• en
ON NOW

US State Department Halts New Funding for Most US Aid Programs Globally

The State Department has suspended new funding for nearly all US aid initiatives, impacting programmes worldwide.

The State Department ordered a broad freeze on Friday halting new funding for nearly all US foreign aid programs. Exceptions were made only for emergency food initiatives and military assistance to Israel and Egypt. 

This decision threatens the continuation of billions of dollars in global aid supporting health, education, development, job training, anti-corruption efforts, and security assistance.

The US, the world’s largest foreign aid provider, allocated approximately $60 billion for such programs in 2023, representing 1% of its federal budget. Secretary of State Marco Rubio outlined the freeze in a cable to US embassies worldwide, implementing an executive order signed by President Donald Trump earlier in the week. The freeze is expected to last at least three months while a review is conducted to align aid with Trump’s foreign policy objectives.

While emergency food programs, such as those addressing famine in Sudan, were exempted, humanitarian officials expressed frustration at the lack of specific exemptions for life-saving health initiatives. 

Programs like the President’s Emergency Relief Plan for AIDS Relief (PEPFAR), credited with saving 25 million lives globally since its inception under George W. Bush, are included in the freeze. Many aid organisations, interpreting the directive as an immediate stop-work order, began halting operations on Friday to avoid incurring additional costs.

Abby Maxman, president of Oxfam America, criticised the move, stating, 

“Suspending foreign development assistance could have life or death consequences for children and families worldwide. The administration is abandoning the bipartisan approach to aid, which has long supported communities based on need, not politics.”

At the United Nations, deputy spokesman Farhan Haq remarked, 

“These are bilateral decisions, but we expect nations with the capability to generously fund development assistance to do so.”

While military aid to Israel and Egypt is exempt from the freeze, there is no indication of a similar waiver for Ukraine, leaving $3.85 billion in congressionally approved funding for arms shipments to Ukraine in limbo.

Additionally, the State Department’s refugee and resettlement agency issued guidance on Friday instructing partner organisations to suspend all work under existing foreign assistance. This may include halting services for refugees, such as Afghans on special immigrant visas.

Republicans, led by Florida Representative Brian Mast, chair of the House Foreign Affairs Committee, have pledged to scrutinise the State Department’s budget and ensure aid meets “strictly necessary” standards. According to Rubio’s cable, the freeze aims to ensure appropriations are effective, non-duplicative, and aligned with Trump’s foreign policy goals.

Within a month, the State Department plans to establish standards for reviewing foreign aid programs, with a government-wide evaluation to be completed within three months. A report detailing recommendations for future funding will follow.

Faridah Abdulkadiri

Follow us on:

ON NOW