More than a year has elapsed since the U.S. administration dismantled the Agency for International Development, eliminating over 5,000 programs and cutting $40 billion in global aid.

The withdrawal has hit Malawi’s health and education systems hard, with immediate, grave repercussions.

The reduction in aid has narrowed access to HIV treatment, heightened child malnutrition, and, according to the research team’s analysis, is estimated to have cost 700,000 lives. Programs that supplied medication and infrastructure for malaria, tuberculosis, and pneumonia were also withdrawn.

Education has suffered a crisis the European Training Foundation described as "unprecedented." The loss of U.S. support has left schools without essential resources for construction, teacher training, and learning materials.

Malawi’s experience mirrors a wider global pattern. In 2025, official development assistance fell 23%, a decline the OECD labeled historic, driven by cuts from the United States, Germany, the United Kingdom, France, Canada and Japan.

Aid has been especially pivotal for Malawi. UNICEF data show that between 2019 and 2023, foreign governments financed 80 % of the country’s education capital projects.

In 2024, the U.S. directed $34 million toward early‑grade literacy and higher‑education projects, while the agency’s portfolio also bolstered U.S. soft power and business interests.

A transnational group of education scholars is launching a three‑year qualitative study (2026‑2029) to examine post‑USAID options for Malawi’s education sector.

Between January and June 2025, and again in May 2026, the team conducted a pilot study that interviewed 20 education experts—including former USAID staff, NGO workers, civil servants, and university faculty.

Participants offered mixed views.

Some saw the closure as an opportunity to correct power imbalances, noting that U.S. aid had frequently funneled money to U.S. consultants and international NGOs rather than local organizations. One former development worker described the pre‑cut status quo as "more immoral than the cruel reality" of the cuts, arguing that conditionalities and hidden agendas misaligned projects with Malawi’s needs.

Others cautioned that Malawi’s economic realities make self‑resourcing difficult. A University of Malawi faculty member warned that the country’s growth has stagnated and that debt payments now consume 90 % of GDP. The research team linked global conflicts—wars in Iran and the Russia‑Ukraine war—to tightened supply chains, soaring fuel costs, and looming food insecurity.

Several NGOs had begun diversifying funding before the cuts. One added a business division that rents facilities and vehicles; another launched a farming scheme to support operational expenses. While these models embody a community‑driven, holistic approach, the research team noted that dwindling cash flows threaten their viability.

New aid arrangements have surfaced. The team observed that U.S.-led memoranda of understanding are converting health aid into leverage, fostering more transactional relationships that may reinforce existing power imbalances.

Malawi’s situation illustrates a transitional space where the terms of development are being rewritten.

Emerging funding mechanisms—self‑resourcing, debt‑financed investments, and transactional aid—could amplify power imbalances instead of mitigating them.

The research team stresses the importance of continued intellectual and ethical scrutiny as Malawi navigates this uncertain period.