According to U.S. Foreign Assistance data, American agencies provided $180.4 million in total support to Iraqi organizations and institutions in 2024, with USAID contributing $151.4 million, representing 84% of total U.S. assistance.

A detailed analysis of USAID’s 2024 allocation reveals that the majority of funding – $83 million or 64.8% – was directed toward “government technical support,” primarily consisting of technical services, advisory consulting, and systems support. This heavy emphasis on technical consulting over direct program implementation has raised questions about aid effectiveness.

The remaining allocations show a stark contrast: $22.6 million (17.6%) for returnee support programs, $12.1 million (9.4%) for economic development, $7 million (5.4%) for civil society programs, and just $3.6 million (2.8%) for other initiatives including environmental projects and laboratory equipment.

Local organizations in Iraq and the Kurdistan Region are experiencing considerable uncertainty following reports about USAID’s potential closure. This anxiety is particularly acute among organizations benefiting from USAID development projects across Iraq and Kurdistan Region.

In recent years, USAID’s focus in Iraq has encompassed internally displaced persons’ reintegration, poverty reduction initiatives, water infrastructure development, education sector support, and economic development programs. The agency has also maintained partnerships with local organizations for administrative programs and civil society initiatives.

A UNICEF employee, speaking on condition of anonymity, told Al-Alam Al-Jadid that project teams across several provinces face uncertainty due to lack of formal guidance about program continuity and absence of information regarding alternative funding sources. This uncertainty particularly affects beneficiary groups and organizations dependent on USAID support.

Notable among recent initiatives was USAID’s $20 million investment in water and sanitation services, announced in late 2023. This UNICEF-partnered project, planned for implementation in Maysan, Diwaniyah, Nineveh, Baghdad, and Erbil, aimed to enhance infrastructure and service quality for approximately 2.5 million people.

The controversy over USAID spending emerged when Iowa Senator Joni Ernst criticized certain projects, including a $20 million children’s television series in Iraq. The project, “Ahlan Simsim Iraq,” was designed to promote social cohesion among different ethnic, sectarian, and religious groups, though Ernst characterized it as wasteful spending.

Before its website closure, USAID had acknowledged Iraq’s ongoing recovery from crisis and war, highlighting particular challenges facing Iraqi youth, who constitute approximately half the population. The agency noted the persistent impact of the ISIS conflict, which displaced numerous children, especially from minority communities, and the broader challenges of unemployment exacerbated by war and corruption.

The potential cessation of USAID programs could significantly impact the State Department’s development initiatives globally, potentially reshaping international development dynamics, particularly in regions heavily dependent on U.S. assistance for critical services and infrastructure development.