Impact of USAID Funding Freeze

Context
In January 2025, the Trump administration ordered a three-month pause on almost all funding for international cooperation, pending a review. The freeze on USAID funds for the execution of programs and projects in Latin America and the Caribbean may have a significant impact on a variety of areas, such as socioeconomic integration, resettlement, and the defense of human rights, among others.
Below are the general results of a rapid survey conducted among the member organizations of the Coalition for Venezuela to assess the initial impacts of these measures by the US government.

Main Findings

Approx. 121.455 beneficiaries directly affected.
This number comes from directly affected people who were beneficiaries of the Coalition for Venezuela organizations and the network itself.

This graph shows that for 20% of the Coalition for Venezuela organizations surveyed, at least 34 of their annual budget

60% of Coalition for Venezuela organizations surveyed report that their programs have closed completely. And overall, 77% of them have suffered a significant impact. depends on USAID funding.

Why is it important to resume funding
for organizations led by migrants and refugees?

The resumption of funding is crucial because migrant- and refugee-led organizations play a critical role in addressing the needs of forcibly displaced populations.
The freezing of funds has had a direct impact on key areas such as socioeconomic integration, resettlement and the defense of human rights, in tangible terms this implies:

  • Additional vulnerabilities to the population in human mobility, risks of deportation, absence of legal advisory services and increase in rights violations.
  • New acts of xenophobia and rejection such as the murder due to excessive use of force of Jorman Godoy in Ecuador or barriers to access to decent employment, deepening of gender gaps and closure of articulation spaces to advocate for access to rights.
  • New regional movements and towards Europe in search of better living conditions. This implies new mobility risks, including the growth of human trafficking and smuggling networks.

What would happen if financing is not resumed?
The lack of financing would have devastating consequences for the Venezuelan community abroad. It is estimated that at least 121,455 beneficiaries would be directly affected in Latin America and the Caribbean alone, which would aggravate their situation of vulnerability. Our cross-cutting programs would be disrupted, leaving migrants and refugees without access to basic services and essential support. This could result in an increase in migratory irregularity, xenophobia, discrimination and violation of human rights. Furthermore, the capacity for political impact and the participation of civil society in the search for solutions to the Venezuelan crisis and initiatives with a focus on localization and meaningful participation would be lost.

Furthermore, within Venezuela the context has worsened since July 2024 with an intensification of repression(1) Brazil reports a 25% increase in border entries from Venezuela(2), Spain registered a record number of 97.8% of Venezuelans applying for visas for humanitarian reasons(3), the US government eliminated the Temporary Protection Status (TPS) which implies the possible deportation of at least 300,000 Venezuelans, of which the first two flights to Caracas have already taken effect(4). Given similar restrictive initiatives on the continent and the indicators of a new migratory wave on the continent, it is a priority to resume multi-actor coordination.

The work of the Coalition for Venezuela is essential in immigration regularization, advocacy
for public policies with a rights-based approach, the protection of human rights and
integration in host countries. Our work is essential to guarantee the well-being and protection
of Venezuelan migrants and refugees, especially in a context of humanitarian crisis and new
displacements.

(1) SOS Venezuela Info I (2) UN Agency for Refugees – UNHCR I (3) Comisión Española de Asistencia al Refugiado – CEAR (4) Departament of Homeland Security, United States Government

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