US President Donald Trump has announced a 90-day suspension of foreign development assistance, prompting a comprehensive review to evaluate the efficiency and alignment of aid with his administration's foreign policy objectives. This pause encompasses a wide range of aid, including development and military assistance, while strategically exempting Israel and Egypt due to their significance in US foreign relations.
Secretary of State Marco Rubio has directed the cessation of nearly all US foreign aid, with exceptions for Israel, which receives approximately $3.3 billion annually in foreign military financing, and Egypt, which benefits from around $1.3 billion each year. The decision underscores the strategic partnership the US maintains with these nations. However, the scope of this aid suspension is subject to the constraints imposed by the federal budget set by Congress.
The review aims to be completed within 85 days, during which time Rubio possesses the authority to approve waivers for emergency funding. So far, waivers for emergency food assistance have been authorized. A memo from the US State Department cautions senior officials to halt work on existing foreign assistance awards until this review concludes. This pause has notably impacted USAid operations in Ukraine, a nation that previously received significant weaponry support from the US.
“No new obligations shall be made for foreign assistance,” – a memo from the US state department
In response to this directive, USAid has been instructed to cease all projects in Ukraine, raising concerns about the potential disruption of vital services and projects globally. According to a USAid official, the freeze could result in halting essential services such as health care, nutrition, and education.
“Organizations will have to stop all activities, so all lifesaving health services, HIV/Aids, nutrition, maternal and child health, all agriculture work, all support of civil society organizations, education,” – a USAid official
The halt arrives amid an influx of humanitarian aid directed toward crises in Gaza and other global hunger emergencies. There are fears that the suspension could encourage international partners to seek alternative funding sources from US competitors and adversaries.
“Freezing these international investments will lead our international partners to seek other funding partners – likely US competitors and adversaries – to fill this hole and displace the United States’ influence the longer this unlawful impoundment continues,” – a source familiar with discussions in Congress
The memo from the State Department reiterates that no new funds should be obligated or extended without approval confirming alignment with President Trump's agenda. It highlights that decisions regarding the continuation or modification of programs remain pending.
“No new funds shall be obligated for new awards or extensions of existing awards until each proposed new award or extension has been reviewed and approved … as consistent with President Trump’s agenda,” – a memo from the US state department
As part of a broader re-evaluation of US foreign policy strategies, the review will identify other states for potential aid financing in 2025, including Ukraine, Georgia, and nations across Southeast Asia and Latin America. However, during the review period, only essential administrative expenses necessary for managing foreign military financing for Israel and Egypt have been approved.
“Waivers have so far been approved by Rubio for foreign military financing for Israel and Egypt and administrative expenses, including salaries, necessary to administer foreign military financing” – a memo from the US state department