US State Department Halts Foreign Aid for Review Amid Policy Realignment

WASHINGTON, Jan 25 (Alliance News): The US State Department has issued a “stop-work” order on all foreign assistance and paused new aid allocations following President Donald Trump’s directive to review the alignment of aid distribution with his foreign policy objectives, a cable obtained by Reuters revealed Friday.

The cable, approved by Secretary of State Marco Rubio, specified waivers only for military financing to two Middle Eastern countries, including Egypt, without naming others.

This directive halts billions in global aid, potentially endangering numerous humanitarian programs. In the fiscal year 2023, the US disbursed $72 billion in foreign assistance, making it the largest donor worldwide.

The order mandates an immediate cessation of obligations for foreign aid and halts ongoing projects until Rubio completes a 90-day review to determine alignment with US foreign policy.

Notably, programs like maternal health, childhood vaccinations, and education in Ukraine have already been impacted, USAID officials reported.

Critics, including former USAID official Jeremy Konyndyk, argue this move will cause chaos and humanitarian crises, with potentially dire consequences. “This is not a review; it’s a wrecking ball,” Konyndyk remarked.

Waivers have been granted for emergency food aid and military financing, with Egypt and another unnamed country collectively receiving $4.6 billion annually. However, other crucial programs, including health, nutrition, and refugee services in conflict zones, remain suspended.

Sources suggest the order could drive international partners to seek support from US rivals, undermining US influence. Congressional sources have also raised concerns about the lawfulness of the pause, warning of significant geopolitical consequences.