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One year on from aid cuts

By Practical Action - 02.03.2026 Influence & ImpactNews

This time last year the US Government slashed its overseas aid budget, freezing large parts of USAID funding. The UK has also scaled back. Other European countries are doing the same.

For Practical Action, these cuts had direct consequences. As a result of the USAID freeze, three of our projects were cancelled and one was suspended. These were programmes developed with partners over years. Work people were ready to begin, or were already relying on, had to be stopped.

The effects on the people we work with were immediate. Projects around the world were paused or ended with little warning. Health services, food programmes and crisis response work were disrupted. Communities already facing conflict, climate shocks and rising prices felt the shock first.

The past year has shown how exposed the global aid system can be when a small number of major donors change course. When funding decisions are made far away, the consequences are felt quickly and locally.

Despite this, we’ve continued to work alongside communities to test practical ideas, back what works and take proven solutions further. From climate-resilient farming to clean energy and safer ways of cooking food, people are building lasting change. That progress has only been possible because of supporters like you.