The United States Agency for International Development (USAID) is an independent federal government agency primarily responsible for administering civilian foreign aid and development assistance. Established by President John F. Kennedy in 1961, USAID’s mission has been to promote economic growth, agriculture and trade; global health; and democracy, conflict prevention, and humanitarian assistance in developing countries. Lebanon, with its strategic location in the Middle East, has been a significant beneficiary of USAID’s programs, which have aimed at fostering stability, prosperity, and democratic governance amidst a backdrop of regional turmoil and internal challenges.
Over the years, USAID has worked tirelessly in Lebanon to address the multifaceted challenges facing the nation.
Economic Growth and Job Creation
USAID has been instrumental in supporting Lebanon’s private sector. Through the Lebanon Investment in Microfinance (LIM) program, USAID has facilitated over $100 million in loans to small and medium-sized enterprises (SMEs), significantly contributing to job creation and economic revitalization.
USAID launched the Lebanon Enterprise Development (LED) initiative in collaboration with Berytech to support business growth across Beirut, Mount Lebanon, South Lebanon, and the Bekaa region. This initiative provided tailored business development services, offering specialized technical support to local enterprises to help them overcome obstacles, improve productivity, and enhance profitability. As a result, more job opportunities were created for Lebanese citizens.
Expanding its efforts, LED partnered with the Business Incubation Association in Tripoli (BIAT) to support businesses of all sizes across various industries, including agro-food, tourism and hospitality, pharmaceuticals and healthcare, information and communications technology, fashion and apparel, and manufacturing. By working closely with stakeholders, LED aimed to identify challenges in the business environment, assess their impact, and develop effective solutions.
Highlighting the significance of these efforts, Dr. Patterson remarked, “Lebanon’s small- and medium-sized enterprises, together with the capability and entrepreneurial spirit of its people, have the ability to grow this economy and generate more jobs—often with just a little push or a helping hand to achieve more. USAID’s partnership with the private sector has gone a long way in supporting resilience, enhancing growth, and expanding opportunities for the Lebanese.”
Similarly, Maroun Chammas, Chairman and CEO of Berytech, shared his enthusiasm: “Berytech was chosen as the Business Promotion Partner for three regions, and we couldn’t be happier to be part of such a great undertaking for Lebanon with the generous funding of USAID. Our shared objectives with LED include, above all, preventing brain drain from Lebanon by supporting job creation. Berytech was the first technology magnet in Lebanon and the region, providing a conducive environment for Lebanese start-ups and SMEs. We are proud that our model has proven successful. Thanks to our rigorous corporate governance standards aligned with international ones, donors trust us with their programs and investments.”
USAID further strengthened Lebanon’s workforce development by committing $7.3 million toward improving access to high-quality technical and vocational education and training (TVET). This initiative aimed to highlight employment opportunities, enhance connections between training programs and private-sector jobs, and equip individuals with in-demand skills.
In an effort to reshape public perceptions of the TVET sector, USAID launched the Community Support Program (CSP), a media initiative that engaged 13 private TVET institutions and 48 partner businesses. The program showcased the accomplishments of USAID’s workforce development efforts, which improved employment prospects for at least 1,000 Lebanese individuals.
Speaking at the initiative’s closing event, Nicholas Vivio, USAID’s Supervisory Program Officer, emphasized the organization’s long-standing commitment to education: “Our support for the education sector is not new. For years, we have collaborated with the Lebanese people to improve learning quality and develop future leaders. Our key goal has always been, and remains, to help partner TVET institutions become sustainable, demand-driven models while enhancing skills and job opportunities for at least 1,000 unemployed or underemployed Lebanese from vulnerable backgrounds. I firmly believe this campaign has played a role in changing perceptions, reinforcing the idea that vocational and technical education can open doors to promising career paths and economic growth for Lebanese youth.”
The campaign was informed by a survey conducted by CSP, which revealed that despite improvements in TVET curricula and training, public recognition of its role in enhancing employability remained limited. To address this, USAID launched a comprehensive media awareness campaign that included televised interviews, radio discussions, and social media outreach, ultimately reaching over 1.5 million people.
Through CSP, USAID developed and updated vocational courses in high-demand fields such as home-based healthcare, industrial repair and maintenance, and information and communication technology (ICT). These programs, offered through 13 partner TVET institutions, included scholarships for job seekers and partnerships with private-sector businesses to facilitate employment opportunities. Additionally, USAID’s efforts were reinforced by a network of stakeholders—including donors, educational institutions, businesses, and local authorities—working together to develop a national strategy for TVET reform.
Further expanding its impact, USAID introduced the Livelihoods and Opportunities for Women and Youth (LOWY) initiative to enhance employability, vocational training, and entrepreneurship support. This initiative led to the creation of over 5,000 jobs while also fostering an entrepreneurial culture in Lebanon. Beyond financial support, LOWY provided technical assistance, enabling businesses to scale up and become more competitive. It also introduced digital financial services, improving access to funding, particularly for those in remote or underbanked areas.
