USAID Division Relaunches as Nonprofit with $48M in Backing

The Development Innovation Ventures program will continue its work in a new independent form.

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 organization aims to continue the work of identifying and scaling affordable, high-impact development interventions.

Why it matters

The loss of USAID support was a major blow to international development efforts, but this private funding allows the DIV program to carry on its mission of finding and expanding effective, low-cost solutions to global challenges. As foreign aid budgets shrink, the DIV Fund's focus on sustainability and leveraging local resources takes on added importance.

The details

The DIV Fund was launched with $48 million in funding from two anonymous private donors. It will aim to grant out $25 million annually, which is a bit more than half of DIV's previous budget at USAID. The nonprofit will continue DIV's model of identifying affordable, high-impact interventions through rigorous evaluation and then supporting their expansion to scale. While no longer part of the government, the DIV Fund plans to work with major donors like the World Bank to promote its approach.

  • The DIV division was eliminated by the Trump administration cuts in 2025.
  • The DIV Fund was relaunched as an independent nonprofit on February 6, 2026.

The players

DIV Fund

An independent nonprofit organization that continues the work of the former USAID Development Innovation Ventures program, identifying and scaling affordable, high-impact development interventions.

Michael Kremer

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

Coefficient Giving

A San Francisco-based foundation that is one of the anchor funders of the DIV Fund, having previously provided a $45 million grant to the USAID program.

Sasha Gallant

A cofounder of the DIV Fund.

Marco Rubio

The Secretary of State, who has characterized USAID as corrupt, costly and ineffective.

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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

What’s next

The DIV Fund plans to hold an open call for grant applications this year as it continues its work identifying and scaling effective development interventions. It will also seek to partner with major donors like the World Bank to promote its approach.

The takeaway

In the face of shrinking foreign aid budgets, the DIV Fund's model of finding affordable, high-impact solutions and supporting their expansion to scale takes on added importance. Its ability to attract significant private funding to continue this critical work is a rare bright spot amidst the broader challenges facing international development efforts.