Statement from the Secretary General, Charlotte Slente, following US termination of nearly all its funded aid programs

The Danish Refugee Council is appalled at the announcement from the US Government to terminate nearly all its aid contracts and we warn of catastrophic consequences for millions of people forcibly displaced and living in conflict affected and fragile states.  

The immediate cancellation of over 10,000 contracts worldwide is a further major blow in an already unprecedented crisis for the humanitarian sector. This started when the US Government announced Stop Work Orders for all its aid work on 24 January 2025, for the duration of a 90-day review. US aid recipients have been scrambling to adapt and respond to the developments over the last month. DRC estimated that because of the initial freeze, over two million people risked losing access to essential and life-saving services provided by DRC and funded by the US Government.  

Last night, DRC received over 20 termination notices for USAID and US State Department grants spanning Burkina Faso, Cameroon, Central African Republic, Colombia, Ethiopia, Iraq, Mexico, Nigeria, Niger, South Sudan, Sudan and Yemen. This equates to over 130 million US dollars (925,30 million DKK) in cancelled grants. We expect more termination notices over the next few days, including where we are the sub-grantee.

These terminations endanger the lives of millions of the world’s most vulnerable people. Sudan is currently facing the largest humanitarian crisis in the world with over half the population, nearly 25 million people, facing acute food insecurity and over 12 million people displaced. In Yemen, one of the poorest countries in the world, the damage from years of conflict and climate-driven displacement is unending; economic collapse and critical aid shortages have left over half its population in dire need.  In Colombia, ongoing armed conflict is driving people from their homes, as vulnerable populations seek shelter, water, food and protection; the legacy of deadly landmines makes every step dangerous.

While it is understood that incoming governments want to review their overseas development assistance, the decisions from the US Government over the last month are abrupt and unilateral, and the rationale for these are unfathomable. For decades, the US has been a trustworthy partner providing vital funding for life-saving aid as well as for longer term conflict prevention efforts to build the resilience of vulnerable populations.  

Up until last night the US was the world’s largest foreign aid donor. The US Government was also DRC’s second-largest donor, contributing 20% of our global 2025 budget. As with other recipients of US funding, DRC will need to make difficult decisions to adapt to this sudden loss of revenue. We are also urgently seeking confirmation from the US Government that it will honor payments for unpaid costs for previously incurred contracted activities. Humanitarian organizations have millions of dollars in unpaid invoices to US Government entities. DRC anticipated needing to terminate up to 2,000 of our staff in 21 countries due to the US aid freeze.  

I urge all other donors to maintain their commitment to supporting the world’s most vulnerable, to respond to growing humanitarian crises, as well as invest in efforts to address the root causes that drive displacement, conflict and geo-political instability. The recent announcements from other countries relating to aid budget reductions are deeply troubling and come at time when there are record number of forcibly displaced people and growing unmet humanitarian needs globally.   

Despite last night’s news, DRC will continue to respond to unfolding emergencies, protracted crises and to work alongside local communities in need.

For further information, please contact:

[email protected] / +45 2811 6727