Reflect, Learn, and Act.
Breaking Dependency on USAID
Insights from Our Recent Webinar – The Future of Aid and Inclusive Leadership
After decades of aid from the U.S. Agency for International Development (USAID) to several countries to support humanitarian work, the State Department announced on March 28th, 2025 that it was officially shutting down USAID—what many consider a “final blow to the beleaguered foreign aid agency”.
These cuts are part of a growing global shift. In a domino effect driven by conservative governments, countries like the United Kingdom, Germany, France, Sweden, and the Netherlands have all reduced their foreign aid budgets. This move takes them further from the SDG (Sustainable Development Goals) target of spending 0.7% of gross national income on foreign aid. In 2022, only Sweden and Germany met this goal, while others like the UK, France, and the Netherlands fell short with 0.5–0.67%. The United States contributed just 0.23%—a smaller percentage, but due to the size of its economy, U.S. aid made up nearly 40% of global foreign aid, making these recent cuts deeply disruptive.
In response, Includovate hosted a webinar gathering experts and professionals to reflect on these developments, share their experiences, and envision a way forward. The discussion centered on:
1. The Impact of Aid Cutbacks: Tough Decisions and Uncertain Futures
Participants described the dramatic effects these aid cuts are having. Programs years in the making—focused on serving vulnerable populations—were abruptly shut down. Clinics offering HIV treatment are closing. Medical supplies, including vaccines, are being left unused in U.S. embassies. Many professionals are being laid off and some organizations face permanent closure—not due to lack of need, but lack of funds.
“Promises are broken when programs suddenly cease, overwhelming people with the neglect and injustice.”
The damage goes beyond logistics. The emotional toll is high. Aid workers feel disillusioned, exhausted, and uncertain about the future of their careers—and the sector at large. There are also fears that initiatives around gender equality and inclusion will be the first to disappear as budgets shrink.
2. The Emotional Toll: Balancing Empathy, Integrity, and Survival
Many webinar attendees voiced deep emotional fatigue. Some likened the experience to being trapped in an “emotional washing machine”—with each day bringing new layoffs, abrupt closures, and painful goodbyes. Leaders described the double burden of managing personal stress while trying to support others.
There’s also moral tension. Aid professionals must balance supporting laid-off colleagues while staying functional and carrying on with projects—often in areas still relying on remaining aid pipelines. Cities like Geneva and Washington, D.C. are experiencing widespread displacement and emotional burnout within the humanitarian workforce.
“We are angry, ashamed, but absolutely determined.”
3. The Future of Inclusive and Localised Aid
Despite all the hardship, participants expressed renewed commitment to redefining how aid works. This means moving away from heavy dependence on traditional donors and investing in local leadership, sustainability, and inclusion.
1.Local organizations must be empowered to lead.
2.Inclusion—especially of women and marginalised communities—must remain central.
3.New funding models and partnerships must be explored to build resilience.
This crisis, while painful, is also seen as a wake-up call and an opportunity to rebuild an aid sector that is more just, more local, and more sustainable.
Turning Crisis into Opportunity
This webinar was both a moment for grief and a powerful call to action. It encouraged professionals to unite, embrace innovation, and recommit to the core values of equity and cooperation.
“Even though the future is unpredictable, if we all learn from one another and act decisively, we can create a more robust and sustainable future for development and humanitarian assistance.”
*All images used in this blog were AI-generated.
About the Author
Yara is a researcher specializing in gender studies, with a focus on gender-based violence (GBV) and women’s economic empowerment. She holds a Master’s degree in Sociology and Anthropology and works with Includovate as a research assistant. Yara brings expertise in research design and social analysis to her work on inclusive development.