History reminds us of JFK's (John Fitzgerald Kennedy, the 35th president of the United States) powerful words: "If a free society cannot help the many who are poor, it cannot save the few who are rich." This statement served as the bedrock for the U.S. Agency for International Development (USAID).

Kennedy’s futuristic stance was “to unite development into a single agency responsible for administering aid to foreign countries to promote social and economic development.” Thus, the birth of USAID on Nov. 3, 1961.

Since then, USAID has been a vital partner in the Philippines' development journey, supporting priority projects in health, environment, governance, and economic growth.

A well-placed source familiar with USAID's operations in the country shared that the projects it funds are also influenced by priorities set by The Capitol.

“Budget fluctuates depending on the budget in Washington,” the source explained. "It is not per project or program basis. The allocation for the country is based on the proposed activities submitted, and it's aligned based on the budget given to the agency as a whole."

In the Philippines, USAID's funding heavily emphasizes health, addressing malnutrition, childcare, pregnancy, and combating tuberculosis—the leading, though curable, infectious disease.

This partnership is now in question following the appointment of US Secretary of State Marco Rubio as USAID's acting administrator. CNN reported that Mr. Rubio, in a letter, informed Congress committees on foreign affairs and appropriations that the "Department of State and other pertinent entities will be consulting with Congress and the appropriate committees to reorganize and absorb certain bureaus, offices, and missions of USAID."

The letter also stated, "USAID may move, reorganize, and integrate certain missions, bureaus, and offices into the Department of State, and the remainder of the Agency may be abolished consistent with applicable law.”

My source expressed dismay at the prospect of shrinking, if not abolishing, USAID—an independent agency that provides crucial assistance to countries recovering from disasters, striving to escape poverty, and pursuing democratic reforms.

"I know how passionately the agency worked for development," my source lamented. "I am shocked how badly USAID is being treated because the organization is very professional."

Adding to the uncertainty, USAID announced that, effective today, Feb. 7, 2025, at 11:59 pm (EST), "all USAID direct hire personnel will be placed on administrative leave globally, with the exception of designated personnel responsible for mission-critical functions, core leadership and specially designated programs. Essential personnel expected to continue working will be informed by Agency leadership by Thursday, Feb. 6, at 3:00pm (EST)."

The announcement further stated that for USAID "personnel currently posted outside the United States, the Agency, in coordination with missions and the Department of State, is currently preparing a plan, in accordance with all applicable requirements and laws, under which the Agency would arrange and pay for return travel to the United States within 30 days and provide for the termination of PSC and ISC contracts that are not determined to be essential.”

The agency will consider exceptions and travel extensions "based on personal or family hardship, mobility or safety concerns, or other reasons. For example, the Agency will consider exceptions based on the timing of dependents’ school term, personal or familial medical needs, pregnancy, and other reasons. Further guidance on how to request an exception will be forthcoming.”

In short, this could significantly impact current programs and projects, including those in the pipeline. For over six decades, the Philippines has received roughly ₱290 billion in USAID grants and aid.

This is a classic example of when the US sneezes, the Philippines, as a USAID recipient, catches a severe cold.

Talkback to me at [email protected]