Home > Blog > When funding freezes, so do we: the wellbeing cost of overseas aid cuts

When funding freezes, so do we: the wellbeing cost of overseas aid cuts

Photo by Charlie Ogilvie

International development funding is a lifeline for many communities, especially in places facing instability. But in recent months, policy decisions in the United States, United Kingdom, the Netherlands, and elsewhere have disrupted key funding streams, creating real challenges for civil society organisations and the communities we serve.

These changes don’t just affect programmes and operations. They also take a personal toll on our individual, collective, and organisational wellbeing and resilience. At Open Briefing, we’ve seen many times how uncertainty and disruption can trigger a powerful stress response known as “freeze” – when individuals and even whole teams shut down under pressure.

As the sector continues to navigate these shifts, it’s more important than ever to prioritise the wellbeing of our most valuable asset: our people. Creating an environment of care and support is not just good practice – it’s essential for resilience.

Funding cuts and the freeze response

In March 2025, the US government announced the elimination of approximately 5,800 out of the 6,200 multi-year contracts awarded by USAID – a cut of around $60 billion USD. This drastic reduction in overseas aid has jeopardised life-saving services, weakened efforts to resist shrinking civic space, and created widespread uncertainty across the international development and humanitarian sectors.

In the UK, the government reduced its foreign aid budget from 0.5% to 0.3% of GDP – cutting an estimated £6 billion. Much of this reduction has been redirected toward increased defence spending as the US withdraws. The decision has raised serious concerns about its long-term impact, particularly on women’s health and frontline humanitarian initiatives.

And the Netherlands has introduced a “Netherlands-first” policy, significantly reducing its development cooperation budget. These cuts affect key areas like gender equality, education, and climate action, and will severely impact organisations working to promote peace and democracy, human rights, and the health and safety of women, girls, and LGBTQIA+ people.

The consequences have been immediate and painful for organisations: programmes have been suspended or shut down, staff have been let go, and core services placed under immense strain. One of our grassroots partners, Exile Hub, explained:

“Exile Hub has been significantly affected by this freeze. A number of our projects, supported through USAID funding, have been suspended or terminated. These included key programmes providing mental health support, safe housing, and skill-building opportunities for at-risk human rights defenders, journalists, and activists along the Thai-Myanmar border. The sudden withdrawal of support was unexpected and has placed immense strain on our ability to sustain core programmes.”

But it’s not just operational capacity that’s affected – it’s our emotional resilience, too. As Open Briefing psychologist Mohamed Lamaa explains:

“Much like the body going into shock from sudden cold, the abrupt nature of these cuts has left those of us in affected organisations feeling paralysed, immobilised, detached, or overwhelmed by uncertainty.”

This shutdown response is not limited to individuals. Nyachomba Kariuki-Schofield, our wellbeing and resilience coordinator, describes the broader effects:

“People working in the development, humanitarian and human rights sectors may experience a shared sense of stagnation. From communication breakdowns to stalled decision-making and halted collaboration, the resulting emotional shutdown diminishes our ability to think clearly or act, further escalating the toll on our wellbeing and the effectiveness of entire organisations.”

It’s essential to understand that these responses aren’t signs of weakness. In high-stakes environments, where people are forced to make tough decisions about the future of essential programmes, they are natural reactions to overwhelming stress. By naming these experiences and responding with empathy, we can start to create space for recovery.

It’s also important to recognise that while many organisations have found themselves paralysed by the speed and scale of these cuts, others are actively resisting by filing lawsuits, diversifying funding sources, and exploring strategic alliances and mergers. These approaches deserve support and recognition. But even in moments of action, the emotional and organisational strain can be profound.

Understanding the freeze response

The freeze response is part of our survival system. Essentially, the nervous system reacts to danger by shifting from a “relaxed” state into a ‘mobilised’ fight or flight or ‘immobilised’ freeze. So, when we face a threat we can’t fight or escape, our body may shut down to protect us. We feel numb, stuck, or disconnected – even when action feels urgent.This is especially common when people feel powerless to change the situation – like losing funding, seeing colleagues laid off, or being unsure what comes next.

The freeze response can affect us in many ways. These experiences are often driven by a sense of paralysis and fear of the unknown, especially when routines are disrupted or the future feels out of our control.

  • Emotionally. Feeling numb, detached, anxious, or overwhelmed. These feelings can stem from a sense of powerlessness in the face of sudden change.
  • Cognitively. Struggling to concentrate or make decisions. Even simple tasks can feel impossible when our nervous system is in shutdown.
  • Behaviourally. Withdrawing from colleagues, avoiding conversations, or behaving in unfamiliar ways. These can be attempts to cope with pressure or uncertainty.
  • Physically. Muscle tension in the jaw, neck, or shoulders; shallow breathing; sleep disruption due to a heightened state of alertness; and cold hands or feet as blood flow shifts in response to stress.

At a team level, the freeze response may show up as increased sick leave, low motivation, stalled communication, or a general sense that people are not quite themselves.

Strategies for individual healing and resilience

If you’re feeling stuck, start small. The freeze response is your body’s way of protecting you during stress, and recovery begins with gentle steps.

Ground yourself physically. Try breathing slowly, focusing on physical sensations, or noticing what’s around you – like the ground beneath your feet. These grounding techniques help reconnect us to the present moment, reduce emotional numbness, and create a sense of safety in our bodies.

Be kind to yourself. Remind yourself that this is a natural response to overwhelm. Limit your exposure to stressful triggers like constant news updates or tense conversations – creating space for mental recharge is a vital part of recovery.

Break things down. When everything feels too much, focus on one small, manageable task at a time. This can help restore a sense of control and prevent you from feeling stuck. Celebrate each step. And give yourself time to process, without judgement.

The role of organisations

Responding to the freeze response isn’t something individuals can do alone. Organisations play an important role in shaping how their teams cope and recover during times of uncertainty.

One of the most important things you can do is create a culture of care. This means making space for people to talk openly – whether through regular check-ins, reflective team meetings, or just knowing it’s okay to say when things feel hard. Reassurance, empathy, and active listening can go a long way in helping people feel safe and seen.

Peer support also makes a real difference. Informal support networks, buddy systems, or trained peer supporters can help reduce isolation and build a stronger sense of connection.

Clear, transparent communication is essential too. People need to understand what’s happening, what the organisation is doing, and where they can turn for support. When leadership is open and honest, it helps reduce anxiety and restores a sense of stability.

It’s also important that leaders know how to recognise signs of stress or trauma responses, and respond with compassion. Training managers and team leads in this area can be transformative.

Finally, normalise support and destigmatise talking about mental health and wellbeing. Encourage your staff to take breaks, look after themselves, and seek help when they need it whether that’s through mental health resources, counselling services, or simply time away to recharge. These small steps all help to rebuild resilience, and remind people that they’re not alone.

How Open Briefing can support you

As global aid becomes more uncertain, many grassroots activists and civil society organisations are being forced to do more with less. And while resources are shrinking, the risks are rising – from physical and digital threats to the psychological toll of constant pressure.

At Open Briefing, we believe that security and wellbeing go hand in hand. That’s why we take a holistic approach to supporting those on the frontlines of human rights, environmental, and social justice work.

If you or your organisation is facing pressure or risk, here’s how we can help:

You don’t have to face this alone. Whether you’re navigating burnout, uncertainty, or direct risk, support is available. We’re in this together.