- $383 million USAID package frozen post-ceasefire agreement
- 700+ medical staff laid off, critical services reduced to minimum levels
- Aid procurement slashed by 75% as funding disputes escalate
The Trump administration’s abrupt suspension of nearly $400 million in humanitarian funding has brought Gaza’s fragile recovery to a standstill. With USAID contracts unsigned and partner organizations footing bills for emergency supplies, essential services like malnutrition treatment programs now operate at skeletal capacity. This breakdown directly threatens the U.S.-brokered truce requiring sustained aid flows to maintain stability.
Internal agency documents reveal over 1,000 termination notices sent to shelter providers and medical NGOs since February. The International Medical Corps alone absorbed $12 million in unreimbursed costs for Gaza’s largest field hospital before cutting 700 positions. “We’re rationing antibiotics and suspending trauma care training,” said a former staffer who resigned amid the financial chaos.
Three structural challenges compound the crisis:
- New DOGE-mandated procurement rules delaying mobile home deliveries by 8 weeks
- Israel’s retaliatory aid blockade after Hamas accused them of truce violations
- A 70% reduction in USAID’s Gaza coordination team since January
Regional analysts warn these disruptions mirror 2018 cuts to Syrian refugee programs that fueled extremist recruitment. Former USAID director Dave Harden notes: “When water treatment plants closed in Ramallah last month due to funding gaps, youth unemployment spiked 18% overnight – that’s how quickly stability unravels.”
The agency’s diminished role has allowed Qatar and Egypt to expand their Gaza influence through competing aid channels. Meanwhile, Netanyahu’s threat to cut electricity could collapse remaining health infrastructure within 72 hours according to WHO projections. With winter approaching and only 23% of pledged tents delivered, 640,000 displaced Gazans face exposure risks.
As political appointees implement controversial “efficiency measures,” career staff describe an agency in disarray. One official recounted losing server access for 11 days during critical ceasefire negotiations: “We couldn’t process payments or even email partners. Now they want us to manage a crisis with 80% fewer people?”
