Home Money & Business Business US Halt on Foreign Aid Affects Global Impact; Rubio Expands Exemptions

US Halt on Foreign Aid Affects Global Impact; Rubio Expands Exemptions

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US Halt on Foreign Aid Affects Global Impact; Rubio Expands Exemptions

WASHINGTON — Aid programs funded by the United States across the globe are facing significant staff cuts and are beginning to halt operations due to an unprecedented freeze on foreign assistance enacted by the Trump administration. This suspension has affected a wide array of humanitarian initiatives, forcing many programs to either cease operations or lay off personnel.

Secretary of State Marco Rubio, who initially limited the freeze to all but emergency food initiatives and military support for Israel and Egypt, recently agreed to temporarily maintain funding for humanitarian efforts crucial for providing essential medical care, food, shelter, and survival aid. Nevertheless, the prospect of layoffs, furloughs, and program terminations continued to loom large as the overall landscape for U.S.-funded operations became increasingly precarious. The Trump administration initiated a 90-day freeze on foreign assistance last week to reassess the various humanitarian, development, and security programs that receive U.S. funding.

In addition to halting foreign assistance, Trump also paused federal grants and loans within the United States, although a judge intervened temporarily to block that action.

The implications of the funding freeze are profound, as the United States remains the largest donor of foreign assistance globally, accounting for approximately 40% of all humanitarian aid. “The aid community is grappling with just how catastrophic this assistance suspension is,” remarked Abby Maxman, the president of Oxfam America, expressing concern over the far-reaching consequences of this pause.

On Monday, the Trump administration placed over 50 senior officials at the U.S. Agency for International Development (USAID) on leave, as many were assisting organizations in navigating the aid freeze. The acting head of USAID stated he would investigate whether these officials were defying the orders from the administration. Traditionally, U.S. foreign aid has been justified on the premise that it enhances national security by stabilizing regions and improving international relationships. However, many officials in the current administration feel foreign assistance should be viewed as a burden rather than an investment.

U.S. support for Ukraine’s military appears largely unaffected by the freeze. Ukrainian President Volodymyr Zelenskyy commented that American military support for his country’s fight against Russian aggression remains intact. The military funding controlled by the State Department is limited to foreign military financing and international military education and training, both of which are temporarily paused. However, much of Ukraine’s military assistance stems from Pentagon programs that are not impacted by the suspension, including those for weapons contracts and existing arm stockpiles. Yet, essential civilian aid promoting Ukraine’s governance and economic stability is still at risk as there have been no clear exceptions announced for these vital programs.

In the realm of civilian initiatives in Ukraine, funding discontinuations are already taking effect. Nonprofit organizations like Veteran Hub, which supports Ukrainian veterans, have received stop-work orders that could lead to significant staff reductions. Ivona Kostyna, the organization’s leader, shared her concerns about the lack of prior notification regarding the funding cutoff that has left their support services vulnerable.

In regions like Zimbabwe, health non-profit director Gumisayi Bonzo worries about the fate of programs critical to HIV/AIDS treatment that were largely funded by international support. Zimbabwe has made notable strides in addressing HIV/AIDS issues, largely due to U.S. initiatives like PEPFAR, which has been criticized for potential funding cuts by some lawmakers. The uncertainty surrounding funding has left many beneficiaries highly anxious about the continuity of their treatment and support.

The waiver issued by Rubio does not extend to programs concerning reproductive health, family planning, or issues addressing diversity and inclusion, raising concerns about further impacts on comprehensive aid. Gyude Moore, a former cabinet official in Liberia, labeled the freeze “cruel,” stating that it adversely affects lives across Africa. He highlighted the historical role of U.S. aid in rebuilding war-torn regions, supporting education, strengthening healthcare systems, and assisting local farmers.

Additionally, the freeze poses strategic risks for the U.S., allowing rival nations such as China to expand their influence in areas previously bolstered by American aid. Analysts warn that abandoning key assistance could lead to a vacuum that undermines U.S. interests in resource-rich nations where humanitarian aid has historically not only facilitated recovery but also fostered valuable diplomatic relationships.

Overall, the aid freeze has far-reaching implications not just for programs and beneficiaries globally but for U.S. foreign policy and its reputation as a global leader in humanitarian efforts.