After the dissolution of USAID, approximately 90% of Iraqi organizations are threatened with closure.

After the dissolution of USAID, approximately 90% of Iraqi organizations are threatened with closure.

2025-03-29 08:08

Shafaq News/ US financial support for civil society organizations in Iraq is the largest funding they receive, covering nearly 60 percent of the total incoming support compared to other donors. Halting it would be a devastating blow to these organizations, which are preparing to lay off their staff and prepare for closure. A number of organizations told Shafaq News Agency that the closure is expected to affect 90 percent of the organizations in the next two years.

The US State Department formally notified Congress on Friday of the closure of the US Agency for International Development ( USAID ), while the remaining operations and programs run by the diplomatic agency will continue.

This notification complements the order issued by US President Donald Trump on his first day in the White House (January 20, 2025), which included a freeze on all US foreign aid for 90 days and a review of whether aid programs were consistent with his administration’s policy.

It’s worth noting that USAID distributed approximately $43.8 billion in aid in 2023. In total, the U.S. government disbursed $71.9 billion in foreign aid, representing approximately 1.2% of the total budget.

Iraq is one of the most prominent countries hosting USAID-supported projects, most of which have focused on rehabilitating programs for the return of displaced persons, providing in-kind assistance to alleviate poverty, addressing water, education, and infrastructure challenges, as well as supporting small businesses and entrepreneurship programs in partnership with local banks.

US Senator Joni Ernst recently released a list of projects and programs that she said USAID has helped fund over the years, describing them as “wasteful and dangerous spending.” Among the programs is a $20 million payment to a local organization in Iraq to create a “Sesame Street” program.

The “Ahlan Simsim” programs are workshops offered to youth in several Iraqi governorates to create content and enhance their artistic skills. These workshops have already been held in cooperation with several youth and sports directorates and government institutions in Iraq.

Late last year, the United States Agency for International Development (USAID) announced an unprecedented four-year, $20 million investment to improve water and sanitation services in Iraq, in collaboration with UNICEF and under the direction of the Iraqi government.

Specific projects were planned for implementation in five governorates, including Maysan, Diwaniyah, Nineveh, Baghdad, and Erbil, with the aim of strengthening water and sanitation infrastructure and improving the quality of services provided to approximately 2.5 million people, with a focus on the most affected and needy groups.

The largest funder of organizations

In addition to these projects, Zainab Ali Shabar, a researcher at the Information Center for Research and Development, says, “American funding is considered the largest support for civil society organizations’ projects in Iraq. Cutting it off has dealt a blow that has ended a number of important and much-needed projects, including relief, preventing hate speech, and building logistical services in liberated areas, among other things.”

“The American funding included awareness-raising for worker-based projects, workers’ rights, and social security,” Shabar told Shafaq News Agency. “Cutting it off has caused major problems for organizations. Many have begun reducing their staff, creating new unemployment, while others are preparing to close. It is expected that 90 percent of civil society organizations will close within the next two years.”

She points out that “the largest funder of organizations is American funding. European funding is present and ongoing, but it is insufficient. Indeed, there are European organizations that receive grants from the US State Department.”

“US support covers approximately 60 percent of the total aid received by Iraq compared to other donors. Its cessation will halt many important development projects and programs that Iraq needs to advance to a better future,” said Ansam Salman, head of the AISEN Organization for Human Rights and Sustainable Development.

Displaced and displaced persons return programs

Speaking to Shafaq News Agency, Salman confirmed that “with the cessation of US financial funding, UN development programs will be significantly affected, especially joint programs with the Iraqi Ministry of Migration and Displacement in the Al-Hawl and Al-Amal camps, and many programs concerned with the return of Iraqi families from northern Syria, which depend primarily on funding provided by US-supported UN programs.”

In this context, Ali Al-Jahakir, spokesman for the Iraqi Ministry of Migration and Displacement, said, “Cutting off US funding will not affect the Ministry of Migration, as it is a government ministry. However, it will impact the work of organizations, including the International Organization for Migration, which implements programs in the Al-Jadaa camp with funding from the US Agency.”

Speaking to Shafaq News Agency, Al-Jahakir added, “Most of the projects that have been halted are rehabilitation projects and programs funded by the US government. However, there are some organizations operating on grants from the European Union and they are continuing to operate. As for the projects that have been halted, they are not essential and can be compensated for by seeking other funding.”

Find an alternative and resume support

The option of seeking alternative funding is also advocated by the head of the AISEN organization, Ansam Salman, who said, “The Iraqi government must seek alternative support because these programs are important, and it is essential to support the Ministry of Migration in this regard. At the same time, the Iraqi government must open a dialogue with the American side to clarify the importance of this support, with the hope that it can be resumed.”

It’s worth noting that on March 13, the National Security Advisory and Iraqi ministries called on the United States to reconsider its decision to suspend support for international organizations operating in Iraq.

This came during an emergency meeting held by the Chancellery with all ministries involved in the areas of work identified in the UN Secretary-General’s letter to Prime Minister Mohammed Shia al-Sudani regarding the Al-Amal Center, the Al-Hawl camp, and the file of Iraqi families returning from northeastern Syria. The meeting also discussed the impact of the US funding adjustment for UN programs in Iraq.

Support for organizations from the Iraqi state

However, Alaa Al-Moussawi, Vice President of the Iraqi Youth Center for Studies and Training, believes that “Iraq has many resources, and the state is capable of providing support to civil society organizations. When this support comes from the state, the work is also for the state, and thus loyalty is to Iraq.”

Speaking to Shafaq News Agency, Al-Moussawi pointed out that “every foreign or domestic money holder other than the state has specific goals, whether in promoting it or for specific matters. Every party has a goal or purpose, and even if foreign agendas appear to be supporting organizations that serve the Iraqi citizen, they are no more concerned about Iraq and its people than the Iraqi state.”

She added, “Therefore, the state is supposed to be responsible for the organizations and their support, as the organizations ultimately work for Iraq and contribute to alleviating the burden on the state.”

She explained that, “Because of their proximity to citizens, civil society organizations are able to access cases that require state attention and care. The state’s support for these organizations, which have transferred cases occurring within the country to the state, is preferable to transferring them to external entities that have specific goals and objectives for their support.”

shafaq.com