 "Trump pauses all US foreign aid for 90 days; orders review; NGOs decry move")
US President Donald Trump has announced a sweeping freeze on US foreign aid, effective immediately, through an executive order issued on Monday (January 27). The directive excludes military assistance to key allies Israel and Egypt.
Secretary of State Marco Rubio communicated the directive via a cable to all US diplomatic posts, implementing a “stop work” order on existing programmes and suspending new awards. The freeze, which applies to nearly all forms of non-military foreign assistance, affects health initiatives, education programmes, and water distribution efforts.
The directive, halting foreign aid for 90 days pending a review, has sparked widespread concern among humanitarian organisations and government officials, given the US’s status as the world’s largest donor of foreign aid.
US halts foreign aid: Reactions and implications
The decision has sent shockwaves through the humanitarian sector. InterAction, an alliance of international NGOs, criticised the move, noting its disruption of vital projects ranging from infant healthcare and education to anti-trafficking efforts. The International AIDS Society warned that halting initiatives like the President’s Emergency Plan for AIDS Relief (PEPFAR) could endanger millions by cutting access to lifesaving HIV treatments.
The freeze is particularly disruptive in conflict-ridden regions such as Ukraine, Sudan, and Haiti, where US aid has played a critical stabilising role. A USAID official described the move as “manufactured chaos,” citing the immediate suspension of essential programmes like maternal health services and childhood vaccinations.
Meanwhile, fears are growing that the funding vacuum could be exploited by geopolitical rivals such as China. Humanitarian organisations are scrambling to understand the full implications of the freeze as concerns mount over its long-term effects.
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US halts foreign aid: Underlying rationale
The Trump administration has framed the freeze as part of a broader effort to realign foreign aid with US interests. In a memo, Secretary Rubio stated that every dollar spent must be justified by its contribution to making America “safer, stronger, and more prosperous.”
Critics, however, argue that this approach neglects the global stability fostered by such programmes, which indirectly serve US strategic interests. Congressional leaders, including Democratic Reps. Gregory Meeks and Lois Frankel, have challenged the legality of the order, asserting that Congress controls the allocation of funds. They also raised concerns about bipartisan-supported programmes like the President’s Malaria Initiative and PEPFAR, which have historically enjoyed wide-ranging backing.
Global impact and geopolitical risks
In 2024, the US accounted for 42 per cent of all humanitarian assistance tracked by the United Nations. Humanitarian organisations have warned that the freeze risks undermining America’s global leadership in aid, prompting recipient nations to seek alternative funding sources and potentially strengthening the influence of geopolitical competitors.
Despite the backlash, Trump has signalled his intention to use the 90-day review period to reform the aid system. The administration plans to introduce stricter standards to ensure future allocations align closely with its “America First” policy. However, experts caution that this strategy may weaken global partnerships and destabilise regions heavily reliant on US support.