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Thirty USAID Contracts Cease in Cambodia; Civil Society Find Ways to Survive, Gov’t Unfazed

People register for TB tests at the World Tuberculosis Day event on March 24 in Ou Reang Euv district, Tboung Khmum province. Picture taken on March 24, 2022. The TB program is affected by the USAID funding cut. (CamboJA/ Khy Sovuthy)
People register for TB tests at the World Tuberculosis Day event on March 24 in Ou Reang Euv district, Tboung Khmum province. Picture taken on March 24, 2022. The TB program is affected by the USAID funding cut. (CamboJA/ Khy Sovuthy)

Hope turned to shock and despair as a leaked document detailed the US government’s permanent cancellation of funding for 30 USAID programs in Cambodia, dashing expectations that the Trump administration might reconsider its January foreign aid freeze. 

President Donald Trump, reaffirming his “America First” policy, imposed a 90-day suspension on all foreign aid upon resuming office on January 20. Just 45 days into the review, a whistleblower disclosed to US senators a list of thousands of USAID programs that have been cut.

On Monday, Secretary of State Marco Rubio announced the completion of the administration’s six-week overhaul of the six-decade-old USAID, slashing 83% of its programs. The review led to the termination of around 5,200 contracts, with officials citing misalignment with US national interests. Rubio also confirmed that the remaining aid programs would be overseen by the State Department.

In the leaked 368-page document detailing terminated USAID awards, 30 contracts in Cambodia, listed on pages 147-149, were eliminated, totaling a combined value of $260 million. These contracts funded crucial programs in health, education, child protection, independent media, civil society, human rights, and combating human trafficking. 

Civil society organizations relying on USAID funding have been notified of contract terminations, leaving them with few options—seeking support from other donors or the government, scaling back operations or relying on volunteers; the worst case scenario being total collapse. Meanwhile, the Cambodian government has downplayed concerns about the aid cuts.

Of the 30 canceled contracts, only nine had been fully paid, while 21 are ongoing but are now listed for termination. 

The cuts include $25 million allocated for the Integrated Primary Education (IPEA) Project, aimed at strengthening literacy and numeracy skills among primary school students. Another $7 million for a USAID-funded program supporting UNICEF’s collaboration with Cambodia’s Ministry of Education to improve teacher training and education management and $20 million for USAID Integrated Early Childhood Development (IEDC) Activity.

In the health sector, $15 million in funding for tuberculosis (TB) diagnosis, treatment, and prevention was eliminated, even as the TB epidemic in Cambodia worsened in 2024. This year, 33,363 TB cases were reported, a slight increase from 32,286 cases in 2023. Cambodia has committed to ending TB by 2030.

Additionally, $19 million allocated for the Cambodia Malaria Elimination Project (CMEP 2) was also terminated. 

Also canceled were the $24 million Feed the Future Cambodia Agriculture Partnership Hub, which promotes sustainable economic growth, and programs to combat human trafficking where $13 million was allocated.  

Beyond development-focused initiatives, civil society and democracy promotion efforts are affected. A $7 million Cambodian Media Development Activity, which supported independent journalism has been cut, along with a $20 million project designed to empower Cambodian civil society and expand civic space, human rights activity, protecting fundamental freedoms, democracy, land rights, and natural resources, was stopped.

The Advancing Labor and Workers’ Rights in Cambodia program, worth $10 million, has also been canceled, as well as a $12 million Civil Society Resilience activity. 

Hong Reaksmey, Country Director of Save the Children Cambodia, called the US aid cuts a disaster, pointing out their severe impact on thousands, especially children.

“This decision is wrong. It harms lives, education, and vulnerable people,” he said. 

A US federal judge ordered the Trump administration to release nearly $2 billion in unlawfully withheld USAID funds, ruling it likely exceeded its constitutional authority.

Save the Children Cambodia lost two contracts supporting children and people with disabilities, forcing staff layoffs. Reaksmey said finding emergency donors is difficult, and recovery will take time.

He urged the US to reconsider and called on other donors to step in, warning that civil society groups are vital in filling gaps left by the government. 

He said the only options are finding new donors and negotiating for government funds, though support may be slow. He also expressed concern that if the situation persists without assistance, the civil society organization could collapse.

Chhan Sokunthea, Executive Director of the Cambodian Center for Independent Media (CCIM), voiced concerns over the abrupt funding cutoff, explaining that her organization received an official notice from the US State Department about the unilateral termination of its USAID-funded project. She highlighted the significant impact of this funding loss, particularly on organizations relying on direct USAID support, with human rights abuse victims being the most affected.

“In the future, civil society organizations will operate on a smaller scale, and social workers may have to continue their work voluntarily,” Sokunthea added. 

She called on funders from other democratic nations to step in and support efforts to promote human rights and democracy, particularly urging organizations like the European Union to find alternative funding sources to fill the gap left by USAID’s withdrawal.

Similarly, Seng Sovathana, Executive Director of the Cambodian Center for Human Rights (CCHR), expressed hope of recovering the lost funds but acknowledged significant concerns about the cuts’ effects. 

“Many communities depend on those involved in human rights and legal aid,” he said. “Without funding for social work, we face challenges in supporting these communities, especially those who rely on us to promote and protect their rights.”

Sovathana revealed that CCHR is in discussions with national and international organizations, including the US Embassy, to secure continued funding for human rights activities.

Despite civil society’s growing concerns, Koy Vanny, spokesperson for the Ministry of Health, downplayed the situation, assuring that other donors would step in to fill the gap. “We are not abandoning our work, and we are not worried because we have partners around us,” he stated.

A billboard at the National Center for Tuberculosis and Leprosy Control encourages people to check and treat TB, a program funded by USAID, but has now ended. Photo taken on March 13, 2025. (CamboJA/Pring Samrang)

Huot Chan Yuda, director of the National Centre for Tuberculosis and Leprosy Control (CENAT), said despite the aid termination by the US for technical assistance and funding for the TB program, the Ministry of Health’s National TB Control Program remains operational, with no impact on service accessibility.

“The government has sufficient TB medicine and continues to provide essential equipment for timely diagnosis,” he added.

Government spokesperson Pen Bona stated that it is within the rights of the US government to make such decisions. While the Cambodian government does not wish to see this happen, it is prepared to seek alternative partners to continue project implementation without abandoning them. 

However, he did not respond to the question regarding how the government would address civil society organizations working on children’s issues seeking assistance to fill the gap.

Khuon Vichheka, spokesperson for the Ministry of Education, Youth and Sport, and the US Embassy in Phnom Penh did not provide a comment.

An analysis by the Business and Human Rights Law Group (BHRLG) of US-funded aid projects in Cambodia from January 2020 to January 2025, using data from the official US government spending database, found that over $371 million in US aid was distributed across 185 projects during this period.

In fiscal year 2023, the United States allocated $72 billion in foreign aid globally, supporting projects in areas such as women’s health in conflict zones, clean water access, HIV/AIDS treatment, energy security, and anti-corruption initiatives.

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