This quarterly report submitted by the Lead Inspector General for Operation Enduring Sentinel (OES) summarizes the events that took place in Afghanistan this quarter, including the status of terrorist organizations, such as ISIS-Khorasan (ISIS-K) and al-Qaeda, as well as U.S. diplomatic and humanitarian efforts related to Afghanistan.
State terminated all State- and USAID-funded development and humanitarian projects in Afghanistan. Affected projects in Afghanistan included humanitarian assistance previously granted waivers to continue, third-party monitoring contracts, and salaries for USAID in-country local staff. The sudden termination of awards disrupted implementers’ ability to carry out proper closeout procedures and heightened the risk of fraud and asset loss. USAID is reducing staffing through September 2, 2025, leaving a small team to support critical terminations and closeout efforts. USAID had to abandon more than $119.3 million in equipment related to power system development projects. USAID implementing partners reported that following the terminations, local security forces repeatedly forcibly entered their compounds; seized vehicles, equipment, cash, and documents; and temporarily detained or interrogated staff. USAID reported that the abrupt termination of all USAID awards in Afghanistan heightened the risk of fraud and asset loss, including potential theft of USAID BHA-funded goods o rproperty damage by staff or local communities frustrated by the sudden decisions. With no other USAID or U.S. Government-funded foreign assistance programs operating in Afghanistan to receive transfers, there was also an increased risk of USAID BHA-funded assets being seized by the Taliban.
On July 1, State assumed responsibility for administering most foreign assistance, including programs and functions previously managed by USAID. The transition was accompanied by staffing constraints and limited time for planning, which hindered the effective transfer of institutional knowledge, restricted access to key information systems, and complicated risk management related to personnel, contractual matters, and partner oversight. Despite a 95 percent reduction in staff in Washington and worldwide, remaining USAID BHA humanitarian experts continued to assess ongoing needs and coordinate with key stakeholders, including State’s Bureau of Population, Refugees, and Migration (PRM), AAU staff, and humanitarian aid workers.
On April 5, the administration terminated all remaining State- and USAID-funded projects in Afghanistan, including life-saving humanitarian assistance previously granted waivers to continue, third-party monitoring contracts, and salaries for USAID in-country local staff.196 By the end of the quarter, only three programs had resumed.
In 2024, U.S. funding contributed approximately $735.7 million, or 47 percent, of the total humanitarian funding requested for Afghanistan, according to UN Office for the Coordination of Humanitarian Affairs (OCHA) data. USAID BHA reported that the termination of U.S. funding to Afghanistan has led the United Nations to reprioritize and reduce geographic coverage of its humanitarian programs in Afghanistan. This reduction is expected to deepen service gaps in food aid, healthcare, and protection support, particularly for populations affected by conflict and displacement, according to USAID BHA.
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