- President Trump raised USAID’s expenses to set “American interests” first.
- The decision has left at least 12,700 unemployed Americans, a number that is expected to grow.
- In North Carolina, the home of some of USAID’s largest contractors, hundreds are tired.
They have chosen to delay discretionary costs for new furniture and reconciliation services. They worry about being able to afford groceries for their families. And they are left to ask if they will be paid for the work already done.
President Donald Trump’s executive order imposed a 90-day freeze for foreign aid in the name of establishing “American interests” first. This order and other actions, which banned work on hundreds of projects funded by the US Agency for International Development, known as USAID, have had deep effects on American life.
The aim of reducing the costs of vain and limiting the money the US sends overseas, actions have been affected by thousands of US workers whose jobs are funded by USAID. The freezing of funds has been acutely felt in North Carolina, one of the best beneficiaries of USAID dollars, according to interviews with USAID contractors who are tired or ceased if bills for past work will are paid.
The decision has implications for US farmers, furniture manufacturers, airline carriers and hundreds of US organizations selling products or services to the government agency. In fact, USAID rules require a series of purchases – from food to vehicles to pharmaceutical tickets and planes – to prioritize US retailers.
“Foreign aid, with some exceptions to close allies such as Egypt, Israel and Jordan, is not transferred to the treasures of assistance receiving governments,” said Andrew Natsios, a former USAID administrator in the February 13 testimony before the Congress. “On the contrary, it has been spent through international and local non -governmental organizations, American and local universities, lucrative development contractors and civil society organizations.”
So far, USAID has held a staff of about 10,000, according to the Congress Research Service, relying on contractors to do most of its work.
Administration’s decision to protect USAID – Elon Musk said this month that he “spent the weekend feeding USAID in wood chipper” – led to the rest or completion of thousands of US employees in USAIDs, according to a USAID tracker Created by Molloy Consultants, a global group of health counseling.
The White House and the State Department did not immediately respond to commentary requests on impact on American workers. “We are not trying to be divisive to people’s personal lives,” State Secretary Marco Rubio said on February 7. “We are not punitive here.”
Pete Marocco, Deputy Administrator for USAID, said in a February 10 statement that the pause was necessary to enable “a complete summary of USAID operations”.
North Carolina gets a hit
The impact of freezing funds was immediate in North Carolina, one of USAID Dollars’ best recipients. The state is home to organizations that received more than $ 2.2 billion from USAID, according to Molloy Consultants, placing it fifth among US states.
“I will be very open. The freezing has been devastating,” said Brianna Clarke-Schwelm, executive director of the Global Health Alliance in North Carolina for Business Insider. “Now we are seeing massive wool and massive holidays. Hundreds of people have already lost their work.”
Impact “will reach people in every corner of our state,” she said.
North Carolina is Trump’s land; The president won the state in 2016, 2020 and 2024, and he visited it at least 11 times during last year’s campaign, more than almost any other country.
Senators Thom Tillis and Ted Budd, both Republicans, did not immediately respond to requests for comment on this story. Both senators have also called on email from voters, often responding by impersonal email, according to some recipients who spoke with bi.
“Your government has a responsibility to review every taxpayer’s dollar and ensure that it is spent wisely and in the best interest of the American people,” one of Budd’s email is read.
Representative Valerie Fozhee, a Democrat whose circle includes Durham, said she had heard from hundreds of constituents concerned about freezing funds.
“I am deeply concerned about the illegal actions taken by the Trump administration to dismantle our main foreign aid agency,” Fosheee said by email. “The harmful order of Trump’s detention will have widespread consequences throughout our country, affecting farmers, local businesses, researchers, medical professionals, biotechnical companies and many others. In my circle alone, thousands of workers in organizations in organizations Many international development will be affected. ”
North Carolina’s Raleigh-Durham Metro area is home to two of the six global USAID funds between 2013 and 2022, according to a report from Congress Research Service. FHI 360, a Durham -based nonprofit focused on health, food and economic opportunity, received $ 3.79 billion in those years, and RTI International, a research institution based in the research triangle, received $ 2.31 billion.
