Published OnMarch 7, 2025
The Ripple Effects of USAID Cuts
Family CompassionFamily Compassion

The Ripple Effects of USAID Cuts

This episode examines how USAID programs have transformed lives. The discussion highlights devastating consequences from recent funding cuts, including impacts on orphaned children and U.S. farmers, showcasing the broader global and local risks at play.

Chapter 1

Real Lives Changed by USAID: Grace's Story

Phoebe Peterson

Some stories don’t just make headlines—they stay with us, reminding us of the real lives affected by policies and international aid efforts. And today, we’re talking about how the ripple effects of USAID funding cuts. What happens when resources meant to keep families together start to disappear? When programs designed to reunite children with their families are suddenly underfunded?

Phoebe Peterson

Grace’s story is one of them. Grace was just eighteen months old when her life took a devastating turn—her mother passed away, leaving Grace without a stable presence in her life. She ended up in an orphanage in Uganda. Heartwarming as it might be to imagine a group of nuns taking care of her, the reality is, like many orphaned children, she needed more—more love, more attention, more family.

Phoebe Peterson

Now, here’s where USAID comes into the picture. Kathy Sacco, who’s worked at the State Department and knows the challenges these children face firsthand, shares how USAID-trained NGO staff took the initiative to locate Grace’s family. And not just that—these staff members went further. They provided Grace’s father and extended family with the training, support, and resources they needed to welcome her back home. Can you imagine that moment of reunion? A little girl who had to cling to strangers for comfort finally returning to her father’s arms.

Phoebe Peterson

The work USAID has done in Uganda goes beyond just one little girl. Programs backed by USAID, like PEPFAR, have funded critical efforts to combat poverty, reduce violence against children, and dramatically improve health outcomes. Kathy highlighted stats like these: At the time of her visit, 55% of children under five in Uganda lived in poverty, and an overwhelming 75% had experienced violence. But thanks to partnerships between Ugandan organizations and USAID, those trends began to shift. Programs targeting education and healthcare have opened up opportunities that didn’t exist before, helping kids like Grace not only survive but thrive.

Phoebe Peterson

Still, the future of children like Grace is far from guaranteed. The recent funding freeze and the workforce cuts at USAID threaten to undo much of this good work. NGOs are losing trained staff, and funding for essential programs is simply disappearing. One can’t help but wonder—how many more Graces will be reunited with families if these programs falter? And what happens to those left behind?

Chapter 2

Collateral Damage: Kids on Hold

Phoebe Peterson

When we think about the ripple effects of policies on vulnerable communities, we can look at Kenya as a stark example. Through USAID’s OVC program, initiatives like AMPATH Uzima have been central to empowering orphaned and vulnerable children, especially those affected by HIV. They’ve gone beyond just stabilizing children’s lives—they’ve partnered with local organizations, supporting families with health, education, and livelihood programs. It’s the kind of impact that transforms communities from the ground up.

Phoebe Peterson

But that progress is looking more fragile than ever now. Just recently, AMPATH Uzima received termination notices for programs that supported over 98,000 orphaned and vulnerable children, largely funded by USAID’s 4TheChild and DREAMS initiatives. Can you imagine what it means to suddenly lose access to food, healthcare, and safe spaces? These children relied on programs that weren’t just helping them survive—they were giving them a shot at a future. All of that’s now at risk.

Phoebe Peterson

Programs like AMPATH Uzima weren’t just about numbers—they were about creating safety nets, connecting families to resources, and inspiring hope. The uncertainty they face now is heartbreaking. From losing skilled NGO workers to shutting down essential services, the impact is snowballing fast. Who stands in the gap for these children when their needs fall through the cracks?

Chapter 3

Troubled Harvest: Farmers Left Behind

Phoebe Peterson

Here’s the thing-- the effects of USAID cuts don’t stop there. We are not only seeing these effects overseas. Shifting gears a bit, let’s talk about an impact that is hitting close to home, right in the heart of America’s farming communities. Farmers in states like Minnesota and Kansas, who’ve been pivotal in supporting international food aid, are suddenly finding themselves in tough spots without those export markets. All of this is tied to USAID programs, which used to buy billions of dollars’ worth of crops like wheat and corn from our farmers. Without those contracts? Well, it’s creating ripples far beyond the fields.

Phoebe Peterson

Take Vance Ehmke, a Kansas farmer, for instance. He’s one of the many whose livelihood is tied up in these programs. He’s voiced his concerns loud and clear, saying, and I’m paraphrasing here, “Without USAID, we’ve lost a really valuable market.” For some perspective, USAID purchased about $2 billion in surplus crops every year. That’s a huge number—one that supported not just farmers, but also local economies. Now? Many farmers are caught in a cycle of financial uncertainty. Imagine growing crops with no one to sell to. It’s not just a financial blow; it’s a deep cut to what these communities stand for.

Phoebe Peterson

And it’s more than just the dollars and cents. Farming has always been about more than just growing food—it’s a way to support global communities in need. Many farmers feel a responsibility to help combat food insecurity, both here and abroad. But the dual hit—losing income and seeing their role in alleviating global hunger diminished—is something they’re struggling to come to terms with. It’s created a moral crossroads that isn’t easy to navigate.

Phoebe Peterson

What happens next? That’s the big question. These cuts don’t just shrink farmers’ wallets—they shrink opportunities for some of the most vulnerable people worldwide. And as food insecurity rises globally, the ethical and economic dilemmas only grow deeper. It’s clear that this is about much more than exports or aid budgets; it’s about connections, responsibilities, and the larger fabric of humanity. On that note, thanks for tuning in to today’s conversation. Take care, and we’ll chat again soon.

About the podcast

Family Compassion is a community of believers focused on strengthening American families and the institutional and social frameworks that support them. We believe that strong families contribute to a strong society. We are dedicated to supporting American families by ensuring access to the care and resources they need to thrive. The podcast covers various issues related to our mission that parents care about and would want to listen to on their drive to work.

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