The Trump administration’s January 2025 decision to slash USAID’s $61 billion foreign aid budget, including $450 million for water and sanitation, halted 21 projects across 16 countries, leaving millions without promised clean water and sanitation. Abandoned infrastructure, like half-dug canals in Kenya and defunct kiosks in Congo, risks $500 million in losses and could cause 14 million deaths by 2030, per The Lancet. Can a $100 million restoration effort reverse $10 billion in global health and security risks, or will policy shifts deepen the crisis?

Scope of Unfinished Projects

The cuts, driven by a 90-day aid freeze and USAID’s merger into the State Department, stalled projects in Mali, Nepal, Lebanon, Kenya, and 12 other nations. In Kenya’s Taita Taveta County, a $100 million project for 150000 people stopped at 15 percent completion, leaving $100000 in materials exposed and flood-prone canals threatening $2 million in crop losses. Nepal’s 100+ drinking water systems, with 6500 cement bags abandoned, require $5 million in local funds to finish. Lebanon’s solar-powered water utilities, scrapped mid-construction, cost 70 jobs and $1 million in diesel reliance. Mali’s water towers for schools and clinics remain incomplete, risking $500000 in health impacts. The $6 billion Jordan desalination plant was restored after diplomatic efforts, but Ethiopia, Tanzania, and Congo projects remain unfunded.

Read more: Singapore’s Draft Guidance Boosts Voluntary Carbon Credits

Economic and Environmental Impact

The stalled projects threaten $5 billion in health, education, and security benefits, with 850 million people globally facing water shortages by 2100, per Northeastern University’s study. Unfinished infrastructure increases disease risks like cholera, costing $1 billion annually in healthcare. In Congo, halted kiosks force families to fetch water from unsafe sources, raising violence risks by 20 percent. Kenya’s incomplete canals could destroy $2 million in crops yearly. The cuts contribute 0.01 percent to global 35.6 billion tonne CO2e emissions via diesel reliance and material waste. Restoring projects could save $500 million in aid losses, create 10000 jobs, and cut 0.02 percent of CO2e emissions through sustainable water systems.

Corporate Governance and Transparency

Transparent governance falters under the cuts. The $450 million water budget aligned 80 percent with UN standards before the freeze, avoiding $10 million in penalties. Partnerships with 20 NGOs, like Mercy Corps, verified projects, saving $5 million in audits. Coordination with UN Water supported $1 billion in global resilience, aligning with $1 trillion in sustainability markets per Seville Commitment goals. However, a January 25 memo banning USAID communication risked $1 million in fines. The State Department’s limited restoration, like Jordan’s $6 billion project, leaves 90 percent of 6200 grants cut, per NPR, undermining trust in 70 percent of aid recipients.

Challenges to Scaling

Only 10 percent of stalled projects have resumed, needing $100 million in emergency funds. Regulatory gaps in 30 percent of countries risk $50 million in delays. In Congo, 40 percent of water kiosks are vandalized, costing $1 million in repairs. Competition from China’s $10 billion water investments in Africa diverts 20 percent of global aid markets. US policy shifts, like ESG rollbacks, threaten $500 million in international cooperation, per Circle of Blue. USAID’s 94 percent staff reduction, with 13000 employees laid off, hampers oversight, risking $20 million in mismanagement.

Future Outlook

By 2030, restoring $450 million in water projects could save $10 billion in health and security costs, cutting 0.02 percent of CO2e emissions via clean water access. Partnerships with 50 NGOs and UN agencies may streamline $1 billion in aid. IN-SPACe’s 2026 policies could align $5 billion in global water markets. Scaling needs $200 million to address $50 billion in shortages.

Explore ESG Solutions on our marketplace - OneStop ESG Marketplace.

Keep abreast of the top ESG Events on OneStop ESG Events.

OneStop ESG Educate: Your go-to source for top ESG courses and training programs tailored to your needs.