US Freezes Foreign Aid: What Does This Mean for Global Assistance?

The US State Department has paused nearly all foreign aid—both current and new—after President Trump issued a 90-day freeze. This pause is meant to review the effectiveness and alignment of foreign assistance with US foreign policy.

As the largest global donor of foreign aid, the US allocated $68 billion in 2023. This new freeze affects a wide range of assistance, from development projects to military aid. However, emergency food assistance and military funding for Israel and Egypt are exceptions.

Key Changes in US Foreign Aid Policy

A leaked memo, confirmed by the BBC, outlined the key points of the freeze. US officials have been instructed to stop issuing new funds or extending existing awards until a full review is conducted. Current projects are also paused with “stop-work” orders.

The review is expected to take 85 days, aiming to ensure that foreign assistance aligns with President Trump’s priorities. Secretary of State Marco Rubio has emphasized that all foreign spending should make the US “stronger,” “safer,” and “more prosperous.”

Humanitarian and Development Aid Impacted

This aid freeze will significantly affect humanitarian programs worldwide. Aid for critical services like water, sanitation, and shelter could be disrupted. Former officials, including Josh Paul, have raised concerns about the immediate impact on essential programs, such as global de-mining efforts.

Dave Harden, a former mission director with USAID, highlighted that this pause is particularly concerning for ongoing programs. Many contractors and NGOs rely on US funding, which now risks being delayed or suspended.

Exemptions and Ongoing Commitments

Despite the broad freeze, some areas are exempt. Emergency food aid will continue to reach crisis zones, such as Sudan and Gaza. Additionally, military assistance for Israel and Egypt remains unaffected by the freeze.

The US has also expressed concern over funding to Ukraine, where previous administrations provided substantial aid. This freeze may lead to delays in future support for the ongoing conflict in Ukraine.

Why the US is Pausing Foreign Aid

The primary reason for this suspension is to assess whether current aid programs are effective and align with the administration’s foreign policy. According to Rubio’s memo, this review will ensure that foreign aid is neither duplicated nor misdirected.

Although many programs are paused, some aid is still flowing. For example, emergency food assistance is still approved, as global hunger crises continue to escalate. However, the broader impact of the freeze remains to be seen.

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