The abrupt halt to the U. S. Agency for International Development's (USAID) operations has left both large and small businesses in the United States facing a serious cash crunch. The freeze on foreign aid has left critical contracts incomplete and unpaid.   This halt has led to massive job cuts, with one company, Chemonics International, a company that works in Washington. It has had to lay off 750 people.  The administration has not provided the required 30-day notice for terminating contracts. Neither has it paid invoices that were already due.  As a result, there are jobs being put on hold.  Businesses are left with inventory that can't get to where it needs to go. So, there is a major logjam in the supply chain.

The impact is not just financial. The health commodities that were supposed to be delivered could potentially save millions of lives.  There are a lot of people who are suffering.  Some people could even die because they don't have the aid.  The lawsuit highlights that the lack of delivery of food, medicine and other aid, could lead to preventable deaths in people around the world.

The administration has been sued by a group of 170 small U. S. businesses.  They are not alone.  The American Bar Association and major suppliers have also joined.  There is no way to know if this halt is legal.  It is hard to see how the administration can stop programs and funding without Congress' approval. The administration has made some claims.  There is talk of program-by-program reviews.  They claim that this is necessary because of "insubordination" and "noncompliance" by USAID staffers.  It's not clear why the administration is targeting USAID.  It's even less clear why they're doing this now.

The impact is not just financial.  The current administration has been aiming to make a lot of changes.  Many of these are controversial.   These changes are not surprising.  Many people have criticized how the President and his staff have been moving to shut down USAID.  They have been targeting medical aid, research and development.  They've also been targeting programs that help people who are displaced.  These changes have led to programs being completely cut off.  That's why the lawsuit was filed in the first place.

Unpaid Bills and Job Losses: How the Trump Administration's Actions Affect US Businesses

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