By CIVICUS
May 19 2025 –
CIVICUS speaks with Eric Bjornlund, President and CEO of Democracy International, about the impacts of the US foreign aid freeze and the resulting legal challenges the Trump administration is facing. Democracy International is a global civil society organisation (CSO) that works for a more peaceful and democratic world.
Upon taking office, Trump immediately suspended all foreign aid and dismantled the United States Agency for International Development (USAID), blocking over US$40 billion in congressionally approved funding. This halted crucial global work in democracy, development, health and human rights. In February, several CSOs, including Democracy International, filed a lawsuit challenging Trump’s legal authority to freeze these funds. Despite a court ruling ordering the release of the money and the restoration of foreign assistance, legal proceedings continue.
Eric Bjornlund
What are the most severe consequences of the funding freeze?
The impact on vital international work on democracy, healthcare, human rights and international development has been devastating and far-reaching. The government has even refused to honour invoices or reimburse legally authorised expenses, including those incurred under the previous administration. With 83 per cent of programmes cancelled, many organisations have been forced to shut their operations.
Health services were among the first to collapse: thousands of healthcare workers were dismissed, with essential medicine and food aid left stockpiled and expiring, being damaged or stolen. This has increased deaths from HIV/AIDS and malaria and left reproductive health needs unmet.
Beyond healthcare, the damage spans multiple sectors: education for girls cut, demining operations suspended, Ukrainian refugee shelters compromised, protection for minors from gang recruitment in Central America terminated, cybersecurity in Ukraine halted and support for civil society opposing authoritarian violence in Myanmar ended. Even efforts tracking zoonotic diseases in Bangladesh have ceased.
How has Democracy International been affected?
With 98 per cent of our 2024 revenue from USAID, we’ve been crippled. Despite a federal court declaring the terminations unlawful, all our programmes have been cancelled, forcing staff furloughs, office closures and delayed payments.
The human cost has been immense. In Bangladesh, we’ve discontinued medical assistance to students injured during protest crackdowns. In Burkina Faso, the lives of human rights defenders documenting violence against Christian communities are at risk because we can no longer relocate them. The same lack of crucial support is affecting Nicaraguan political prisoners, state violence victims in Mozambique, government critics in the Philippines and democracy advocates in Tanzania. In Jamaica, over 500 vulnerable young people risk being recruited by gangs without our counselling services, apprenticeship opportunities and vocational skills-building training.
We’ve also been forced to abandon critical governance initiatives. We’ve suspended support for Bangladesh’s post-authoritarian transition, legal assistance for civil society navigating foreign agent laws in Kyrgyzstan, funding coordination for displaced Armenians and democracy leadership in Libya.
Beyond immediate harms, this has broken the trust of communities we’ve supported for years, undermined civil society credibility and surrendered significant political influence to authoritarian powers such as China and Russia.
What collective action has civil society taken?
The freeze blindsided us, but we quickly recognised the need for a coordinated response. We’ve partnered with former USAID officials – particularly those whose work focused on democracy and human rights – to advocate for foreign aid restoration and defend democracy and the rule of law in the USA. We’ve also worked with USAID implementing partners, consulted global experts and sought to identify new funding opportunities.
But our strongest strategy has been legal action. We joined a coalition of USAID partners to file a lawsuit that secured a temporary restraining order in February and a preliminary injunction in March, ordering the government to resume payments and restore funding.
Despite our case reaching the Supreme Court, the administration has largely failed to comply, creating a constitutional crisis that’s testing the judiciary’s ability to check executive power. While legal action remains central to our strategy, we recognise the need for congressional involvement to achieve a sustainable solution.
What are your legal arguments?
We challenge the government on multiple grounds. First, we argue the blanket termination of foreign assistance under the Administrative Procedure Act is both arbitrary and unlawful. Second, we contend this action fundamentally breaches the constitutional separation of powers. Neither the President, Secretary of State nor USAID Administrator has legal authority to unilaterally withhold appropriated funds or dismantle a statutory agency.
The administration has violated both Congress’s exclusive power over spending and its shared foreign policy role. The Impoundment Control Act explicitly prohibits defunding programmes based merely on policy preferences without following strict procedural requirements.
The court has agreed with our position that no rational basis exists for such a sweeping freeze if the stated purpose was merely to review programmes’ efficiency and consistency. The government has also disregarded organisations’ significant reliance on these funds, forcing many to close permanently.
How can democratic institutions be strengthened against such overreach?
Constitutional checks and balances function only when all branches respect them. Congress must defend its spending authority, courts must continue asserting their oversight role and ultimately, the executive must respect the rule of law. But whether it will do so remains uncertain.
If this situation persists unresolved, the humanitarian toll will continue mounting globally while the security, prosperity and global standing of the USA deteriorate. Robust accountability mechanisms and institutional safeguards are essential to protect aid systems globally and democracy at home.
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