Some malaria, HIV, TB programme cuts reversed by US, groups say

By Jennifer Rigby and Aaron Ross

LONDON (Reuters) -Some lifesaving health projects that had their U.S. funding contracts abruptly terminated last week have received letters reversing that decision, several of the groups told Reuters.

The aid recipients said the decisions were promising, but that their work remains in limbo as funding for their projects from the world's biggest donor had not yet restarted.

The Trump administration canceled on Thursday around 90% of contracts funded by the U.S. Agency for International Development (USAID) and the U.S. State Department, sending shockwaves across the global aid community.

Michael Adekunle Charles, chief executive of the RBM Partnership to End Malaria, said his organization's letter reversing that decision arrived late Wednesday.

"I think it's good news. We need to wait in the coming days to get additional guidance," he said. "Our priority is saving lives, so the earlier we can get started to continue saving lives the better."

However, Charles said that would be difficult unless funding started to flow again.

Work on the USAID-funded supply chain for malaria drugs, nets and tests could also restart, one contractor was told, but they are still awaiting payment for past invoices.

Some U.S. foreign aid contractors and grant recipients will take their fight to get payments restored to a federal judge in the United States on Thursday.

A U.S. State Department spokesperson said the Trump administration had been working to review every dollar spent "to ensure taxpayer resources are being used to make America safer, stronger, and more prosperous" and had reviewed around 15,600 awards, contracts and grants, but did not respond to questions about why some terminations had been reversed and others not, or on restarting funding.

Other programmes hosted by the U.N. and partly funded by the United States, including the Stop TB Partnership, also had termination notices reversed this week.

"It sounds good but we cannot draw down money ... and we have no clarity," said Lucica Ditiu, executive director of the Stop TB Partnership.

In Kenya, USAID officials told health organisations on Wednesday that terminations of contracts funded by the President's Emergency Plan for AIDS Relief had been rescinded, Nelson Otwoma, the director of a national network for people living with HIV/AIDS, told Reuters.

This means organisations can start lifesaving HIV care and treatment services again, said Otwoma, who attended the meeting in Nairobi.

Kenya's health ministry, which convened Wednesday's meeting, did not immediately respond to a request for comment.

Trump ordered a 90-day pause on all U.S. foreign aid on his first day back in office. The ensuing stop-work orders halted USAID operations around the world and jeopardized the delivery of life-saving food and medical aid, throwing global humanitarian relief efforts into chaos. The administration has also placed most USAID staff on leave and eliminated 1,600 jobs.

Subsequent waivers for some of the work added to the confusion, followed by the terminations last week.

(Reporting by Jennifer Rigby, Editing by William Maclean and Mark Porter)