Impact of USAID Reductions Extend Beyond Washington, D.C.: Job Losses Nationwide

While participating in an online meeting from her home in Little Rock, Arkansas, Lindsay Brown was informed that adjustments to staffing were necessary because the U.S. Agency for International Development had failed to disburse funds to her nonprofit employer.

Brown, whose role in internal communications at FHI 360 was crucial, saw her employment status put on hold soon after this announcement.

Her employment at FHI 360 is set to conclude on May 2.

She is among numerous workers—nearly 20,000—residing in various states like North Carolina, Vermont, California, and Georgia, facing job loss due to the Trump administration's measures to reduce USAID operations.

Broad Implications of USAID Job Cuts

Secretary of State Marco Rubio, overseeing the agency, announced Tuesday plans for substantial eliminations, cutting roles not legally essential and merging state offices into the State Department. These reductions particularly affect workers far from D.C., already grappling with the erosion of their job sectors.

USAID was integral in providing federal funds to numerous enterprises, organizations, and academic institutions to support foreign aid-related work. Many employees, having already faced furloughs, now find their roles permanently dissolved.

Tracking the Economic Fallout

The USAIDstopwork platform, which monitors the economic repercussions, reports substantial job losses affecting 46 states, excluding Maryland and Virginia. North Carolina, New York, Vermont, Massachusetts, in addition to California, are among those most impacted. For instance, USAID supported 79 programs across 18 organizations in Georgia, yet 44 programs are now closed, leading to job losses and an estimated $257.9 million cut in funding.

Navigating a Turbulent Job Market

Being displaced from employment can be isolating, particularly for those outside Washington's metropolitan area. "I've exhausted all my savings during this furlough, while FHI 360 is in a tussle for overdue government payments. Accessing resources like unemployment is challenging here in Arkansas," Brown shared with CBS News. Although they've communicated about job reductions, the reality remains harsh.

FHI 360's CEO, Tessie San Martin, revealed their need to let go of 480 U.S.-based staff, with 140 employees from its North Carolina headquarters among them.

"FHI 360 isn't the only one feeling this impact," wrote San Martin. "Foreign service professionals, USAID workers, associates in our industry, and technical specialists globally are all vital parts of what has been a significant area of the U.S. economy."

Formerly located in Chapel Hill, North Carolina, Wayan Vota worked with an international development entity until February when layoffs were rampant.

Widespread Effect

Vota observed, "Layoff distress reached nationwide," underscoring that the ramifications extend well beyond the federal staff based in the capital's vicinity. To assist similarly affected contractors and federal workers following the significant layoffs, he started a newsletter, which has rapidly grown to over 12,000 subscribers, anticipating further reductions.

He predicts the situation will deteriorate further when remaining USAID workers no longer receive their paychecks, with many transitioning into payment suspension by either July 1 or September 2, based on internal correspondence accessed by CBS News.

Career Transition and Confusion

Some displaced professionals, especially those outside D.C., are pivoting to private or state roles. Others contemplate withdrawing from traditional job markets due to the scarcity of suitable roles in their regions. Vota mentions, "Job hunters mention not finding roles they’re qualified for or interested in, leading them to accept any work, such as driving for Uber or waiting tables, as past ambitions now feel unattainable."

Kasia Hatcher, aged 45, had to relocate from Virginia to Georgia after losing her position, which subsequently led to her division's closure owing to funding withdrawal.

With two decades in international development, Hatcher finds the US job losses disheartening, lamenting how quickly opportunities vanished.

After accruing significant expertise over 20 years, becoming known for her competence posed the challenge of starting anew. She remains optimistic while job-hunting in human resources within Atlanta.

"There's a lot I can bring," she remarked.