The Humanitarian Fallout of the U.S. Aid Suspension in Latin America

Pía Riggirozzi

Head of the Politics and International Relations Department, University of Southampton

On 24 January 2025, the Trump administration issued an executive order suspending U.S.-funded humanitarian programmes administered by the International Organisation for Migration (IOM) and USAID. This abrupt decision has had severe repercussions across Latin America, where U.S. funding constitutes a significant portion of humanitarian assistance. Beyond immediate disruptions in aid delivery, the decision exposes systemic vulnerabilities in global humanitarian governance and seeks to curtail migration by withdrawing financial, humanitarian, and legal support. These measures threaten the rights and dignity of displaced populations at a time when global displacement is at an all-time high. According to UNHCR, over 120 million people are forcibly displaced due to conflict, climate change, and economic instability. Cutting humanitarian funding in such a crisis is not merely a political manoeuvre; it exacerbates human suffering and deepens global inequalities in migration governance.

Immediate Consequences for Humanitarian Programmes

The suspension of U.S. funding has placed critical programmes in jeopardy, particularly in Brazil, where 60% of IOM’s operations rely on these resources. Operation Welcome (Operacao Acolhida), a flagship initiative assisting Venezuelan migrants, now faces severe setbacks. Venezuela has endured a prolonged, systemic, and multidimensional crisis that has led to the displacement of 7.7 million people since 2015, fleeing escalating threats and physical insecurity, including health-related risks, have found that leaving their home country is the only viable option to protect themselves and their families. More than 6.5 million remain in Latin America, with Brazil  hosting the third-largest population after Colombia and Peru.

Operation Welcome, which has been instrumental in providing migratory regularisation, healthcare, food, and shelter, is now at risk of being scaled down or discontinued. Similarly, the Opportunities Project, which has helped over 46,000 migrants access employment and social integration opportunities, now faces an uncertain future, leaving thousands without viable pathways to stability.

The impact is also being felt in essential services provided by Caritas, particularly through the WASH Orinoco project. Caritas Brazil has announced the immediate suspension of its emergency water, sanitation, and hygiene (WASH) services in Roraima, specifically in Boa Vista and Pacaraima. Since its launch in 2019, the project has provided thousands of migrants and vulnerable local populations with safe drinking water, sanitation facilities, and hygiene support. Its suspension means that over 1,000 daily users must now seek alternatives in an already overstretched public infrastructure. This raises serious health risks, particularly for women, children, and the elderly, who depend on these services for basic sanitation and disease prevention.

Beyond WASH, Caritas’ emergency food security initiative, the Nutrindo Vidas project, remains operational for now. Since 2022, this programme has provided two daily meals to the most vulnerable populations in Roraima. However, given its reliance on USAID funding, concerns persist over its long-term viability if funding disruptions continue.

The Trump administration’s decision to align aid with political objectives undermines the credibility of international humanitarian efforts and increases uncertainty for vulnerable populations. It also exposes the fragility of a humanitarian aid model that is overly reliant on a single donor and emergency response mechanisms. The U.S. has historically been a cornerstone of global humanitarian funding, but its withdrawal underscores the precariousness of this dependency. Aid organisations now face operational uncertainty, forced to scale down or seek alternative funding sources.

Increased Irregular Migration and Forced Immobility

Compounding the crisis, the U.S. has suspended asylum processing at its borders. Under Trump’s new executive order, undocumented migrants are being turned away without hearings, dismantling legal protections that previously allowed asylum seekers to present their cases. Additionally, the U.S. refugee resettlement programme has been halted, cutting off a vital pathway for vulnerable populations seeking protection. Policies such as "Remain in Mexico" are being reinstated, forcing thousands to await their fate in precarious conditions across the border.

The absence of a structured legal pathway for migration will likely push desperate individuals towards more dangerous alternatives, fuelling irregular migration. As migrants lose access to legal routes, many will be forced to rely on dangerous and informal migration corridors. New "puntos ciegos" (blind spots) are expected to emerge along migration routes, increasing the risks of exploitation and human trafficking. Simultaneously, transit countries will likely experience increased burdens as forced returns and mass deportations intensify. The U.S. has already expanded its expedited removal policies, affecting migrants nationwide and heightening the risk of indefinite limbo for those caught in the system. The social impact of this forced immobility includes rising xenophobia, violence, and political tensions as local communities struggle to absorb the effects of these abrupt policy shifts.

The Need for a New Approach to Shared Responsibility

The suspension of aid calls into question the global commitment to shared responsibility in migration management. The Global Compacts on Migration and Refugees emphasise collective action, yet the current crisis highlights the disproportionate burden placed on certain nations and organisations. Latin American countries, already facing economic and political instability, must now navigate a worsening humanitarian crisis with dwindling international support.

While this suspension presents a major setback, it also underscores the urgency of diversifying funding sources and strengthening regional cooperation. Governments in Latin America must work together to develop sustainable, independent humanitarian funding mechanisms. International organisations should advocate for more resilient and predictable funding models to avoid future disruptions. Civil society and advocacy groups play a crucial role in holding governments accountable and ensuring that the fundamental rights of displaced populations are protected.

The U.S. suspension of aid to IOM, USAID, and affiliated humanitarian organisations is a stark reminder of the fragility of global humanitarian systems. It disrupts essential services, threatens the dignity of displaced people, and undermines international commitments to shared responsibility. As the world faces record levels of displacement, it is imperative to reaffirm collective humanitarian commitments, invest in sustainable aid mechanisms, and ensure that no one is left behind. The protection of migrants and refugees must transcend political cycles and remain a fundamental principle of global governance.