Bangladesh's Yunus government faces major challenges as Trump halts funding for aid programs

Bangladesh faced a significant blow on Saturday as USAID announced its decision to terminate or suspend all ongoing projects within its scope in the country. The directive excludes foreign aid related to military financing for Israel and Egypt.

Jan 26, 2025 - 18:07
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Bangladesh's Yunus government faces major challenges as Trump halts funding for aid programs
Bangladesh's Yunus government faces major challenges as Trump halts funding for aid programs

In a significant setback for Muhammad Yunus' interim government in Bangladesh, the United States Agency for International Development (USAID) has decided to abruptly terminate or suspend all projects operating under its contracts, grants, cooperative agreements, or other aid frameworks in the country. The decision, communicated to project implementation partners on Saturday, directed all USAID/Bangladesh partners to "immediately stop or suspend any work" associated with USAID agreements.

This suspension is part of a broader review of foreign aid allocations. It affects nearly all foreign assistance, except for military financing to Israel and Egypt, and is expected to stall critical aid programs, putting billions of dollars in life-saving assistance on hold.

EAM Jaishankar Discusses Bangladesh with US Officials

External Affairs Minister S. Jaishankar met with US Secretary of State Marco Rubio and National Security Advisor Mike Waltz, briefly discussing the situation in Bangladesh.
"Yes, we had a brief discussion on Bangladesh. I don’t think it’s appropriate for me to go into further details," Jaishankar told Indian reporters in response to a query about whether the treatment of minorities in Bangladesh was part of the discussions.

Indian American Congressman Calls for Sanctions on Bangladesh

Indian American Congressman Shri Thanedar has urged the US Departments of Treasury and State to impose sanctions on individuals responsible for human rights violations and atrocities against minorities in Bangladesh.
"I call on the Departments of Treasury and State to impose and enforce sanctions on those perpetrating these heinous acts against minorities in Bangladesh," Congressman Thanedar stated in front of the US Capitol.

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