MAFINGA Town Council in Mufindi District, Iringa Region had allocated 15.6m/- to compensate employees who lost employment after the United States stopped funding.

Regnant Kivinge, the council’s chairman made the announcement here during  the financial report review meeting for the 2024/2025 fiscal year.

Kivinge explained that the funding   the U.S. government had   significant impact on organisations implementing health and other sector projects in the region, leading to job losses.

“The U.S. government’s decision to halt funding for programmes under the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR) affected key initiatives which were active in Mafinga Town Council,” Kivinge said.

He added: “As a result, some employees were laid off. To help mitigate the impact, the council had decided to allocate funds to compensate them for three months.”

The cuts are linked to an Executive Order signed by U.S. President Donald Trump earlier this year, which suspended aid funding through agencies such as the United States Agency for International Development (USAID).

The U.S. has historically been one of the largest donors of foreign aid, supporting over 100 countries, including Tanzania.

According to the Tanzania Human Rights Defenders Coalition (THRDC), the suspension of funding is expected to have far-reaching consequences for civil society organisations in Tanzania.

The THRDC also highlighted that USAID typically allocated just 25 percent of its funding to local organisations, with the remaining 75 percent directed to international and U.S.-based entities.

Notable organisations affected by the cuts include   Ifakara Health Institute,   Benjamin William Mkapa Foundation,   National Council of People Living with HIV (NACOPHA)  and Women in Law and Development in Africa (WiLDAF), among others.

The entities have been instrumental in advancing public health, gender equality and legal rights in Tanzania.

The funding cuts are set to impact various sectors, including health, education, agriculture, and environmental protection, as well as programmes related to democracy, gender equality and women’s rights.