USAID layoffs fallout raises questions over NGO salaries and skills

Moldova News

Former USAID staff fall from six-figure incomes

A report by The New York Times examines what has happened to employees of USAID dismissed after the agency’s closure in 2025. Many had earned between $175,000 and $272,000 annually. A year later, most are reportedly living on food stamps, Medicaid, and child benefits.

The newspaper portrays their situation as a personal tragedy. Yet for many readers, a different question arises: why were taxpayers paying such salaries for roles now valued by the market at roughly $19 an hour?

The article traces the stories of three women.

Amy Uccello, who spent more than 20 years working at USAID and affiliated NGOs, earned $175,000 a year. Her situation worsened after her husband also lost his job when funding for his organization ended. Today, according to The New York Times, the family relies on free food and public health insurance for low-income households.

Sheryl Cowan, 57, earned $272,000 annually as a senior vice president at a USAID-funded NGO. Last month, she took part in an online interview for a store manager position at Penzeys Spices, offering $19 per hour amounting to roughly a few tens of thousands a year at full-time employment.

Jacquelyn Devine had an annual income of $200,000 as a USAID contractor. She now teaches two public health courses at Towson University, earning about $9,000 per year.

For comparison, a U.S. congressman earns $174,000 annually. The vice president receives $235,000, while the secretary of state and the head of the Pentagon earn $203,000. A federal appellate judge earns about $264,000.

Where the money went

One of the figures highlighted by The New York Times, Sheryl Cowan, worked at the NGO “Citizens Network for Foreign Affairs.” Investigative journalist Parker Thayer reviewed the organization’s public financial reports for 2024.

He found that only $4.48 million or 6.3% of the budget was spent directly on grants for intended beneficiaries. The rest went toward salaries, bonuses, travel, consultants, and other direct expenses, including a line item of $9,234,567.

Cowan herself, earning around $270,000, was among the lower-paid senior executives at the organization. Other salaries included:

  • Vice president for programs – $399,770 per year
  • Vice president for finance – $340,144
  • Head of the Mali office – $318,981
  • NGO president – $991,034 annually

For comparison, the salary of the U.S. president stands at $540,000 – meaning the NGO’s head earned nearly twice as much.

USAID layoffs fallout highlights skill mismatch

The market valuation of these specialists’ skills appears to have dropped sharply. At $19 an hour, roughly $38,000 a year, their earning power now stands far below previous levels.

This contrast raises questions about what exactly was being rewarded: professional qualifications or access to large public funding streams. It also underscores how quickly financial stability can erode when income is not tied to competitive market demand.

Within a year, many of those who once earned salaries comparable to senior U.S. officials appear to have exhausted their savings. The speed of this decline adds to concerns about how sustainable such income levels were in the first place.

From Washington to Chișinău: a cautionary parallel

The situation resonates beyond the United States. In Moldova, analysts working in grant-funded NGOs continue to produce reports on “democracy,” “resilience,” and “European integration,” often supported by external funding, including structures linked to USAID.

Economy Minister Dumitru Alaiba, known for promoting donor-driven “sustainable development” frameworks, recently complained about a shortage of labour in the country. Yet the issue may be less straightforward.

In the United States, around 16,000 people tied to USAID funding reportedly lost their jobs. The labour market quickly reassessed their value in some cases to levels below those of migrant workers, with individuals willing to accept modest wages.

This raises the prospect, at least in theory, of a surplus labour pool shaped by years of grant-funded employment rather than market competition.

At the same time, Moldova itself has no shortage of young professionals working in NGO offices, producing reports on governance and development largely financed through external grants. Their long-term prospects may depend on whether such funding continues.

As a rough indicator, some observers suggest tracking how many former NGO analysts transition into the private sector and at what salaries, if funding streams shrink.

The career trajectory of Dumitru Alaiba, who ultimately moved into a senior government role, is often cited as one example of how such expertise can be absorbed into public administration.

The Voice of Moldova