• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Farm groups saved Bayer in court over RoundUp cancer claims. Five days later, Bayer called for tariffs on the ingredient farmers rely on

2

Billionaire MacKenzie Scott just donated $20 million to support America’s youth mental health, as a fifth of teens struggle with suicidal thoughts

3

U.S. Treasury has borrowed $155 billion every month of this fiscal year—and is now paying $24 billion a week in interest on its debts

1

Farm groups saved Bayer in court over RoundUp cancer claims. Five days later, Bayer called for tariffs on the ingredient farmers rely on

2

Billionaire MacKenzie Scott just donated $20 million to support America’s youth mental health, as a fifth of teens struggle with suicidal thoughts

3

U.S. Treasury has borrowed $155 billion every month of this fiscal year—and is now paying $24 billion a week in interest on its debts
PoliticsFederal Government

The truth about ‘condoms for Gaza’: DOGE canceled $33 million USAID contract treating 350,000 HIV patients

Eleanor Pringle
By
Eleanor Pringle
Eleanor Pringle
Senior Reporter, Economics and Markets
Down Arrow Button Icon
Eleanor Pringle
By
Eleanor Pringle
Eleanor Pringle
Senior Reporter, Economics and Markets
Down Arrow Button Icon
March 22, 2025, 6:00 AM ET
A woman with two babies sits beside a nurse in hospital.
The Elizabeth Glaser Pediatric AIDS Foundation works with HIV-positive mothers to prevent transmission to their babies. Eric Bond, EGPAF
Add Fortune on Google for similar content.
  • EXCLUSIVE: The Elizabeth Glaser Pediatric AIDS Foundation (EGPAF) received a devastating blow when USAID abruptly terminated a number of its contracts, cutting off funding that supported HIV treatment for 350,000 people in Africa. The cuts have led to medicine shortages, unpaid healthcare workers, and a crumbling medical infrastructure. The decision, potentially influenced by Elon Musk’s confusion over a misreported funding allocation, has left EGPAF scrambling. “Large numbers of people are going to die” if the funding is not restored, a foundation exec told Fortune.

Back in late January, when Elon Musk used X to falsely accuse USAID of sending $50 million of condoms to Gaza, the staff at the Elizabeth Glaser Pediatric AIDS Foundation (EGPAF) did not realize he may have been referring to their work.

“My guess is that a lot of that money ended up in the pockets Hamas, not actually condoms,” Musk told his 220 million followers, offering no evidence for his assertion.

Musk—and the White House, which first made the claim—turned out to be wrong. There were no condoms being sent to the war-torn territory controlled by terrorists.

EGPAF was unaware of its potential involvement in the confusion: It wasn’t doing work anywhere near the conflict. Its work was in Gaza, a territory of Mozambique, not the Middle East.

This is what really happened, according to correspondence and charitable funding records seen by Fortune, and interviews with the staff responsible for administering the program.

Countdown starts

When headlines about the chaos inside USAID began pouring out of Washington D.C., staff at (EGPAF) were fearful but hoped the life-saving nature of their work would spare them.

But at the end of February, the organization received the emails it had been dreading. Its three projects across Lesotho (the nation President Trump recently said “nobody has ever heard of”), Eswatini, and Tanzania had been terminated.

Instantly, treatment for 350,000 HIV patients—including 10,000 children and 10,000 pregnant women—was thrown into disarray. “Large numbers of people are going to die” if the funding is not restored, according to Trish Karlin, executive vice president for business development and external affairs at EGPAF.

The termination notice, seen by Fortune, offered no review process prior to the decision. It told the charity and its partners to cease activities immediately.

The shortfall in funds, approximately $32.7m, had been earmarked for spending on a range of services which had been developed with White House support over the past two decades.

As soon as the foundation received the emails from USAID, the countdown was on. HIV has a well-known 90-day window: During this time without treatment, HIV can become more easily transmitted. The virus can also rapidly mutate during a break in care, becoming resistant to the medicine which once kept its symptoms at bay.

Hoarding medicine

Karlin said the healthcare infrastructure her team had worked on for decades began disintegrating overnight.

Patients began hoarding medicine and pharmacies ran out of stock. Staff running testing facilities started working for free, as did counsellors who help patients with the psychological aspect of their diagnosis.

