What USAID cuts mean for youth development — and what the world must do next

ARIEL 1:Heeey there! Yawnnnn Welcome to EGreenNews! Ariel here, with my AI bestie Ariel and booth are computer generated avatars made in a computer, can you believe that? Today: What USAID cuts mean for youth development — and what the world must do next. Anywayss, buckle up! ARIEL 2: Mmmhmm! Leans in Did you know that cuts to development aid from major players like the US and the UK could spell serious trouble for youth development programs worldwide? Wild, right? ARIEL 1: Sooo... these cuts to aid, right? Are they really going to have a big impact on young people around the world? Like, seriously? ARIEL 2: Ooooh! The article we just read from the World Bank and Uppsala University definitely says so. They point out that a study in 2023 showed that investing in youth programs has long-term benefits for peacebuilding, civic participation, and economic resilience. So, cuts don't just hurt individuals, they hurt collective progress. ARIEL 1: Hmm, I guess that makes sense. Investing in young people is investing in the future. But like, how much money are we actually talking about here? Mmmmaybe it's not that much in the grand scheme of things? ARIEL 2: Naaaahhh, between 2013 and 2020, USAID alone invested about $1.56 billion in youth development globally! And in 2020, their youth-focused allocations reached $412 million – a 134% increase from 2013! That's a significant amount of money. ARIEL 1: Whoa, slow down! Over a billion dollars? That's a lot of programs and opportunities that could be at risk. Geez Louise! ARIEL 2: Yaaas, queen! And these investments had real results. They trained millions of young people in leadership and life skills, gave access to education to nearly a million learners, and provided antiretroviral treatment for HIV to over a million young people. ARIEL 1: Those are some tangible outcomes. So what exactly is at stake now that this funding is being cut? ARIEL 2: Well, the article outlines several key areas that are likely to be affected. First, fewer young people will have access to training programs for essential life and job skills, which puts their transition into employment and civic life at risk. ARIEL 1: That's a crucial time for young people. Not having those skills could really set them back. What else? ARIEL 2: Second, reduced funding could lead to declining youth participation in civil society activities, which threatens progress in youth civic leadership and community engagement. ARIEL 1: So young people might have fewer opportunities to get involved in their communities and make a difference? That's a shame. ARIEL 2: Exactly. Third, with the closure of some youth workforce initiatives, we could see increased youth unemployment, especially in countries already struggling to create decent jobs. This can also hurt economic growth and widen inequality. ARIEL 1: Unemployment is a huge issue, especially for young people. It can have long-lasting consequences. What about health? ARIEL 2: This is really concerning. Over 1.2 million youth receiving HIV treatment through PEPFAR could face service disruptions. And development funding cuts are also projected to lead to thousands of additional pregnancy-related deaths within a year, highlighting the broader risks to youth and maternal health. ARIEL 1: That's devastating. Lives are literally at risk. What about organizations that support young people? ARIEL 2: They're also facing weakening civil society. Legal aid, protection for young human rights defenders, and civic engagement programs are becoming increasingly vulnerable. And importantly, we're seeing knowledge loss with the inaccessibility of platforms like YouthLead and the termination of programs like the Demographic and Health Surveys Program, which were critical global hubs for research and tools in youth development. ARIEL 1: So it's not just about the immediate cuts, but also about losing the resources and knowledge that have been built up over years? ARIEL 2: Precisely. This slows innovation, limits knowledge sharing, and weakens the whole ecosystem for evidence-based youth development programming. ARIEL 1: This all sounds pretty dire. So what does the article say the world needs to do next to revitalize youth development despite these cuts? ARIEL 2: They outline five key strategies. First, they emphasize domestic leadership and investment. Governments in the Global South need to integrate youth into national strategies and allocate national resources to youth mental health, education, and employment, as well as create formal youth advisory roles in policymaking. ARIEL 1: So countries need to step up and prioritize their own young people? That makes sense. What's the second strategy? ARIEL 2: Second is global leadership and donor diversification. The void left by the US and UK is too big for domestic systems alone. Other countries like those in the EU, Canada, and Scandinavia can step in, and multilateral platforms like the G20 and COP summits can prioritize youth participation and financing. ARIEL 1: So other countries need to fill the gap and make youth a priority on the global stage. What's the third strategy? ARIEL 2: Third is cross-sectoral