The Trump administration’s recent freeze on foreign aid and changes to USAID, the agency managing these programs, could lead to thousands of job losses across the U.S. and abroad. The fallout is already hitting families hard, with workers in the aid sector bracing for layoffs as the State Department takes over key functions of USAID.

Just two weeks ago, Secretary of State Marco Rubio announced a halt to nearly all foreign assistance, stopping payments to aid organizations and contractors. This has created a ripple effect, leaving many unpaid and forcing businesses to furlough employees. One trade association in Washington, D.C., reported $350 million in unpaid bills, leading to 2,000 staff furloughs in the region alone.

Major aid contractors like DAI and Chemonics have already cut hundreds of jobs. Chemonics, which employs thousands globally, furloughed over 600 U.S. staff and reduced hours for 300 more. “These are American companies that rely on USAID programs to operate,” said one expert. “The freeze doesn’t just hurt them—it weakens ties with foreign countries and disrupts supply chains.”

USAID, created in 1961, plays a vital role in fighting poverty, disease, and natural disasters worldwide. It also supports democracy-building initiatives and strengthens global partnerships. Critics argue that dismantling it could harm U.S. national security by leaving a vacuum for countries like China to expand their influence.

The situation has sparked outrage among lawmakers and USAID employees. “Pausing foreign aid makes America more vulnerable,” said one worker in Africa. “It targets the root causes of extremism and supports U.S. interests abroad.”

As the debate over USAID’s future continues, the human cost is already clear. Thousands of workers are losing their livelihoods, and the projects they support—from fighting diseases to combating corruption—are at risk. “Our word is trash,” said one contractor, reflecting the frustration of many in the field.

The disruption at USAID serves as a stark reminder of how foreign aid impacts jobs and security at home. Without swift action, the consequences could be felt for years to come.