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U.S. State Department suspends new financial assistance for most international aid initiatives

WASHINGTON — On Friday, the State Department implemented a comprehensive halt on new funding for nearly all U.S. foreign assistance programs, with notable exceptions made for emergency food aid and military support for Israel and Egypt.

This decision threatens to suspend numerous projects around the world that rely on American funding, impacting efforts related to health, education, development, job training, anti-corruption measures, and security assistance.

The United States leads the world in foreign aid contributions, having allocated approximately $60 billion in their 2023 budget, which represents about 1% of the overall national budget.

Secretary of State Marco Rubio communicated the freeze through a cable sent to U.S. embassies globally, explicitly stating that emergency food programs, including initiatives addressing the escalating famine in conflict-ridden Sudan, would be protected from this funding freeze.

The cable outlines the shutdown of foreign assistance as directed by an executive order signed by President Donald Trump earlier in the week.

However, the failure to specifically exclude life-saving health initiatives, such as immunization and clinic programs, drew disappointment from humanitarian groups. Significantly, the President’s Emergency Plan for AIDS Relief, known as PEPFAR, which has been instrumental in saving approximately 25 million lives since its inception under President George W. Bush, appears to be included in this funding freeze.

Some aid operations have started to receive stop-work orders as the freeze takes effect.

Leading aid organizations have interpreted this directive as an immediate cessation of all U.S.-funded aid efforts worldwide, according to a former senior official from the U.S. Agency for International Development who spoke under anonymity. Many organizations are likely to pause operations to prevent accruing additional costs.

Oxfam America’s leader, Abby Maxman, expressed serious concerns that suspending funding could have dire consequences for vulnerable children and families across the globe.

“By halting foreign development assistance, the Trump administration jeopardizes the lives and futures of disaster-stricken communities and undermines the longstanding bipartisan commitment to aid, which is allocated based on necessity instead of political considerations,” Maxman stated.

At the United Nations, Deputy Spokesman Farhan Haq remarked on the bilateral nature of the funding suspensions while stressing the expectation for nations with the capacity to provide substantial development assistance to do so.

While Rubio’s order exempted military aid for allies Israel and Egypt, there was no word on a similar exemption for critical U.S. military assistance to Ukraine. The previous Biden administration had expedited military aid to Ukraine before leaving office amid uncertainties regarding Trump’s continuation of such support. Currently, about $3.85 billion in legislated funding for future military shipments to Ukraine remains to be allocated, resting on Trump’s decision.

This sweeping funding freeze acts as a fulfillment of Trump’s and other Republicans’ commitment to scrutinize U.S. aid mechanisms. Florida Republican Rep. Brian Mast, newly appointed as chairman of the House Foreign Affairs Committee, stated that Republicans intend to meticulously examine “every dollar and every diplomat” in the State Department’s budget to ensure adherence to their defined necessities.

The cable specifies that the suspension is necessary to maintain effective appropriations and to align with President Trump’s foreign policy objectives.

Standards for a thorough review of all foreign assistance are anticipated to be established within the month, ensuring synchronization with Trump’s agenda. A comprehensive government review is expected to conclude in three months, followed by a report that will present recommendations for the president.

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