USAID Freeze Halts Circulation of Life-Saving Drugs Across the Globe

India Pharma Outlook Team | Friday, 14 February 2025

 USAID Freeze Halts Circulation of Life-Saving Drugs Across the Globe

Hundreds of millions of dollars' worth of life-saving medical supplies are stranded in warehouses and on ships worldwide due to former U.S. President Donald Trump's decision to freeze foreign aid, sources familiar with the humanitarian program told Reuters.  

The freeze, issued on Trump's first day in office on January 20, was intended to last 90 days while programs were reviewed for alignment with the "America First" agenda. However, despite subsequent waivers allowing some life-saving work to resume, many USAID partners and contractors remain unable to proceed, disrupting the global supply chain for U.S.-funded medical aid.  

As a result, critical goods—including medical oxygen, tuberculosis (TB) drugs, and HIV treatments—remain stalled, at risk of damage, expiry, or theft, while patients and healthcare providers face shortages. Jerry Amoah-Larbi, coordinator of Ghana’s National TB Voice Network, warned that clinics, particularly in remote rural areas, are on the brink of running out of tests and treatment. "By the end of this month, we are going to have shortages of treatments for TB," he said.  

At least $20 million worth of medical oxygen and related supplies, sufficient to aid hundreds of thousands of people with life-threatening respiratory issues, remain stuck at various points in the supply chain—including on ships, at ports, and in hospitals where infrastructure work has ceased, according to a USAID contractor.  

This disruption has led to legal action, with USAID contractors filing lawsuits over the aid freeze. One plaintiff, the U.S. sustainable development firm Chemonics, reported that $240 million worth of medicines and health supplies remain in limbo. The lawsuit did not specify which products are included in this estimate.

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