After U.S. Aid Cuts in Nepal: When Helpers Become Helpless

Since U.S. President Donald Trump halted the U.S. Agency for International Development’s (USAID) aid program, the consequences have rippled globally, with particularly severe impacts in Nepal. The abrupt withdrawal has led to the dismantling of numerous HIV prevention initiatives, leaving thousands vulnerable. Among them is Rubi Lama, a transgender woman who once benefited from these programs but now finds herself exposed to the very risks they were designed to prevent. The cuts have triggered widespread disruptions within humanitarian organizations worldwide. In Nepal alone, approximately 35,000 individuals in the humanitarian sector have lost their jobs. For transpeople such as Lama, this has meant dire consequences. With no other options, many have turned to survival through sex work. Lama recounts how she and others now wait along highways at night, offering sexual services to passersby. “In my first night there, I felt fear,” she told a reporter from the Associated Press. “I was nervous and unsure of what to say.” Lama describes the dangers faced by those in this situation. Groups of men often surround her, engage in aggressive bargaining, and take her away to secluded areas, often deep in jungles or industrial zones, for sexual encounters. Many report experiencing violence and abuse. They remain unprotected, both physically and emotionally. Sunil Babu Pant, a former politician and founder of the Blue Diamond Society, which serves as a support network for Nepal's LGBTQ community, explains the financial realities of this trade. “A customer pays around 100 rupees per encounter, roughly less than one euro,” he says. A pack of condoms costs 150 rupees, making it impossible for sex workers to afford protection. “They can’t spend more on condoms than they earn from customers. It’s extremely difficult to survive.” Pant founded the Blue Diamond Society over two decades ago, playing a key role in helping Nepal become the world’s first country to recognize a third gender. This recognition has allowed individuals like Lama to exist legally, yet the economic fallout from the aid cuts has left them stranded. “Many are forced into sex work because they lack alternatives,” he notes. Finding stable employment proves nearly impossible for members of the LGBTQ community. “Those who are rejected by their families often lack the funds needed to start even small businesses, like a tea shop,” Pant explains. He highlights the broader issue of systemic exclusion, noting that banks rarely extend credit to the poor. “They have nothing to offer as collateral, and this distrust isn’t just in Nepal, it exists in many countries.” This creates a cycle of poverty and marginalization. Without USAID funding, access to essential health resources has vanished. Kondomes, lubricants, and HIV treatments, including pre-exposure prophylaxis (PrEP), were previously available free of charge. Now, these services are either unavailable or prohibitively expensive. “We used to provide free condoms and lubricants, and we could offer free HIV treatment,” Lama recalls. But all of that has ended. The Blue Diamond Society, alongside hundreds of other NGOs in Nepal, has had to scale back or cease its operations entirely. Pant estimates that up to 300 to 400 such groups have been affected. Support for women, children, environmental conservation, and disability rights has all suffered. “Everyone is impacted,” he says. Human rights violations against LGBTQ individuals have increased, according to Pant. And with fewer resources, documenting these abuses has become harder. “There’s a growing concern that HIV infections are rising,” he adds. However, data remains scarce due to a lack of research funding. “Some people pay privately for HIV tests and say it looks like there’s been an increase in sexually transmitted infections,” he says. Yet without proper funding, it’s hard to confirm these trends.