- The U.S. foreign aid freeze has left hundreds of millions of dollars' worth of medical supplies, including TB and HIV drugs, stranded in supply chains.
- USAID contractors warn that even if aid resumes, restoring normal operations could take over six months, raising concerns about long-term disruptions.
Hundreds of millions of dollars' worth of life-saving medical supplies remain stuck in warehouses and aboard ships worldwide following the Trump administration’s decision to freeze foreign aid, according to sources familiar with the humanitarian program.
The move, announced on January 20 as part of a broader review of U.S. Agency for International Development (USAID) programs, has disrupted supply chains and delayed essential medical aid despite subsequent waivers allowing some work to resume.
Medical oxygen, tuberculosis (TB) and HIV drugs, and other critical supplies are among the items stalled, leaving healthcare providers struggling to meet urgent needs.
“By the end of this month, we are going to have shortages of treatments for TB,” said Jerry Amoah-Larbi, coordinator of Ghana’s National TB Voice Network, which advocates for tuberculosis care. Clinics, particularly in rural areas, are expected to face severe shortages of diagnostic tests and treatments.
At least $20 million worth of medical oxygen and related supplies remain stranded at various points in the supply chain, including ships, ports, and hospitals where infrastructure projects have been halted, a USAID contractor told Reuters. Meanwhile, a lawsuit filed by USAID contractors includes a claim from Chemonics, a U.S. development firm, which stated that $240 million in medicines and medical equipment remain in limbo. The specific products involved were not disclosed.
The U.S. State Department has not yet responded to requests for comment on the situation. However, the foreign aid freeze has further complicated USAID’s operations, as thousands of workers were placed on leave and some functions were shifted to the State Department. An internal USAID memo, reviewed by Reuters, indicated that payment systems remain down, preventing organizations from resuming operations.
Medical supply chains rely on a combination of air and sea transport, with temperature-sensitive drugs such as vaccines and HIV treatments typically shipped by air, while bulkier items, including mosquito nets and personal protective equipment, are transported by sea.
A USAID official familiar with the agency’s logistics estimated that “there’s probably two or three thousand containers on the high seas or in a port somewhere,” carrying essential health supplies such as malaria and HIV tests, contraceptives, and maternal health equipment.
Even if USAID operations were to restart immediately, restoring normal supply chains would take months. “It will take more than six months to stabilize,” said Prashant Yadav, a global health supply chain expert and senior fellow at the Council on Foreign Relations. “Sending any more supplies essentially is futile.”
The uncertainty surrounding the aid freeze has led some contractors to question whether the suspension is temporary or signals a more permanent policy shift.
Edited by Harshajit Sarmah
