On 28 January 2025, the U.S. Agency for International Development (USAID) formally notified all its implementing partners about the suspension of funding for foreign assistance programs. This action was taken following President Trump’s Executive Order on Reevaluating and Realigning United States Foreign Aid, reflecting a broader shift in U.S. foreign policy objectives. The decision has raised serious concerns within the civil society sector, as USAID has traditionally been a major donor, covering nearly half of the annual budgets for some Civil Society Organizations (CSOs). The sudden halt in funding has created significant uncertainty regarding the sustainability of key programs in governance and human rights sectors that have long relied on external financial support. From strengthening electoral processes to improving access to healthcare and education, the agency’s funding has played a critical role in shaping the country’s progress. The withdrawal of USAID has also had far-reaching impacts on local communities in Uganda given the significant role USAID has played in supporting the essential sectors of health, education, governance, and food security.
The funding pause comes at a particularly challenging time, as the civil society sector is still grappling with the aftermath of the closure of the Democracy Governance Facility (DGF), a multi-donor fund that had sustained operations in the sector for nearly 12 years. The loss of DGF funding disrupted many programmes aimed at strengthening democratic institutions, promoting civic engagement, and enhancing government accountability. The absence of this funding stream left many organizations struggling to secure alternative financial support, thereby weakening their operational capacity. In addition to USAID’s withdrawal, several development partners and international agencies, including those from the Netherlands, Sweden, France, and Switzerland, have significantly reduced their funding allocations to CSOs. This trend, observed over the past few years, indicates a broader shift in global development financing, with increasing prioritization of domestic concerns over international development efforts. Projections suggest that these funding reductions will continue, exacerbating the resource constraints faced by CSOs worldwide.