"We're going to go out of business," says Keith Ives, the CEO and co-founder of Causal Design, a Wheat Ridge-based nonprofit with 28 employees that worked with USAID. "We've given notice to 100 percent of our global staff [to come home], and we'll be terminating or furloughing about 70 percent of our staff by the end of February."
Trump began dismantling USAID on his first day in office, January 20, when he signed an executive order pausing foreign development assistance for ninety days. Ives lost his contracts with USAID after January 24, when the Department of State issued a stop-work order against USAID contractors like Causal Design.
Causal Design researched how well fed children were in the areas experiencing a humanitarian crisis and monitored USAID's efforts to deliver food, which can become complicated and dangerous.
"When USAID is delivering emergency food aid in Sudan or Somalia or Ethiopia, our company puts observers on the ground to verify that those aid organizations are actually delivering what they were supposed to deliver," Ives explains. "We make sure it's not diverted to terrorists, warlords, ensure that women aren't coerced into sex in exchange for aid. We're providing that accountability."
Causal Design researched how well fed children were in the areas experiencing a humanitarian crisis and monitored USAID's efforts to deliver food, which can become complicated and dangerous.
"When USAID is delivering emergency food aid in Sudan or Somalia or Ethiopia, our company puts observers on the ground to verify that those aid organizations are actually delivering what they were supposed to deliver," Ives explains. "We make sure it's not diverted to terrorists, warlords, ensure that women aren't coerced into sex in exchange for aid. We're providing that accountability."
USAID is the largest source of humanitarian aid in the world. In the 2023 fiscal year, it had a $40 billion budget and more than 10,000 employees spread across more than 130 countries, with Ukraine, Ethiopia and Jordan being the biggest recipients of agency's aid that year, according to the Congressional Research Service.
President John F. Kennedy used an executive order to create USAID in 1961, the same year he established the Peace Corps, another humanitarian agency. USAID's mission was to build schools and hospitals abroad and alleviate poverty, hunger and disease worldwide. Congress established it as an independent agency in 1998.
USAID contracts with thousands of partners, including nonprofits, universities and foreign government agencies, according to CRS. In 2023, USAID worked with more than 1,900 contractors like Causal Design and awarded more than $6.8 billion in contracts, according to Devex, a global development journal.
President John F. Kennedy used an executive order to create USAID in 1961, the same year he established the Peace Corps, another humanitarian agency. USAID's mission was to build schools and hospitals abroad and alleviate poverty, hunger and disease worldwide. Congress established it as an independent agency in 1998.
USAID contracts with thousands of partners, including nonprofits, universities and foreign government agencies, according to CRS. In 2023, USAID worked with more than 1,900 contractors like Causal Design and awarded more than $6.8 billion in contracts, according to Devex, a global development journal.
Colorado resident Kaycee Smith says loosing USAID destroys an entire career field. She was laid off on January 31 from her remote position as a senior analyst for Resonance, a Vermont-based global development consultant and contractor with USAID. She used to help USAID set up health camps with basic medical services in rural Pakistan.
"It's extremely depressing," she says. "To think everyone in this industry really cares about the work we do and the people we work with. Seeing a whole career crumble is really sad for me."
Smith thought she was in "a stable career field, until now."
"I probably will not stay in this career field," she admits. "A lot of us might have to sell our souls and work for companies we aren't passionate about, that don't give back."
"It's extremely depressing," she says. "To think everyone in this industry really cares about the work we do and the people we work with. Seeing a whole career crumble is really sad for me."
Smith thought she was in "a stable career field, until now."
"I probably will not stay in this career field," she admits. "A lot of us might have to sell our souls and work for companies we aren't passionate about, that don't give back."
Trump put Elon Musk, the X and Tesla CEO, in charge of shutting down USAID. Musk accused the agency of being corrupt and wasteful.
"USAID is a criminal organization. Time for it to die," Musk posted on X on February 2. Musk was expected by Trump to cut perceived excessive spending as the head of the made-up Department of Government Efficiency (DOGE). On February 3, DOGE shut down USAID's website along with its internal email and payment systems.
"USAID is a criminal organization. Time for it to die," Musk posted on X on February 2. Musk was expected by Trump to cut perceived excessive spending as the head of the made-up Department of Government Efficiency (DOGE). On February 3, DOGE shut down USAID's website along with its internal email and payment systems.
Ives says the federal government owes Causal Design about $500,000 for services rendered before the stop-work order as a result of DOGE's rush to shut down USAID.
"USAID hasn't been making payment, because the DOGE team went in and took down the payment system," Ives says. "We still don't have any assurances they're going to pay for the work we've done."
Even though the pause on foreign development assistance is temporary, Ives says he'll lose too much revenue before the ninety days is up. He's expecting to end his nonprofit by the summer as the stop-work order has already cut 70 percent of Causal Design's revenue.
"It'll be 100 percent after May," Ives says. "There are some small clients and little things we're doing right now, but most of that ends in May."
"USAID hasn't been making payment, because the DOGE team went in and took down the payment system," Ives says. "We still don't have any assurances they're going to pay for the work we've done."
Even though the pause on foreign development assistance is temporary, Ives says he'll lose too much revenue before the ninety days is up. He's expecting to end his nonprofit by the summer as the stop-work order has already cut 70 percent of Causal Design's revenue.
"It'll be 100 percent after May," Ives says. "There are some small clients and little things we're doing right now, but most of that ends in May."
Trump's first-day executive orders have also impacted Colorado by stopping refugee admissions and legal aid for undocumented immigrants. The closure of USAID has seen a few challenges, though.
On February 7, a federal judge slowed the shut down by ruling that USAID employees have to be reinstated until Friday, February 14, to make sure they can access emails and payments and return home safely.
On February 7, a federal judge slowed the shut down by ruling that USAID employees have to be reinstated until Friday, February 14, to make sure they can access emails and payments and return home safely.
A group of foreign aid contractors filed a lawsuit on Tuesday, February 11, against the Trump administration to block the stop-work order. That same day, House Democrats introduced legislation proposing a ban on the use of federal funds to shut down USAID, including funds used to pay DOGE salaries. However, the bill faces an uphill battle in the Republican-controlled Senate and House.
