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U.S. Shuts Independent USAID as Lancet Warns of 14 Million Preventable Deaths

About 1,000 programs are now managed by the State Department while NGOs and key donors rethink commitments in the face of a growing humanitarian funding gap.

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Overview

  • Secretary of State Marco Rubio officially dissolved USAID on July 1, moving roughly 1,000 remaining programs under State Department oversight.
  • The Lancet study published July 1 projects over 14 million additional deaths by 2030—including 4.5 million children under five—due to abrupt U.S. aid cuts.
  • Between 2001 and 2021, USAID-funded initiatives are credited with preventing around 91 million deaths worldwide, notably cutting child mortality by one-third in supported regions.
  • Following the U.S. reductions, major donors such as the UK, France and Germany have also trimmed development budgets, deepening a $15 billion shortfall in humanitarian funding.
  • Bipartisan critics from former Presidents Obama and Bush have decried the move as a ‘colossal error,’ and the Pentagon has questioned the Lancet study’s assumptions, sparking legal challenges.