KATHMANDU, Jan 25: The US has issued an immediate halt to most foreign aid programs, pausing new assistance and halting ongoing projects, according to a leaked State Department memo reported by the BBC. The directive follows President Donald Trump's executive order mandating a 90-day suspension of foreign aid for a comprehensive review of its alignment with US foreign policy objectives.
The US, the world’s largest international aid donor, spent $68 billion on foreign assistance in 2023, according to official figures. The memo reportedly exempts emergency food aid and military financing for Israel and Egypt but suspends other development and military programs globally.
“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,” the memo states. It further orders stop-work notices on current contracts until the Secretary of State deems them consistent with the administration’s policy priorities.
52% of country's foreign aid went to province 3
Secretary of State Marco Rubio emphasized that US aid should serve to make the country “stronger,” “safer,” or “more prosperous.” The memo’s sweeping provisions are expected to disrupt numerous programs, including demining, water, sanitation, and shelter projects, according to experts consulted by the BBC.
Josh Paul, a former State Department official, highlighted the widespread impact of the halt, citing potential stoppages in global humanitarian demining initiatives. Meanwhile, Dave Harden, a former USAID mission director, described the freeze as "extremely broad" and warned of immediate repercussions for humanitarian and development programs globally.
The freeze could also potentially affect US assistance to Ukraine, a significant recipient of military aid under the previous administration. However, the memo provides for waivers in specific cases, including emergency food aid and military assistance to Israel and Egypt.
This directive comes as humanitarian crises persist worldwide, including in the Gaza Strip, Sudan, and other regions grappling with severe hunger. The State Department has not yet commented on the memo's contents.
