USAID Division Relaunches as $48M Nonprofit

Development Innovation Ventures (DIV) continues work with private funding after Trump administration cuts.

Published on Feb. 6, 2026

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A division of the U.S. Agency for International Development (USAID) that was eliminated by the Trump administration last year has been reborn as an independent nonprofit called the DIV Fund, thanks to $48 million in philanthropic backing. The new nonprofit aims to continue the work of identifying and scaling affordable, effective international development interventions.

Why it matters

The loss of U.S. government support for international development programs has been a major blow, but the DIV Fund's ability to attract significant private funding represents a rare success story in preserving critical work in this space. As official foreign aid budgets shrink, the DIV Fund's focus on highly effective, evidence-based programs could play a crucial role in ensuring limited resources are used as efficiently as possible.

The details

The DIV Fund was previously a division within USAID that used a research and development approach to identify low-cost, high-impact international development interventions and support their expansion. With $48 million from two private donors, including a $45 million grant from the Coefficient Giving foundation, the DIV Fund has been relaunched as an independent nonprofit. It plans to grant out $25 million annually, which is a little more than half of DIV's former budget at USAID. The new nonprofit will continue DIV's model of funding programs that can become self-sustaining through revenue or local government support, reducing reliance on long-term donor funding.

  • The DIV division was eliminated by the Trump administration's cuts to USAID last year.
  • The DIV Fund was relaunched as an independent nonprofit on Thursday, February 6, 2026.

The players

DIV Fund

An independent nonprofit that continues the work of the former USAID division Development Innovation Ventures, identifying and scaling affordable, effective international development interventions.

Coefficient Giving

A San Francisco-based foundation that provided a $45 million grant to help launch the DIV Fund as an independent nonprofit.

Michael Kremer

The scientific director of the DIV Fund and a Nobel prize winning economist.

Otis Reid

The executive director of Global Health & Wellbeing at Coefficient Giving.

Kathryn Oliver

A professor at the London School of Hygiene and Tropical Medicine who studies how evidence informs policy.

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What they’re saying

“The loss of US government support is a huge blow. It's wonderful that private funders have stepped up to help try to fill part of that gap but it's only filling part of the gap.”

— Michael Kremer, Scientific Director, DIV Fund

“It just matters a ton if that money is going towards things that are highly effective or moderately effective or not effective. And I think DIV can play a really crucial role in moving things from the not effective to very effective part of the spectrum.”

— Otis Reid, Executive Director of Global Health & Wellbeing, Coefficient Giving

“It is the most robust research design for answering questions about the effectiveness of interventions compared to usual treatment, absolutely. But it is not the most robust design for answering any other kind of questions.”

— Kathryn Oliver, Professor, London School of Hygiene and Tropical Medicine

What’s next

The DIV Fund plans to work with major donors like the World Bank and other countries to promote its evidence-based approach and help them develop similar research funds.

The takeaway

The DIV Fund's ability to secure $48 million in private funding to continue its innovative work in international development is a rare bright spot amidst the broader cuts to foreign aid. Its focus on highly effective, scalable interventions could help maximize the impact of limited development resources in the face of shrinking official aid budgets.