Catholic Relief Services (CRS), one of the largest humanitarian organizations funded by the U.S. Agency for International Development (USAID), is facing devastating financial cuts and widespread layoffs following President Donald Trump’s decision to drastically reduce USAID funding.

With USAID historically supplying nearly half of CRS’s budget, the Catholic charity is now scrambling to slash costs, with executives warning of a significantly downsized organization by the end of the fiscal year.

“We anticipate that we will be a much smaller overall organization by the end of this fiscal year,” CRS President Sean Callahan said, as quoted by The National Catholic Reporter.

CRS, which operates in over 100 countries with more than 7,000 employees, had been a major recipient of USAID grants for nearly a decade, receiving $4.6 billion in funding. In 2023 alone, it relied on over $521 million from U.S. government grants. The sudden budget cuts are forcing CRS to lay off staff, reduce aid programs, and implement severe cost-saving measures—including temporary furloughs that officials say won’t be enough to balance the books.

Critics have slammed the Trump administration’s decision, warning that it will have dire humanitarian consequences.

“To target this tiny portion of the federal budget in such a haphazard and irresponsible way is going to cost people’s lives and livelihoods,” said Stephen Colecchi, former director of the Office of International Justice and Peace for the U.S. Conference of Catholic Bishops.

“It is not a thoughtful or humane way to go about treating programs that help the poorest of the poor all over the world.”

CRS is not the only faith-based organization feeling the impact of the administration’s sweeping cuts.

Episcopal Migration Ministries (EMM) recently laid off 22 staff members and wound down refugee resettlement programs after Trump issued an executive order suspending federal funding for such initiatives. Similarly, World Relief, a humanitarian arm of the National Association of Evangelicals, warned of an “$8 million critical funding gap” following the order, forcing the organization to halt government-funded activities supporting nearly 4,000 refugees.

The Trump administration has defended the cuts, arguing they are necessary to combat “waste and abuse” within USAID. The White House claims that taxpayer money has been funneled into “ridiculous” projects, including diversity equity initiatives in Serbia and funding for LGBTQ activism in Guatemala.

Despite these justifications, the fallout has been swift and severe for organizations like CRS, which now faces the harsh reality of a significantly diminished capacity to serve millions of impoverished people worldwide.

As CRS and other Christian humanitarian groups scramble to navigate the funding crisis, the long-term consequences of Trump’s USAID overhaul are expected to reshape the landscape of global relief efforts for years to come.