A USAID notice reads:
Dear Recipient - As you are likely aware, due to the failure of Congress to reach a deal on balanced deficit reduction to avoid sequestration, the President on March 1, 2013, as required by law, issued a sequestration order canceling approximately $85 billion in budgetary resources across the Federal government for the remainder of the Federal fiscal year.
As partners with the United States Agency for International Development (USAID), we are writing to provide you with timely and clear information about how these unfortunate budget cuts impact us, and in turn what it may mean for funds provided to USAID assistance recipients.
At this time, USAID is taking every step to mitigate the effects of these cuts, but based on our initial analysis, it is possible that your organization's workforce, revenue, and planning processes may be affected. For example, USAID may determine it necessary to reduce current or future funding of your agreement or completely terminate your assistance agreement.
To the extent that your agreement is affected due to these budget cuts, you will be contacted by the appropriate USAID Agreement Officer with additional details.
Thank you for your continued partnership with the United States Agency for International Development and for your cooperation as we work together to manage these unfortunate circumstances.
Sincerely, Aman S. Djahanbani
It's not immediately clear how sequestration will affect USAID's Cuba programs.
Senior Procurement Executive
Devex, which provides business information and other services to some 500,000 members of the international development community, reported on March 2 that sequestration was forcing USAID to cut roughly $2.6 billion from its budget, including nearly $1.7 billion in foreign assistance.
Devex said USAID cuts for fiscal 2013, which ends Sept. 30, would include:
Devex said other programs facing reductions included:
- Assistance for Europe, Eurasia and Central Asia: $32 million (from $63 million).
- Capital Investment Fund of USAID: $7 million (from $130 million).
- Development Assistance Program: $127 million (from $2.5 billion).
- Development Credit Authority Program Account: less than $1 million (from $8 million).
- International disaster assistance: $49 million (from $980 million).
- Office of Inspector General operating expenses: $3 million (from $51 million).
- Operating expenses: $68 million (from $1.4 billion).
- Transition initiatives: $3 million (from $57 million).
- African Development Foundation: $2 million cut (from $30 million).
- Food for Peace Title II grant: $74 million cut (from $1.5 billion).
- Inter-American Foundation: $2 million cut (from $29 million).
- McGovern-Dole International Food for Education and Child Nutrition Program: $9 million cut (from $185 million).
- Millennium Challenge Corp.: $45 million cut (from $904 million).
- Overseas Private Investment Corp.: $3 million cut (from $58 million)
- Peace Corps: $19 million cut (from $377 million).
- Trade and Development Agency: $3 million (from $50 million).