PREPARING FOR USAID PROJECT WITHDRAWALS

PREPARING FOR USAID PROJECT WITHDRAWALS

The recent foreign policy shifts under returning U.S. President Donald Trump have significantly impacted global development aid, including USAID’s programs in the Philippines. With the United States reassessing its foreign assistance policies, it is already certain that USAID funding for the Philippines will be cut. This could lead to the slowdown—or even the complete shutdown—of various projects that have been instrumental in supporting economic development, governance, health, education, and infrastructure in the country.

A Call for Proactive Government Action

The Philippine government cannot afford to wait until the last minute to respond. The potential withdrawal of USAID projects must be addressed now, not when funding officially stops. A well-planned transition strategy is necessary to prevent gaps in critical services and ensure that the country’s development momentum is not disrupted.

Steps the Government Must Take Immediately

1.   Assigning Government Agencies to Take Over Projects

o   The Cabinet must meet as soon as possible to identify which agencies or departments should take over the functions of USAID-funded projects.

o   The Department of Foreign Affairs (DFA), National Economic and Development Authority (NEDA), Department of Trade and Industry (DTI), Department of the Interior and Local Government (DILG), and Department of Health (DOH) should be involved in these discussions.

o   It might be necessary to assign an overall coordinator within the Office of the President to oversee the transition.

2.   Creating a Technical Working Group (TWG)

o   The TWG, composed of DFA, NEDA, DTI, DILG, DOH, and other relevant agencies, should formulate a transition plan to absorb essential USAID-supported programs.

3.   Prioritizing the Most Important Projects

o   If the government cannot fully replace USAID funding, it must prioritize where to allocate resources.

o   Health and education should be at the top of the list, as they have long-term impacts on national development.

o   The Medium-Term Philippine Development Plan (MTPDP) can serve as the primary basis for setting these priorities.

o   The Sustainable Development Goals (SDGs) should be a secondary guide for decision-making.

4.   Involving the Regional Development Councils (RDCs)

o   The RDCs must be engaged to ensure that local needs are addressed efficiently and that the transition strategy aligns with regional development plans.

5.   Avoiding Duplication of Foreign Aid Efforts

o   The Philippines also receives assistance from other international donors, such as JICA (Japan), AusAid (Australia), and CIDA (Canada).

o   Efforts must be made to eliminate redundancies and ensure that aid is distributed where it is needed most.

How Much Will the Philippines Lose?

USAID has invested nearly ₱290 billion in the Philippines over the past six decades. However, the exact amount yet to be disbursed remains unclear. If USAID funding is cut, the Philippines stands to lose billions in development support, affecting key sectors such as:

  • Economic Growth and Trade
  • Healthcare and Nutrition
  • Education and Youth Development
  • Disaster Resilience and Climate Adaptation
  • Infrastructure and Governance

Key USAID Projects That Could Be Affected

Here are some of the USAID projects currently operating in the Philippines, along with their budgets:

1.   Investment Enabling Environment (INVEST) Project

o   Budget: ₱132.4 million ($3.23 million)

o   Goal: Improve the business climate and encourage private investment.

2.   Trade-Related Assistance for Development (TRADE) Project

o   Budget: $12.84 million

o   Goal: Enhance the Philippines’ global trade competitiveness.

3.   Tuberculosis (TB) Project

o   Budget: $22 million (FY 2023)

o   Goal: Strengthen TB detection, treatment, and community-based healthcare.

4.   Safe Water Project

o   Budget: Not specified

o   Goal: Improve access to clean water for Filipino communities.

5.   Local Initiatives for Affordable Wastewater Treatment (LINAW-1)

o   Budget: Not specified

o   Goal: Develop cost-effective wastewater treatment solutions.

6.   Expanding Access to Community-Based Drug Rehabilitation (RenewHealth)

o   Budget: Part of broader health sector investments.

o   Goal: Support community-based recovery programs for drug rehabilitation.

7.   Initiative for Advancing Community Transformation (I-ACT)

o   Budget: $7.98 million

o   Goal: Improve governance and civic engagement in multiple regions.

8.   Opportunity 2.0

o   Budget: Not explicitly stated

o   Goal: Provide skills training and work opportunities for 180,000 out-of-school youth.

Prioritizing Child Nutrition and Malnutrition Prevention

One of the most critical areas that must not suffer from funding cuts is child nutrition. Malnutrition, particularly stunting and wasting, has long-term effects on children’s cognitive and physical development.

The government must ensure continued investment in nutrition programs by:

  • Expanding school-based feeding programs
  • Providing direct support to mothers and children through health centers
  • Strengthening local dairy farming initiatives to increase milk production

Final Thoughts: A Wake-Up Call for Self-Sufficiency

The potential reduction or withdrawal of USAID funding is a wake-up call for the Philippines to become less dependent on foreign aid. The government must take immediate, proactive steps to manage the transition and ensure that no critical programs are left without support.

The question now is not whether USAID funding will be cut—but how prepared the Philippine government is to respond. Will we act now, or will we wait until it's too late?

Ramon Ike V. Seneres, www.facebook.com/ike.seneres
iseneres@yahoo.com, 09088877282, senseneres.blogspot.com

02-23-2025

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