President Donald Trump’s executive order suspending US foreign aid funding for 90 days, signed on January 20, 2025, has sent shockwaves through humanitarian organizations operating in Yemen.
The aid freeze coincides with Trump's decision to relist Yemen’s Houthi movement as a "Foreign Terrorist Organization" (FTO), adding another layer of complexity to a country already grappling with economic collapse, food shortages, and a prolonged war that has pushed millions to the brink of famine.
According to officials from Yemen’s Ministry of Social Affairs and Labor in Aden, the impact of the US aid suspension is already being felt.
The ministry has received dozens of notices from local NGOs over the past week, reporting funding cuts, reduced operations, and mass layoffs affecting hundreds of aid workers.
Most of the affected organizations operate in Houthi-controlled areas in northern, central, and western Yemen, where population density is highest.
Officials declined to provide further details but warned that the suspension of relief programs would exacerbate unemployment and economic instability in an already fragile country.
A director of a local aid organization in Houthi-controlled Sanaa, speaking anonymously, expressed concern that the suspension of US Agency for International Development (USAID) funds would not only impact beneficiaries but also humanitarian workers, many of whom are now facing job losses.
However, some Sanaa residents remain indifferent, arguing that USAID’s presence in Yemen has been minimal and that local civil society groups have done little to alleviate suffering.
Mehdi Mohammed Al-Bahri, a resident of Sanaa, told Reuters that USAID’s operations in Yemen are barely visible, as the agency primarily supports civil society and human rights groups rather than direct humanitarian relief.
Another resident, Zaid Al-Hassan, echoed similar sentiments, stating that the latest US decision would have little impact, given that many Yemenis have received no assistance from USAID or other international relief groups in recent months.