Dozens face unemployment after USAID funded programs halted in Maldives

Feb 3, 2025, 11:08 AM
US Ambassador to Maldives Hugo Yon at a USAID event. -- Photo: USAID Maldives

US Ambassador to Maldives Hugo Yon at a USAID event. -- Photo: USAID Maldives

The US Agency for International Development (USAID) has suspended all its programs in Maldives resulting in unemployment for many people after the US government halted funding.

Adhadhu understands that this has disrupted the work of at least 11 agencies. Many of the people employed in these agencies have lost their jobs.

The USAID and its funded organizations conduct many programs in Maldives. These include programs related to democracy, environment and good governance.

The US government also pledged at least USD 12 million to Maldives last year through USAID. It is unclear whether the money was handed over. Details could not be accessed as the USAID's website and social media accounts have been shut down by the new US government.

Transparency Maldives is one of the organizations that runs programs with USAID assistance. Adhadhu understands that 80 percent of the organization’s funding comes from USAID.

The NGO has cancelled contracts and issued notices to some employees. Notices have also been sent to lay off employees of some other USAID-funded organizations.

Some of the institutions that have been receiving USAID assistance

  • Maldives Police Service
  • Maldives National Defense Force
  • Local Government Authority
  • Island councils
  • Maldives Local Councils Association
  • Transparency Maldives
  • Bar Council of Maldives
  • International Foundation for Electoral Systems
  • Association for Democracy in Maldives
  • International Republican Institute Maldives
  • National Democratic Institute Maldives

US President Donald Trump suspended USAID funding for 90 days after taking office in January. The US has cut off all aid to other countries. Government officials in particular have been skeptical of USAID's programs.

Elon Musk, who is heading Trump’s efforts to shrink the federal government, said in a discussion on X that they are working to shut down USAID.

“It’s beyond repair,” Musk said, adding that Trump agreed it should be shut down.

On Sunday, Reuters reported the Trump administration removed two top security officials at USAID during the weekend after they tried to stop representatives from billionaire Musk’s so-called “department of government efficiency”, or Doge, from gaining access to restricted parts of the building.

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