Consequences of the U.S. Funding Freeze on Key Populations in Asia-Pacific Region

By April 10, 2025 SKPA

The U.S. contributed approximately 42% of global humanitarian aid in 2024 and just hours into his presidency on January 20, 2025, Donald Trump’s 90-day freeze on U.S. foreign development assistance unleashed a devastating wave of consequences both globally and throughout the Asia-Pacific region. Programs vital to the survival and well-being of countless individuals, particularly those reliant on USAID and PEPFAR funding, were abruptly stopped. Overnight, layoffs crippled essential services, leaving country partners reeling. The administration’s mandate—”Does it make America safer, stronger, or more prosperous?”—failed to account for the human cost of these sweeping cuts.

In response, regional organizations swiftly mobilized, APCOM for instance issued urgent advocacy letters to national governments,calling for immediate action to prevent irreversible damage. Simultaneously, they released a statement highlighting how these actions threaten LGBTQI+ rights in Asia by restricting freedom of expression, limiting access to healthcare (especially for trans individuals), hindering educational and economic opportunities, and increasing vulnerability to violence and discrimination. To further address the crisis, APCOM convened online meetings with affected communities in Cambodia, India, Papua New Guinea, Philippines, Thailand, and Vietnam, and called for emergency alternative funding.

Youth LEAD conducted a rapid-response survey among country partners receiving USAID, PEPFAR, and CDC funding to document the impact. The survey shows that a range of initiatives including Youth friendly services, clinics were stopped. Staff layoffs and severe funding gaps. This resulted in unsustainable outreach efforts. This led to increased stigma and discrimination, harmful stereotypes, misconceptions, substance use disorders, gaps in social inclusion, and a decline in mental health among young key populations.

A recent survey by International Community of Women Living with HIV in Asia Pacific (ICWAP), spanning 17 countries, laid bare the stark reality: women and girls living with HIV were plunged into a crisis. The funding freeze triggered widespread job losses, crippling financial hardship, and severe disruptions to HIV-related services. Access to essential medications and sexual and reproductive health services became a desperate struggle. Respondents reported a surge in stigma, discrimination, and rights violations, including the denial of critical medical care and forced disclosure of HIV status. Mental health stressors intensified, and vital community-led programs, the last bastions of support, faced closure. While some governments attempted to step in, their efforts proved inadequate, leaving countless women and girls in a state of extreme vulnerability.

“The funding freeze has had a devastating impact on IDUCare, leading to an abrupt disruption in staffing, outreach, and service provision and threatens the health and well-being of PWIDs who depend on IDUCare for life-saving interventions in Cebu. Stopping these services places vulnerable populations at greater risk and undermines ongoing efforts to prevent HIV transmission and support PWIDs in accessing essential health services,”

commented Panki Nadela from IDUCARE in the Philippines, a country partner of Network of Asian People who Use Drugs (NAPUD).

“The recent USAID funding cut has heightened our fears about the impact on our grassroots movement and community development efforts in India. We worry that this shift could significantly affect our capacity to continue vital work on the ground, especially in amplifying marginalized voices and sustaining our narrative-building efforts. Despite these challenges, we remain committed to advancing equality, equity, and justice for our community,”

commented Orchid from Samabhabona in India, a country partner of Asia Pacific Transgender Network (APTN).

Similarly a needs assessment by Asia Pacific Network of People Living with HIV/AIDS (APN+) highlighted the uneven impact of the funding freeze across the region.  Notably, in several countries, prevention programs and other essential services have been suspended. For example, in Vietnam, while ARV drugs continue to be supplied through domestic funding, HIV prevention programs, including PrEP services, have been stopped, also disrupting community outreach efforts. APN+ also observed a wider impact on service delivery. In Myanmar, the suspension of U.S.-funded activities has led to a complete cessation of some HIV prevention and treatment services.

In addition, Asia Pacific Network of Sex Workers (APNSW) conducted an online survey from February 6th to March 4th, 2025, using Google Forms, targeting member organizations across the Asia-Pacific region to assess the impact of U.S. funding restrictions on HIV, TB, malaria, and SRHR programs for sex workers. Participating organizations from countries including Nepal, Indonesia, Papua New Guinea, and India, representing diverse community-led initiatives, revealed severe consequences. Key findings showed 70% of organizations reported financial strain, with 30% heavily reliant on U.S. funding and at immediate risk of closure. Service disruptions included stock-outs of ART and STI treatments, and staff layoffs. Specifically, concerns were raised about the immediate impact on ART support, PMTCT services for female sex workers living with HIV, and the loss of capacity-building programs. In Nepal, the situation is particularly dire, with the CEO and network shutting down HIV medication supplies, increasing stigma, and disrupting HIV prevention testing and outreach, raising the risk of violence.

In nutshell, the message is clear: urgent action is imperative. We cannot allow the progress made in combating HIV and supporting key populations to be undone. There must be an immediate commitment to sustained funding for essential HIV programs, to strengthen community-based services, to provide livelihood and mental health support, and to safeguard human rights.” 

Failure to act will have devastating consequences—erasing hard-won progress, deepening hardship, and costing lives.

Published on: 10-Apr-2025


About the Contributor

Seven Alliance

Seven Alliance is a consortium of regional networks of key populations working in Asia and the Pacific region. The seven regional networks are: APCOM; Asia Pacific Network of People Living with HIV [APN+]; Asia Pacific Network of Sex Workers [APNSW]; Asia Pacific Transgender Network [APTN]; International Community of Women living with HIV in the Asia Pacific [ICW-AP]; Network of Asian People who Use Drugs [NAPUD]; and Youth LEAD. It aims to promote effective community leadership and advocacy as a critical component of community-led responses. By sharing knowledge, resources, and information, the goal is to establish strong and sustainable community led responses with communities in all their diversities in the Asia Pacific region.


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