Policy Updates

On April 2, 2025, Japan announced an emergency grant of approximately US$6 million to support those affected by the devastating earthquake in Myanmar on March 28, 2025.

The grant will be channeled through international organizations to provide immediate humanitarian assistance, including shelter, food, and medical assistance.

This funding complements Japan's broader relief efforts, which include deploying a Japan Disaster Relief Medical Team and emergency relief goods through JICA. The government emphasized its commitment to delivering assistance that directly benefits the people of Myanmar, addressing critical needs amidst ongoing rescue operations.

On March 29, 2025, the UK government announced a GBP10 million (US$13 million) assistance package to support Myanmar following the devastating 7.7 magnitude earthquake in its central region, which seeks to provide life-saving assistance, including food, water, medicine, and shelter, to the most affected areas.

This assistance will be delivered through UK-funded local partners already mobilizing on the ground to address urgent humanitarian needs. The FCDO is also offering consular support to British nationals in Myanmar and neighboring Thailand.

Minister of State for Development Baroness Jennifer Chapman underscored the UK's commitment to providing immediate relief and expressed condolences to the people of Myanmar.

On March 28, 2025, the US administration announced plans to merge USAID into the State Department, dissolving it as an independent agency and reducing staffing to a statutory minimum of 15 positions, and additionally detailed specific cuts to USAID grants and multilateral funding.

Congress must pass new legislation to officially eliminate the agency. The State Department will create an Office of Global Food Security to manage food security and humanitarian programs previously handled by USAID. The remaining global health programs will be supervised by the Bureau of Global Health Security and Diplomacy. Other programs will be managed by regional bureaus within the State Department.

Deputy administrator of policy and programs at USAID Jeremy Lewin informed staff that employment contracts would be severed by July 1 or September 2, 2025. By July 1, 2025, the State Department will fully take over USAID’s remaining programming. By September 2, 2025, USAID’s operations will transfer to State or shut down completely.

The administration also provided Congress with documents listing 5,341 terminated USAID programs and 898 active ones, detailing that 86% of programs have been terminated, slightly more than the 83% cut reported on March 10, 2025. The total value of terminated programs is US$75.9 billion, with US$48.2 billion already obligated and US$27.7 billion yet to be assigned.

UN institutions and other multilaterals saw steep cuts, with terminated awards totaling US$4.1 billion to 14 UN agencies, the IBRD, and Gavi.

On March 27, 2025, Japan signed and exchanged notes with Honduras for a grant of JPY640 million (US$4 million) under The Economic and Social Development Program, which aims to improve access to radiotherapy by providing cancer treatment equipment to public medical institutions in Honduras.

The program addresses critical healthcare challenges, including high cancer mortality rates and a lack of radiotherapy equipment. It builds on a trilateral cooperation agreement signed in September 2024 between Japan, Honduras, and the IAEA. The initiative also includes training for cancer treatment specialists to enhance healthcare capacity.

On March 27, 2025, the UK government outlined changes to its ODA spending in the Spring Statement, reducing the ODA/GNI budget from 0.5% in FY2024/2025 to 0.3% by April 2027, in order to facilitate an increase in defense spending while ensuring predictability and stability in aid budgets.

Key reforms include setting annual assistance budgets based on GNI forecasts and removing automatic adjustments for economic fluctuations. The UK government also plans to modernize development efforts by prioritizing partnerships, mobilizing private capital, and aligning assistance programs with UK strategic objectives.

Minister of State for Development Baroness Jennifer Chapman emphasized the importance of delivering value for taxpayers while ensuring the UK's humanitarian and development commitments continue.

For 2025 to 2026, the government confirmed plans to continue essential development work, honor existing contracts with partners, and uphold the commitment to the UK's humanitarian role.

On March 26, 2025, a spreadsheet detailing which USAID projects will continue and which will end indicated that the US administration plans to continue 898 USAID awards and end 5,341.

