USAID cuts drive Nepal aid workers to sex work
Analysis based on 13 articles · First reported Jul 23, 2026 · Last updated Jul 23, 2026
The event highlights the human cost of U.S. foreign aid cuts, potentially affecting public perception and political support for aid programs. No direct financial market impact is expected, but it may influence future aid policy and funding for NGOs.
The dissolution of the U.S. Agency for International Development (USAID) by President Donald Trump in 2025 eliminated 280,000 jobs worldwide. In Nepal, many former aid workers, particularly LGBTQ+ individuals, have been forced into sex work to survive. Associated Press reporter Kristen Gelineau documented the crisis in Hetauda, where workers earn $2-3 per client and face violence and police harassment. Health officials warn of increased HIV prevalence. The U.S. State Department defended the cuts, claiming a focus on efficiency.
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