In January 2020, the Trump administration froze all U.S. foreign development assistance, a move that hit Save the Children hard. This funding typically makes up about a third of the organization’s annual global program budget. Despite expectations of gradual cuts, the freeze was immediate and drastic, catching many off guard.
The senior team was already gathered for a planned retreat when the news broke. They quickly went through the stages of grief: denial, anger, bargaining, depression, and acceptance. The team questioned the legality of the freeze, given that funds had already been appropriated by Congress, and felt the cruelty of cutting essential services like food, medicine, and education from vulnerable children.
The initial 90-day pause on U.S. aid turned into a suspension of all existing programs, except for emergency food assistance and military aid to Egypt and Israel. Later, humanitarian programs providing life-saving essentials were also exempted. This suspension forced Save the Children to quickly assess which programs could continue under the new criteria and which would need to be shuttered. The organization created a global, cross-functional task force to plan for various scenarios, including how to stretch cash reserves to sustain as many programs as possible.
Working through the Crisis
Save the Children U.S. had expected to receive $400 million from the U.S. government. The best-case scenario was retaining 70% of this amount, but the reality was closer to 20%. This drastic reduction meant evaluating all programs against the administration’s criteria and determining how to maintain operations with significantly less funding. The organization also had to manage cash flow carefully, as they hadn’t been paid for work already completed at that point.
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The organization evaluated its programs against the administration’s criteria and worked to stretch cash reserves to sustain as many programs as possible. They also hadn’t been paid for work already completed at that point, adding to the financial strain. The CEO connected with leaders of other affected humanitarian organizations, forming a virtual war room to discuss strategies, including media outreach and legal options. A board subcommittee was also established to meet weekly, reviewing plans, cash positions, and new ideas.
Rebound and Reform
By May, about 70% of U.S. government-funded awards had been terminated. The organization then entered a “rebound” phase, seeking new funding sources and advocating for policies supporting children worldwide. They secured additional donations to reinstate some suspended programs, such as education and protection work in Syrian refugee camps.
Internally, Save the Children invested in mission-critical upgrades, including digitizing programming and enhancing data infrastructure. The CEO emphasizes the need to adapt to reduced government support and become more efficient and experimental. The organization is exploring new approaches, such as working closely with governments to determine the best interventions and pursuing partnerships with other nonprofits to avoid overlaps. They are also testing innovative methods like cash assistance and locally sourced goods in emergencies, as well as pooled funds managed by local actors for faster, more cost-effective support.
Despite the challenges, the CEO remains focused on the mission, drawing on the organization’s long history and resilience. Save the Children, founded in 1919 by Eglantyne Jebb, has always adapted to changing circumstances, from its origins helping children affected by World War I to its current global reach, impacting over 100 million children annually. The CEO’s background in the private sector, with experience at Kimberly-Clark and Unilever, has been instrumental in driving efficiency and innovation within the organization.
