World News

/

Trump’s Foreign Aid Freeze Cripples Bangladesh

For decades, Bangladesh has been a testament to resilience and economic progress. Once dismissed by former U.S. Secretary of State Henry Kissinger as a “basket case,” the country is set to graduate from the United Nations’ Least Developed Country (LDC) category to a developing nation next year. This milestone is due in no small part to Bangladesh’s robust economic policies, global trade partnerships, and crucially, American financial support.

The United States has long been one of Bangladesh’s most significant economic allies. Washington has invested over $8 billion in Bangladesh since its independence in 1971, supporting everything from infrastructure to health initiatives. America is also Bangladesh’s largest export market, particularly in the garment sector, which is the backbone of the nation’s economy. In times of crisis, U.S. aid has been a lifeline—during the COVID-19 pandemic, Washington donated $73 million, and in 2017 alone, it provided more than $101 million to support Rohingya refugees who fled persecution in Myanmar.

Yet, in an abrupt policy shift, President Donald Trump’s recent executive order placing a 90-day freeze on all foreign aid has sent shockwaves through Bangladesh. The move comes at a precarious time, following the sudden departure of Prime Minister Sheikh Hasina amid a massive student-led protest. With the country’s foreign reserves dwindling and a fragile interim government led by Nobel laureate Muhammad Yunus struggling to stabilize the nation, Trump’s decision has exacerbated an already dire situation.

According to Trump, Bangladesh is one of several countries that are not “aligned with America’s interests.” At a White House briefing, he cited concerns over U.S. funds being misused, claiming that the last $29 million allocated for Bangladesh’s political stabilization had instead gone to an obscure firm with only two employees—one he alleged the U.S. government had never even heard of. Based on these assertions, he suspended all USAID funding to the country, a decision that threatens to cripple vital sectors, including healthcare, employment, and climate resilience.

USAID-funded programs have been instrumental in Bangladesh’s development. Thousands of professionals—ranging from engineers to public health workers—rely on these initiatives for employment, and countless more benefit from their services. The suspension of U.S. aid has already led to massive job losses. For instance, the icddr,b (formerly known as the International Centre for Diarrhoeal Disease Research, Bangladesh), a globally recognized health research institute, was forced to lay off 1,000 employees in response to the funding freeze.

Beyond employment, the cut in funding is endangering Bangladesh’s already strained healthcare system. USAID programs have historically played a critical role in reducing infectious diseases, lowering child mortality rates, and improving maternal healthcare. In remote villages where electricity and paved roads remain a luxury, American-backed medical workers provide lifesaving care, from antiseptics to prevent infections to emergency maternity services. Pregnant women in these underserved areas often have no nearby hospitals, relying instead on USAID-trained health workers to survive childbirth. Without continued funding, these vital services could collapse, putting thousands of lives at risk.

The suspension of USAID funds could also spell disaster for Bangladesh’s climate response efforts. As one of the world’s most vulnerable nations to climate change, Bangladesh frequently faces floods, cyclones, and rising sea levels. For more than a decade, USAID has collaborated with the Bangladeshi government to implement climate adaptation programs, helping coastal communities build resilience to natural disasters.

Through various initiatives, USAID has trained thousands of Bangladeshis to better prepare for extreme weather, constructed cyclone shelters, and developed early warning systems that have significantly reduced disaster-related fatalities. But with the funding pipeline abruptly cut off, these crucial programs are now at risk. Without continued support, future storms could claim more lives, undoing years of progress in disaster preparedness.

Trump’s “America First” policy may play well with segments of the U.S. electorate, but its unintended consequences are reverberating far beyond American borders. For Bangladesh, this aid freeze is more than just a financial setback—it’s a potential humanitarian crisis. The country has long been a grateful recipient of U.S. support, and the label “FROM THE AMERICAN PEOPLE” on aid packages has symbolized goodwill and partnership.

Bangladeshis understand the importance of national self-reliance, but abrupt policy decisions like this one threaten hard-earned progress. If America’s greatness is defined by its generosity and leadership on the global stage, then this decision risks undermining both.

So, Mr. President, why make us think otherwise?