USAID’s Impact on International Schools

This is a rapidly evolving story as the administration of the United States of America (US) and various stakeholders make moves through executive action and lawsuits in the courts that potentially affect our international school community. With changes potentially occurring at any moment, please stay up to date with the latest news. A few good sources include Forbes which maintains a running live update, Nichols Liu law firm which is one of many firms that have filed suit in court, and a group set up by two USAID recipients to track the impact called USAID STOP WORK.

The United States Agency for International Development (USAID), responsible for managing the US government's foreign aid and assistance programs, has become a central player in an unfolding situation. USAID's policies and actions ripple across international schools, especially those dependent on USAID-funded families or partners. Payments and grants provided by USAID have been halted by a stop-work order. The effect of a stop-work order means that agencies with USAID funds in their accounts are prohibited from spending a single penny, even if already committed (there have been a few waivers granted). It remains unclear whether forthcoming reimbursements for previously authorized payments will be approved, leaving agencies that spent these funds in complete limbo.

The stop-work order of USAID will have far-reaching implications, impacting not only organizations directly funded by USAID, but also international schools that rely on tuition payments from USAID-employed families, along with the broader landscape of education, development, and humanitarian efforts worldwide. Many international schools, regardless of their direct USAID funding, rely on the systemic support that USAID provides through partnerships, development programs, and community networks. The ripple effect will be felt across diverse sectors, from the local communities where these schools operate to the global networks that facilitate educational exchange and humanitarian assistance.

Immediately after the news broke, a 48-hour survey was conducted, with nearly 350 for-profit and non-profit organizations responding (results). Over half reported that they lack sufficient alternative revenue sources to remain open past May 2025. The 342 aid recipients indicated that they partially or fully fund 7,643 subcontractors. Additionally, nearly 50% of non-profits and 14% of for-profits reported that USAID funding constitutes 100% of their budgets. Adding to this, the closure of USAID offices and the elimination of nearly 10,000 US government jobs—both domestically and in over 60 countries—has had a vast impact on the humanitarian sector.

We conducted our own survey and held informal discussions with Heads of School to anticipate the impact on international schools. The main areas of concern identified include:

• Student enrollment: Some schools anticipate a 5-10% decline.
• Student anxiety and sudden loss of classmates: Many USAID employee dependents may leave abruptly.
• Staffing: Teachers or administrators who are spouses of USAID employees most likely face repatriation.
• Service learning partners: Many organizations that schools partner with are now closed.
• Week Without Walls programs: These programs, which often collaborate with USAID-funded groups, may be disrupted.
• Safety and security: Concerns related to disease outbreaks and regional instability.
• Reduced staffing: Hiring challenges for the upcoming academic year.

Some additional concerns related to this shift in US policy and its impact on the international education community include:

• Foreign visas: Impacts on travel for international conferences and professional development in the US.
• Funding for Sustainable Development Goals (SDGs) education: US Department of Education and State Department funding tied to teaching about the United Nations’ SDGs.
• Government grants: The status of grants for international conferences that include DEIB-related tracks or workshops.
• Collaboration with US Embassies: Uncertainty surrounding embassy involvement in international school governance.

Whether or not these concerns fully materialize, it's important to start considering how this may indirectly impact your school, even if you're not receiving direct funds. Below are key points to communicate to your staff: 

• The situation is fluid, and multiple efforts are underway to reverse this policy.
• School employees with housing disruptions due to their partner's/spouse’s USAID job loss should be provided temporary support.
• Students should be prepared for the sudden departure of classmates, but schools can arrange virtual farewell gatherings.
• US citizens living abroad can still contact their legislators. The 5 Calls website is a simple way to do this—calling is the most effective, but emails can also work. If a US citizen no longer maintains a US address, they can use their last known zip code or that of a parent/sibling. Simple rule: if you voted, you can call/email.
• Student clubs or service-learning projects should assess the financial health of their partner organizations. Raising awareness among parents could lead to short-term fundraising solutions.

In addition to the USAID stop-work order, international schools may also feel the impact of recent policy changes by the US State Department. I have heard from school Directors that the State Department is currently canvassing all State Department-supported international schools to confirm that they do not have a Diversity, Equity, and Inclusion (DEI) program or agenda. These Directors have shared that they are awaiting further clarification on the definitions of “program” and “agenda.” I have also received a copy of a letter asking for whistleblowers at any Department of Defense Education Activity (DoDEA) schools to report any programs that have changed their name or obscured their purpose to avoid detection. Although this development does not fall directly under the USAID funding issues, it reflects ongoing shifts in US foreign policy and its effects on the international school community. 

As the situation evolves, international schools should stay informed about the impact of the USAID stop-work order. While direct effects may vary, schools should monitor potential disruptions to student wellbeing, enrollment, staffing, and partnerships, and be prepared to support their communities as needed.

TIE remains dedicated to supporting international schools, students, and educators, particularly during times of challenge and change. As the global education community faces evolving circumstances, we want to hear from those affected—whether through sharing your experiences, contributing articles, or letting us know how we can best assist you. We will curate resources to help the international education community navigate this transition and continue to thrive. If your school community has been impacted, please reach out to us at [email protected].