MONROVIA – The Liberian Senate has directed its committees on Ways, Means, Finance and Development Planning, Foreign Affairs, and Agriculture to investigate the consequences of the United States’ suspension of USAID support to Liberia. This decision comes in response to a joint communication on Tuesday, February 4, 2025, from Senators Amara Konneh, Abe Darius Dillon, Augustine Chea, and Gbazhongar Findley, urging a reassessment of Liberia’s budgetary framework over the next four years. The move follows the abrupt closure of the USAID headquarters in Washington, D.C., a development linked to U.S. President Donald Trump’s sweeping foreign aid freeze.
The Trump administration’s decision to halt foreign assistance for 90 days, as part of a broader “America First” policy review, has left aid-dependent nations, including Liberia, in an uncertain financial position. USAID had pledged $114.5 million through an amendment to its Development Objective Agreement with Liberia, a figure that represented approximately 14 percent of the country’s national budget. With the aid suspension in place, Liberia now faces an urgent need to recalibrate its fiscal priorities to mitigate the potential fallout.
The unexpected closure of USAID’s Washington office on Monday, February 3, 2025, has deepened the crisis. Employees were notified via email shortly after midnight that they should work remotely, with only essential personnel granted access to the premises. The abrupt move has triggered confusion, staff layoffs, and the suspension of critical development programs worldwide. Founded in 1961 by President John F. Kennedy, USAID has long been a cornerstone of global humanitarian efforts, supporting initiatives in poverty alleviation, disease control, and governance reform.
For Liberia, the suspension of USAID funding threatens to reverse years of progress. Since the end of the country’s brutal civil wars, the U.S. has funneled over $2.4 billion in aid through USAID and the State Department. These funds have sustained critical projects in health, education, infrastructure, and economic development. In late 2024, the U.S. had reaffirmed its commitment to Liberia with a $114.4 million allocation under a broader five-year, $640 million partnership. With these commitments now in limbo, Liberia’s path to economic stability faces serious obstacles.
The impact extends beyond USAID. Liberia had been anticipating a second Millennium Challenge Corporation (MCC) compact worth up to $500 million, intended for large-scale infrastructure projects, including road networks and electricity expansion. However, with President Trump’s executive order halting foreign aid pending a strategic reassessment, Liberia’s eligibility for this critical funding is now uncertain. The potential loss of these resources places the country’s long-term development at risk.
The immediate effects of the aid suspension are already being felt, with major projects grinding to a halt. The MCC-backed energy and transport initiatives, which were expected to drive economic growth and job creation, now face indefinite delays. Analysts warn that prolonged uncertainty could lead to economic stagnation, further straining a fragile economy and worsening unemployment. For millions of Liberians, the prospect of stalled infrastructure projects threatens access to reliable electricity and improved road networks essential for commerce and daily life.
The health sector is also on the frontlines of the crisis. Liberia has long relied on American assistance to combat infectious diseases such as malaria and tuberculosis while strengthening maternal and child healthcare services. A sustained funding freeze could disrupt medical supply chains, leading to shortages of life-saving treatments and derailing crucial training programs for healthcare workers. Without immediate interventions, the country’s healthcare system may struggle to provide adequate services to those in need.
The suspension has sent shockwaves through the education sector as well. U.S.-funded initiatives have played a key role in improving school infrastructure, training teachers, and supplying educational materials. With USAID support now in jeopardy, thousands of students, particularly those in remote and underserved communities, face an uncertain academic future. A prolonged disruption could widen literacy gaps and derail efforts to strengthen Liberia’s human capital development.
Liberian government officials have voiced growing concerns about the potential ramifications of Washington’s policy shift. A senior administration source, speaking on condition of anonymity, acknowledged the urgency of the situation, stating, “This is a significant setback. We have major commitments tied to U.S. assistance. If this freeze continues, we will need to explore alternative funding sources to keep our development agenda on track.” The suspension places immense pressure on President Joseph Nyuma Boakai, who now faces a formidable challenge in navigating Liberia through an escalating financial crisis.
Beyond the immediate budgetary shortfalls, the U.S. government has signaled that future aid may hinge on governance reforms. A senior USAID official in Liberia recently emphasized that financial transparency and accountability would be crucial in determining the future of U.S.-Liberia partnerships. The aid suspension not only exposes Liberia’s financial vulnerabilities but also raises critical questions about the country’s long-term sustainability. For ordinary citizens, the crisis is not just a political issue, it is a matter of survival.
