USAID Dismantling Devastates Uganda's 1.9M Refugees, Businesswoman Warns

Over 1.9 million refugees in Uganda face food insecurity, inability to access education and healthcare, and some are returning to conflict-affected homelands due to loss of USAID-funded monthly stipends.
Dignity is a luxury when your child is hungry.
A businesswoman reflects on the gap between skills training and immediate survival needs for Uganda's refugee population.

When a government dismantles its foreign aid apparatus, the consequences do not remain in the realm of policy — they arrive at the dinner table, the schoolroom door, the clinic threshold. Uganda, which has long extended an open hand to nearly two million refugees from neighboring conflicts, now finds that generosity stranded by the sudden withdrawal of American funding. What was once a modest monthly stipend — enough to keep a family fed and a child in school — has vanished, and in its absence, some families are choosing to return to the very wars they once fled. The human architecture of international solidarity, it turns out, is only as strong as the commitments that hold it up.

  • The Trump administration's dismantling of USAID in early 2025 was immediate and total, cutting off survival-level support to millions of people with no transition or warning.
  • Uganda's 1.9 million refugees — already among the world's most vulnerable — lost monthly stipends worth roughly ¥1,200, plunging families into one-meal-a-day existence and forcing children out of school.
  • Some South Sudanese refugees have made the harrowing choice to return to an unstable homeland, calculating that known danger is preferable to slow starvation in a country that can no longer support them.
  • Smaller initiatives — like a Japanese-led sewing and handicraft training program — are absorbing what they can, offering refugees skills, income, and dignity, but cannot replace the scale of what has been lost.
  • The broader humanitarian ecosystem in Uganda has contracted sharply, leaving fragile community-based projects as the last line of support for people whose question has shifted from how to build a future to how to survive the week.

In January 2025, the Trump administration moved swiftly to dismantle USAID, the United States' primary foreign aid agency. Aid projects halted immediately worldwide, more than 250,000 workers lost their jobs, and for millions of people whose survival depended on that support, the consequences were not policy abstractions — they were hunger, illness, and despair.

Uganda absorbed the blow with particular severity. Since 1986, the country has maintained a rare open-door refugee policy, granting land, freedom of movement, and access to education to those fleeing conflict in South Sudan, the Democratic Republic of the Congo, Eritrea, and beyond. Nearly 1.9 million refugees now live there — a scale that dwarfs the intake of most wealthy nations. But sustaining that generosity requires external support, and Uganda had been the world's fifth-largest USAID recipient.

When the funding disappeared, so did the monthly coupons worth roughly 28,000 Ugandan shillings — about ¥1,200 — that had kept refugee families functional. Modest by any wealthy nation's standard, the stipends were survival by every other measure. Without them, children stopped attending school, medical care became unreachable, and some South Sudanese families made the desperate calculation to return home despite ongoing political violence, choosing familiar danger over unfamiliar deprivation.

A Japanese businesswoman running a company called Ricci Everyday has watched this unraveling from close range. Her firm, in partnership with UN Women and Peace Winds Japan, trains South Sudanese refugees and local community members in advanced sewing and marketing. The logic is practical: handicraft requires little startup capital, materials are accessible, and the work is labor-intensive enough to generate real income. But the value runs deeper than economics — creating something by hand, earning a customer's appreciation, rebuilds the self-confidence that displacement erodes. Cultural identity, too, finds an anchor in traditional artistry.

These initiatives remain vital, but they are candles against a much larger dark. The question for 1.9 million people in Uganda is no longer how to build a better life — it is how to survive the coming week. The sewing project points toward what dignity and self-sufficiency can look like, even in extremity. But that future requires resources, time, and stability that the present moment has placed painfully out of reach.

In January 2025, the newly inaugurated Trump administration announced the dismantling of the US Agency for International Development, the government's primary foreign aid apparatus. The decision was swift and comprehensive: aid projects worldwide ceased immediately, and more than 250,000 aid workers lost their jobs. For the millions of people whose survival depended on that support, the consequences were not abstract policy outcomes but immediate, tangible catastrophe.

