budgets. This has led to a chain reaction of disruption to staff, procurement and operations. This reaction has also impacted NGOs who partnered with UN agencies and received funding from them. Similarly, those NGOs that relied on US co-funding, even if only a small proportion, are now unable to use their core funding from other donors who make their contribution conditional on co-funding.

The way forward

The current challenges require more robust collective action. While the crisis is serious, it is also an opportunity to strengthen the role of member states, individually and collectively, as leaders in the defence and promotion of human rights, democracy and the rule of law.

They can do so by standing firm on the principles of the Organisation. They should coordinate responses to save threatened NGOs and their programmes, preserve critical human rights projects and, by doing so, ensure that important democratic gains are not lost. By pooling resources, adjusting existing budgets and prioritising the hardest-hit sectors, member states can maintain the safety net that protects the most vulnerable and the international human rights architecture.

Foreign aid is no act of charity. It is an investment in the values that unite us: a commitment to peaceful societies based on human rights. Council of Europe member states should fill the void in resources and leadership to ensure that the future of our societies is not derailed.

Strasbourg 20/02/2025
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