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The Impact of USAID Suspension on LGBTI+ Civil Society Organisations

A New Research Report by Kaleidoscope Trust

 

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In the wake of widespread funding cuts from the dismantling of USAID, LGBTI+ programmes have been scaled down and, in many cases, completely shut down. This has led to rapid, adverse outcomes for LGBTI+ individuals, communities, and civil society organisations. In response to this crisis, Kaleidoscope Trust (KT) secured emergency funding from the UK’s Foreign Commonwealth and Development Office (FCDO), which was made available to any of our 140 partners directly or indirectly affected by the cuts. Particular consideration was given to organisations most affected– including at highest risk of collapse– as well as those serving multiply marginalised LGBTI+ populations.

KT disbursed over £600,000 across 29 organisations in Africa, Asia, the Caribbean, the Pacific, and Europe in under six weeks. Supported activities included:

  • Strategic planning
  • Research and data collection
  • Advocacy
  • Mental health and wellbeing
  • Project continuation
  • Network-building

All grant recipient partners participated in semi-structured qualitative interviews. These were designed to better understand the impact of the USAID funding suspension on LGBTI+ organisations by exploring the following questions:

  • What were the most significant challenges resulting from the USAID cuts?
  • How have organisations amended their missions and strategies in the short term?
  • Which programmes have been most affected?
  • How have organisations adapted to survive?
  • What are the perceived long-term impacts of this crisis?

Our research concluded that organisations face three primary challenges as a result of the USAID cuts:

  1. Financial precarity: Sudden funding gaps led to immediate layoffs, closure of community centres, and the shutdown of essential services, affecting communities already often facing financial precariousness.
  2. Service disruption: Vital programmes in health, legal support, and crisis response were reduced or eliminated, increasing community vulnerability.
  3. Long-term setbacks: The crisis created a loss of trust and partnership, weakened advocacy momentum, and exposed the limits of donor funding models that prioritise short-term deliverables over long-term sustainability and movement-building.

Download the full report or learn more about our global response.