Defunded dreams

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s with nongovernment initiatives in other countries that are dependent on U.S. aid for funding, those in Myanmar have been placed in jeopardy since January. The abrupt freeze on the funds and operations of the U.S. International Agency for Development (USAID) by the Trump administration has disrupted vital programs focused on humanitarian relief, democracy promotion, accountable media, civil society empowerment, and governance reform not only in Myanmar, but in many other nations. 

The difference, though, is that for Myanmar, U.S. support for these efforts had been explicitly reaffirmed under the Burma Act within the National Defense Authorization Act (NDAA). The Burma Act authorized appropriations from fiscal years 2023 to 2027 for assistance programs designed to strengthen federalism, support ethnic armed organizations (EAOs), and bolster pro-democracy movements. The Act also provided for non-lethal support to resistance groups and initiatives documenting war crimes committed by Myanmar’s military. Crucially, the act prohibited any aid from reaching the State Administration Council (SAC), the Myanmar military, or their affiliated entities.

But when U.S. President Donald Trump ordered a sweeping 90-day review of U.S. foreign assistance on January 24, 2025, immediately freezing USAID activities worldwide, even those in Myanmar were not spared.

(“Burma” was what the Southeast Asian country was known as until 1989, when the military changed its name to “Myanmar.” Most countries and even the nation’s own people resisted calling it Myanmar up until a decade or so ago, as a sign of defiance against the military. The United States, however, continues to refer to the country as “Burma.”)

The suspension of USAID operations in Myanmar has placed $39.5 million in pledged funding on hold, jeopardizing crucial support for democracy, human rights, and independent media. The halted funds include: $8 million for seven human rights protection projects; $30 million for nine democratic governance initiatives; and $1 million for two programs strengthening independent media.

These resources played a vital role in bolstering organizations that resist military rule and uphold democratic values. With U.S. financial support withdrawn, Myanmar’s pro-democracy movement faces significant setbacks, while authoritarian forces—especially China’s influence—stand to grow unchecked. If the freeze continues, the long-term damage to democratic efforts and governance reforms could be severe.

Not quite déjà vu

Yet while this may be the first time USAID funds and operations have been suspended worldwide, the U.S. aid agency had shut its doors in Myanmar before. Indeed, that closure of the USAID mission in Myanmar lasted from 1989 – in protest over the military’s violent crackdown on the pro-democracy opposition the year before – to 2012, when the country was gearing up toward a transition to democracy. 

During the years that USAID was absent in Myanmar, however, the United States still provided aid to Myanmar refugees on the Thai-Myanmar border through the U.S. State Department’s support of NGOs working with these communities. An official U.S. State Department fact sheet on U.S.-Burma relations also says that before USAID reopened in Myanmar in 2012, the United States had “resumed targeted health programs (in Burma) in 1998 and scaled up assistance efforts in response to the devastation caused by Cyclone Nargis in 2008.”  

It was thus understandable that after the sudden freeze on USAID operations and funds last January, Myanmar activists and pro-democracy groups placed their hopes on the implementation of the Burma Act and the allocation of legally authorized assistance. But those hopes have since been rapidly fading. Aside from USAID, Trump has also targeted the National Endowment for Democracy (NED) and the United States Institute of Peace (USIP)—two key institutions that support global democratic movements. While exact figures remain unclear, NED has already suspended support for Myanmar-based CSOs and grassroots organizations, forcing staff layoffs and operational cutbacks. Considering the vicious and repressive ways of the Myanmar junta, this disruption is particularly damaging, with frontline democracy advocates now facing heightened security risks without financial backing.

Initial figures indicate that $919,610 billion worth of projects with USAID support have already been canceled worldwide. Pete Marcoco, a deputy administrator of USAID, revealed that nearly 5,800 awards are set for termination, with only around 500 expected to survive. According to the latest tweet from U.S. State Secretary Marco Rubio, meanwhile, 5,200 USAID contracts have been terminated, while 18 percent of its programs — approximately 1,000 — will be retained and “administered more effectively” under the State Department. 

It remains uncertain whether any Myanmar-specific projects will be among those 1,000, as no official data on this have been released. The outlook appears grim, however. An official from a USAID-supported organization says that they are already feeling the pinch and laments, “We have no choice but to reduce staff salaries and downsize our workforce. We are now exploring self-sustaining models and alternative fundraising strategies.” 

Shattered hopes

Marcoco had outlined USAID’s policy justifications for the program terminations, which include: 1) diversity, equity, inclusion, and accessibility (DEIA)-oriented awards; 2) unnecessary reliance on third-party consultants and contractors; 3) high operational expenses and general waste; 4) projects unrelated to USAID’s core mission of life-saving aid delivery; 5) regime change, civil society, or democracy promotion activities; 6) sustainability and climate change initiatives; and 7) inconsistencies with presidential executive orders and directives.

