US Aid Cut Triggers Humanitarian Crisis in Iraq’s Displacement Camps

US Aid Cut Triggers Humanitarian Crisis in Iraq’s Displacement Camps
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The sudden suspension of US foreign aid to Iraq in January 2025 has caused a near-total collapse of humanitarian and mental health services in displacement camps across the Kurdistan Region and disputed territories, Shafaq News reported. International and local organizations reliant on US funding have been forced to shut down operations, lay off staff, and leave thousands of vulnerable residents without essential care.

Key organizations such as the SEED Foundation, WCHAN, and the Barzani Charity Foundation, heavily dependent on US and European funds, ceased their activities, creating a critical gap in protection, education, and mental health programs. SEED Foundation, which previously provided psychological support to over 100 individuals monthly, now retains only a few staff to handle the most severe cases, mainly among Syrian and Yazidi refugees.

WCHAN, a major mental health service provider in Syrian refugee camps, also closed, leaving high-risk patients to seek costly treatment at Erbil’s psychiatric hospital, affordable to only a small fraction. Experts warn of rising suicide rates, domestic violence, and worsening mental health conditions in the camps.

While the Kurdistan Regional Government continues to supply limited water and electricity, federal ministries have largely withdrawn, resulting in shortages of clinics, medicine, hygiene supplies, and food. Legal and security restrictions trap many displaced residents in camps, unable to work or safely return home.

The collapse of aid has eroded trust in government institutions, with no public agency filling the void left by NGOs. Health and hygiene crises are emerging, including scabies outbreaks, as displaced populations face increasing hardship and neglect.