Published: February 25, 2025
Monrovia – Liberia’s development agenda has suffered a major setback as the United States Agency for International Development (USAID) has suspended or canceled projects worth $51 million, affecting critical sectors such as health, education, elections, and domestic revenue mobilization. The abrupt withdrawal of funding raises serious concerns about the country’s economic stability and public service delivery.
Appearing before the Senate Committees on Health, Education, Agriculture, Finance, and Development Planning on Monday, Minister Augustine Ngafuan painted a grim picture of the funding cuts’ impact. He revealed that key initiatives affected include a $23.4 million project aimed at strengthening the education system, a $20 million school feeding program, and a $17.9 million tax reform support initiative.
“At first, we were talking about a freeze, but now it has transitioned to outright cancellations,” Ngafuan lamented.
He warned that the funding halt would significantly hinder efforts to expand access to quality education, improve healthcare services, and enhance Liberia’s tax collection mechanisms. With these projects in limbo, thousands of Liberians, including teachers, healthcare workers, and government personnel, are at risk of losing their jobs.
“As these USAID projects are being discontinued, many people are losing their jobs,” he noted. “Some initiatives remain intact, but there is growing uncertainty. Many fear that their projects could be next on the chopping block. We must pray for a resolution.”
Senate Scrambles for Solutions
In response to the crisis, the Senate committees have pledged to explore alternative financing mechanisms to mitigate the adverse effects of USAID’s withdrawal. Lawmakers also voiced concerns about the broader implications of these cuts and are pushing for long-term, sustainable solutions to prevent further disruptions.
To gain deeper insight into the situation and craft a strategic response, the committees have summoned the Ministers of Education and Health for further discussions.
The U.S. Political Shift Behind the Cuts
The aid suspension follows a broader shift in U.S. foreign policy under President Donald Trump, who has been vocal about his disdain for American-funded international programs. Speaking at the Conservative Political Action Conference (CPAC) over the weekend, Trump singled out a $14 million USAID grant to Liberia for a social cohesion project, dismissing it as a “scam.”
Trump had previously criticized a separate $1.4 million allocation intended to boost voter confidence in Liberia, calling it a “fraud.” The Liberia Domestic Election Observation (LIDEO) initiative, designed to enhance electoral integrity and public trust, is now at risk of being discontinued.
“We want to give them confidence in Liberia,” Trump mocked, reiterating his broader skepticism of foreign aid.
The social cohesion project, developed in response to Liberia’s civil war history, was intended to promote peace and stability by fostering interethnic dialogue, reconciliation, and youth empowerment. Liberian officials have argued that such programs are crucial for maintaining the country’s fragile peace.
Tech billionaire Elon Musk, who leads the U.S. Department of Government Efficiency (DOGE), recently scrapped a $17 million USAID-funded tax policy initiative for Liberia. Taking to his social media platform X, Musk defended the decision, stating, “Why would anyone think that this is a good use of YOUR tax money?”
The now-canceled initiative was designed to modernize Liberia’s tax system by transitioning from a goods and services tax to a value-added tax (VAT) by 2026. It also aimed to digitize tax collection and enhance government capacity to generate domestic revenue.
Musk’s decision to pull the plug aligns with his broader push to eliminate what he deems as wasteful federal spending. However, for Liberia, the loss of this project raises concerns about the government’s ability to implement much-needed fiscal reforms.
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