The international organization Outright International has published an 80-page report, “Breaking Point: The Urgent Need to Invest in Global LGBTIQ+ Movements,” on the catastrophic consequences of cuts to U.S. foreign aid.
In a September 9, 2026 article for the Bay Area Reporter, journalist George Favaloro examines the findings of this extensive study, which is based on a survey of 229 organizations in 94 countries and dozens of in-depth interviews.
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Главное из доклада: 90% организаций лишились поддержки
In the new report Outright International notes that although several other foreign governments have also cut funding for LGBTIQ+ groups, the vast majority of the key cuts stem from a decision by one government—the United States of America.
Published on September 10, 2026, “Breaking Point” follows the organization’s initial February 2025 report, “Defunding Freedom: Impacts of U.S. Foreign Aid Cuts on LGBTIQ People Worldwide.” While the February study drew on a survey of 125 organizations and nine interviews about the immediate impact of the grant freeze, the new 80-page report is based on a survey of 229 organizations in 94 countries, 24 in-depth interviews, and country-level case studies. Work on the report began in January 2026, and the interviews were conducted during the spring and summer.
The study’s main finding: nine out of ten (90%) LGBTIQ+ organizations surveyed lost funding after President Donald Trump returned to the White House in 2025. Of the 229 advocacy groups that responded, 203 formally reported losing funding.
The new administration’s first step was Executive Order № 14169 “Reevaluating and Realigning United States Foreign Aid,” signed by Trump on January 20, 2025—his very first day in office. The executive order imposed a 90-day freeze on most nonmilitary U.S. development assistance abroad. Over time, however, the temporary freezes turned into permanent funding cuts, and the complete withdrawal of American aid triggered a cascade of cutbacks around the world.

The dismantling of USAID and the collapse of humanitarian budgets
Between 2024 and 2025, global humanitarian funding fell by more than 30%, while U.S. aid dropped from $14 billion to $3.7 billion.
By July 2025, five months after the initial funding freeze, the United States Agency for International Development (USAID), the primary source of U.S. humanitarian aid since its founding in 1961, had been formally dismantled as an independent agency. Its remaining functions and aid programs were integrated into the State Department.
Funding disruptions through the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR) led to the suspension or closure of HIV prevention and treatment programs, as well as the shutdown of health clinics around the world, according to KFF. At the same time, funding from corporate and charitable foundations also began to dry up.
Voices from the ground: from Uganda to Kenya
The financial losses hit the most vulnerable hardest. LGBTQIQ+ organizations operating under hostile governments or in unwelcoming cultural environments were the most dependent on foreign aid. They faced cuts far more often than groups working in less discriminatory environments. Small grassroots organizations lacked diversified revenue streams to offset the loss of core funding.
- Uganda: John Grace, a nonbinary and transgender person who serves as coordinator of the Uganda Minority Shelters Consortium (UMSC), described the impact of the January 2025 cuts as “catastrophic” in a letter to the Bay Area Reporter. Funded by Outright International, UMSC is an umbrella organization supporting more than 30 shelters across Uganda that provide emergency housing, food, mental and sexual health services, client support, and HIV care.
От 60% до 70% финансовой поддержки партнерской сети UMSC поступало напрямую из помощи США или через субгранты, зависевшие от американских взносов. Организации удалось возместить лишь небольшую долю этих средств за счет экстренных грантов от частных европейских фондов и Outright International. Операционный бюджет UMSC был резко урезан, что заставило сменить фокус с долгосрочного развития на чистое выживание.
According to Grace, UMSC has completely lost its “safety margin.” Several shelters have stopped accepting new residents because they lack the money for rent, bedding, and food. In 2025, dozens of verified requests to urgently relocate young people from hostile environments went unanswered because there were no funds for transportation and housing.
“When international funding suddenly stops, it is not merely an organization’s balance sheet that suffers,” Grace writes. “It means that a 19-year-old transgender woman who has been thrown out by her family has nowhere to sleep. It means that a gay man living with HIV cannot afford transportation to safely obtain his antiretroviral medication.”.
- Kenya: At the Mamboleo Peer Empowerment Group (MPEG), funding cuts led to the dismissal of 100 peer counselors, social workers, outreach workers, and paralegals. These were trusted members of the LGBTQ community who monitored adherence to HIV medication, responded to cases of gender-based violence, and supported people in need. As a result, outreach work came to an almost overnight halt, safe spaces emptied, and food distribution and emergency evacuations were disrupted.

Threat of Closure and Loss of Trust
According to an Outright International report, of the 203 organizations that reported losing funding:
- 49% lost half of their total budget;
- 40% stated that they were at risk of shutting down entirely within the next year;
- 45% scaled back or completely discontinued HIV prevention, care, and treatment programs.
The report’s co-author, Alberto de Belaunde—an openly gay former Peruvian congressman and director of the Queer Legal Futures program at Outright International (founded in 1990)—notes that human rights defenders are forced to work entirely on a volunteer basis, unsure whether they will be able to pay the rent for their office or shelter at the end of the month. In many cities, or even entire countries, there is only one leading LGBTQIQ+ organization, many of which have taken 10, 20, or 30 years to build.
Community trust has been particularly badly damaged. Long-standing relationships are falling apart, while people facing multiple forms of marginalization—for example, those with disabilities or refugee status—are losing their only access to welcoming services.

An Attack on Democracy and the Destruction of Expertise
Organizations engaged in journalism, rights advocacy, documenting violations, and providing legal assistance are facing a dual threat: a financial crisis and rising authoritarianism. The adoption of anti-NGO laws and attacks on civil liberties are taking place against a backdrop of anti-LGBTQIQ+ rhetoric being weaponized in political campaigns.
“They are not only attacking a specific group of people. They are attacking a particular set of democratic values,” Alberto de Belaunde emphasizes.
The report cites Uganda as an example, where the Anti-Homosexuality Act was passed in 2023, criminalizing same-sex relationships and their “promotion.” As UMSC notes, human rights defenders are having to confront the harshest state repression in history with only a fraction of the resources they had just two years ago.
Moreover, the closure of such organizations threatens the complete loss of data. In countries where official statistics do not account for LGBTQIQ+ people, these NGOs have remained the only source of demographic information and expertise. The loss of such institutions undermines public health systems and humanitarian efforts and creates dangerous legal precedents.
What do the report’s authors propose?
The Outright International report includes recommendations for governments, donor institutions, philanthropists, corporations, and intermediary donors:
- Provide immediate and flexible funding from multiple sources to support healthcare services, humanitarian response, and NGO operations.
- Include LGBTQIQ+ organizations in humanitarian programs and make funding decisions based on the real circumstances people face, rather than solely on a country's income level.
John Grace concludes: because of the cuts, organizations have had to shift from being development institutions to “triage units” (triage units).
Report co-author Alberto de Belaunde calls for immediate action:
“If there has ever been a moment in history when the international LGBTQIQ+ movement needed everyone's help, it is now. This is a time for empathy and action, because the resources, infrastructure, and people we are losing due to these cuts will not return unless we fight to preserve them.”.
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