USAID reduces over $600K funding for UK LGBT advocacy group

The US Agency for International Development (USAID) has withdrawn over $600,000 in funding from Stonewall, a controversial LGBTQ+ British advocacy group that heavily relied on American financial assistance for its global projects.

This decision was made as part of a larger assessment of foreign aid spending during President Donald Trump’s administration, leading to potential financial instability for Stonewall and casting doubt on the future of LGBTQ+ rights activities worldwide.

Stonewall CEO Simon Blake expressed concern over the current situation, noting, ‘There is an unprecedented political pushback against the values of diversity and inclusivity.’

‘The work to advocate for LGBTQ+ equality has never been more important, and Stonewall is rising to meet the challenge.’

The ramifications of USAID’s funding freeze are already proving catastrophic.

Stonewall, which has been a leading voice for LGBTQ+ rights for decades, is now bracing for a massive internal restructuring, with reports suggesting that as many as half of its staff could be laid off in the coming months.

Blake confirmed that only roles with dedicated funding would be protected, fueling speculation that key projects in Eastern Europe, a region where Stonewall has been instrumental in combating anti-LGBTQ+ violence – may now collapse entirely.

News of the reported cuts to Stonewall comes after it was revealed the group was becoming increasingly more reliant on taxpayers’ money as its overall finances suffer, prompting calls for public bodies to end their support for it. 

American funding to Stonewall came from US taxpayers money through the Global Equality Fund (GEF) – an initiative overseen by the US State Department, designed to support LGBTQ+ rights worldwide.

Over the past three years, the US has provided Stonewall with more than $600,000 of aid.

Stonewall’s annual reports show a steady rise in GEF funding: $173,000 in 2021-22, $257,200 in 2022-23, and $294,000 in the most recent accounts.

But in Stonewall’s financial statements also show that its deficit more than doubled, from $550,000 to $1.1 million, in the last fiscal year.

The fund has also not publicly released its financial records since 2015, raising questions about the openness of its operations. 

Over the last decade the group has been involved in various controversies around trans issues, including over claims that children as young as two can be transgender.

It was also attacked by one of its founders, Simon Fanshawe, on its ‘extreme notion of self-identification’ – allowing anyone to declare themselves as the opposite sex without having to provide evidence.

The charity has additionally come under fire for its schemes that charge companies and the public sector for advice on how to become more inclusive.

Its ‘Workplace Equality Index’ tells employers how they measure up on ‘lesbian, gay, bi and trans inclusion’ compared to others. 

The Bank of England, it has been revealed, submitted a 103-page application to make it on to Stonewall’s list of 100 top employers, boasting that it used the term ‘birthing parent’.

With USAID’s abrupt pullback, the financial stream has now been abruptly severed, leaving Stonewall scrambling to secure alternative sources of funding.

The withdrawal of American support for Stonewall comes under Trump’s ‘America First’ strategy, which prioritizes domestic interests over foreign commitments.

Trump has sought to clampdown on the cash being supplied to trans rights groups, as part of the president’s crackdown against the ideological movement.    

The president has long been a vocal critic of overseas spending, repeatedly emphasizing the need for a full-scale review of US foreign aid programs. 

The pulling of aid to such a charity comes as Trump has sought a return to a strict binary definition of gender in the United States, issuing an executive order that states the country only has two genders – male and female. 

Despite the financial crisis, Stonewall remains defiant. In a statement to the BBC, the organization made it clear that while the funding cuts present a major obstacle, they will not deter the fight for global LGBTQ+ equality.

‘Many charities in the UK are facing tough choices for a range of reasons, including the economic environment. Stonewall is no different,’ the statement read.

Blake doubled down on the organization’s commitment to global advocacy, emphasizing that Stonewall will continue working with its partners to mitigate the impact of USAID’s withdrawal

Although the UK government is continuing to pour millions into LGBTQ+ and gender-related initiatives, the US withdrawal signals a shift away from global equality projects and one that could embolden anti-LGBTQ+ movements worldwide.

Among the projects affected is the Edinburgh International Book Festival, which had previously received $40,000 in USAID funding for gender identity seminars. 

This sum has now been axed, with little explanation as to why such cultural initiatives were ever linked to US humanitarian relief efforts in the first place.

While Trump’s administration maintains that the review of foreign aid is necessary to align spending with national interests, activists argue that the cuts to LGBTQ+ funding are not just about economics but political.