“The funds covered a range of things. Healthcare services are more than just a bottle of pills that show up in a country, it’s also the infrastructure that delivers those services to the people that need them,” Karlin explained to Fortune in an exclusive interview.

This includes “the healthcare workforce, support for counseling, testing, blood samples to see how people are progressing in their disease, what other opportunistic infections they may have, psychosocial support training. In some cases logistics. We’ve seen stories of drugs are arriving in country but [there’s no] system to then get those medications to the pharmacy. It’s a complex service.”

On top of that the funds also supported quantification, ordering, and redistribution services of stock at treatment and testing sites, as well as specialised services in antenatal clinics and on maternity wards. The money also pays for specialist doctors, nurses, clinicians, lab teams and peer educators.

“We didn’t show up and build these programs overnight. Unfortunately some of them can be eroded very, very quickly, but we are ready to step back into action where we are needed and wanted to do so,” Karlin said.

USAID did not respond to Fortune’s request for comment.

Why fund it?

The funds from Washington—be it through USAID, the Centers for Disease Control, or the Department of Defense—provides the vast bulk of funding to EGPAF, which is supplemented by grants from the likes of the Gates Foundation.

Some of the funds came via PEPFAR (the President’s Emergency Plan for AIDS Relief) established by President George W. Bush, which has saved more than 26 million lives across 50 countries since its inception. Given the link to PEPFAR, a long-justified spend, EGPAF had hoped its support would be continued.

The reasoning now to prevent the spread of HIV is the same as it was in 2003 when PEPFAR was created: Aside from mere humanitarian goodwill (a point recently made by Gates himself), it protects American lives.

“Our world is so interconnected … I thought that would be an outcome of COVID: That people would appreciate that more,” Karlin explained. “[HIV] infections have come down in the United States, treatments have improved. We now have prevention technology that allows you to take two injections per year with 100% prevention from infection.”

“And a lot of that work, those clinical trials, were done in other other parts of the world. It’s helping to discover new technology that’s going to help all of us in the long run.”

She added: “It’s hard for people to understand things that happen in places they’ve never been or with communities they don’t meet, but then there are things that are unifying all of us. If you’re a parent with a sick child, I don’t care what country you live in, you want that child to be healthy.”

“If a pregnant woman is at risk of transmitting something to her baby, every mother can understand how horrible that is.”

The wrong Gaza

When Department of Government Efficiency (DOGE) boss Elon Musk first claimed he had uncovered a $50 million payment for condoms bound for Gaza, Karlin didn’t think her team would be dragged into the melee.

EGPAF does buy contraceptive treatments, but it has never purchased the billion condoms a $50 million payment would supply. Nor does it work in the conflict-ridden territory of Gaza in the Middle East, but in the Gaza province of Mozambique.

When it was put to Musk that this was an error he admitted, without specifics, that he could have made a mistake.

Karlin does not know whether EGPAF’s contracts were canceled because of this confusion. “I can say definitively that we were not purchasing condoms for Gaza in our program in Mozambique,” she said.

Fortune’s multiple requests for comment from the White House, the Department of State and DOGE did not receive a response.

The confusion over these tens of millions of dollars is indicative of the wider chaos being reported out of federal government at present: For example a DOGE employee was accidentally given permission to edit sensitive Treasury data, USAID staff were reportedly locked out of their Washington offices, and the policy about whether it is Musk or the cabinet responsible for axing headcount has needed to be clarified.

Donors like the Gates Foundation have already contacted EGPAF to find out whether they can help fill the 90% funding hole the U.S. government has created. But Karlin said: “When a gap this big is left behind, there’s just no way to jump in and immediately fill it. And it’s the rapid nature of it … without a real transition strategy of ‘OK [the government] want to get out of this work, we need a responsible handover plan.'”

In time, Karlin hopes the work of EGPAF will be recognized and funding reinstated—she points to Musk admitting Ebola prevention measures were “briefly” canceled, for example.

“I am an optimistic person, but it’s harder and harder these days to stay that way,” Karlin said. “When there is a greater understanding of the things that have been terminated, I’m hopeful that there will be some kind of reconciliation that some of these things need to continue because if they don’t large numbers of people are going to die.”

