As the Trump Administration’s “America First” agenda pushes for sweeping domestic reforms, proposed budget cuts to the United States Agency for International Development (USAID) cast long shadows over American soft power, with experts warning of far-reaching implications for African stability.

Since its inception in 1961, USAID has underpinned US foreign policy, channeling over 40 billion dollars in 2023 to projects across 130 countries. A notable portion – 1.676 billion dollars – was earmarked for Ethiopia, marking the largest African aid package and second only to Ukraine.

The funding has been critical in responding to severe drought, conflict-driven displacement, and acute food insecurity in a country emerging from a two-year civil war that broke in 2020.

Officials argue that the Agency’s interventions have not only saved lives but also countered the growing influence of Chinese and Russian assistance in Africa.

“Reducing our aid at a time when stability is most needed could create a vacuum for rival powers,” one policy analyst familiar with the matter observed.

In November 2024, USAID launched the 31 million dollar Markets for Sanitation (M4S) project in Ethiopia. Designed as a five-year initiative, M4S sought to extend access to basic sanitation for 5.4 million Ethiopians while empowering 180,000 women and girls with essential menstrual health and hygiene products.

According to USAID Ethiopia Mission Director Scott Hocklander, the program's transformative ambition was to “unlock the power of markets to drive change and give Ethiopian citizens ownership of that change.”

The M4S project is part of a broader Water, Sanitation, and Hygiene portfolio, which currently commands an investment of 190 million dollars to enhance safe water access and sanitation in urban and rural areas.