LOWY’s focus extended beyond job creation to addressing societal norms around women’s workforce participation. By implementing gender-sensitive training programs and supporting women-led businesses, the initiative significantly contributed to increased economic participation among women.
Through these multifaceted efforts, USAID has played a crucial role in strengthening Lebanon’s socio-economic growth, empowering businesses, and creating sustainable opportunities for its people.
USAID’s impact in educating the masses
The education sector in Lebanon has seen substantial improvements thanks to USAID’s interventions. The Quality Instruction towards Access and Basic Education Improvement (QITABI) project improved teaching quality in public schools, particularly in underserved areas.
This program trained over 12,000 teachers and benefited approximately 300,000 students through enhanced educational resources and methodologies (USAID, 2022). Additionally, USAID has supported the integration of Syrian refugees into the Lebanese educational system, reducing dropout rates and fostering social cohesion.
USAID’s Quality Instruction towards Access and Basic Education Improvement (QITABI) program has been instrumental in not just improving teaching methodologies but also in fostering an inclusive education system. QITABI has introduced student-centered learning approaches, provided schools with necessary educational materials, and supported the development of school management systems. It has particularly focused on improving reading and math skills among students, which are fundamental for further educational success.
Support for Syrian Refugee Integration: USAID has worked with the Lebanese Ministry of Education to integrate Syrian children into the national education system. This includes building additional school facilities, training teachers to handle diverse classrooms, and providing psychosocial support to students, many of whom have experienced trauma.
USAID’s impact on the health sector
In the realm of health, USAID has made strides in bolstering Lebanon’s public health infrastructure. The Strengthening Primary Health Care (SPHC) project helped in upgrading primary health care centers across the country, enhancing services for both Lebanese citizens and refugees. USAID’s support was crucial during the global health crises, including contributing to Lebanon’s response to the COVID-19 pandemic by providing emergency health assistance, vaccines, and training for healthcare workers (USAID, 2021).
Strengthening Primary Health Care (SPHC): This project has not only upgraded physical infrastructure but has also focused on capacity building for healthcare workers. It includes training in new medical technologies and practices, particularly in primary care settings. During the COVID-19 response, SPHC was crucial in setting up testing facilities, vaccine distribution centers, and awareness campaigns.
USAID’s impact on Water, Sanitation, and Infrastructure
Water scarcity and poor sanitation have been persistent issues in Lebanon. USAID’s Lebanon Water Project (LWP) has been pivotal in improving water management and sanitation services. By rehabilitating water networks and introducing modern water management techniques, the project has directly benefited over half a million people, reducing water loss and enhancing public health outcomes (USAID, 2023).
Lebanon Water Project (LWP): Besides infrastructure improvements, LWP has introduced innovative solutions like solar-powered water pumps and water conservation programs. It has also worked on policy reforms to ensure sustainable water management practices. This project has been vital in areas hit by displacement due to conflicts, ensuring water access to both host communities and refugees.
USAID’s impact on Governance and Civil Society
USAID has also played a significant role in promoting good governance and strengthening civil society. The Lebanon Accountability and Transparency (LAMP) project aimed at enhancing government transparency, accountability, and public participation. This included support for anti-corruption measures, civic engagement initiatives, and electoral reform processes (USAID, 2022).
Lebanon Accountability and Transparency (LAMP): LAMP has engaged in multiple fronts to enhance governance. This includes support for civil society organizations to monitor elections, public procurement processes, and budget transparency. It has also facilitated public dialogues to increase civic participation in governance, aiming at reducing corruption through public oversight and accountability mechanisms.
These initiatives by USAID in Lebanon illustrate a holistic approach to development, tackling immediate needs while laying the groundwork for sustainable growth and stability. Each program is designed to interlink with others, ensuring that improvements in one sector bolster advancements in another, all aimed at fostering a resilient, inclusive, and prosperous Lebanese society.
Trump Administration’s halts USAID Operations in Lebanon
In the last two weeks, in his classic signature move which typically results in disfunctions and chaos, the Trump Administration halted all new programming and issued a comprehensive “stop-work” order for all ongoing U.S. foreign aid projects, while dismissing more than 50 senior civil and foreign service USAID officials.
“No U.S. foreign assistance shall be distributed in any manner that is not fully aligned with the foreign policy of the President of the United States,” reads the executive order signed by Trump on January 20, the day he was inaugurated.
As if that wasn’t enough of a shock, the Trump Administration also announced its intention to dissolve USAID, midst floating rumors that the President intends to merge its functions with the State Department.
Employees at USAID headquarters were abruptly told to not come to work and later that day, Secretary of State Marco Rubio, declared himself as the interim administrator of the agency.
This chaos unfurled by Trump led to layoffs / furloughs of hundreds of USAID contract workers, affecting thousands employed by NGOs and other organizations downstream which were dependent on USAID funding.
The impact and significance of this development transcends its tiny portion of the federal budget. USAID is pivotal for U.S. foreign policy, security, and global influence.
