Mirno Pasquali: A look from the inside of a humanitarian organization navigating the new normal

As a Laconian and working in conflict zones with a humanitarian organization (often with USAID funding) for over 10 years, I hope to shed some clarity on what this looks like from the inside of one of these aid organizations in the wake of the cuts to USAID, a look at the what, the how and the impact.

The what

• USAID manages a large part of the foreign assistance from the U.S. government, including humanitarian and development aid
• USAID’s budget (from 2023) is approximately 0.7% of the U.S. government total budget
• The USAID humanitarian budget funds approximately 40% of all humanitarian operations globally

USAID is a "soft power" diplomacy force. USAID is also a preventative force — for example, slowing the spread of disease outbreaks. But most importantly to me, USAID represents an attempt of the U.S. to work in human solidarity with populations affected by conflict, disaster and displacement.

The aid sector is a professional sector — aid organizations sign multi-million-dollar contracts, face financial audits, literally record every mile driven in every car to compare with all fuel purchased (all receipts printed and filed) under a specific project coming from donors such as USAID.

USAID contracts are often multi-year, and  fund food, shelter, water, salaries, warehouses, helicopters etc. These are carried out with a reimbursement system, meaning money is fronted and transactions reimbursed (generally on a quarterly basis).

The how

An executive order was signed to freeze all U.S. foreign assistance on Jan. 20, with "stop work" orders issued to various entities (such as humanitarian aid organizations) in days after (ours was received on Jan. 24). In other words, no USAID money can be spent from that day, for an initial 90-day pause.

By the end of January, organizations were asked to apply for "waivers" for what was never fully defined as "life-saving activities". The hope was that some percentage (20%? 50%?) of the original contract would be respected. Applying for waivers was extremely time- and resource-intensive.

This month we have received news that most, if not all, of the USAID contracts have been completely canceled. Waiver applications were never responded to, and in all likelihood, the entire waiver process was a ruse. It is not clear if we will be paid the reimbursements from 2024. If not, this will be millions of lost contracted payments.

The impact

• Hundreds of thousands, if not millions, will die because of not only the decision, but the abruptness of the decision (yes, lives could have been saved if more time was given to find alternatives, prioritize etc.), more will be displaced
• Organizations, such as ourselves, had and must continue to fire thousands of staff members; most staff working in humanitarian organizations are the communities themselves — salaries support not only families, but entire local economies

There are arguments out there that I am happy to debate. For example, concerns raised on the validity of U.S. taxpayer money to go to alleviate global problems when there are problems in America. But for now, look at how this decision was taken.

If you have ever signed a legally binding contract as an employee, or a business, no matter how small or large, apply this example to yourself. A sudden, complete termination of an existing contract you depended upon, with reasons that are not evidenced. The money you fronted for the work the previous year will not be reimbursed by the deadline, or likely at all, or you will go to court for years to be reimbursed. You must immediately stop the work, be fired yourself, or fire your staff and downsize your operation — sending you and your business into chaos.

What if your work was saving lives? Imagine telling the people who need you that they will no longer receive food to eat. Imagine that conversation with your staff, who put their lives in danger every day, and telling them they are immediately fired for no fault of their own.

The Supreme Court recently rejected Donald Trump's plan to freeze the foreign aid budget. Let’s see if reimbursements are paid, deadlines respected and contracts reinstated to some extent. We operate under the assumption that the aid agreed upon will not be restored despite the need for it, that aid workers will be further demonized and chaos will continue to be the normal operating procedure.

It is important to consider the impacts and analyze the reasons why this happened. However, I believe the how — completely unaccountable, without reason, entirely disorganized, chaotic — provides one window of insight into what this really is about. Power being executed to pursue an ideological extremist agenda aimed to benefit the extreme wealthy. Even a conservative court has rejected this attempt — that is sign in and of itself. Let’s see if this ruling will hold, and put accountability to the test.

In the meantime, do not forget the millions of casualties of these actions at home and abroad, all for a mere 0.7% of the budget.

If you would like to debate this, please do not hesitate to email me at mirno4@gmail.com, and I would be happy to have a respectful exchange.

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Mirno Robert Pasquali is currently working with the Danish Refugee Council, a humanitarian aid organization. Since 2013, he has worked in Jordan, Tanzania, Iraq, Bangladesh, Yemen, Ukraine, Somalia, Afghanistan and most recently Ethiopia. Mirno is a 2007 graduate of Laconia High School.