Dr. Benedict Alo D’Rozario, president of Caritas Asia, acknowledged the challenges ahead, particularly in light of Catholic Relief Services (CRS) losing nearly half of its $1.5 billion annual funding, a substantial portion of which supported refugee and migrant programs.

“Definitely, this cut will affect them,” D’Rozario said, adding that Caritas Asia also relies on CRS for crucial capacity-building initiatives and staff support.

CRS is the largest recipient of funding from the U.S. Agency for International Development (USAID), which has faced a spending freeze, office closures, and significant staff reductions under the Trump administration this week.

The USAID funding cuts would be among the most significant setbacks for CRS, a relief organization established in 1943 by U.S. Catholic bishops to assist World War II survivors in Europe. According to its website, CRS serves over 200 million people across 121 countries on five continents.

The shutdown has already severely impacted Bangladesh, D’Rozario said, with more than 100 USAID-backed projects from various organizations—totaling over $200 million—coming to an abrupt halt, affecting thousands of workers and vulnerable families.

He said Caritas Bangladesh has three USAID-funded projects currently on hold in four dioceses, impacting more than 300 staff members. 

“Many of them have been notified that they will no longer be working starting next week, though not all have received official notice yet,” D’Rozario said.

The shutdown is also affecting thousands of families, including those involved in a “host family” project in Cox’s Bazar. While some aid for Rohingya refugees in Cox’s Bazar will continue, the scale of assistance has been drastically reduced, leaving many at risk.

In the Philippines, the social action arm of the Catholic Bishops’ Conference said that approximately PHP 35 million (US$603,542) worth of development projects have been affected by the USAID shake-up.

Bishop Jose Colin Bagaforo, president of Caritas Philippines, said that USAID-funded projects in the Philippine Church have already been put on hold since US President Trump announced the cuts.

However, the prelate assured that Caritas Philippines “will continue its work serving the poor and advance the programs of the Church, regardless of USAID funding cuts.”

Amid financial uncertainties, Caritas Asia has pledged to continue advocating for migrants’ rights and strengthening regional collaboration.

Upcoming meetings in Thailand and Malaysia will focus on maintaining operations and identifying alternative funding sources to address gaps left by the USAID cutbacks.