US issues hold back on foreign aid, leaked memo says

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

The leaked memo follows President Trump’s executive order on Monday suspending foreign development assistance for 90 days pending a review of its 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 data. The State Department memo appears to affect everything from development aid to military aid.

It makes exceptions only for emergency food aid and military funding for Israel and Egypt. The content of the leaked memo has been 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 employees said.

In addition, US officials will “immediately issue cease-and-desist orders, consistent with the terms of the applicable award, pending the Secretary’s decision after review.”

It also mandates the completion of a comprehensive review of all foreign aid within 85 days to ensure that aid is consistent with President Trump’s foreign policy goals.

Secretary of State Marco Rubio – the US’s top diplomat – has previously stated that all US spending abroad should only be done if it makes America “stronger”, “safer” or “more prosperous”.

A former senior State Department official told the BBC the memo had a “potentially huge” impact on US-funded foreign aid programmes.

“You can imagine, for example, humanitarian mining programs around the world suddenly being told to stop working. That’s pretty big,” said Josh Paul, who oversaw congressional relations on arms transfers at the State Department through the end of 2023.

Dave Harden, the former director of the US Agency for International Aid’s (USAID) mission in the Middle East, told the BBC the move was “very significant”, and called for the immediate suspension of US-funded humanitarian and development programs around the world. during the review.

He said it could affect many development projects including water, sanitation and shelter.

“The staff of the implementing partner or (non-governmental organization) could pay, but the actual aid, I think, has to stop,” Mr Harden said.

“When I was director of missions in the West Bank and Gaza, I have experienced (aid interruptions) many times, but this was specific to that matter. This is global … it is very broad,” he said.

“Not only does it stop aid, it puts a ‘stop work’ order on contracts that are already funded and running. It’s very broad,” he added.

The AFP news agency reports that the funding freeze could also affect Ukraine, which received billions of dollars in arms from Trump’s predecessor, Joe Biden.

Rubio’s memo, which justified the freeze, said it was impossible for the new administration to assess whether existing foreign aid commitments are “non-duplicative, effective and consistent with President Trump’s foreign policy.”

Rubio has granted a waiver for emergency food aid, the statement said.

It comes after the start of a cease-fire between Israel and Hamas, and in the midst of many other hunger crises around the world, including in Sudan.

The memo also added that Rubio has so far approved “foreign military funding for Israel and Egypt and for administrative expenses, including salaries, necessary to manage foreign military funding.”

The State Department has been contacted for comment.