Govt urged to fund vital health projects affected by US aid cut

Bangladesh's health sector is feeling the pinch from US President Donald Trump's suspension of foreign aid, with ongoing USAID-funded projects being put on hold and several organisations, reliant on this funding, cutting staff.

Last week, the International Centre for Diarrhoeal Disease Research, Bangladesh (icddr,b) issued termination letters to over 1,000 employees.

Health experts said some of the suspended projects may be re-launched after three months, but not all are guaranteed to restart. Now the government should prioritise important projects and prepare to finance them on its own for the time being.

A health ministry official at a BSMMU function today ( said the government is working on a strategy to replace the lost funding, but some areas may still face cuts.

The closure of these projects will lead to job losses for those involved, and the beneficiaries — ordinary people — will no longer receive the benefits

Health expert Abu Jamil Faisal

Just hours after taking office on 20 January, Trump ordered a 90-day pause in US foreign assistance programmes pending a review of efficiencies and consistency with his foreign policy.

Later on 25 January, USAID in a letter to project implementing partners in Bangladesh said that along with other countries around the world, it has announced an immediate cessation or suspension of any work in Bangladesh under contracts, work orders, grants, cooperative agreements or other assistance or procurement instruments.

USAID works to improve maternal and child health and nutrition and control infectious diseases in Bangladesh.

Health expert Abu Jamil Faisal told TBS, "ICDDR,B has already laid off staff and several studies will be halted — this is a significant impact. Additionally, projects launched two to three months ago are being closed down. One urban health project has been shut down, and two nutrition projects have followed. As for the two tuberculosis projects, it is unclear if they will continue.

"The closure of these projects will lead to job losses for those involved, and the beneficiaries — ordinary people — will no longer receive the benefits." 

While it remains uncertain whether some of these projects will be fully terminated if the foreign aid is entirely stopped, he said, there will be a long-term impact on Bangladesh's maternal and child health, communicable disease control programmes and the health sector overall.

"The government should assess the impact of the closure of US-funded projects and, based on their importance, take the initiative to fund them independently." 

Dr Mostafizur Rahman, distinguished fellow at the Centre for Policy Dialogue (CPD), told TBS that the negative impact of Trump's decision is already being felt in Bangladesh. Those directly reliant on US funding are facing difficulties. 

Additionally, some organisations that channel support to private institutions may be forced to close. The health sector, in particular, will be significantly affected, he said.

He also noted that while some activities might resume with US funding after three months, areas like reproductive health and birth control could face permanent cuts, which is alarming.

 "Our government must closely monitor this situation, as these sectors are crucial for our health system. It would be wise to consider alternative funding options in advance. Given the circumstances, we should prepare to manage and fund these activities independently," Mostafizur Rahman added. 

Speaking at a function at the BSMMU yesterday, Professor Sayedur Rahman, special assistant at the Ministry of Health and Family Planning, said, "An organisation [icddr,b] has been forced to lay off 1,200-1,300 employees due to the US funding cut. Trump's decision affects many of the government's activities. We are working to quickly devise a strategy to replace the lost funding, but even then, some areas may need to be reduced."