USAID funding freeze could disrupt large employers in the Triangle
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A man walks past the United States Agency for International Development (USAID) headquarters in Washington, D.C. Photo: Mandel NGAN / AFP) (Photo by MANDEL NGAN/AFP via Getty Images
The potential shutdown of the U.S. Agency for International Development (USAID) by the Trump administration could have a significant effect on some large employers in the Triangle that receive major funding from the agency.
Why it matters: RTI International, a nonprofit research institute in Research Triangle Park, and FHI 360, a nonprofit organization in Durham, were both among the largest recipients of USAID funding for nongovernmental organizations, according to Congressional Research.
- Between the fiscal years of 2013 to 2022, FHI 360 was obligated to receive around $3.8 billion from USAID, the third most among NGOs, according to the report.
- Over the same period, RTI was obligated to receive $2.3 billion, the sixth highest among NGOs.
State of play: RTI and FHI 360 might be the two largest firms receiving U.S. AID funding, but hundreds of smaller organizations also receive money.
- The North Carolina Global Health Alliance reports that there are 900 global health organizations operating in the state and 56,000 direct jobs, according to the organization's 2022 economic impact report.
What they're saying: "Halting foreign assistance programs disrupts funding streams to North Carolina-based institutions, leading to immediate job losses and economic instability," the N.C. Global Health Alliance said in a statement on funding freezes for foreign aid.
What's happening: The Trump administration has focused on freezing federal aid in its first weeks as it seeks to trim the federal government's spending.
- USAID has been in the crosshairs of that effort, with Elon Musk's Department of Government Efficiency hoping to eliminate the agency entirely.
- Secretary of State Marco Rubio is now the acting administrator of USAID and is conducting a review of the agency.
Zoom in: FHI 360 is a key contractor for USAID's PEPFAR program, which funds HIV/AIDS treatment and prevention programs in Africa, NPR reported.
- The organization has a headquarters in downtown Durham that employs hundreds, and it has more than 4,000 workers in total around the world.
- FHI 360 did not respond to a request for comment, but 67% of its funding in 2024 came from USAID, according to its latest annual report.
RTI International, which has around 1,000 employees at its offices in Research Triangle Park and nearly 6,000 in total around the world, is one of the largest employers in Durham County and relies heavily on government contracts.
- RTI — which focuses on a range of industries, from health care to the environment — works on several USAID-backed projects, most recently being named in August as a partner on a project in Ethiopia.
- A spokesperson for RTI told Axios that the firm is "working to understand the potential impacts" but did not have any updates to share yet about what the funding freeze could mean for its employees.