US to Bypass NGOs in Foreign Aid, Route Funds Directly to Governments

The United States government has declared that forthcoming foreign aid will be allocated predominantly through direct agreements with national governments, instead of being funneled through nongovernmental organizations and other intermediaries.

The alteration, integrated into the administration’s America First Global Health Strategy, signifies a significant deviation from longstanding practices and coincides with the gradual dissolution of the United States Agency for International Development (USAID).

Under the revised framework, Washington will engage in multiyear bilateral agreements with recipient nations, mandating co-investment from those governments and establishing performance metrics aligned with U.S. priorities.

These agreements aim to transition aid distribution from grants and contracts managed by NGOs to direct government-to-government interactions, which U.S. officials assert will improve accountability, minimize waste, and better align assistance with American strategic interests.

The announcement comes after the official dissolution of USAID, with its residual functions integrated into the State Department following a review and extensive program reductions.

Secretary of State Marco Rubio defended the organizational restructuring by asserting that the agency had deviated from its foundational mission and that a new framework was essential to enable partner governments to achieve sustainable growth.