US Halts New Funding For Most Foreign Aid Programs

A recent State Department memo has ordered agencies to halt work, suspending US-funded aid programs worldwide due to a 90-day freeze on foreign assistance.

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In a significant shift in the US foreign policy, nearly all aid programs reliant on American funding are poised to suspend operations following a recent State Department memo instructing agencies to “stop work.” This directive, which expands on President Trump’s executive order issued earlier this week, freezes foreign assistance for a period of 90 days.

The internal memo, which was obtained by NPR, outlines that a comprehensive review of all foreign assistance will be conducted within the next 85 days. The findings of this review will be compiled into a report for the US Secretary of State, Marco Rubio, who will then make recommendations to the President regarding the future of these programs.

Notably, the memo exempts aid to Israel and Egypt, as well as emergency food assistance, from the suspension. However, the halt will likely lead to furloughs or layoffs among employees of organizations that depend on U.S. funding, particularly those based in the countries where they operate. This includes both local and American staff, many of whom face uncertainty regarding their pay and job security.

A senior official at the U.S. Agency for International Development (USAID) expressed grave concerns about the implications of the memo. Speaking anonymously due to restrictions on public comments, the official described the order as “completely reckless,” emphasizing that it would disrupt not only U.S. foreign aid programs but also the lives of those delivering critical assistance.

“These are people with families who need to buy food, pay rent, and cover utilities,” the official stated. “While reform of U.S. foreign aid is necessary, these extreme measures are counterproductive.”

The leader of a humanitarian organization that collaborates with USAID echoed these sentiments, stating, “They’ve thrown a grenade right into the middle of foreign assistance. People’s lives around the world are jeopardized.”

This individual, who also requested anonymity to avoid potential backlash, indicated that their organization may have to withdraw staff providing essential services and lay off U.S. personnel due to the uncertainty surrounding funding and reimbursement for contracts with U.S. agencies.

Aid experts are sounding alarms about the potential destabilizing effects of this decision in regions where humanitarian assistance is vital. Abby Maxman, president of Oxfam America, a charity that does not receive U.S. government funding, described the situation as having “seismic impacts for the entire global aid system.”

She characterized the decision as “cruel,” noting that it could have life-or-death consequences for millions of individuals worldwide.

Maxman called for the reversal of the stop order, stressing the urgent need for funding and programming to continue. “We need clear communication so that people can plan in this terrible new reality,” she added.

The memo’s issuance comes at a time when many organizations are already grappling with the challenges posed by the COVID-19 pandemic and other global crises. The sudden halt in funding could exacerbate existing vulnerabilities in communities that rely on U.S. aid for health care, food security, and economic stability.

As the review process unfolds, the future of U.S. foreign assistance remains uncertain, leaving countless individuals and organizations in limbo. The potential for widespread disruption in humanitarian efforts raises critical questions about the U.S. commitment to global aid and the implications for those who depend on it.

In summary, the recent State Department memo has triggered a wave of concern among aid organizations and experts, who warn that the suspension of foreign assistance could have dire consequences for vulnerable populations around the world.

As the situation unfolds, demands for reversing the stop order intensify, underscoring the critical need for sustained support and transparent communication amidst unparalleled challenges, to mitigate potential harm and ensure uninterrupted aid delivery.

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