US implements widespread freeze on foreign aid following Trump’s request for review
The U.S. State Department has taken action to halt all existing foreign assistance and has put a pause on new aid, as revealed in a cable obtained by Reuters. This move comes in response to President Donald Trump’s decision.
He wanted to review if aid allocation aligned with his foreign policy.
The Department’s foreign assistance office, under the approval of Secretary of State Marco Rubio, has drafted a cable stating that waivers for military financing have been issued for Israel and Egypt. The cable does not mention any other countries.
The decision puts at risk the possibility of losing billions of dollars in vital aid, which has the potential to save countless lives. With $72 billion disbursed in assistance during fiscal year 2023, the United States holds the title of the largest single donor of aid on a global scale.
Just hours after assuming office on Monday, Trump issued an order to temporarily halt foreign development assistance for a period of 90 days. This decision was made to allow for a thorough review of the effectiveness and alignment with his foreign policy objectives.
The information regarding the situation was not immediately available.
The cable from the State Department instructed senior officials to immediately halt any new obligations for foreign assistance, to the extent allowed by law. This action is to be taken until a decision is made by Rubio after conducting a review.
According to the statement, Rubio has emphasized the need to issue stop-work orders for existing foreign assistance awards and review them promptly.
Jeremy Konyndyk, the president of Refugees International and a former USAID official, expressed his strong disbelief, stating, “This is lunacy. If implemented as written in that cable, it will kill people. A lot of people will die.”
According to Konyndyk, the attempt to review the effectiveness of foreign assistance programming cannot be seen as a genuine effort in good faith. He believes that it is merely a destructive approach aimed at causing as much damage as possible.
According to a source with knowledge of the discussions in Congress regarding the move, it is argued that Trump’s order is unlawful.
The anonymous source emphasized that if these international investments are frozen, it will prompt our international partners to search for alternative funding sources. This could potentially lead them to turn to U.S. competitors and adversaries, which would gradually diminish the influence of the United States.
According to an anonymous USAID official, officers in charge of projects in Ukraine have been instructed to halt all work. This includes freezing projects such as support for schools and health assistance, including emergency maternal care and childhood vaccinations.
Rubio will be responsible for making decisions on whether to continue, modify, or terminate programs after conducting a review in the next 85 days. During this period, Rubio has the authority to approve waivers.
According to the cable, Rubio has granted a waiver for emergency food assistance. This decision comes in response to the surge of humanitarian aid into the Gaza Strip following the ceasefire between Israel and Palestinian militants Hamas that began on Sunday. It also addresses other hunger crises, such as the one in Sudan.
According to Konyndyk, emergency food assistance represents only a small portion of all humanitarian aid. He further explains that if emergency food assistance is halted, it would also impact other crucial programs such as nutrition, health, vaccination, relief aid to Gaza and Syria, and services to refugee camps in Sudan.
Speaking on condition of anonymity, a former senior official with the U.S. Agency for International Development (USAID) described it as “manufactured chaos.”
The official stated that organizations will need to halt various activities, including but not limited to lifesaving health services, HIV/AIDS support, nutrition programs, maternal and child health initiatives, agricultural work, support for civil society organizations, and education.
According to the State Department cable, Rubio has approved waivers for foreign military financing for Israel and Egypt, as well as administrative expenses, including salaries, that are necessary for administering foreign military financing.
Israel receives approximately $3.3 billion in foreign military financing each year, while Egypt receives around $1.3 billion.
According to a request to Congress from former President Joe Biden’s administration, Ukraine, Georgia, Estonia, Latvia, Lithuania, Taiwan, Indonesia, the Philippines, Thailand, Vietnam, Djibouti, Colombia, Panama, Ecuador, Israel, Egypt, and Jordan have been identified as other states eligible for such financing in 2025.
The request also mentioned that the foreign military financing would aim to enhance the Lebanese Armed Forces’ capacity to address instability and counteract the negative influence of Iran.
The Lebanese military is currently making efforts to deploy into the southern region of the country as Israeli troops begin their withdrawal.
Humeyra Pamuk, a seasoned foreign policy correspondent, is currently stationed in Washington DC. With a remarkable 20-year career at Reuters, she has held positions in various global locations such as London, Dubai, Cairo, and Turkey. Throughout her extensive experience, she has covered a wide range of significant events, including the Arab Spring, Syria’s civil war, multiple Turkish elections, and the Kurdish insurgency in the southeast.
Her dedication to her craft has been recognized, as she was awarded the prestigious Knight-Bagehot fellowship program at Columbia University’s School of Journalism in 2017. Humeyra Pamuk holds a Bachelor’s degree in International Relations and a Master’s degree in European Union studies.
Daphne Psaledakis, a foreign policy correspondent based in Washington, D.C., focuses her reporting on U.S. sanctions, Africa, and the State Department. Throughout her career, she has extensively covered the implementation of U.S. sanctions on Russia following Moscow’s invasion of Ukraine. Additionally, she has closely followed Washington’s endeavors to enforce these sanctions and the U.S. response to the conflict in Ethiopia.
Daphne’s expertise also extends to European Union politics, energy, and climate policy, which she covered during her time as a Reuters correspondent in Brussels as part of an Overseas Press Club Foundation fellowship in 2019. She is equipped with a Bachelor of Journalism in Print and Digital News, as well as a Bachelor of Arts in International Studies.
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