Minnesota Organizations Grapple with Fallout from USAID’s Sudden Dismantling

"MN Groups Face Challenges After USAID Cuts"

The Trump administration's $60 billion foreign aid cuts threaten Minnesota organizations, causing layoffs and jeopardizing vital humanitarian services for millions globally.

Alex Chen5 March 2025Last Update : 14 hours ago

Minnesota-based organizations reeling from USAID dismantling

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On March 4, 2025, the Trump administration announced the cancellation of nearly 10,000 foreign aid grants and contracts, totaling approximately $60 billion. This decision significantly impacts development organizations in Minnesota, which are now facing potential layoffs and closures due to the reduction of USAID’s global work.

6 Key Takeaways

Trump administration cuts $60 billion in foreign aid
Minnesota organizations face significant layoffs
USAID projects historically receive bipartisan support
Center for Victims of Torture budget slashed
Humanitarian work impacts lives and costs
Outreach programs save lives and money

Fast Answer: The Trump administration’s cancellation of $60 billion in foreign aid grants has severe implications for Minnesota-based organizations. Many are facing layoffs or shutdowns, with significant cuts already affecting groups like the Center for Victims of Torture, which has seen its budget slashed by over 50% and staff reductions impacting more than 350 employees.

The recent announcement by the Trump administration to cut $60 billion in foreign aid has sent shockwaves through Minnesota’s development sector. Organizations that rely on USAID funding are now grappling with the consequences of losing nearly 90% of their financial support. Nicholas Hayen, a former president of the Minnesota International NGO Network, highlighted the dire situation, stating that many organizations are facing significant layoffs or may shut down entirely.

For instance, the Center for Victims of Torture (CVT) has seen its budget reduced by at least 50%, impacting its ability to provide critical services. The organization, which helped 23,000 clients last year, has furloughed or terminated employment for roughly 75% of its staff, which includes over 350 individuals. Neal Porter, the Director of International Services at CVT, emphasized that the focus remains on the mission to assist survivors of torture rather than the staff’s job security.

CVT’s budget before cuts: $38 million.
Number of staff affected: Over 350.
Number of clients served last year: 23,000.

Porter noted that the aid provided by organizations like CVT is not just a humanitarian effort but also a cost-effective approach to prevent larger issues. By helping individuals find jobs and access healthcare, these organizations reduce the need for emergency services, ultimately saving money. As the landscape of foreign aid continues to shift, the implications for both local and global communities remain profound.

Notice: Canadian readers should be aware that changes in U.S. foreign aid policies may also impact international aid programs in Canada and the global community. Monitoring these developments is crucial for understanding broader humanitarian efforts.

The cancellation of foreign aid grants by the Trump administration has created a challenging environment for Minnesota-based organizations. As they navigate these cuts, the focus remains on their missions to provide essential services and support to vulnerable populations worldwide.