The US State Department has stopped all current foreign assistance and put new aid on hold, as stated in an internal memo sent to officials and US embassies worldwide.
This leaked memo comes after President Trump’s executive order on Monday, which calls for a 90-day pause in foreign development aid while reviewing its effectiveness and alignment with his foreign policy.
In 2023, the United States remains the largest international aid donor, spending $68 billion according to government data.
The State Department’s notice impacts various types of aid, including development and military assistance.
Exceptions are made only for emergency food aid and military funding for Israel and Egypt. The BBC has confirmed the details of the leaked memo.
The memo instructs that “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.”
It also states that US officials “shall immediately issue stop-work orders, consistent with the terms of the relevant award, until the secretary determines otherwise after the review.”
Additionally, a comprehensive review of all foreign assistance is to be completed within 85 days to ensure compliance with President Trump’s foreign policy objectives.
Secretary of State Marco Rubio has previously emphasized that US spending abroad should only occur if it makes America “stronger,” “safer,” or “more prosperous.”
A former senior State Department official told the BBC that this notice could have a “potentially huge” effect on US-funded foreign aid programs.
“For instance, humanitarian de-mining programs around the world could suddenly be ordered to stop work. That’s a significant issue,” said Josh Paul, who managed Congressional relations on weapons transfers at the State Department until late 2023.
Dave Harden, a former USAID mission director in the Middle East, told the BBC that the recent decision is “very significant.” He explained that it could lead to an immediate halt of US-funded humanitarian and development programs worldwide while a review takes place.
He noted that this could impact essential projects related to water, sanitation, and shelter.
“While employees of the implementing partner or NGO can still be paid, actual assistance should be stopped,” Mr. Harden stated.
He shared his experience with assistance suspensions during his time as the West Bank and Gaza mission director, emphasizing that this situation is global, not just limited to one area.
“This not only pauses assistance but also issues a ‘stop work’ order on existing contracts that are already funded and in progress. It’s very extensive,” he added.
The AFP news agency mentioned that the funding freeze might also impact Ukraine, which received billions in military aid during Joe Biden’s presidency.
Rubio’s memo, which supports the freeze, indicated that the new administration cannot determine if current foreign aid commitments are effective, not duplicated, and align with President Trump’s foreign policy.
Rubio has provided a waiver for emergency food assistance, as stated in the memo.
This development comes as humanitarian aid increases in the Gaza Strip following a ceasefire between Israel and Hamas, alongside other hunger crises globally, including in Sudan.
The memo also noted that Rubio has approved waivers for “foreign military financing for Israel and Egypt and administrative costs, including salaries, needed to manage foreign military financing.”
The State Department has been contacted for a response.
