Feature story

Country impact of the suspension of U.S. aid to Morocco

25 February 2025

The U.S. freeze of foreign assistance to Morocco is severely affecting several HIV programmes, particularly those implemented by local non-governmental organizations (NGOs). This includes initiatives backed by the Millennium Challenge Corporation (MCC), an American effort that has been operating in Morocco for more than 15 years.

The UN Country Team (UNCT) has launched an internal consultation to evaluate the impact of the U.S. decision on UN-supported programmes in Morocco; we await the full assessment.

Impact on UN-Supported Programs

The withdrawal of U.S. aid affects not only NGOs but also government projects supported by the United Nations system in Morocco.

1. Health

USAID was a key player in financing health prevention efforts, including the HIV/AIDS response, reproductive health, and the protection of vulnerable populations. The suspension of this support jeopardizes efforts to prevent communicable diseases, vaccination campaigns, and emergency responses to health crises such as COVID-19.

Additionally, U.S. funding supported epidemiological surveillance, crucial for detecting emerging diseases and seasonal flu outbreaks, has been stopped. The technical support provided by UNAIDS through the Technical Support Mechanism (TSM) is also at risk, potentially impacting programs funded by the Global Fund.

Moreover, the suspension of U.S. aid affects prevention programs for migrants and refugees, which were supported by IOM and UNHCR, as well as harm reduction initiatives led by UNODC.

2. Al Haouz Earthquake Response

The post-earthquake recovery program in Al Haouz, financed by USAID and implemented in partnership with UNICEF, is now at risk of being discontinued. This initiative was designed to support earthquake victims by promoting economic integration for women and youth through the establishment of cooperatives and local enterprises.

3. Programs for Migrants

The recently allocated $2.5 million in funding for UN agencies (IOM, UNODC, and ILO) to combat human trafficking is now compromised. These funds were intended to strengthen victim protection mechanisms, establish shelters, train government actors, and provide healthcare, including HIV prevention and treatment services for migrants.

4. Education

Hundreds of educational programs targeting children in precarious situations and youth at risk of dropping out are now under threat. USAID previously funded vocational training and apprenticeship initiatives, offering young people new opportunities for economic integration. Without this funding, the future of thousands of Moroccan youth remains uncertain.

A Blow to Moroccan NGOs... a threat to their sustainability

For many NGOs, USAID was the primary donor, and the loss of this support has placed social projects in education, women’s empowerment, rural development, and health at serious risk.

In Fez, a literacy center for women in precarious situations had to scale back its activities, endangering the education of hundreds of beneficiaries. In rural areas, particularly in the Atlas Mountains, water access projects have been suspended, forcing residents to travel long distances to obtain drinking water.

Small social enterprises, often launched under USAID-funded development initiatives, are also facing significant challenges. Women's cooperatives, for instance, are experiencing a drastic drop in orders, threatening thousands of jobs.

An Uncertain Future for Beneficiaries

For populations dependent on these programs, the suspension of U.S. aid puts their access to essential services at serious risk. Without swift alternative solutions, the consequences could be devastating, leading to the closure of NGOs working in health and education, a rise in poverty, and a setback in rural economic development.

Morocco and its international partners must act quickly to find solutions and prevent this abrupt funding halt from plunging thousands of people into even greater vulnerability.

A Politically and Financially Difficult Void to Fill

NGOs and institutions affected by this funding cut are actively seeking alternative sources of financial support. However, securing new international donors is a long and complex process. In the meantime, thousands of beneficiaries are left without assistance.

The Moroccan government has yet to propose a concrete solution to offset the impacts of the U.S. funding freeze. While discussions to reassess the situation are ongoing, finding an immediate replacement for U.S. funding remains a significant challenge.