The Future of Iraqi Non-Governmental Organizations in the Post-US Funding Era: Challenges and Strategies for Sustainability

The suspension of US foreign aid under Executive Order 14169 has exposed the precarious financial dependence of Iraqi non-governmental organizations (NGOs) on foreign, particularly US funding, threatening their ability to deliver critical humanitarian and development services, let alone their own sustainability. This study examines the operational and financial challenges facing Iraqi NGOs in the wake of abrupt US funding suspension, drawing on mixed-method research, including surveys of 13 Iraqi national NGOs and interviews with their program leaders. Findings reveal that over 50% of Iraqi NGOs relied on US funding for their core operations, with many reporting severe disruptions, including project suspensions, staff layoffs, and reduced beneficiary reach, following the US aid suspension. The issue has further disproportionately impacted vulnerable groups, particularly women, children, and displaced populations, who depend on NGO-led protection and assistance, and healthcare, education, and legal services. Nonetheless, although the situation is underdeveloped and the opportunities are limited, the Iraqi national NGOs are at the stage of exploring other possibilities to survive and hopefully thrive again through diversifying the donor/funder source to ensure strategic sustainability. By analyzing lessons from the current funding crisis and the strategies developed as a way forward towards a more sustainable future for NGOs, the research contributes to broader debates on NGO resilience and sustainability and offers recommendations to support the long-term viability of Iraqi NGOs in an increasingly uncertain aid landscape.