US freezes foreign aid after Trump orders review

Published: 6:31am, 25 Jan 2025Updated: 6:57am, 25 Jan 2025

The US State Department issued a “stop-work” order on Friday for all existing foreign aid and paused new aid, after US President Donald Trump ordered a pause to review if aid allocation was aligned with his foreign policy.

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A cable drafted by the department’s foreign assistance office and approved by Secretary of US State Marco Rubio said waivers have been issued for military financing for Israel and Egypt. No other countries were mentioned in the cable.

The move risks cutting off billions of dollars of life-saving aid. The United States is the largest single donor of aid globally – in financial year 2023, it disbursed US$72 billion in aid.

Just hours after taking office on Monday, Trump ordered a 90-day pause in foreign development aid pending a review of efficiencies and consistency with his foreign policy but the scope of the order was not immediately known.

The State Department cable said effective immediately, senior officials “shall ensure that, to the maximum extent permitted by law, no new obligations shall be made for foreign assistance” until Rubio has made a decision after a review.

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It says that for existing foreign aid awards stop-work orders shall be issued immediately until reviewed by Rubio.

  

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