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US$114M Aid to Liberia in Limbo As Trump Halts USAID

In the wake of U.S. President Donald Trump’s 90-day suspension of foreign assistance programs, Liberia finds itself grappling with significant uncertainties regarding its development trajectory. This decision, part of a comprehensive review to ensure U.S. aid aligns with American foreign policy objectives, directly impacts Liberia, a country that has relied heavily on U.S. support for its recovery and development.

Historically, the United States has been Liberia’s largest donor, contributing over $2.4 billion through the State Department and USAID since the end of Liberia’s civil wars in 2003. This assistance has been a cornerstone of the country’s progress in health, education, infrastructure, and governance reforms. In November 2024, the U.S. reaffirmed this commitment by pledging $114.4 million in annual funding as part of a five-year, $640 million Development Objective Agreement. These funds were designed to bolster Liberia’s health systems, expand educational opportunities, strengthen governance, and promote economic growth.

Adding to this commitment, Liberia had qualified for a second Millennium Challenge Corporation (MCC) compact. Worth up to $500 million, the compact was intended to finance transformative projects, including road connectivity and access to electricity, key pillars for fostering long-term economic stability. However, the Trump administration’s suspension of foreign assistance has jeopardized these plans, leaving Liberia’s government and its citizens facing an uncertain future.

The Weight of Uncertainty        

The aid suspension has effectively paused new funding commitments and disbursements, jeopardizing the implementation of key development projects. For example, the MCC compact, which was expected to provide sustainable energy solutions and improve vital transportation infrastructure, is now delayed indefinitely. This interruption has a ripple effect on Liberia’s economy, potentially stalling job creation, hampering local business expansion, and limiting access to basic services for millions.

Similarly, USAID programs targeting healthcare and education are at risk. In the health sector, USAID funding has been instrumental in combating diseases such as malaria and tuberculosis, while improving maternal and child health outcomes. With the suspension, initiatives like the delivery of essential health commodities and training for medical professionals could face funding shortfalls. In education, USAID’s investments in teacher training and the provision of learning materials have played a critical role in rebuilding Liberia’s struggling school system. Delays in funding may disrupt access to quality education, particularly for marginalized communities.

A senior official from Liberia’s Ministry of Finance said, “We are worried about the latest decision coming from Washington. We have high hopes that programs already earmarked through bilateral agreements will continue.” These sentiments emphasise the country’s reliance on external assistance to address structural challenges and sustain development gains.

President Boakai’s Dilemma

President Joseph Nyuma Boakai’s administration faces a daunting challenge. Ironically, during his tenure as vice president, Boakai supported Trump’s calls for reduced foreign aid, advocating for Liberia to prioritize self-reliance. As President, Boakai must confront the harsh realities of such policies, which threaten to derail critical development programs under his watch.

The administration’s immediate response has been to engage with U.S. officials to secure assurances that previously approved projects will remain intact. Finance Minister Augustine Kpehe Ngafuan has taken the lead in these efforts, working closely with international partners to mitigate the potential fallout.

At the same time, the United States has emphasized the importance of governance reforms as a prerequisite for continued support. USAID Mission Director in Liberia, Jim Wright, recently stated, “I strongly urge the Liberian government to implement anti-corruption policies and prosecute those responsible for mismanagement of public resources.” This underscores the pressing need for Liberia to address longstanding issues of corruption and inefficiency, which have eroded public trust and undermined donor confidence.

The Human Impact

Beyond the policy implications, the suspension of U.S. aid has a tangible impact on ordinary Liberians. For rural communities dependent on USAID-funded health clinics, any disruption in services could mean reduced access to life-saving treatments. For students in underfunded schools, delays in receiving textbooks and learning materials could widen the education gap. For small business owners relying on improved infrastructure, stalled projects could curtail opportunities for growth.

One such example is the community of Ganta, where USAID-funded projects have improved road connectivity, enabling farmers to transport their goods to market more efficiently. “If these projects stop, it will take us back to square one,” said Alfred Gaye, a farmer from Nimba County. “We cannot afford to lose the progress we have made.”

A Call for Resilience

Liberia’s current predicament highlights the urgent need for diversified funding sources and greater domestic resource mobilization. While U.S. aid has been a lifeline, the Boakai administration recognizes that overreliance on external assistance is unsustainable. Efforts to expand tax revenue, attract private investment, and strengthen ties with other international donors have taken on renewed importance.

In the coming months, Liberia’s ability to navigate these challenges will be put to the test. The Boakai administration’s commitment to transparency, accountability, and sound economic management will play a pivotal role in shaping the country’s future. Additionally, the resilience of Liberia’s people, evident in their ability to rebuild after years of conflict, will be a key asset as the nation charts a path forward.

As Liberia awaits the outcome of the U.S. aid review, one thing remains clear: the country’s development prospects hang in the balance. Whether through sustained international support or strengthened domestic efforts, Liberia must seize this moment to redefine its trajectory and build a more self-reliant future.

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