As the Trump Administration gears up for a second term, those doing business with the federal government—contractors, grant and cooperative agreement recipients—brace for potential impacts on federal appropriations, contracts, and grants.
In a recent Aid Market Podcast, Konektid’s CEO Mike Shanley and experienced panelists discussed what to expect in 2025 and the new Administration in the USAID Market Annual Year End Show. Budget cuts seemed certain, but much depends on the new Administrator and the broader context of foreign assistance. Countering China will remain a priority. Locally led development will stay in focus. Economic growth programs will climb further up the funding priority list. While “climate change” as a program might be dropped, mitigating its impact will remain important. The Mexico City policy is expected to be reinstated. Multilaterals and PIOs will not be the favored implementing partners of USAID under the new Administration. MCC will be the preferred model, especially given their commercial contracting practices. As stated by one of the panelists, Be Ready to Pivot.”
The new Administration will have the authority to impose its own priorities on program funding. However, the way they cut, re-program, or refuse to spend funds is constrained by law. A recent article by Pillsbury Winthrop Shaw Pittman LLP on these authorities may provide some reassurance that development and humanitarian programs will not come to a complete stop.
Listen to the Aid Market Podcast on YouTube here.
Read Pillsbury Winthrop Shaw Pittman LLP: Trump 2.0: What Happens to Federal Funding?
