US pauses foreign aid, leaked memo shows

The US State Department has suspended almost all existing foreign aid and suspended all new aid, according to an internal memo sent to officials and US embassies abroad.

The leaked notice follows President Trump's executive order issued Monday providing for a 90-day pause in foreign development assistance pending a review of effectiveness and consistency with his foreign policy.

The United States is the world's largest donor of international aid, spending $68 billion in 2023, according to government figures. The State Department's advice appears to affect everything from development aid to military aid.

It only makes exceptions for emergency food aid and military funding for Israel and Egypt. The contents of the leaked memo were confirmed by the BBC.

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

It adds that U.S. officials “shall immediately issue stop-work orders, consistent with the terms of the applicable award, until such time as the Secretary determines, after review.”

It also directs that a full-scale review of all foreign aid be completed within 85 days to ensure that aid adheres to President Trump's foreign policy goals.

Secretary of State Marco Rubio, America's top diplomat, has previously said that all U.S. spending abroad should only happen if it makes America “stronger,” “more secure” or “more prosperous.” “.

A former senior State Department official told the BBC the notification 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 their work. That's a big problem,” said Josh Paul, who oversaw relations with Congress on the transfers. weapons at the State Department until the end of 2023.

Dave Harden, former mission director for the US International Assistance Agency (USAID) in the Middle East, told the BBC the move was “very significant”, saying it could see humanitarian and development programs funded by the United States worldwide be immediately suspended. while the exam is being performed.

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

“Employees of the implementing partner or [non-governmental organisation] could be paid, but I think the real aid needs to be stopped,” Mr. Harden said.

“I crossed [assistance suspensions] several times when I was mission director in the West Bank and Gaza, but that was specific to this story. It’s global,” he said.

“Not only does it suspend aid, but it also puts a stop work order on existing contracts that are already funded and underway. It's 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, says it is 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 issued a waiver for emergency food assistance, according to the memo.

This comes amid an influx of humanitarian aid into the Gaza Strip following the start of a ceasefire between Israel and Hamas and several other food crises around the world, including in Sudan.

The memo also states that waivers have so far been approved by Rubio for “foreign military financing for Israel and Egypt and administrative expenses, including salaries, necessary to administer foreign military financing.”

The State Department has been contacted for comment.

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