MANILA, Philippines — United States President Donald Trump's sweeping foreign aid freeze has thrown at least 39 development projects in the Philippines into limbo — jeopardizing critical work from a nationwide forest protection program to a Bangsamoro education project meant to run until 2029.
On January 24, Secretary of State Marco Rubio ordered the suspension of all US foreign aid programs worldwide for review, exempting only Israel and Egypt.
In the Philippines, the freeze affected dozens of projects funded by the United States Agency for International Development (USAID) and the State Department that had yet to wrap up. Of the 39 ongoing projects, 14 were meant to conclude this year, while 25 others were designed to continue until 2026 to as far as 2029, according to publicly available data on US foreign assistance in the Philippines.
Data shows USAID and the State Department had already committed $69.7 million (P4.06 billion) in fresh funding for these projects last year before the freeze. This amount reflects the obligations in 2024, not the full unspent budget for the programs.
Environmental, health programs on the line. Data from fiscal year 2024 indicates environmental protection programs are hit hardest by the freeze, as they received the largest share of USAID funding among Philippine projects set to continue beyond January 2025. Specifically, there are seven conservation or environmental-related projects last year that were allotted $19.5 million.
Basic education programs received the second-largest funding at $13 million last year spread across four different projects. A significant portion also went to health programs, with a single HIV/AIDS project receiving $6.7 million. Government and civil society programs were allocated $6.5 million for eight projects.
Philstar.com's analysis focused only on projects with confirmed implementation timelines beyond the freeze and excludes operational expenses like salaries and other administrative costs.
Uncertainty
The suspension of all US foreign aid projects reaches deep into Philippine development work. Programs under review include a five-year biodiversity conservation program and initiatives that sought to democratize access to reading materials, health services and early job opportunities, among others.
The environmental program that was allocated the largest USAID funding last year was the Inspire Project by the Gerry Roxas Foundation, which received $7.97 million in obligations (roughly P467.18 million).
The five-year initiative aims to enhance natural resource resilience and security in the Philippines by increasing the engagement of civil society organizations and local communities in natural resource governance. It is slated to end in 2026.
The US State Department's largest funding obligation for a project in the Philippines last year was $6.68 million (approximately P391.67 million) for an HIV epidemic control program, according to government records.
The project, implemented by an undisclosed international organization, focuses on providing technical assistance to local Philippine groups working to control the spread of HIV.
Staff of at least two projects funded by USAID who spoke to Philstar.com on the condition of anonymity confirmed they were ordered to halt all activities except administrative work while their programs undergo review.
"We are still receiving our salaries but we are not sure how long this will be sustainable given that there is no word yet if USAID will reimburse contractors who will bear overhead costs in the meantime," said one employee for a USAID contractor.
They described an atmosphere of uncertainty that followed Trump's stop-work order. "We’re not sure how long this will be in effect and what the outcome will be," they added.
'America First'
The aid freeze is one of Trump's first major actions back in office that push his "America First" agenda — triggering leadership shake-ups at USAID where some officials have been accused of resisting the order.
An official from USAID Philippines declined to comment, saying they were not authorized to discuss the matter.
For non-government organizations dependent on US funding for their main programs, the impact was immediate and severe.
"We have to halt our operations connected to the USAID grant all over Mindanao... We have to lay off staff with no separation pay," said Rhadem Musawah, one of the leaders of Mujer, an LGBT rights organization based in Zamboanga City, in Mindanao.
"Our legal and humanitarian assistance to LGBT communities will stop, along with our efforts on local policy lobbying for anti-discrimination ordinances and LGU engagements," Musawah said in Filipino in a message to Philstar.com.
USAID, the US' lead development agency, and the State Department are the primary channels for delivering US foreign assistance worldwide.
While USAID focuses on implementing development programs and humanitarian aid, the State Department oversees diplomatic relations and contributes to foreign assistance through initiatives like security cooperation and democracy promotion.
‘Things will crumble’
While Trump's order states that the suspension and review of foreign development assistance will only last for 90 days, development workers in the Philippines have immediately grasped its lasting consequences.
"The national government [of the Philippines] pretends that the aid freeze won't affect the Philippines as a whole, but let's see after two to three months how things will crumble after thousands of partner organizations of the government shut down and no longer provide support to the government grassroot programs," Musawah said.
The impact is already being felt across communities that, for years, have been systemically excluded from the Philippine government's traditional health programs.
For instance, Transmasculine Philippines, a community-based organization for Filipino trans men and transmasculine non-binary people, was forced to close its community center for transgender Filipinos on January 28 after all USAID funding was paused.
"With several of our local LGBTQIA+ organizations dependent on awarded USAID funding, we believe the suspension endangers efforts to provide accessible services to community members, as well as individuals relying on such projects for their well-being," the group said.
Some government agencies are also feeling the impact of the aid freeze. For instance, the Department of Education, which partners with USAID on multiple projects, is also now facing uncertainty about ongoing programs.
Education Secretary Angara told Philstar.com: "We're not quite sure yet about the long-term impact of the order but we are hoping that the new administration will see the value of the projects undertaken by USAID with the Philippines as a strategic partner."
Angara said these are the ongoing USAID projects in partnership with DepEd:
- ABC+: Advancing Basic Education in the Philippines - a $47.5 million initiative aimed at improving the quality of basic education in the country, specifically the provision of early grade reading materials to Bangsamoro learners
- GABAY: Strengthening Inclusive Education for Blind and Deaf Children - a $3.4 million project focused on enhancing educational opportunities for children with visual and hearing impairments.
- ILO-PH: Improving Learning Outcomes for the Philippines - a $5 million program designed to boost learning outcomes for Filipino students.
The uncertainty is also believed to extend beyond the immediate project suspensions.
A development worker who spoke to Philstar.com on the condition of anonymity believes Trump’s order will have “serious consequences in future grants, especially those that won't align with the Executive Order of the White House." They noted that anti-corruption and diversity initiatives may be particularly vulnerable to restructuring.
Aid dependency?
While organizations are scrambling to keep their programs, some believe the aid freeze has largely exposed deeper vulnerabilities in Philippine development work.
"The Trump presidency has revealed the darkest part of developmental work in the Philippines — that we are not sustainable and that we are too dependent on their aid and indirectly has been taken hostage by these foreign policy aids," Musawah said.
LoveYourself — an organization that provides free HIV testing — said it had to suspend newer initiatives like free PrEP distribution and self-testing campaigns due to the aid freeze.
In turn, the group called on the Philippine government to “step up” and fund programs that have been paused.
"To the Philippine government, this is your moment to step up and partner with civil society organizations. By working together, we can scale up programs, foster innovation, and fill the gaps left by international funding uncertainties," it said in a statement.