European allies to the US are trying to recover a combined $15 million in contributions held by the US Agency for International Development (USAID) after funding cuts under the Trump administration’s cost-cutting measures.
Officials from Sweden, Norway, and the Netherlands claimed the funds were intended for joint international development projects in low-income countries but have reportedly remained unused at USAID for months. Following budget reductions by the Department of Government Efficiency (DOGE), the European nations requested confirmation on whether their contributions would be allocated as planned or refunded. However, they claim they have not received a response.
“It’s a concern for us, especially as we want our partner organizations to be compensated for the work they have put into the programs,” Julia Lindholm, a spokesperson for the Swedish government’s international development agency, told the Associated Press.
The Trump administration has prioritized cutting government spending, particularly in foreign aid, canceling various development contracts as part of a broader effort to reduce US expenditures amid continued budget deficits. It remains unclear how many foreign governments have funds tied up in USAID’s joint development programs and how much remains unspent or unreturned due to the funding freeze.
The three European nations had partnered with USAID on the Water and Energy for Food (WE4F) initiative, which aims to help farmers in impoverished countries increase food production without overburdening water resources. Sweden estimates that it has approximately $12 million in USAID accounts, including $5.1 million earmarked for WE4F.
Lindholm warned that the failure to disburse or refund the funds is harming ”6 million of the poorest and most vulnerable farmers in the world who are dependent on the technologies for their food production and food security.” Sweden, Norway, and the Netherlands have contacted USAID for clarification but have not received a response.
“Donor partners are now exploring other opportunities to continue to run the WE4F programme to ensure a responsible completion,” Lindholm said.
