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The Trump administration’s abrupt decision to shut down the U.S. Agency for International Development (USAID) has left many of its global employees, including those stationed in Cyprus, in limbo. As part of a sweeping policy shift, USAID workers in Cyprus have been placed on administrative leave and ordered to relocate immediately, creating uncertainty about their future.
The move is part of a broader restructuring led by the Trump administration, which has sparked legal action from affected employees. The agency’s Washington headquarters has already been shuttered, with interim USAID head, U.S. Secretary of State Marco Rubio, overseeing efforts to absorb the agency into the State Department. Employees stationed abroad have been given just 30 days to return to the United States.
The sudden policy change has caused widespread concern, with reports from the U.S. media highlighting the financial strain many employees will face in relocating. Sources within USAID estimate that the cost of repatriating approximately 2,000 workers and their families worldwide could exceed $20 million.
Impact on Cyprus and Beyond
In Cyprus, USAID has played a role in supporting various initiatives over the years, though the island is not among the most aid-dependent nations. However, the Center for Global Development (CGD) warns that the agency’s closure could impact stability and development in the region.
More broadly, the withdrawal of USAID funding is expected to hit vulnerable countries the hardest. Nations like Afghanistan, Sudan, and Uganda could see more than 20% of their foreign aid disappear, affecting critical programs in emergency response, healthcare, and governance.
International Donors Step Up
As the U.S. scales back its foreign aid commitments, other global donors are stepping in to fill the void. Germany has already emerged as the largest donor to six of the eight most vulnerable low-income countries, while Sweden has taken on an expanded role in supporting fragile states such as Liberia and Somalia.
Other countries, including Canada, Japan, and Spain, are expected to increase their contributions, while China and the United Arab Emirates could also expand their involvement in development efforts across Africa and the Middle East.
With USAID’s future uncertain, international organizations and donor nations are now scrambling to mitigate the fallout, ensuring that essential aid programs remain funded in some of the world’s most at-risk regions.
