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employment, environmental, health and democracy programs, NGOs will be forced to restrict projects” if support is withdrawn, said Susana Chavez of the women’s rights body Promsex.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 Flights Caught in Only the Third Nationwide US Ground Stop Ever

The FAA stopped all US departures Friday. Here's what it means if you're flying to or from Costa Rica.

Costa Rica’s Dollar Slides Back Toward Its Record Low

The dollar closed Tuesday at 448.43 colones on Monex, 1.63 colones above its all-time low.

Costa Rica Asks You to Cut Water Use as the El Niño Dry Season Begins

Costa Rica's water utility wants you to save water as the dry season starts this week under a strong El Niño. There is no rationing yet. Here is what it is asking.

Shakira Returns to Costa Rica in 2027 After More Than 15 Years

Shakira plans a January 31, 2027 show at Costa Rica's National Stadium, her first here since 2011.

Santa Cruz, Home to Tamarindo, Leads Guanacaste in Murders and Car Break-Ins

Santa Cruz has 22 of Guanacaste's 75 homicides this year, with Tamarindo on top. OIJ detained 10, including two police officers.

Protest Caravan to Santa Ana Could Slow Traffic West of San José

Shuttle drivers roll from La Sabana to Santa Ana at 7:30 a.m. over new 2027 marchamo fees. Expect delays.

Costa Rica Mourns Actor and TV Host Leonardo Perucci, Dead at 87

Leonardo Perucci, the Chilean-born actor and host of the 1980s TV hit Fantástico, died Tuesday at 87 after more than four decades on Costa Rican stages and screens.

El Niño Could Leave 306,000 People in Costa Rica Short of Water

More than 306,000 people in Costa Rica could face problems getting drinking water as the strongest El Niño on record dries us out, according...

Marino Ballena Closes Piñuela Entrance for Six Months, Whale Tail Still Open

Marino Ballena's Piñuela sector is closed for six months. Here's which entrances are still open.
Loading…

Latest News from Costa Rica

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