Arab students' futures in limbo after USAID funds freeze

The shuttering of aid has caused huge problems for students in Lebanon and Egypt on US scholarships. What does the future hold?

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Students on the American University of Beirut campus

Arab students' futures in limbo after USAID funds freeze

Joudy El-Asmar

last update on 17 Feb 2025

Donald Trump’s decision to freeze US Agency for International Development (USAID) programmes for 90 days (with limited exceptions) is having far-reaching negative repercussions across the Arab region, not least for students.

The USAID programmes, excluding humanitarian food aid and military assistance to Israel and Egypt, have all been halted, affecting hundreds of university students from countries like Egypt and Lebanon, where the agency had numerous initiatives. The funding paid for scholarships for students distinguished by their academic excellence, ambition, and commitment to community engagement.

While the Egyptian government has stepped in to help several of its USAID students, their Lebanese counterparts are unlikely to benefit from any government intervention. University leaders have so far made no public statements on the issue.

Impact on Egypt

USAID has been operating in Egypt for four decades, providing $30bn in aid, according to its official website. The money has supported Egyptian health, governance, education, and the economy, with USAID granting full scholarships to Egyptian students at 13 universities across the country, typically more than 1,000 at any one time.

AFP — University students in the school library.

Currently, there are 1,077 students on USAID scholarships until April. All but 200 of these are enrolled in public, private, and non-profit universities. The others study at the American University in Cairo (AUC).

After USAID was all but shuttered, Egypt’s Ministry of Higher Education and Scientific Research convened an emergency meeting of the Supreme Council of Universities. Afterwards, the ministry said all Egyptian universities would cover the tuition fees previously paid by USAID until the end of the second semester.

Ain Shams University said it would maintain "the same level of academic support and accommodation in university dormitories" for scholarship students, provided they meet academic and disciplinary standards, while the AUC said it would cover the tuition fees of scholarship recipients for the second semester.

Left in the lurch

A student benefiting from an AUC scholarship told Al Majalla that "it remains unclear whether the tuition coverage will include all the benefits of the scholarship". They said: "The (US) aid extends beyond covering university fees—housing expenses, monthly allowances, subscriptions, etc. Moreover, we do not know if the university will continue to support us until we graduate if the US withdraws scholarships permanently."

Maya Mohamed Al-Taybani, a 2024 high school graduate, is among the students most affected, with no alternative solution offered so far. After passing a rigorous selection process, she secured a USAID scholarship to enrol in Solar Energy Physics at the AUC, and she was about to start studying. "More than 110 of us were supposed to begin our courses on 2 February." She was informed of the decision on Sunday, 26 January.

USAID has been operating in Egypt for four decades. It gives $30bn in aid through offering full scholarships to Egyptian students at 13 universities across the country.

"The ministry's decision covers all AUC students, but we were shocked to find that the university extended the support only to second, third, fourth, and fifth-year students. As new students, we had to complete a mandatory English preparatory semester and finish the 'Bridge Year' programme, but we have received no assistance from the university. More than 110 of us were supposed to begin our courses on 2 February."

She said: "We were at a camp undergoing training as part of the scholarship programme when the session was interrupted, and we were told to gather in another hall, where the organisers informed us of the US decision. They then asked students not enrolled at our university to return to their hotels. The following day, we got emails telling us to vacate the student dorms immediately."

After exploring all possible avenues, she was told that the decision was final, with no exceptions. "We were given two options: either continue paying tuition fees at our own expense—which is impossible for us—or seek alternative solutions. Yet finding anyone willing to sponsor our education is highly unlikely," Maya said. Students at the AUC were left stunned, posting images of hastily packed suitcases in hallways.

Impact on Lebanon

In Lebanon, where around 500 students and refugees are affected, a broader yet quieter debate is unfolding over the impact on non-governmental organisations (NGOs), their projects, and employees. But on the issue of USAID scholarships, no public demands have been made, nor have any alternative measures been suggested.

Lebanon's Ministry of Education and Higher Education has chosen not to intervene in the affairs of private universities and their relationships with funding bodies. The universities themselves have offered no public statements, and no student movements have voiced concern.

The AUB's director of communications, Simon Kachar, said: "This is an extremely sensitive matter, which is why we are refraining from making any public statements, to protect students' interests. We have sent them an email to manage the crisis and reassure them, but at this stage, we are withholding any official comments."

USAID says it has supported over 2,000 students in Lebanon since 2010 at a cost of $200mn

Elise Salem, who is vice president for student development at LAU, said: "In this critical situation, we have chosen not to disclose any measures or issue a statement until matters become clearer by the end of the 90-day period. Our priority remains the students' best interests."

The affected students are enrolled in prestigious private universities, including the American University of Beirut (AUB), the Lebanese American University (LAU), Haigazian University, and Notre Dame University-Louaize (NDU), which recently enrolled 123 students on USAID scholarships.

Despite the uncertainty, the US Embassy in Lebanon has not yet removed the call for applications for USAID's Higher Education Scholarship (HES) programme from its official website, which has a deadline of 3 March 2025. USAID says it has supported over 2,000 students in Lebanon since 2010 at a cost of $200mn. This has paid for tuition fees, accommodation, books, laptops, living expenses, and transport.

Information void

An AUB student benefiting from a US scholarship said the university had handled the US decision with empathy and support. AUB President Fadlo Khuri met students and assured them that the university would cover all tuition fees and expenses for the 90-day period during which their scholarship was frozen.

Yet concerns remain high. "This is consistent with AUB's past actions when it stepped in to support students affected by a similar crisis under the Middle East Partnership Initiative (MEPI)," said the student.

"But my peers and I share a deep uncertainty about the years to come. Most of us come from low-income families and remote areas. My father earns $300 a month. I'm still in my second year of university. How am I supposed to afford my education and living expenses if we are permanently deprived of the scholarship?"

A source at LAU told Al Majalla that the university was in a state of shock and that staff had been told to remain cautious and avoid making any public statements. LAU is also understood to be covering the students' tuition fees for the 90-day freeze. Those on scholarship remain enrolled and are attending classes, but extracurricular activities linked to USAID scholarships are currently suspended.

Mandel NGAN / AFP — Tributes are placed beneath the covered seal of the US Agency for International Development (USAID) at their headquarters in Washington, DC, on February 7, 2025.

Read more: The chaos at USAID, explained

Knock-on effect

The source further explained that a major issue has arisen with the Tomorrow's Leaders (TL) programme, part of the Middle East Partnership Initiative (MEPI). This includes two types of scholarships: the TLS grant, which covers students for one year, and the TLU grant, which provides full funding for a larger group of Lebanese and Arab students throughout their entire university studies.

The USAID crisis primarily affects the latter group, they said. "Students who received the one-year TLS grant had already planned how to finance the rest of their education, but those relying on full coverage for their entire university education now find themselves stranded midway through their studies."

A Lebanese academic said the cautious approach being taken by Lebanese universities "was expected and reflects a pragmatic and balanced response". They said the Lebanese lobby in the US was now pushing to reverse the decision. Yet the stance taken by the Lebanese state contrasts sharply with the swift and supportive measures taken by the Egyptian government to assist its students.

While the Egyptian model grants the government a certain level of authority over private institutions, Cairo is in a delicate position given US pressure to relocate Gazans to Egypt. Likewise, Lebanon's priority is to preserve its positive relations with the US administration, particularly since its educational institutions are so deeply tied to the United States in their foundations, administration, and cultural identity.

For Arab observers, this funding crisis goes to the heart of American values and whether the US continues to value education, self-development, and human rights. For now, the university students benefiting from USAID scholarships feel a loss of control over their education and subsequent professional aspirations. Suddenly, nothing looks sure.

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