(PALABEK REFUGEE SETTLEMENT) – Thousands of South Sudanese refugees and impoverished Ugandan host families were left devastated after a United States funded poverty reduction programme was abruptly cancelled earlier this year. The project, which aimed to help participants start small businesses and become self-reliant, was terminated following a decision by the Trump administration to suspend foreign aid grants it deemed “not aligned with U.S. national interests.”
The $15 million initiative, known as the Graduating to Resilience Scale Activity, was managed by the AVSI Foundation, a non-profit group that had begun supporting over 8,100 South Sudanese refugees and 3,500 Ugandan locals in the Palabek Refugee Settlement. Participants were promised cash support of about $205 (approximately 1.46 million South Sudanese Pounds) and business coaching to help them launch income-generating ventures such as piggery, goat rearing, or crop farming.
Palabek, located close to South Sudan’s border, hosts more than 100,000 refugees, mostly women and children, who fled war and economic collapse since 2013. Many saw the project as their only hope to rebuild their livelihoods. Before its cancellation, it had already created jobs for 140 local staff and injected modest spending power into nearby markets.
Rita Larok, AVSI’s programmes director, confirmed that the sudden termination forced the organisation to lay off newly hired staff and halt all community engagement.
“The participants’ hopes and dreams were shattered,” she said.
The cut, which took effect in February 2025, affected families like that of Florence Amungo, a 34 year old refugee mother caring for 14 dependents. She had started a small piggery in anticipation of AVSI’s support but was later informed via text message that the programme had ended.
“I was completely hopeless,” she said, adding that she had counted on the training to sustain her family.
Local leaders have warned that the loss of the programme has worsened hardship in the settlement. Refugee Desk Officer Fivi Akullu described the move as “drastic,” saying it increased domestic violence, theft, and despair.
Akim Joseph Yanga, a 63 year old refugee leader from Juba, said he had planned to buy goats to start a business but was forced to abandon the idea.
“When our father, Donald Trump, reduced the aid budget, it affected us seriously,” he said, adding that he is urging fellow refugees to remain resilient.
Analysts say the cuts reflect a broader trend of donor fatigue and political re-prioritisation among major Western donors. For South Sudan, where more than 2 million citizens still live in exile, the loss of such targeted livelihood programmes further delays recovery and increases dependency on dwindling humanitarian assistance.
Local officials and aid groups are now calling on South Sudan’s government and private sector to work with regional partners to fill the gap.
“Without support,” Akullu warned, “many families have nothing left to start from.”
U.S. Cuts Leave South Sudanese Refugees Stranded in Uganda
| Aspect | Details |
|---|---|
| Location | Palabek Refugee Settlement, Northern Uganda (near South Sudan border) |
| Main Issue | Cancellation of USAID-funded poverty reduction project |
| Project Name | Graduating to Resilience Scale Activity |
| Implementing Agency | AVSI Foundation |
| Funding Value | $15 million (approx. 106.5 billion SSP) |
| Beneficiaries | 8,100 South Sudanese refugees and 3,500 Ugandan locals |
| Individual Support | $205 (approx. 1.46 million SSP) plus coaching |
| Reason for Termination | U.S. foreign aid cuts by Trump administration |
| Impact | Job losses, rising despair, increased domestic violence and theft |
| Broader Concern | Shrinking humanitarian support for refugees and host communities |