US Freezes Virtually All Foreign Aid, Leaked Memo Says

Posted by: lukwago J in World news January 25, 2025

The US State Department has recently taken a significant step by halting all existing foreign aid programs and pausing new aid, as revealed in an internal memo sent to officials and US embassies worldwide.

This decision follows President Trump’s executive order calling for a 90-day pause in foreign development assistance to conduct a thorough review of efficiencies and alignment with his foreign policy objectives.

The United States, being the world’s largest international aid donor, allocated a substantial $68 billion in 2023 for various assistance programs.

The State Department’s directive primarily affects development assistance and military aid, with exceptions made only for emergency food aid and military funding for Israel and Egypt.

The leaked memo’s contents have been verified by the BBC, emphasizing the need for a review and approval process for all new awards or extensions of existing awards.

Review process and implications

The memo instructs US officials to issue stop-work orders, as necessary, until the Secretary determines the way forward following a comprehensive review.

Secretary of State Marco Rubio has emphasized that US spending abroad should align with making America “stronger,” “safer,” or “more prosperous.”

Former State Department officials express concerns about the potential ramifications of this decision on foreign aid programs globally.

The suspension could have a profound effect on critical development projects such as humanitarian de-mining, water, sanitation, and shelter programs funded by the US.

Experts like Dave Harden, a former USAID mission director, highlight the significance of this move, suggesting that humanitarian and development programs worldwide could face immediate suspension during the review period.

This broad freeze extends to existing contracts, creating challenges for ongoing assistance projects.

Justification and waivers

Secretary Rubio’s memo justifies the funding freeze as a necessary step to assess the effectiveness and consistency of existing foreign aid commitments with President Trump’s foreign policy.

Waivers have been granted for emergency food assistance and certain military financing for Israel and Egypt.

The funding freeze raises concerns about its impact on countries like Ukraine, which received substantial aid under the previous administration.

While waivers have been granted for specific cases, the broader implications on ongoing aid projects and humanitarian crises worldwide remain a subject of scrutiny.

As the situation unfolds, with humanitarian aid efforts intensifying in regions like the Gaza Strip, questions arise about the continuity of critical assistance programs during this period of review.

The State Department’s stance on foreign assistance and its alignment with current foreign policy goals continues to draw attention and discussion.

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