Programs addressing domestic violence, renewable energy, literacy, hospital infrastructure, fisheries management, media capacity building, transport and infrastructure, and health procurement are amongst the many Pacific initiatives that have ground to a halt as the new US government takes stock of its international aid commitments.
With millions of lives across the world affected by a single decision, it comes as no surprise that United States President Donald Trump’s Executive Order 14169 has been met with global controversy and criticism. However, on the ground, few partners are willing to talk, as they watch and wait to see if their programs will survive.
Foreign aid only for friends
Trump’s “America First” promise appealed to many Republican voters during his 2024 election campaign. Trump promised to redirect government funds to domestic priorities over international commitments.
So, while the intention to tighten aid was no surprise, the speed and nature of action on USAID did surprise many in the sector, as did the vitriol directed as its work and staffers.
The Presidential advisor charged with slashing government costs, billionaire businessman Elon Musk has described USAID as a “viper’s nest of radical-left Marxists who hate America,” and an agency that was “beyond repair”.
On January 20th, just days into his second term, President Trump put a temporary freeze on all foreign aid. This pause allows for reassessment of each program the US was funding abroad, to ensure it “aligned with the foreign policy of the President of the United States.”
In announcing the pause and its rationale, US State Department officials cited a Pacific Community (SPC)-led program aimed at giving “clean energy programs for women in Fiji” as an example of aid that failed to meet the criteria of strengthening US interests. Hundreds of programs and organisations across the Pacific Islands are affected by the pause. The region received US$57.6 million in assistance from the US in 2023, according to the most recently published statistics from the Congressional Research Service.
Sizeable chunks of this go to the Compact nations of Marshall Islands, Federated States of Micronesia and Palau. While most affected organisations are unwilling to discuss the impact of the pause while quietly hoping they will survive the 90-day review process and cull, and again receive US funds, others took to media platforms to share their discontent.
“Our organisation itself will be okay, but it’s the people living in the rural communities who are recipients of our services, [it’s those] people who will be impacted,” Peter Bosip, a lawyer from Papua New Guinea told the ABC.
The Adventist Development and Relief Agency (ADRA) works on health, disaster resilience, inclusion and other initiatives in Fiji, Vanuatu and Samoa, amongst other Pacific nations.
Last year it was recognised for its work in promoting gender inclusion through a ‘Sautu’ award from Fiji’s National Disaster Management Office, the Fiji Council of Social Services and UN Women Pacific.
USAID has been an important funder of ADRA’s work, and its global headquarters says it is now actively seeking “alternative funding to continue its suspended life-saving programmes.”
“ADRA International is making every possible effort to stay in communication with the US State Department to secure waivers and facilitate the review of current USAID-funded ADRA programs.
Although we continue to hope for a positive outcome, ADRA is preparing for any challenges that may arise and remains committed to helping people in need,” the statement continued.
The decision also affects funding for United Nations organisations, and important initiatives such as PEPFAR [the President’s Emergency Plan for AIDS Relief]. “This is a matter of life or death. PEPFAR provides lifesaving antiretrovirals for more than 20 million people – and stopping its funding essentially stops their HIV treatment. If that happens, people are going to die and HIV will resurge,”International AIDS Society President, Beatriz Grinsztejn said.
There are concerns about the impact on the Pacific, where Fiji and PNG have seen a resurgence of HIV cases. Some exemptions to the executive order have since been allowed, such as certain humanitarian programs, such as those providing life-saving medicine, food, shelter, and subsistence aid.
However, on February 3rd, reports emerged that more than 10,000 USAID employees worldwide had been placed on administrative leave, further disrupting critical programs meant to assist millions globally.
Shortly thereafter, two unions—the American Foreign Service Association and the American Federation of
Government Employees—filed a lawsuit claiming the move had been unconstitutional. A federal judge granted a temporary reprieve for over 2000 USAID staff members who would have been placed on administrative leave and extended the same reprieve to USAID staff stationed overseas, including those in Fiji, the Federated States of Micronesia, the Republic of the Marshall Islands, Palau, Papua New Guinea, and the Solomon Islands.
However, there is little they can do for those Pacific Island nationals who relied on USAID funded programs for assistance.
What does this mean for the Pacific?
USAID’s Pacific office is in Fiji and prior to the 2024 US election, rapid expansion of its footprint was planned. Fiji Prime Minister Sitiveni Rabuka told officials on a recent visit to the US that he hopes that the aid freeze will not affect the growth of USAID programs, especially in key areas such as ocean and climate resilience, health, security, and digital connectivity.
Longstanding geopolitical jostling in the region has some analysists suggesting Trunp’s winding back of aid will give rival China an opportunity to step in.
Beijing signed a security agreement with the Solomon Islands in 2022 and Cook Islands Prime Minister Mark Brown in Beijing this month signed a comprehensive strategic partnership agreement with China (See page 25).
While the US and China have made significant contributions to the South Pacific both in terms of aid and strategic partnerships, neither is the region’s greatest donor. That title remains with Australia, according to the Lowy Institute.
It’s understood Australian missions and DFAT headquarters in Canberra are already fielding multiple requests for assistance to fill shortfalls created by the US pause.
While the Pacific is often characterised as one of world’s most aid dependent regions, and foreign aid from across oceans does constitute a significant portion of the region’s official development finance, developments in the US may prompt a reckoning and rethinking of this dependence.
Pacific governments are pragmatic about the quid pro-quo that comes with development assistance, particularly in response to security alliances. Trump’s pronouncements are simply an unvarnished version of what many of the Pacific’s ‘development’ partners expect in return for aid dollars.
As the former Secretary-General of the Pacific Islands Forum and former Cook Islands Prime Minister Sir Henry Puna noted in 2023: “We see these points of external influence increasingly creep into all facets of our operations, both at the national and the regional level – reaffirming that common adage, ‘there is no such thing as a free lunch.’