A spokesperson for the State Department, now overseeing USAID, confirmed the terminations. Some grants for HIV and tuberculosis medications, and food aid for countries in civil wars and natural disasters will continue. Spending on health programs like HIV vaccinations is congressionally allocated, and it is unclear if the administration has the unilateral legal power to end them.

USAID funding has mostly been eliminated, with only 869 of 6,000 employees remaining active. Remaining programs are, according to the administration, valued at up to US$78 billion, but only US$8.3 billion is unobligated funds intended for future disbursement. This suggests a massive reduction from the previous annual USAID spend of US$40 billion.

Programs terminated include funding for the FAO, which monitors diseases transmitted from animals to humans in 49 countries. Major programs to track and fight malaria have also ended.

On March 26, 2025, it was reported that the US plans to end financial support for Gavi, terminating a grant valued at US$2.6 billion through 2030, with US$1.8 billion yet to be disbursed.

Gavi is estimated to have saved the lives of 19 million children since its creation 25 years ago. The US contributes about 13% of its budget.

The loss of US funds will set back Gavi's ability to continue providing basic services, like immunizations for measles and polio. By Gavi’s estimate, the loss of US support may mean 75 million children do not receive routine vaccinations in the next five years, resulting in over 1.2 million child deaths.

The US became the largest donor to Gavi during the COVID-19 pandemic. While European countries have historically provided significant funding, many have announced plans to reduce development spending. Japan, another major Gavi donor, has also struggled with a depreciating currency.

On March 21, 2025, Canada announced over CAD155 million (US$83 million) in funding to support humanitarian, development, and security efforts in Sudan and the DRC, this includes CAD100 million (US$70 million) for Sudan and CAD55 million (US$41 million) for the DRC.

In Sudan, CAD50 million (US$36 million) will fund life-saving assistance, including food, health, and sanitation services. CAD7 million (US$5 million) is allocated to support survivors of sexual violence, while CAD13 million (US$9 million) will enhance civilian protection and reduce explosive threats.

In the DRC, CAD35 million (US$25 million) will provide humanitarian assistance, and CAD20 million (US$14 million) will strengthen institutions, support survivors of GBV, and help displaced families transition to sustainable livelihoods.

On March 21, 2025, Canada announced CAD30 million (US$22 million) in funding to address urgent humanitarian needs in Lebanon, including food, medical and health services, shelter, and clean water.

The funding will be delivered through partners such as the UN, the Red Cross, and NGOs. This pledge is part of Canada’s broader humanitarian response, bringing its total funding for Lebanon in 2025 to CAD41 million (US$29 million). The support aims to alleviate the severe impacts of ongoing conflict, including food insecurity, displacement, and attacks on healthcare infrastructure.

Canada called for all parties to respect the ceasefire agreement and ensure the safety of humanitarian workers, reaffirming its commitment to supporting Lebanon during this crisis.

On March 19, 2025, reports emerged that officials from the US Trump administration have developed a proposal to overhaul the US international assistance and development architecture following the recent dissolution of USAID.

The plan aimed to create a more streamlined approach, positioning US efforts to better counter China's influence globally. Key components include renaming USAID to the US Agency for International Humanitarian Assistance, significantly narrowing its focus to global health, food security, and disaster response, while embedding it within the State Department.

The proposal also suggested consolidating the MCC and the US Trade and Development Agency under the US International Development Finance Corporation, creating a unified entity dedicated to promoting private sector investment in infrastructure, energy, and technology. Additionally, it proposes relocating politically oriented programs, such as democracy promotion and anti-human trafficking initiatives, under the State Department.

Criticizing existing US development programming as “inefficient and fragmented,” the plan advocated for a more targeted strategy that fosters stability in regions vital to US interests. It emphasizes setting end dates for aid programs, measuring their success, and proposed using blockchain technology for enhanced accountability. This proposal follows significant changes to USAID, indicating a potential revitalization of critical programs aimed at combating infectious diseases and ensuring food security.