Trump Administration Slashes Over 90% of USAID Funding, Raising Concerns for Pacific Island Nations

Tusi Tala

The Trump administration’s decision to cut over 90% of USAID funding has led to concerns that “nothing’s safe right now,” according to a regional political expert. President Trump’s government announced a reduction of around $60 billion in US development and humanitarian assistance worldwide as part of its America First policy.

Last September, former Deputy Secretary of State Kurt Campbell mentioned that Washington had “listened carefully” to Pacific Island nations and was working to enhance its diplomatic presence in the region. Campbell also announced a $25 million contribution from the US to the Pacific Resilience Facility, a fund aimed at helping Forum members access climate financing for adaptation, disaster preparedness, and early disaster response projects.

Despite these efforts, Trump’s funding cuts are expected to impact the Pacific, one of the most aid-dependent regions globally. Dr. Terence Wood, a research fellow at the Australian National University’s Development Policy Centre, told Pacific Islands News that the three island nations in a Compact of Free Association (COFA) with the US—Federated States of Micronesia, Marshall Islands, and Palau—are likely to feel the most significant effects. While the compact remains “safe” for these states, Wood emphasized that these are unprecedented times, and the US has shown little regard for past agreements, making it uncertain if anything is truly safe right now.