In a move that has rattled aid-dependent nations worldwide, the recent executive order by former US President Donald Trump to suspend USAID funding for three months is raising concerns about its impact on Bhutan’s development initiatives. The decision—part of the “America First” policy—has prompted worries that key sectors such as health, energy, disaster management, and education may face temporary disruptions.
Since 1980, the United States has played a significant role in Bhutan’s progress by supporting capacity building, infrastructure development, and cross-border cooperation through USAID. Over the decades, Bhutanese professionals have benefited from prestigious U.S.-sponsored programmes such as the International Visitors Leadership Programme, Humphrey Fellowships, and Fulbright Scholarships. These initiatives have not only bolstered individual expertise but have also contributed to broader socio-economic advancements in the country.
In the energy sector, Bhutan has actively participated in USAID-funded programmes like the South Asia Regional Initiative for Energy Integration and the South Asia Regional Energy Partnership. These projects aim to enhance cross-border electricity trade, promote clean energy access, and introduce improved market practices—efforts that are now facing uncertainty amid the funding suspension.
Health and disaster management initiatives are among the most critical areas supported by USAID. Bhutan has benefited from extensive disaster management training and vital health initiatives, including support from the Global Health Bureau for iodine nutrition programmes and the distribution of COVAX-backed COVID-19 vaccines. Since July 2021, over 600,000 vaccine doses have been donated to Bhutan, complemented by economic assistance aimed at mitigating the pandemic’s impact through support for farmers and food security measures.
The scope of USAID’s support extends further into human trafficking prevention programmes, the advancement of STEM education, and even environmental education. In collaboration with NASA, Bhutanese teachers have received training under the Global Learning and Observation to Benefit the Environment project, enhancing Earth science education and data collection. Additionally, Bhutanese officials and military officers have participated in security studies at the Asia-Pacific Center for Security Studies, further highlighting the multifaceted nature of U.S. assistance.
Research partnerships have also flourished, with USAID awarding six grants totaling USD 500,000 (approximately Nu 37 million) in 2022 to promote scientific cooperation on issues such as public health, food security, and climate change. In 2020, Bhutan received USD 825,517 (around Nu 71.44 million) specifically earmarked for basic health initiatives.
The three-month freeze of USAID funds is not an isolated concern for Bhutan. Neighbouring countries, such as Nepal, have seen similar suspensions—with four major projects in health, agriculture, education, and policy development put on hold—indicating a broader regional impact. According to the United Nations Office for the Coordination of Humanitarian Affairs, the United States remains the highest contributor to global humanitarian aid, supplying 42 percent of an estimated USD 13.93 billion in aid for 2024. In 2023 alone, the US was the largest single donor of aid worldwide, with contributions reaching USD 72 billion in total, including significant economic and military assistance.
Bhutan’s reliance on U.S. support, cultivated over more than four decades, underscores the importance of these programmes to the nation’s ongoing development. As the country navigates this temporary funding gap, local officials and partners are closely monitoring the situation, seeking alternative resources and strategic adjustments to ensure that essential services and developmental initiatives continue without interruption.
With global dynamics in flux and aid channels facing unprecedented challenges, the coming months will be crucial in determining how Bhutan adapts to changes in international assistance policies—a development that will undoubtedly influence the nation’s future trajectory in health, energy, education, and beyond.