Funds in Limbo: European Nations Demand Answers from USAID

Three European countries have contributed $15 million to the USAID, intended for development programs in low-income countries. However, the funds have been stuck, with the Trump administration cutting aid and failing to address European concerns about their allocation or refunding.


Devdiscourse News Desk | Washington DC | Updated: 23-03-2025 17:28 IST | Created: 23-03-2025 17:28 IST
Funds in Limbo: European Nations Demand Answers from USAID
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Tensions are rising as three European allies, Sweden, Norway, and the Netherlands, find themselves in a financial deadlock with the United States. These nations collectively contributed USD 15 million to the US Agency for International Development (USAID), hoping to aid development projects in low-income countries.

However, following abrupt funding cuts by the Trump administration and the Department of Government Efficiency, the European allies are questioning whether their contributions will reach the intended projects or be refunded. Concerns are amplified by the USAID's failure to respond to inquiries, adding strain to international relations.

The partner countries initially joined forces with USAID for the Water and Energy for Food (WE4F) project, aimed at advancing farming efficiency in developing regions. The lack of communication and action poses risks to both the agricultural innovations and the credibility of the United States as a reliable partner in global development.

(With inputs from agencies.)

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