HomeTopicsLatin AmericaUS Aid Suspension Threatens Anti-Drug and Poverty Programs

US Aid Suspension Threatens Anti-Drug and Poverty Programs

President Donald Trump’s freezing of development aid has quickly paralyzed numerous programs in Latin America that rely on US funds to combat drug trafficking, corruption, hunger and inequality, observers and NGOs say. They warn that millions of people will be affected in particular by the dismantling of the US Agency for International Development (USAID), responsible for countless health and emergency programs.

In 2023, USAID disbursed about $1.7 billion in Latin America and the Caribbean, according to information pulled from Foreignassistance.gov, the US government site for foreign aid data. The money was destined for NGOs, public entities and life-saving United Nations programs.

Without it, “there are several programs that will run out of funding. There will be many layoffs and many communities will be affected,” said Juana Garcia Duque, an international cooperation expert at the University of the Andes in Bogota. Colombia, a country plagued by drug trafficking and related violence committed by a panoply of armed groups, has been by far the biggest beneficiary of USAID funds, followed by poverty- and gang violence-riddled Haiti.

While a quarter of funds dedicated to the region have been going to Colombia — in large part to support the implementation of a 2016 peace agreement that saw the FARC guerrilla group disarm — USAID money represented less than one percent of the country’s GDP, according to Garcia.

For several Central American countries, however, the situation is “more difficult because a big part of their economies depends on these external resources,” she added.

Everything is paralyzed

In Peru, where US aid funds “food, anti-drug, employment, environmental, health and democracy programs, NGOs will be forced to restrict projects” if support is withdrawn, said Susana Chavez of the women’s rights body Promsex.  In Guatemala, the Lambda LGBTQ+ organization has already had to suspend a sexual health education project, as well as support, treatment and testing for people living with HIV. 

And in the Colombian Amazon, deforestation, drug trafficking and illegal mining will increase if funding is lost, Oswaldo Muca Castizo, head of the National Organization of Indigenous Peoples of the Colombian Amazon (OPIAC) said. Young people helped by aid programs would be left without prospects, potentially driving them into the arms of criminal organizations that clear protected forests to grow coca — the main ingredient of cocaine, he explained.

In the northeast of Colombia, in Bucaramanga, the impact of the aid freeze was near immediate. The Entre Dos Tierras (Between Two Lands) foundation helping homeless and migrant people — many from strife-torn neighboring Venezuela — has already had to close it doors.

With nearly 80 percent of its funding coming from USAID, it employed 16 people. All are now out of a job, and the 600 free meals the foundation had distributed every day are a thing of the past.  “Everything is paralyzed,” said the foundation’s director Alba Pereira.  And the “situation is worsening” in a city that has recently also received a flood of people displaced by guerrilla violence in the nearby Catatumbo area, she said.

US priorities

Analysts say the aid freeze threatens Trump’s main goals of stopping the flow of illicit drugs and undocumented people into the United States. “There are programs of great importance that correspond to the priorities of the US government regarding security, justice and the reduction of migration drivers, which are mainly economic,” said Luis Linares, an analyst at Guatemala’s Association of Social Studies and Research (ASIES). 

A withdrawal could also tilt the region towards donors such as China, a geopolitical foe whose growing influence in Latin America Washington is eager to counter. Despite the millions that rely on it, the presence of USAID has not been uncontroversial in the region. It is seen by some governments, such as that of El Salvador, as an extension of American interventionism.

In Mexico, President Claudia Sheinbaum and her predecessor Andres Manuel Lopez Obrador have accused the agency of financing “opposition groups.” “If there is to be aid, then it must go through other channels,” Sheinbaum, who is in favor of the agency’s closure, said recently.

Trending Now

Costa Rica’s Capital Gets a Temporary Forest and Free Saturday Music

A temporary forest at the entrance to the Central Bank Museums will host a free music event Saturday, giving residents and visitors yet another...

Costa Rica Prison Faces Court Challenge Before Inmate Transfers Begin

A prisoners’ rights group has asked Costa Rica’s Constitutional Court to stop inmate transfers to the newly inaugurated CACCO prison, saying concerns about heat,...

Francisco Cerúndolo Falls in Shanghai as Breakthrough 2026 Season Faces Another Test

Francisco Cerúndolo's run at the Shanghai Masters ended Sunday with a 6-3, 3-6, 6-2 loss to Czech player Jakub Menšík, bringing another early finish...

Costa Rica’s OIJ Warns of Motorcycle Groups Blocking Roads and Attacking Drivers

Packs of motorcyclists performing stunts, blocking traffic and in some cases assaulting drivers who confront them have become a serious problem, an OIJ traffic crimes chief warned.

Is Snoop Dogg’s Costa Rica Concert Still Happening?

Update, Oct. 13: No. The production company, Stockwell Entretenimiento, announced Tuesday afternoon that Snoop Dogg’s December 3 concert in Costa Rica has been canceled...

Landslide Forces Closure of Costa Rica’s Road to Limon Again

Heavy rain triggered a landslide on Route 32 late last night, forcing authorities to close the mountain crossing used by drivers traveling between San...

Beéle Concert in Costa Rica Canceled Hours Before Show

The concert by Colombian singer Beéle scheduled for tonight in Costa Rica has been canceled less than 24 hours before the show, leaving ticket...

Costa Rica Office Vacancy Could Hit 27% by 2030 as Multinationals Cut Jobs

Costa Rica office vacancy could reach 27.1% by 2030 as multinationals cut 2,205 free-zone jobs, an analyst warns.

Panama Earthquake Aftershocks Continue as Residents Survey Widespread Damage

Residents near the epicenter of a major earthquake in southern Panama began cleaning up on Saturday, traumatized by the previous day's heavy shaking that...
Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel