Theory of Change: #14: Is the global humanitarian system collapsing?
Devex Podcasts

Theory of Change: #14: Is the global humanitarian system collapsing?

B2Upper-intermediateSeptember 15, 20261 hr 9 min

In an interview on Devex's Theory of Change podcast, Alight CEO Jocelyn Wyatt warned that the traditional humanitarian business model is facing structural failure. Following the collapse of the U.S. Agency for International Development and the transition of U.S. foreign aid programs to the U.S. State Department, organizations are having to rely on more rigid grants from United Nations agencies that typically cap overhead at 7%, leaving virtually no resources for operational leadership, compliance, or innovation, Wyatt said. Global humanitarian assistance fell by roughly 30% between 2022 and 2025, with 13 of the 20 largest donors cutting relief aid in 2025, according to the...

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The story didn't end there, neither did the chaos and confusion.

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of the U.S. Agency for International Development

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0:00

The US foreign aid freeze in 2025 sowed chaos and confusion among humanitarian organizations operating around the world. Chaos and confusion is not something you want when you're providing life-saving services under already extremely difficult circumstances.

0:28

People working for these organizations suddenly had to contemplate the unthinkable. What did it mean to stop work immediately? What would happen to the people they served? The story didn't end there, neither did the chaos and confusion.

0:47

In the world of humanitarian relief, U.S. government funding cuts and the dismantling of the U.S. Agency for International Development were the bellwether of a broader crisis. The state of the humanitarian system report

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