collaboration. Youth issues are connected to so many other areas like climate, education, and health. Mainstreaming youth and working across sectors ensures they have a collective voice and that local and national systems support them effectively. ARIEL 1: So it's about seeing the bigger picture and working together across different areas to support young people. What's the fourth strategy? ARIEL 2: Fourth involves philanthropic, private sector, and alternative financing models. Things like crowdfunding, community-based giving, and public-private partnerships can offer flexible, long-term funding options. The private sector can also invest in youth-led innovation and social enterprises. ARIEL 1: So getting creative with funding and involving businesses and communities. What's the fifth and final strategy? ARIEL 2: Fifth is investing in youth systems and capacity building. Partners and policymakers need to support institutions that serve youth, like networks and civil society organizations. Building young people's skills in project design, advocacy, and resource mobilization is crucial for the long-term sustainability of youth-led development. What USAID cuts mean for youth development — and what the world must do next Apr 16, 2025 A Rohingya refugee girl holds a jar with USAID logo imprinted, at the refugee camp in Cox's Bazar, Bangladesh, March 16, 2025. Global aid cuts threaten youth development. Global aid cuts threaten youth development. Our Impact What's the World Economic Forum doing to accelerate action on Sustainable Development? The Big Picture Explore and monitor how Youth Perspectives is affecting economies, industries and global issues Stay up to date: Youth Perspectives This article is part of: Centre for the New Economy and Society Cuts to US and UK development aid spell trouble for the sector worldwide. Health, education and other programmes are at risk. But there are steps that those in the Global South and beyond can take to keep moving youth development forward, despite the challenge of cuts. Global development finance faces mounting strain. The US has withdrawn funding and laid off staff at USAID, while countries like the UK have reduced their Official Development Assistance (ODA). A 2023 Social Return on Investment study found that investments in youth programming yield long-term dividends across peacebuilding, civic participation and economic resilience, demonstrating that cuts not only undermine individual opportunity but jeopardize collective progress. Amid growing concerns about how these development funding cuts will impact millions of lives in the Global South, one critical impact remains under-discussed: how these shifts are affecting, or will affect, youth-focused interventions and youth-led development. Young people are at the forefront of addressing today's global challenges. Yet, meaningful youth engagement demands more than rhetoric — it requires sustained investment, platforms for leadership and access to resources. Have you read? Can encouraging youth saving boost development? Why Africa's youth hold the key to its development potential Creating development finance as an asset class Why this matters now Global development assistance cuts — especially from important donors like the US and the UK — can halt or reverse gains in youth development. Between Fiscal Year (FY) 2013 and FY 2020, USAID invested approximately $1.56 billion in youth development globally, including through the President's Emergency Plan for AIDS Relief (PEPFAR). In FY 2020, youth-focused allocations reached $412 million — a 134% increase from FY 2013. These investments yielded tangible results: 1.4 million youth were trained in leadership and life skills such as communication, critical thinking, decision-making and teamwork. Also, nearly 1 million secondary and tertiary school-aged learners gained access to education and 1.2 million young people received antiretroviral treatment for HIV. In FY 2021, USAID trained 436,744 youth in life skills, and 71% of those trained participated in civil society activities, demonstrating long-term civic engagement and systemic impact. Moreover, from FY 2016 to 2020, 76% of youth trained in life skills engaged in civil society activities. Annette, a 27-year-old from Uganda, is one example of how a young woman gained confidence, along with a flourishing business, through a USAID-backed youth organization. Additionally, 37 youth-related policies, laws and procedures were adopted by various stakeholders to promote youth participation at the regional, national and local levels, with the support of USAID. Programmes like Global LEAD and YouthPower served as global knowledge hubs for cross-sectoral youth development, providing resources for youth leaders and youth-serving development practitioners. What is at stake? In the absence of funding, the youth development sector is likely to experience the following: Fewer youth in training: The termination of some previously funded youth workforce development programmes results in disruptions to skills training for some youth, and fewer young people are gaining access to essential life skills training, thereby putting their transition into employment and civic life