On February 6, FHI 360 said it would reach 36% of its American staff, including 200 in North Carolina. Spokesman Jennifer Garcia refused to elaborate on the announcement.
A week later, RTI discovered temporary breaks for 226 of its staff, including 61 in North Carolina. “RTI deeply appreciates every staff member,” said my CEO Gabel in a press release. “Projects that our international development staff implement provide essential contributions that support America’s leadership in creating a more prosperous, safe, safe and resilient world.”
Two others among the best organizations receiving USAID, Chenics and Dai funds also employ workers in the state. Cemonics has seized 600 staff and placed 300 others in limited hours of work, a spokesman told CNN. Dai withdrew about 380 staff, 60 to 70% of their labor force, told a spokesman to the network.
Since Monday, at least 12,700 contractors relying on USAID funds have been tired or put on rest, according to numbers compiled by molloy consultants by influential organizations.
The global health industry is an important impetus for the North Carolina economy. The industry made up about 170,000 jobs in the state and added almost $ 32 billion in value to the state economy, according to a 2022 report commissioned by NCGA. This is about 4% of the state’s GDP, according to data from the Economic Analysis Bureau.
For those who have lost their job or are tired, in recent weeks have been traumatic. Many were told that they are applying for unemployment benefits. One person decided to cancel plans to buy a new bed created by North Carolina after being put on the wool.
“I don’t think people understand how big an industry is for America,” said one person who sought not to be named to avoid professional consequences. “Only in the triangle you have two of the largest implementers in the world, and then influenced the innumerable NGOs. Multiply it with 49 countries. How many work are we talking here?”
Last April, the US Agriculture Department said it would spend $ 1 billion to buy US goods for USAID to send overseas. A USAID fact sheet says the partnership agency with at least 27 North Carolina farmers.
Small businesses have also been affected. In December, a government official said the agency sent $ 1 billion to small US businesses in the last fiscal year.
Support for small firms has included the purchase of the State Department with at least $ 7.5 million in the last eight years by North Carolina manufacturers to fill embassies, missions, residences and USAID facilities, according to data from Usaspendind.gov .
“If this goes on, 90% of the NGOs and the contractors’ community will cease to exist within another month,” Natsio said in his testimony last week. “NGOs, many of them Christian-based Christian organizations, will be forced to close the programs, rest staff (which many have already been forced to do), and ultimately close their doors. “
The freezing of USAID spending has also affected state universities, as the North Carolina University system, North Carolina State University, North Carolina State University, and the University had received all USAID funds.
In 2023, the University of North Carolina at the Chapel Hill Carolina Center took a $ 90 million grant from USAID to monitor global health. Between 2003 and 2015, the center measure rating program received an additional $ 500 million from USAID to handle data collection.
UNC Chapel Hill has 10 USAID prohibition orders, including three in which the university is a direct receiver and seven others in which is a subcripant, spokesman Cat Long by email. The university had received $ 18.3 million in research prices this fiscal year and $ 17.5 million last year.
“The university is expecting more information from federal agencies to determine the long -term impact on these programs and their staff,” she said.
NC State “is working with different partners to assess the possible impacts of any change on the federation sponsored programs,” said Mick Kulikowski University spokesman.
Cemonics, DAI and the small business association for international companies, a Raleigh business association with more than 150 members, were among the eight plaintiffs who filed a lawsuit on February 11 to challenge the administration. Two days later, a federal judge in Washington, DC, issued a temporary detention order, giving the administration five days to resume funds.
Organizations representing USAID workers have also filed lawsuits.
Meanwhile, the reign of uncertainty.
A senior staff member at one of the main North Carolina organizations funded by USAID said organizations still do not know if the bills for work done in November, December and January will be paid. Another said that organizations are excessive staff simply because they have no money in their hands to pay for them.
Many USAID employees said their projects were highly audited, and they pushed the idea that there are widespread costs.
“We are one of the most audited organizations successfully,” said one person who would have been tired. “Monitoring and evaluation is such a large part of any project.”
If you work for USAID, a USAID contractor or another government agency affected by Furloughs, please contact Dakin Campbell at dcampbell@insider.com or write it for Dakin.11 in the signal application.