The U.S. State Department has issued an immediate halt to nearly all foreign aid, according to a leaked memo sent to officials and embassies worldwide. This unprecedented move follows President Donald Trump’s executive order on Monday, mandating a 90-day pause on foreign development assistance to align it with his administration’s foreign policy goals.
The United States, the world’s largest international aid donor, spent $68 billion on foreign assistance in 2023. The memo reveals that all new awards and extensions of existing programs are suspended pending a review, with exceptions only for emergency food aid and military funding for Israel and Egypt.
“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 U.S. officials to issue “stop-work orders” for ongoing contracts unless specifically exempted by Secretary of State Marco Rubio.
This pause could have far-reaching consequences for humanitarian and development programs worldwide. Josh Paul, a former senior State Department official, described the potential fallout as “huge,” pointing out that critical initiatives like global de-mining efforts could face immediate suspension.
Dave Harden, a former USAID mission director in the Middle East, called the decision “very significant,” highlighting its potential to disrupt essential projects such as water, sanitation, and shelter programs. “This is global,” Harden emphasized, noting the broad scope of the freeze, which also halts ongoing contracts already funded.
Secretary of State Marco Rubio has justified the freeze, emphasizing the need to assess whether foreign aid commitments are effective, non-duplicative, and aligned with Trump’s foreign policy objectives. Rubio has previously stated that U.S. spending abroad should occur only if it makes America “stronger,” “safer,” or “more prosperous.”
The memo confirms waivers for emergency food assistance and foreign military financing for Israel and Egypt. However, other programs, including those addressing global crises like hunger in Sudan or post-ceasefire aid in Gaza, face uncertainty during the review.
The funding suspension could also impact Ukraine, a significant recipient of U.S. military aid under President Trump’s predecessor, Joe Biden. The memo highlights the administration’s intent to reassess all commitments before proceeding with further assistance.
This sweeping pause comes at a critical time for global humanitarian efforts, as nations grapple with conflicts, hunger crises, and natural disasters. While the review aims to ensure efficiency and alignment with U.S. policy, critics argue it risks undermining vital support to vulnerable populations worldwide.
As the State Department moves forward with its review, the world will be watching closely to see how this decision reshapes U.S. foreign aid and its role in global development.