Civil society organisations (CSOs) globally face investigation, restrictions and harassment in dozens of countries after US President Donald Trump claimed that the US Agency for International Development (USAID) was run by “radical left lunatics” and Elon Musk claimed that several grantees supported terror organisations.

This is according to a recent survey carried out by the EU System for an Enabling Environment (EU SEE), which documents the experiences of 54 organisations, and draws on information from two global surveys involving almost 1000 CSO respondents.

There have been calls for investigations of CSOs that receive US funding in nine countries including Brazil and Hungary, and increased harassment of CSOs in 13 including Peru, Paraguay and Russia. Six countries are considering restrictions on foreign funding, including Guatemala and India.

The Nigerian National Assembly has launched investigations into the activities of USAID and nonprofits in the country “following the recent statement by a US Senator that USAID funds [terrorist group] Boko-Haram in Nigeria”, according to a Nigerian CSO.

“An investigative committee set up on 20 February 2025, by the House of Representatives will focus on the activities of CSOs in the Northwestern part of the country,” the respondent said. “If not objectively carried out, the investigation may become part of an ongoing process of attack on civil society and push for stiffer regulations, a common trend which started in 2015 and continues until today.” 

The President of El Salvador, Nayib Bukele, alleged publicly that “USAID funds had been misused by journalists, independent media, and other civil society actors as part of a global money laundering operation”, according to a CSO from that country, which said his statements  “are part of a broader pattern of stigmatisation and discrediting of civil society”.

“The most reported impact by far is increased criticism and stigmatisation of international funding,” according to EU SEE. 

Disrupting critical programmes

The abrupt halting of US foreign aid is disrupting “critical human rights, democracy, gender equality and health programmes, leaving vulnerable communities without essential support”, the survey found.

Over two-thirds (67%) of surveyed organizations have been directly impacted by the termination of USAID, with 40% of them losing 25-50% of their budgets, 

“Without swift action, many organizations that hold governments accountable, defend human rights, and support vulnerable communities may disappear altogether,” according to EU SEE.

A USAID grantee from Myanmar reported that the cuts have “severely impacted” work such as programmes on “conflict-related sexual violence, transnational repression, and Association of Southeast Asian Nations (ASEAN) advocacy”. 

“The funding cuts are causing huge shortages and closure of projects providing medical and subsistence support to the most vulnerable communities inside the country and along the border,” it added.

“The suspension of USAID funding has affected more than 60 civil society actors in Peru, putting at risk projects related to democracy, human rights, governance, the environment, and the fight against drugs,” according to a Peruvian organisation.

“The loss of international funding compromises the sustainability of many NGOs, limiting their ability to offer training, empowerment and support to vulnerable communities.” 

Indonesia received $153.5 million from USAID in 2024 and the funding freeze has left CSOs “in a precarious position”, according to an Indonesian CSO. 

“Some CSOs have had to implement unpaid leave for their staff, while others are managing to pay only half of their employees’ salaries until the review process concludes,” it added. “The ramifications of this aid freeze threaten the livelihoods of those working within these organisations and jeopardize critical programmes in health, education, and environmental conservation.” 

The Global Aid Freeze Tracker, reports that the health and protection sectors have been worst hit, with particularly significant disruptions in HIV, malaria, and protection services. The second most affected category is governance, particularly anti-corruption activities, followed by projects offering economic and livelihood support for vulnerable populations, especially women and children.

Image Credits: Global Aid Freeze Tracker.