Have you or your organisation been impacted by cuts to federal aid spending? Contact eleanor.pringle@fortune.com.

Subscribe to Fortune Gulf Brief. Every Tuesday, this new newsletter delivers clear-eyed, authoritative intelligence on the deals, decisions, policies, and power shifts shaping one of the world’s most consequential regions, written for the people who need to act on it. Sign up here.
About the Author
Eleanor Pringle
By Eleanor PringleSenior Reporter, Economics and Markets
LinkedIn icon

Eleanor Pringle is an award-winning senior reporter at Fortune covering news, the economy, and personal finance. Eleanor previously worked as a business correspondent and news editor in regional news in the U.K. She completed her journalism training with the Press Association after earning a degree from the University of East Anglia.

See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Politics

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Politics

At least a million woman lose access to humanitarian supports thanks to Trump budget cuts
PoliticsDonald Trump
At least a million woman lose access to humanitarian supports thanks to Trump budget cuts
By The Associated PressJuly 10, 2026
4 hours ago
Vietnam is paying women to have more babies—but there’s a catch: they have to be on baby no. 2 to qualify for the $68 million budget
SuccessCareers
Vietnam is paying women to have more babies—but there’s a catch: they have to be on baby no. 2 to qualify for the $68 million budget
By Orianna Rosa RoyleJuly 10, 2026
11 hours ago
Trump cheers Gwynne Shotwell as Elon Musk’s SpaceX No. 2 gives $325 million in stock to Trump Accounts
North AmericaSpaceX
Trump cheers Gwynne Shotwell as Elon Musk’s SpaceX No. 2 gives $325 million in stock to Trump Accounts
By Mia OsmonbekovJuly 9, 2026
1 day ago
Altman says OpenAI made ‘many changes’ during talks with U.S.
AISam Altman
Altman says OpenAI made ‘many changes’ during talks with U.S.
By Lorelei Smillie and BloombergJuly 9, 2026
1 day ago
Three-time Olympic canoeist pleads not guilty to touching water in Reflecting Pool vandalism charge
PoliticsDonald Trump
Three-time Olympic canoeist pleads not guilty to touching water in Reflecting Pool vandalism charge
By Michael Kunzelman and The Associated PressJuly 9, 2026
1 day ago
Microsoft President Brad Smith sitting.
AIMicrosoft
Microsoft’s Brad Smith on Washington’s AI policy: ‘Regulation without transparent or complete rules’
By Beatrice NolanJuly 9, 2026
1 day ago

Most Popular

Farm groups saved Bayer in court over RoundUp cancer claims. Five days later, Bayer called for tariffs on the ingredient farmers rely on
Economy
Farm groups saved Bayer in court over RoundUp cancer claims. Five days later, Bayer called for tariffs on the ingredient farmers rely on
By Mia OsmonbekovJuly 9, 2026
1 day ago
Billionaire MacKenzie Scott just donated $20 million to support America’s youth mental health, as a fifth of teens struggle with suicidal thoughts
Success
Billionaire MacKenzie Scott just donated $20 million to support America’s youth mental health, as a fifth of teens struggle with suicidal thoughts
By Emma BurleighJuly 9, 2026
1 day ago
U.S. Treasury has borrowed $155 billion every month of this fiscal year—and is now paying $24 billion a week in interest on its debts
Economy
U.S. Treasury has borrowed $155 billion every month of this fiscal year—and is now paying $24 billion a week in interest on its debts
By Eleanor PringleJuly 10, 2026
8 hours ago
Self-made multimillionaire says Canadians 'give no money away' compared with Americans—research shows U.S. giving is more than twice as high
Success
Self-made multimillionaire says Canadians 'give no money away' compared with Americans—research shows U.S. giving is more than twice as high
By Preston ForeJuly 9, 2026
1 day ago
Current price of oil as of July 9, 2026
Personal Finance
Current price of oil as of July 9, 2026
By Joseph HostetlerJuly 9, 2026
1 day ago
Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it
Success
Ex-PepsiCo CEO Indra Nooyi worked from midnight until 5 a.m. as a receptionist to pay for her Yale degree—and she says ‘respect went up’ because of it
By Preston ForeJuly 6, 2026
4 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.