WASHINGTON — Afghanistan is expected to suffer a 7% economic setback due to reduced U.S. aid, according to a new report by the Center for Global Development (CGD).
The report identifies Afghanistan as one of eight countries most dependent on U.S. assistance, with more than one-fifth of its foreign aid coming from the U.S. Agency for International Development (USAID). Prior to the cuts, USAID accounted for 35% of all international aid to Afghanistan.
The United States has provided more than $3 billion in aid to Afghanistan over the past three years, making it the country’s largest financial donor. However, with aid now significantly reduced, Afghanistan is among the nations most vulnerable to economic shocks.
CGD’s report highlights that out of 26 low-income countries, eight—including South Sudan, Somalia, the Democratic Republic of Congo, Liberia, Sudan, Uganda, Ethiopia, and Afghanistan—rely on USAID funding for more than 20% of their foreign aid.
Afghanistan ranks third among the hardest-hit economies, facing a 7% potential economic contraction due to cuts in U.S. assistance.
In a separate report, the USAID Office of Inspector General (OIG) stressed that heightened security risks—particularly in countries with terrorist groups such as ISIS—necessitate enhanced vetting of aid recipients to prevent U.S. taxpayer funds from being misused.
The OIG report further noted that President Donald J. Trump’s January 24 executive order suspended all third-party monitoring of U.S. aid programs, including those in high-risk regions like Afghanistan. The move halted oversight efforts in Ukraine, Ethiopia, Haiti, Gaza, Iraq, Lebanon, Somalia, Syria, and Venezuela, impacting key humanitarian aid operations.
Following the report’s release, Reuters reported that Trump dismissed USAID’s inspector general, further raising concerns about transparency and oversight of aid programs.
The cuts have disrupted or halted several United Nations humanitarian programs in Afghanistan, forcing dozens of aid organizations to shut down. Many Afghans report worsening economic conditions as foreign assistance diminishes.
A recent Amu TV analysis found that since Trump’s return to office in 2025, the U.S. has not provided any funding to Afghanistan through the United Nations, despite a previous commitment of $234 million for humanitarian programs.
