The U.S. implements a wide-ranging freeze on foreign aid following Trump's directive for a review

The U.S. implements a wide-ranging freeze on foreign aid following Trump's directive for a review

Jan 25, 2025 - 14:23
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The U.S. implements a wide-ranging freeze on foreign aid following Trump's directive for a review
The U.S. implements a wide-ranging freeze on foreign aid following Trump's directive for a review

The U.S. State Department issued a "stop-work" order on Friday for all ongoing foreign assistance and halted new aid, according to a cable reviewed by Reuters. This followed President Donald Trump's directive to pause foreign aid for a review to assess whether it aligns with his foreign policy.

The cable, drafted by the Department's foreign assistance office and approved by Secretary of State Marco Rubio, noted exceptions for military funding to Israel and Egypt. No other countries were specified in the cable.

The decision threatens to cut off billions of dollars in crucial assistance. The U.S. is the world's largest aid donor, having allocated $72 billion in foreign assistance in fiscal year 2023.

Shortly after taking office on Monday, Trump ordered a 90-day suspension of foreign development assistance to evaluate its efficiency and consistency with his foreign policy, though the full extent of the order was unclear.

The State Department's cable stated that, effective immediately, senior officials are to ensure that no new foreign assistance obligations are made until Rubio's review is complete. Existing aid awards are to halt until Rubio's evaluation is done.

Critics, such as Jeremy Konyndyk, former USAID official and president of Refugees International, condemned the move, calling it reckless and potentially deadly. He argued that the pause would severely harm people who rely on foreign aid.

There are also concerns from Congressional sources, who argue the order is unlawful and could lead international partners to seek funding from U.S. competitors, diminishing America's global influence.

As part of the process, USAID officials working on projects in Ukraine were instructed to cease all activities, including health and educational support. While Rubio can issue waivers during his review, he has already approved one for emergency food aid, including support to Gaza amid ongoing humanitarian crises in Sudan and other areas.

Konyndyk pointed out that while food assistance is vital, other crucial services, including health, vaccination, and maternal care programs, are at risk of being halted.

Rubio has also authorized waivers for foreign military financing to Israel and Egypt, which together receive billions in U.S. support annually.

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