Global connectivity after USAID: a changing landscape

For decades, the United States Agency for International Development (USAID) played a central role in the global development ecosystem. Beyond its work in health, education, and humanitarian aid, the agency increasingly became an important actor in expanding digital connectivity, supporting digital rights, and strengthening internet governance around the world.

In early 2025, that architecture changed almost overnight.

Shortly after the presidential inauguration in January 2025, the U.S. administration issued an executive order pausing all foreign development assistance for a 90-day review period under an “America First” policy framework. What began as a temporary freeze quickly evolved. Within weeks, stop-work orders halted thousands of active programs, the majority of USAID staff were placed on administrative leave, and by mid-2025 the agency itself was formally dissolved.

The dismantling of USAID did not only reshape development policy. It also created a vacuum in the global ecosystem supporting internet access, digital infrastructure, and internet freedom.

USAID’s role in the global connectivity ecosystem

Before its dissolution, USAID had become one of the most influential public funders of digital development.

Through its Digital Strategy and related initiatives, the agency supported projects designed to expand internet infrastructure, promote digital literacy, and strengthen regulatory environments for open and transparent digital governance. Many of these programs focused specifically on underserved communities where commercial investments were unlikely to reach.

USAID also helped fund the groundwork behind large-scale infrastructure initiatives. This included research and mapping efforts that assessed fiber capacity, broadband coverage, and submarine cable utilization. This is information that governments and development organizations relied on when planning national connectivity strategies.

Initiatives such as the ‘Digital Transformation with Africa’ program sought to mobilize hundreds of millions of dollars to expand digital infrastructure, improve digital skills, and strengthen digital economies across the continent.

At the same time, the United States was the largest global donor supporting internet freedom initiatives, contributing an estimated $270 million annually to programs designed to counter censorship, support secure communication tools, and protect open access to information online.

In short, USAID did more than fund infrastructure. It helped shape the norms and governance structures that supported an open global internet.

What happened when the system was dismantled

The shutdown of USAID happened with unusual speed.

Within weeks of the funding freeze, stop-work orders halted thousands of contracts and grants worldwide. By March 2025, the administration had cancelled more than 80% of USAID programs, representing tens of billions of dollars in development funding.

For many organizations working on connectivity, digital literacy, and digital rights, this funding disappeared almost immediately.

Projects that had spent years building partnerships with governments and local communities suddenly found themselves without support. Digital literacy programs were cancelled, community network initiatives were abandoned, and long-term infrastructure planning efforts were left unfinished.

This disruption was particularly significant in regions where connectivity programs had been closely tied to broader development strategies.

Projects designed to expand fiber infrastructure, connect schools and hospitals, and support digital entrepreneurship were paused or cancelled entirely. In some cases, these projects were replaced by shorter-term connectivity solutions focused primarily on rapid deployment rather than long-term infrastructure development.

The result has been a growing sense of uncertainty across the sector.

The shift toward satellite connectivity

At the same time as traditional development programs were being dismantled, a different model of connectivity began to expand rapidly.

Low Earth Orbit satellite networks have made it possible to bring internet access to remote areas far more quickly than traditional infrastructure projects. Companies such as Starlink have demonstrated how satellite connectivity can connect schools, clinics, and communities that would otherwise wait years for terrestrial infrastructure.

By the end of 2025, Starlink had grown to over nine million users worldwide, reflecting the growing role of satellite networks in global connectivity.

In many cases, these systems have filled important gaps. Several projects supported by 48percent and its partners rely on satellite connectivity to reach rural communities where fiber deployment is not yet viable.

At the same time, the rapid shift toward satellite infrastructure raises new questions about the long-term governance of global connectivity.

Unlike development agencies such as USAID, private satellite providers operate under proprietary business models rather than public oversight. As satellite networks become increasingly central to global connectivity, questions around data governance, affordability, and digital sovereignty are becoming more prominent.

For many policymakers and development practitioners, the challenge now is ensuring that satellite connectivity complements, rather than replaces, investments in terrestrial infrastructure, local network ownership, and sustainable digital ecosystems.

Implications for internet freedom and digital governance

Beyond infrastructure, the dissolution of USAID has also had implications for digital rights and internet freedom.

For decades, the United States played a leading role in funding initiatives designed to counter internet censorship and support secure communication tools used by journalists, activists, and civil society organizations.

With the disappearance of much of that funding, several of these initiatives now face uncertainty about their long-term sustainability.

At the same time, geopolitical competition in the digital space is intensifying. As the United States reduces its development footprint, other actors are increasingly expanding their influence in global connectivity initiatives.

A changing funding landscape

The funding freeze has also reshaped the development ecosystem itself.

Organizations working on digital inclusion are now navigating a far more fragmented funding landscape. Some governments and multilateral institutions, including the European Union, Japan, and South Korea, are increasing their development investments in response to the shift.

Simultaneously, private capital and philanthropic funding are playing a larger role in supporting connectivity initiatives.

For organizations working in this space, diversification of funding sources is becoming increasingly important. Platforms such as Unconnected.org’s global financing overview provide an updated overview of funders supporting connectivity infrastructure, digital access, and digital rights initiatives.

What this means for organizations working on connectivity

For organizations working to expand connectivity, these shifts are already shaping day-to-day realities.

The sudden withdrawal of large-scale public funding has increased pressure across the ecosystem. More organizations are competing for a smaller pool of available funding, while at the same time being asked to deliver sustainable, long-term impact. In practice, this often means balancing immediate connectivity needs with the longer timelines required to build resilient infrastructure and local capacity.

At 48percent, we have seen a noticeable increase in funding requests from organizations looking to bridge these gaps. Many of these initiatives are strong, locally rooted projects. The challenge now is not a lack of ideas or ambition, but a lack of accessible and consistent funding to bring them to life.

In this context, smaller funders, community networks, and local organizations are playing an increasingly important role in maintaining momentum. While they may not replace the scale of previous funding structures, they contribute to a more distributed and resilient ecosystem.

Looking ahead

The dissolution of USAID marks the end of a chapter in the history of global development. But it also signals the beginning of a new phase in the evolution of global connectivity.

The challenge ahead is not simply replacing one funding source with another. It is ensuring that the future of connectivity remains open, inclusive, and sustainable.

Satellite networks, community infrastructure, fiber deployment, and mobile networks will all play a role in connecting the millions of people who remain offline. But technology alone will not determine the outcome.

In an increasingly complex digital landscape, continued collaboration and advocacy across governments, civil society, and the private sector will be essential to ensure that connectivity remains accessible and equitable.

Ultimately, the responsibility of any actor contributing to connectivity remains the same: ensuring that access to the internet remains open, inclusive, and within reach for everyone.