While reforms in foreign aid may be necessary and they have been pursued by previous administrations, so as to enhance its impact and efficiency, such works have most often been in collaboration with Congress. Notable reforms include the creation of the Millennium Challenge Corporation and the U.S. International Development Finance Corporation, which have aimed at fostering sustainable partnerships and infrastructure investments.
The Trump Administration’s approach at reforms of USAID by wholeheartedly dismantling it may be equivalent to a butcher’s approach at saving a patient whereas what is required are the skills of a a surgeon.
This cavalier approach has sparked concerns among some members of the Congress and the media, highlighting the role of foreign aid in mitigating international threats like corruption, conflict, and trafficking.
Reforms at USAID should focus on enhancements and not abject eradication. What is required is a carefully balanced strategy aimed at refining U.S. foreign assistance, certainly not bludgeoning it with a meat cleaver the way the current Administration is going about with its USAID reforms agenda.
The Trump Administration’s decision to freeze USAID and potentially dismantle the agency has understandably sent shockwaves through Lebanon’s development landscape given that the agency has disbursed more than $1.3 billion through aid programs in the country covering sectors including agriculture, education, and water.
Immediate Program Disruption
Programs like LIM and LOWY faced immediate cessation, leading to a halt in economic activities and job opportunities that were crucial for many Lebanese families, exacerbating the economic downturn.
The sudden stop in educational initiatives like QITABI has left schools without necessary support, potentially reversing gains in educational quality and access.
“No directives have been issued regarding the operation of the institution or the programs it funds. For now, beneficiaries have been informed of the suspension of aid until further notice, pending additional details,” said a source.
Since 2000, USAID under its basic education initiatives, USAID has provided nearly 10,000 scholarships benefiting around 87,000 students. According to the official website of the US Embassy in Beirut, since 2010, USAID has supported more than 1,300 university students with financial assistance.
USAID’s website is currently unavailable. The website of the official US Embassy in Beirut states, “USAID plays a significant role in advancing good governance and expanding economic opportunities for low-income Lebanese citizens.”
Exuberates Lebanon’s on-drip economy
As a result of Trump’s order to halt USAID, programs such as the Livelihoods Improvement through Market Access (LIM) and the Livelihoods Opportunity for Women and Youth (LOWY) have abruptly come to a halt.
These programs were pivotal in stimulating economic activities and providing job opportunities, which were critical for Lebanese households amidst its economic crisis. The cessation of these programs has directly contributed to an increase in unemployment and economic distress, further deepening Lebanon’s economic downturn.
The Quality Instruction Towards Access and Basic Education Improvement (QITABI) initiative, along with other educational programs, has been significantly affected. Schools that once benefited from USAID’s support—receiving educational materials, teacher training, and infrastructure development—are now facing a void. Without these resources, the quality of education and access to learning opportunities are at risk, potentially undoing years of progress.
The impact extends beyond education and into healthcare, where the abrupt end of health programs has left many primary care centres struggling. At a time when Lebanon is already facing immense health challenges, – such as the lingering effects of the Beirut explosion and the ongoing needs of refugee populations – these centres are now unable to provide essential services. The funding freeze has resulted in shortages of medicines, medical supplies, and even salaries for healthcare workers, directly affecting the well-being of vulnerable communities.
Mental health services have also been severely disrupted. Lebanon was already grappling with a mental health crisis, intensified by the economic collapse and the 2020 Beirut port explosion. USAID-funded programs that once provided psychological support and counselling for trauma survivors have come to a halt, leaving many without the critical care they need.
The situation is equally dire for maternal and child health. Programs aimed at reducing maternal mortality and improving child nutrition have been put on hold, threatening the health of pregnant women and infants. In a country where economic struggles have already made access to proper nutrition and healthcare difficult, this suspension could lead to rising rates of malnutrition and pregnancy-related complications.
Refugee health programs, another crucial pillar of USAID’s support, have also suffered. Lebanon hosts one of the world’s largest refugee populations per capita, with Syrian and Palestinian refugees heavily reliant on USAID-funded health services. The funding freeze has disrupted vaccinations, chronic disease management, and other essential care, raising concerns about potential outbreaks of preventable diseases and an overall decline in refugee health.
Governance and Civil Society at Risk
The freeze has also put at risk initiatives aimed at governance reform and civil society strengthening. With USAID’s support paused, there’s a potential decline in civil society’s capacity to advocate for transparency and democratic governance, which might lead to increased corruption and reduced public trust in government institutions.
A significant setback for Lebanon
USAID’s contributions to Lebanon over the last five years have been profound, touching almost every aspect of Lebanese life, from economic empowerment to public health. However, the recent administrative decisions under the Trump administration have put these achievements at risk. The cessation of USAID programs could lead to significant setbacks in Lebanon’s development trajectory, underscoring the critical need for a reassessment of how vital these programs are to both the U.S. and Lebanese interests. The future of Lebanon’s development now hangs in a delicate balance, awaiting either the resumption of these vital supports or the emergence of alternative solutions to fill the void left by USAID’s absence.
