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US freeze on funds – a message from CALP’s Director

CALP’s Director Cate Turton shares a message of solidarity to all partners, members and humanitarians.

28 January 2025

I wanted to reach out to you in solidarity at this most difficult time. 

As we all know the Trump administration has mandated a 90-day freeze on all U.S. foreign aid amid a review. Partner organizations have been told to “immediately stop” work performed under their USAID funding agreement.  

According to the UN’s Financial Tracking Service, in 2024, 42.3% of humanitarian aid came from the U.S.A. The consequences of this decision will be unimaginable for millions of people living in crisis around the world.

ICVA reported thatUSAID has been a cornerstone of lifesaving initiatives in famine-stricken regions such as Ethiopia, Somalia, and Sudan, but the funding freeze leaves millions without access to essential services like healthcare, clean water, and shelter.” 

At CALP, we, like everyone, are still reeling from this news whilst also trying to adapt our own plans. We are also urgently seeking clarity on whether cash will be subject to the US aid freeze – or if it will be covered under the waiver for emergency food assistance as recipients often spend their transfers on food. As with all other agencies, we continue to fulfill our obligations to other funders and remain grateful for their consistent support. 

It is hard to find the right words to say, but please do let us know if there is any way that we can support you. 

The question ‘what does this mean for cash?’ won’t currently be at the top of people’s minds – however, now more than ever it is vital we continue to advocate for cash and voucher assistance and outline its benefits. 

  • Injecting cash into local communities and economies enables their recovery and supports the multiplier effect. Several studies have found that every unrestricted dollar of direct cash assistance creates $2 of value in local economies. 
  • The cash consensus, and our collective efforts to prioritize ‘choice and dignity for people in crisis’ is more vital now than it ever has been. 

We are committed to supporting CALP members, the network and the wider cash community through the difficult waters ahead. The incredible capacities of our members and network, and the solutions and innovations they are constantly driving will be key to finding new ways forward. 

Thank you for everything. Please do let me know if you have any questions or comments on the above. 

Cate Turton