The recent directive from USAID to cease activities under existing contracts, grants, and cooperative agreements as part of a US foreign aid reassessment could have a profound impact on the Rohingya humanitarian response in Bangladesh.
This decision comes at a critical juncture, as Bangladesh has been heavily reliant on international aid, including substantial support from the United States, to manage the Rohingya crisis since 2017.
USAID has been the single largest donor, contributing nearly $2 billion of the total $2.4 billion provided by the US for Rohingya refugees and host communities.
This funding has been instrumental in addressing food and nutrition needs, disaster risk reduction efforts, and economic resilience programmes.
The cessation of USAID activities risks leaving a significant void in these critical areas, jeopardising food security, reducing preparedness for natural hazards, and straining relations between refugees and host communities.
Bangladesh has received approximately $4.7 billion from various donors through successive Joint Response Plans (JRPs) since the onset of the crisis, covering about 68% of the total financial requirements during this period.
In 2024, the Joint Response Plan appealed for $852.4 million to assist 1.35 million individuals, including Rohingya refugees and host communities. As of October 2024, only $452.1 million, or 53% of the target, had been received.
The United States remains the largest donor, contributing $182.5 million in 2024 alone, followed by the European Commission with $55 million, Australia with $30.3 million, and the United Kingdom with $27.7 million.
Other significant contributors include Korea, Japan, Sweden, Canada, and France. Despite this international generosity, the funding shortfall highlights the precarious situation of ongoing humanitarian efforts.
The potential consequences of the USAID decision are far-reaching. Food distribution and nutritional support programmes could be disrupted, increasing malnutrition rates among vulnerable populations in the camps.
Disaster risk reduction initiatives, vital in camps prone to monsoon floods and landslides, could be severely hampered, leaving refugees exposed to natural hazards.
Host communities, who also benefit from international aid to bolster food security and economic resilience, may face increased resource constraints and competition, potentially exacerbating social tensions.
The halt in USAID operations could also pressure other donors and NGOs to fill the funding gap, although replacing such a significant contribution will be challenging.
The international community, led by Bangladesh, must advocate for a swift reassessment of US policy while seeking to diversify funding sources through partnerships with multilateral agencies and regional actors.
Without immediate action, the disruption of humanitarian efforts could lead to a deeper crisis, undermining the stability of the refugee camps and the surrounding communities.
