The US State Department issued a “stop-work” order on Friday for all ongoing foreign assistance programs and paused new aid allocations, according to a cable seen by Reuters. This follows President Donald Trump’s directive to halt foreign development assistance for 90 days while reviewing its alignment with his foreign policy objectives.
The cable, prepared by the State Department’s foreign assistance office and approved by Secretary of State Marco Rubio, confirmed waivers for military financing to Israel and Egypt but mentioned no other nations. The freeze could affect billions of dollars in critical aid, with the United States being the world’s largest single donor, disbursing $72 billion in foreign assistance during fiscal year 2023.
Just hours after assuming office on Monday, Trump ordered the pause, though the full scope of the directive was initially unclear. The State Department cable clarified that effective immediately, senior officials are to ensure that no new foreign aid commitments are made until Rubio completes the review. Existing assistance projects are to halt work until further notice.
Jeremy Konyndyk, president of Refugees International and former USAID official, criticized the move as catastrophic. “This will kill people. If implemented as outlined, a lot of people will die,” he stated. He labeled the decision a reckless move, arguing it lacked sincerity in reviewing the effectiveness of foreign aid programs.
A source familiar with Congressional discussions called the order unlawful, emphasizing that freezing international investments could lead US allies to seek partnerships with adversaries to fill the funding void. “This impoundment undermines US influence and could have long-term consequences,” the source said anonymously.
A USAID official, also speaking anonymously, disclosed that projects in Ukraine, including support for schools and health initiatives like maternal care and vaccinations, have been halted. The cable stated that decisions to continue, modify, or terminate programs will be made by Rubio following the review, with waivers issued on a case-by-case basis. Emergency food assistance has already received a waiver.
While humanitarian aid to Gaza and other crisis zones has surged recently, Konyndyk warned that nutrition, health, and vaccination programs, along with refugee services in Sudan and other regions, will face abrupt cessation. “It’s manufactured chaos,” added a former senior USAID official, noting that essential services such as HIV/AIDS treatment, maternal health, and education would also be disrupted.
The cable confirmed waivers for military financing for Israel and Egypt, as well as for administrative costs. Israel receives approximately $3.3 billion annually, while Egypt receives $1.3 billion. Other nations potentially affected by military financing include Ukraine, Taiwan, and several Eastern European and Southeast Asian countries, as outlined in a prior request from the Biden administration.
The cable also highlighted foreign military financing aimed at bolstering the Lebanese Armed Forces to counter Iranian influence, as the Lebanese military moves to secure the south under a ceasefire agreement requiring Hezbollah’s withdrawal from the area.
