In a move that sent shockwaves across the Asia-Pacific development sector, the Trump administration abruptly froze funding for the US Agency for International Development (USAid), putting hundreds of critical aid projects in the region at risk. The sudden pause in USAid activities has left aid organizations scrambling and raised concerns that China could exploit the void to expand its influence.
Australian Aid Projects “In Limbo”
Australia, a key development partner in the Asia-Pacific, warned that the USAid freeze has thrown joint projects “into limbo”. The two countries have collaborated extensively on initiatives tackling climate change, poverty, health, education and more. An ongoing Australia-USAid partnership aims to improve reading outcomes in underprivileged communities, empower women, build climate-resilient infrastructure and combat human trafficking.
Mark Cubit, co-founder of the Australian International Development Network, cautioned that “it will be up to the private sector and China to pick up the slack” left by the USAid gap. While some experts say a realigned US aid strategy could help counter Chinese influence more effectively, others worry about the human cost of the abrupt pause.
The problem is that anyone who’s working with US agencies and US funding are basically in limbo, because they don’t know if they’re on the ‘to be continued’ list or the ‘to be removed’ list.
Dr Nicholas Ferns, Monash University
Critical Climate Projects at Risk
With the growing climate crisis threatening vulnerable Asia-Pacific communities, experts fear the USAid freeze could jeopardize essential adaptation and resilience projects. Dr Ferns suggests the Trump administration is likely to slash funding for initiatives that help populations build defenses against climate change impacts.
The affected projects span diverse areas including disaster preparedness, sustainable infrastructure, environmental conservation and more. Advocates emphasize that disrupting climate action could have devastating long-term consequences for the region’s most at-risk populations.
China Poised to Expand Regional Clout
As the USAid freeze sows uncertainty, many worry that China stands ready to capitalize on the situation to bolster its Asia-Pacific foothold. The Lowy Institute’s Alexandre Dayant notes that China has already crept ahead of the US to become the second-largest aid donor in the Pacific behind Australia.
While the bulk of US funding currently goes to countries hosting American military bases, the pullback could create openings for China to court strategically important partners with promises of no-strings-attached assistance. Some warn this risks drawing more nations into Beijing’s orbit and expanding its geopolitical clout.
Calling for USAid Clarity
Governments and aid groups across the region are urging the US to swiftly clarify the fate of suspended projects and the future of USAid’s Asia-Pacific engagement. Advocates emphasize the human toll of the funding freeze, warning of “unnecessary deaths and suffering” if vital health and humanitarian efforts falter.
We hope that funding will be resumed as soon as possible.
Unicef Australia spokesperson
As the development community awaits answers, the fate of life-changing projects hangs in the balance. With climate change, poverty and other challenges mounting, many fear the USAid freeze could undermine hard-won progress and reshape the future of Asia-Pacific aid. All eyes are on the Trump administration to see whether the pause is a temporary disruption or a sign of a permanently diminished American role in the world’s most dynamic region.
