The announced closure of the US Agency for International Development (USAID) by billionaire and Department of Government Efficiency (DOGE) leader Elon Musk has put Iraq in peril, according to the latest comments coming out of the country.

USAID has played a pivotal role in supporting Iraq since 2003, following the fall of Saddam Hussein’s regime, contributing to the support of official and unofficial institutions, civil society organisations and banks and providing large-scale school supplies such as bags and notebooks before moving to activate civil society more broadly. USAID was the world’s largest single donor, with the United States spending $72bn in fiscal year 2023 on areas such as women’s health, clean water, energy security and anti-corruption.

"There is considerable uncertainty within international organisations operating in Iraq regarding USAID-funded projects, with no clear instructions about handling existing initiatives or their completion," a UNICEF employee told Al-Alam Al-Jadeed, speaking anonymously.

He added, “The work teams in several governorates are now uncertain, as there are no official directives about the future of these programmes nor information about the proposed alternatives.”

The person noted serious concerns about the fate of the beneficiaries of these projects, “especially the vulnerable groups that depend on the projects.”

A significant project now at risk is a recently announced $20mn four-year water and sanitation improvement programme intended to benefit 2.5mn people across five provinces, including Missan, Diwaniyah, Nineveh, Baghdad and Erbil.

Iraqi Parliamentary Human Rights Committee member Nissan Zayer expressed her concerns about the abrupt nature of the closure: "Trump's policy aims to gather as much money as possible to face the economic crisis, which will cast a shadow over development agency projects," she said to the local media.

"It is better to develop a comprehensive plan to close the agency, ensuring the termination of its work and not starting new projects, in a way that does not affect those involved in this work, who have built great hopes, whether on projects, aid, or other various activities," she told the newspaper.

Economic expert Dhurgham Mohammed said this aligns with Trump's classical capitalist approach, where "every dollar spent is subject to precise calculations."

Local Iraqi organisations that promote civil liberties and human rights face particular uncertainty, as many rely heavily on USAID support.

Basra human rights activist Zainab Al-Karmali acknowledged USAID's significant contributions while noting concerns about accountability: "While international organisations have strengthened infrastructure and supported vulnerable groups, some projects have been marred by manipulation and corruption, highlighting the lack of oversight in managing international funding."

Earlier, Senator Joni Ernst revealed on social media X platform that under the Biden administration, USAID granted $20mn to the non-profit organisation Sesame Workshop to produce "Ahlan Simsim Iraq," a show aimed at "promoting inclusion, mutual respect and understanding between ethnic, religious and sectarian groups."

According to USAID's website, the project aimed to help Iraqi communities "find a new sense of [normality]" while dealing with the legacy of conflict with ISIS, particularly focusing on displaced children and ethnic and religious minorities.

"Iraqi youth, who make up more than half the population, are unable to find jobs in an economy strained by war and corruption, creating vulnerabilities to extremism," USAID's website stated before it was shut down this week following criticism from "DOGE Tsar" Elon Musk over the agency's spending.