NATIONAL HARBOR, Maryland – In an address at the Conservative Political Action Conference over the weekend, President Donald Trump lambasted U.S. foreign aid spending, singling out, among others, a US$14 million USAID grant to Liberia for a social cohesion project as nothing more than a scam.
His remarks followed previous criticism of a separate $1.4 million allocation aimed at boosting voter confidence in Liberia, which he similarly dismissed as a “fraud.”
The Liberia Domestic Election Observation (LIDEO) activity is designed to enhance voter confidence in electoral processes and mitigate electorUSAID
“We want to give them confidence in Liberia,” Trump mockingly stated, criticizing broader U.S.-funded programs overseas.
The social cohesion project in Liberia is intended to foster peace and stability by strengthening community-level reconciliation mechanisms, building trust among ethnic groups, and empowering youth and women as agents of change. Liberian officials argue that the initiative—developed in response to the country’s brutal civil wars—is vital to sustaining hard-won peace by addressing deep-seated tensions and promoting dialogue across divided communities.
Elon Musk Scraps Liberia Tax Policy Project
During his speech, Trump also praised tech billionaire Elon Musk, describing him as “doing a great job.”
Musk, who heads the Department of Government Efficiency (DOGE), announced on February 10 the cancellation of a $17 million USAID-funded project intended to provide tax policy advice to Liberia. He took to his social media platform X to justify the move, writing, “Why would anyone think that this is a good use of YOUR tax money?”
The now-canceled initiative was designed to assist Liberia in reforming its tax policies, with the goal of modernizing revenue collection and transitioning from a goods and services tax to a value-added tax (VAT) by 2026. The project also aimed to invest in digital tax systems and capacity-building efforts.
Musk’s decision to halt the funding aligns with his broader approach to scrutinizing and eliminating what he perceives as unnecessary federal spending.
Liberian Finance Minister Reacts to Aid Cuts
In an interview with VOA’s James Butty, Finance and Development Planning Minister Augustine Kpehe Ngafuan warned that the suspension of U.S. aid has derailed critical economic reforms.
“This decision has affected our country in multiple ways, particularly in sectors where USAID-backed initiatives were integral to our national development strategy,” Ngafuan said.
Liberia is now intensifying efforts to boost domestic revenue by strengthening tax administration and curbing financial inefficiencies. The executive branch is also working with the legislature to assess the economic repercussions of the funding cut.
Beyond domestic measures, Liberia has reached out to regional economic bodies, including ECOWAS and the African Union, in a bid to secure alternative funding sources to sustain key development programs.
NGOs Struggle Amid Foreign Aid Suspension
Trump’s new foreign assistance policy, which includes a 90-day suspension of U.S. aid, has led to job losses, stalled critical projects, and threatened the economic stability of local communities in Liberia. NGOs that once depended on U.S. funding are scrambling to survive, with staff layoffs mounting and essential programs grinding to a halt.
The United States Agency for International Development (USAID) has long been a lifeline for many organizations in Liberia, funding health services, legal aid, and agricultural initiatives. But since the funding freeze was announced, the impact has been devastating.
Daniel Nya Gboe, Executive Director of the Efficient and Development Institute (ERDI), called the aid pause a “huge setback.” His organization, which relied on USAID for half its funding, has already laid off 12 of its 24 staff. ERDI’s Access to Justice and Health programs—focused on sexual and gender-based violence (SGBV) awareness and healthcare monitoring—are now at risk.
John Alexander Nyahn, head of Community Health Education and Social Services (CHESS), painted an even grimmer picture, warning that the suspension could be more devastating than the Ebola and COVID-19 crises combined.
“USAID provides about 75% of malaria drugs in our health centers. Without that support, malaria cases will skyrocket,” he cautioned. CHESS has already cut nearly half of its workforce, putting more livelihoods in jeopardy.
Stanley Browne, head of Agapeson Agribusiness Accessories (AAA), revealed that his organization, which trains farmers to supply cassava-based food products to the World Food Programme (WFP), has been paralyzed by the funding freeze. Without USAID support, there are no salaries for staff and no assistance for farmers in Nimba, Montserrado, and Bong counties.
The economic ripple effect is hitting families and small businesses hard, as job losses increase. More than 100 people within the civil society sector in Nimba alone have been laid off, leaving families struggling and local communities without crucial services. Some NGOs, like the Sustainable Initiative for Community Empowerment (SICOE), have seen their operations nearly collapse due to staff reductions and canceled projects.
As the crisis deepens, NGO leaders are urging the Liberian government to intervene. Some organizations are exploring alternative funding sources, including private-sector partnerships, agriculture-based income generation, and advocacy for increased local support.
“As we endure this 90-day pause, we must rethink our funding models,” said AAA’s Stanley Browne. “If we don’t, many of our organizations—and the communities we serve—won’t survive.”
Editor’s Note:
In the print edition of this news story, we inadvertently stated 40 million instead of 14 million in reference to the USAID grant to Liberia for a social cohesion project. The correct amount is 14 million. We regret the error and any confusion it may have caused.
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