US pauses foreign aid, leaked memo says

“No new funds will be obligated for new grants or extensions of existing grants until each new grant or proposed extension has been reviewed and approved,” the memo to staff says.

It adds that US officials “will immediately issue stop-work orders, consistent with the terms of the corresponding award, until such time as the secretary determines after a review.”

It also orders that a large-scale review of all foreign assistance be completed within 85 days to ensure the aid aligns with President Trump’s foreign policy goals.

Secretary of State Marco Rubio – America’s top diplomat – has previously stated that all American spending abroad should be done only if it makes the United States “stronger,” “more secure” or “more prosperous.”

A former senior State Department official told the BBC the notice meant a “potentially huge” impact on US-funded foreign aid programs.

“You can imagine, for example, that humanitarian demining programs around the world are suddenly told to stop working. That’s a pretty big deal,” said Josh Paul, who oversaw congressional relations on arms transfers. at the State Department until the end of 2023.

Dave Harden, former mission director of the US International Aid Agency (USAID) in the Middle East, told the BBC that the move was “very significant”, and said it could lead to the immediate suspension of funded humanitarian and development programmes. by the United States around the world. while the review is being performed.

He said it could affect a wide range of critical development projects, including water, sanitation and housing.

“The employees of the implementing partner or the (non-governmental organization) could receive their salaries, but I think the actual assistance should stop,” Harden said.

“I’ve been through (assistance suspensions) many times when I was mission director in the West Bank and Gaza, but that was specific to that account. This is global… it’s extremely broad,” he said.

“Not only does it suspend assistance, it imposes a ‘stop work’ order on existing contracts that are already funded and underway. It is extremely broad,” he added.

The AFP news agency reported that the funding freeze could also potentially affect Ukraine, which received billions of dollars in weapons under Trump’s predecessor, Joe Biden.

Rubio’s memo, justifying the freeze, said it was impossible for the new administration to assess whether existing foreign aid commitments “are not duplicative, effective, and consistent with President Trump’s foreign policy.”

Rubio has issued a waiver for emergency food assistance, according to the memo.

This comes amid an increase in humanitarian aid to the Gaza Strip after a ceasefire began between Israel and Hamas, and several other hunger crises around the world, including Sudan.

The memo also said that Rubio has so far approved waivers for “foreign military financing for Israel and Egypt and administrative expenses, including salaries, necessary to manage foreign military financing.”

The State Department has been contacted for comment.