American manufacturer of food for malnourished babies lays off staff amid USAID funding upheaval

Edesia Nutrition was among the fortunate few whose USAID agreement survived a whipsaw couple of months that saw the cancellation of more than 80% of the agency's foreign assistance contracts. 

Despite that, the Rhode Island manufacturer of a life-saving paste for severely malnourished babies last week had to lay off 10% of its workforce. Edesia's founder and CEO, Navyn Salem, said even though her company's contract is active, its invoices to USAID have been rejected twice this week. 

The delay in promised funds halted her production line, as well as payments to her largely American supply chain, including farmers who cultivate ingredients for the paste product's key ingredients.