Uganda felt the shock acutely. The country had been the fifth-largest recipient of USAID funding globally, a distinction rooted in its extraordinary humanitarian burden. Since Yoweri Museveni came to power in 1986, Uganda has maintained what amounts to an open-door refugee policy, born partly from gratitude for the sanctuary other nations offered Ugandans fleeing the country's earlier turmoil. Today, Uganda hosts approximately 1.9 million refugees—from South Sudan, the Democratic Republic of the Congo, Eritrea, and elsewhere. The scale dwarfs Japan's refugee intake. The government grants these refugees land, freedom of movement, the right to work, and access to education for their children. It is a remarkable commitment, but one that cannot be sustained without external support.

When USAID funding evaporated, so did the monthly stipends that had kept refugee families afloat. Each month, families had received coupons worth roughly 28,000 Ugandan shillings—about 1,200 yen. The amount was modest by any wealthy nation's standard. It was survival by any other measure. Without it, families collapsed into food insecurity. Children stopped attending school. Medical care became impossible. Some South Sudanese refugees, facing starvation in Uganda, made the desperate calculation to return to their homeland despite its ongoing political instability. They chose the known danger over the unknown deprivation.

A Japanese businesswoman operating in Uganda, who runs a company called Ricci Everyday, has witnessed this unraveling firsthand. Her firm operates a skills-training project in partnership with UN Women and the international NGO Peace Winds Japan, focused on teaching South Sudanese refugees and local community members advanced sewing and marketing skills. The work is deliberate and grounded in practical understanding: sewing and handicraft require minimal startup capital, materials are accessible, and the finished product is tangible. For people with almost nothing, the barrier to entry is low. The work itself is labor-intensive, which means it can generate meaningful income.

But the project's value extends far beyond economics. When refugees acquire marketable skills, they gain a pathway to financial independence. The act of creating something by hand, of receiving positive feedback from customers, rebuilds self-confidence that displacement has eroded. When refugees earn income and engage with their local community, social cohesion strengthens. The mental health benefits of purposeful work are real and measurable. And perhaps most profoundly, handicraft rooted in traditional artistry allows people to maintain connection to their cultural identity even as they are separated from their homeland.

This is what the USAID cuts have interrupted. The monthly stipends that kept families fed are gone. The broader ecosystem of humanitarian support that made survival possible has contracted. What remains are smaller, more fragile initiatives like the sewing project—vital but insufficient, a candle against the dark. For 1.9 million people in Uganda, the question is no longer how to build a better life, but how to survive the next week. The businesswoman's work suggests that dignity and economic self-sufficiency are possible, even in extremity. But they require resources, time, and stability that the current moment does not provide.

Handicraft is more than simply work. It is a simple yet powerful means to enable refugees to live with dignity.
— Japanese businesswoman operating in Uganda
A Conversa do Hearth Outra perspectiva sobre a história
Inventor

When you say the monthly stipend was about 1,200 yen, that's roughly what a coffee costs in Tokyo. How did families actually survive on that?

Model

It wasn't survival in the sense of thriving. It was survival in the sense of eating once a day instead of not eating. The stipend covered basics—some food, maybe school fees if you stretched it. When it disappeared, there was no cushion. Families had to choose between eating and sending children to school. Most chose eating.

Inventor

And the sewing project—is that a replacement for what USAID was providing, or something different?

Model

It's fundamentally different. USAID was a safety net. The sewing project is a ladder. But you can't climb a ladder when you're starving. The project works when people have basic stability. Right now, it's trying to function in a vacuum.

Inventor

Why did some South Sudanese refugees actually go back to South Sudan? That seems like the last resort.

Model

Because Uganda stopped being the safer option. When you're choosing between political instability in your homeland and certain hunger in exile, the calculation changes. Some people decided their chances were better at home.

Inventor

The open-door policy—is that sustainable without external aid?

Model

Uganda's government has shown remarkable commitment, but no. You cannot feed and educate 1.9 million people on a developing nation's budget alone. The policy was always built on the assumption that the international community would share the burden. When that assumption collapsed, so did the system.

Inventor

What does dignity mean in this context?

Model

It means having work that matters, that produces something real, that other people value. It means not being reduced to a recipient of charity. The sewing project understands that. But dignity is a luxury when your child is hungry.

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