Given these criteria, USAID projects in Myanmar focusing on democracy, governance, and human rights are unlikely to survive the funding purge. In fact, a cursory survey by Asia Democracy Chronicles (ADC) of USAID-supported NGO activities in or related to Myanmar indicates that nearly all those focused on human rights and democracy promotion have already received termination notices. 

Education programs and initiatives have also been hit. Among the first casualties is the five-year, $45-million Diversity and Inclusion Scholarship Program (DISP). 

After Trump’s re-election, Elon Musk’s Department of Government Engagement (DOGE) criticized the program on social media, prompting officials to rename it the “Development and Inclusive Scholarship Program” in an attempt to salvage its funding. Despite its new label, the program has been terminated without a thorough review.

The scholarship program provided merit-based financial support to students whose education had been disrupted by Myanmar’s political crisis. With Myanmar’s formal education system in collapse, the scholarship offered a lifeline to hundreds of displaced students, enabling them to continue their studies abroad. Its termination now leaves 400 scholarship recipients stranded—facing uncertain futures, potential forced returns to Myanmar, and the looming threat of military conscription.

“Our future was stolen by the Myanmar military in February 2021,” says one of the program’s scholars. “This scholarship was my only chance to rebuild my life, to dream again. For the first time in years, I felt safe enough to study, to hope for a future where I could contribute to my homeland. But President Trump’s decision has shattered that hope.”

Another scholar, Pho Kho, who is studying in Thailand, shares, “As a student from Myanmar, I face not only financial challenges but also the uncertainty of returning to a country under military rule, where conscription laws pose a serious risk.”

“I’m not alone in this situation,” he adds. “Many of my fellow students who were part of the Development and Inclusive Scholarship Program have also been unable to continue their studies due to the funding cut. This has not only affected our individual futures but also the broader potential for positive change in our communities.”

The scholarship program had funded grassroots education initiatives as well, which helped thousands of students gain access to learning opportunities. With its cancellation, these aspirations have been crushed, leaving Myanmar’s youth with dwindling options for higher education and professional development.

Other education programs, particularly those serving conflict-affected and marginalized communities have also been severely affected by the suspension of USAID funding. Many initiatives designed to provide learning opportunities for displaced and vulnerable populations, including the Rohingya and other minorities, have been halted abruptly.

A director of Spring University Myanmar, one of the affected institutions, describes plans that have now gone up in smoke: “With USAID’s support, we had planned to collaborate with U.S. universities and expand education programs for conflict-affected and rural communities. One such initiative aimed to provide educational access to vulnerable groups, including the Rohingya and other minorities.”

“This abrupt suspension has forced us to halt some programs, reduce staff, and cut allowances,” continues the educator. “These initiatives were not developed overnight—we spent two years advocating with U.S. authorities to secure this support. Just when we had the opportunity to implement them, everything was taken away in a matter of days.”

No retreat

The USAID funding freeze is also endangering Myanmar’s independent media sector. Journalists who risk their lives to report on military airstrikes, human rights violations, and illegal activities now face extreme financial uncertainty. Many independent media professionals have already fled to Thailand, where they operate in exile. Without sustainable funding, they may be forced to halt their work entirely—leaving the SAC free to manipulate narratives through China-aligned media outlets.

Warns an individual close to a USAID-funded media organization: “Without USAID funding, independent journalism in Myanmar will collapse. The SAC is already controlling narratives through propaganda, and this will only get worse as media organizations struggle to survive. The 2025 election will be a turning point, and without strong media coverage, the SAC will shape the global narrative in its favor.”

The U.S. has long been a champion of democracy, human rights, and free press worldwide. But the sweeping suspension of USAID funding and related democracy assistance programs signals a retreat from this global leadership role. Myanmar’s pro-democracy movement, independent media, and civil society now face an uphill battle with fewer resources and growing authoritarian threats.

CSOs, including groups overseas supporting the pro-democracy movement in Myanmar, have an ongoing signature campaign to urge the U.S. government to continue supporting NED. But they have also realized that there is no option other than to keep pushing forward, aid or no aid. Notes the Spring University Myanmar director: “Now, we must rethink our approach and explore funding sources beyond donor dependency.”

One member of a CSO based in Mae Sot, Thailand, says, “We are now considering self-generated funding, such as crowdfunding, fundraising, and agricultural initiatives, to sustain our activities rather than relying on donors, who are not always reliable. The needs of our people do not stop just because the funding does.”

“No matter what,” says an official from another CSO, “we will continue our work in human rights and democracy promotion—with or without U.S. support.” ◉

Jesua Lynn is an independent and research consultant. A research fellow at Chiang Mai University, he has an M.A. in Peace and Conflict Studies from the University of Manchester.