at risk. Reduced civic engagement: As training programmes end in some contexts, the ripple effects may include declining youth participation in civil society activities, threatening progress in youth civic leadership and community engagement. Increased youth unemployment: Amid the closure of some USAID-funded youth workforce initiatives, some young people will lose opportunities to acquire essential life and technical skills. This skills gap can increase their vulnerability to unemployment, particularly in countries already struggling to create decent jobs. Unemployment also threatens economic growth, widens inequality and can contribute to social instability, especially in already fragile economies. Health setbacks: Over 1.2 million youth receiving HIV treatment through PEPFAR could face service disruptions. Development funding cuts are also projected to lead to 34,000 additional pregnancy-related deaths within a year, highlighting the broader risks to youth and maternal health. Weakening civil society: Legal aid, protection for young human rights defenders and civic engagement programmes are increasingly vulnerable. Knowledge loss: With platforms like YouthLead being inaccessible and the Demographic and Health Surveys Program’s termination, the field has lost critical global hubs that housed decades of research, tools and investment in youth development. Their absence slows innovation, limits knowledge sharing and weakens the ecosystem for evidence-based, cross-sectoral Positive Youth Development (PYD) programming. 5 strategies for revitalizing youth development 1.Domestic leadership and investment Global South governments must integrate youth into national strategies, not as symbolic actors, but as budgeted stakeholders. This includes allocating national resources to youth mental health, education and employment, as well as creating formal youth advisory roles in policymaking. 2. Global leadership and donor diversification The void left by the US and UK development funding cuts is too significant for domestic systems alone. The EU, Canada, Sweden, Norway and other countries can step in. Multilateral platforms like the G20, COP summits and the Fourth International Conference on Financing for Development could also prioritize youth participation and financing. 3. Cross-sectoral collaboration Youth issues are interconnected with climate, education, food security, public health and democracy. Youth mainstreaming and cross-sectoral collaboration ensure that youth have a collective voice, and local and national systems support them through well-coordinated and cost-effective services across relevant sectors. 4. Philanthropic, private sector and alternative financing models Contributors to this LinkedIn discussion highlighted the potential of crowdfunding, community-based giving and public-private partnerships as flexible, long-term financing options to bridge funding gaps. The private sector can invest in youth-led innovation and social enterprise models. 5. Investing in youth systems and capacity building Partners and policymakers must invest in institutions that support youth, including networks, civil society infrastructure and leadership pipelines. Building youth capacity in project design, advocacy and resource mobilization is crucial for the long-term sustainability of youth-led development and innovation. The bigger picture Educated, skilled young people who are confident about their place in the world and the opportunities open to them will drive economic growth, decrease inequalities and build more resilient societies. Reduced development assistance does not have to mean reduced ambition. However, to maintain momentum towards the SDGs and other global and national development agendas, we must ensure that young people are not left to carry the burden of shrinking budgets alone. The world cannot afford to waste the energy, innovation and leadership of the 2.4 billion youth worldwide. Disclaimer: The views in this article are those of the authors and are based on personal experience and prior research. They do not necessarily reflect the views of the organization with which the author is affiliated. ARIEL 1: So it's about empowering young people themselves to be leaders and drive change. ARIEL 2: Exactly! The article concludes by emphasizing that educated and skilled young people are key to economic growth and building more resilient societies. Reduced aid doesn't have to mean reduced ambition, but we need to make sure young people aren't left to carry the burden of shrinking budgets alone. The world can't afford to waste the potential of billions of young people. ARIEL 1: Sooo confusing, right? Learn more @EGreenNews! What shocked you more - the sheer amount of funding being cut or the potential for increased pregnancy-related deaths? ARIEL 2: And before we leave, lets give a big Shoutout to the people at EGreenNews, including its founder, Hugi Hernandez for promoting transparency 24×7! Mmm, who knows, maybe you can find them on the web or linkedin. But anyways, please,always remember to be good with yourself. So bye for now, aand we hope we see you next time! ARIEL 1: So its great to be here with you ariel and thanks for having me, ciao ciao!