Trump administration’s move to shut down USAID will have major economic impacts on North Carolina

The Trump administration is moving to shut down the U.S. Agency for International Development (USAID), the government group responsible for funding global health and education initiatives and fighting epidemics, famine, child sex trafficking, corruption, and more overseas. 

The move will impact more than just the 10,000 workers the agency employs and the humanitarian work it does overseas. North Carolina is the fourth-largest recipient of USAID funding in the United States, with state-based organizations receiving nearly $1 billion a year. That funding helps bolster a robust global health sector that adds $31.9 billion every year to North Carolina’s economy and employs 120,000 people.

“The dismantling of USAID is a direct assault on North Carolina’s economic vitality and our leadership in global health,” said Brianna Clarke-Schwelm, of the nonprofit organization North Carolina Global Health Alliance. A shutdown of USAID “threatens to decimate an industry that not only provides thousands of jobs but also plays a crucial role in addressing global challenges,” she said. 

The impacts of the funding freeze and threats to shut down the agency are already being felt in North Carolina.

This month, the Durham-based global research nonprofit FHI 360, which gets two-thirds of its budget from USAID, announced it was furloughing 36% of its staff, including more than 200 workers in North Carolina. The nonprofit research institute RTI International announced temporary layoffs for 226 employees across the county, including 61 in North Carolina
According to the non-partisan Congressional Research Service, President Trump does not have the authority to dismantle USAID without congressional authorization. North Carolinians concerned about the impacts of a USAID shutdown are urged to contact their U.S. Senators Thom Tillis and Ted Budd and urge them to oppose its dismantling.

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