State Department halts new funding for nearly all US aid programmes

Order sent in a cable to US embassies worldwide prohibits new government spending, which appears to limit programs to running only as long as they have cash on hand

The State Department has frozen new funding for almost all US foreign assistance, making exceptions to allow humanitarian food programmes and military aid to Israel and Egypt to continue.

The sweeping order threatened a quick halt to countless projects globally aiding health, education, development, job training and other efforts by the United States, the largest provide of foreign aid. It appears to begin enforcement of a pledge to eliminate aid programs that President Donald Trump judges not to be in US interests.

The order sent in a cable to US embassies worldwide and obtained by The Associated Press prohibits new government spending, which appears to limit programs to running only as long as they have cash on hand.

 

Some leading aid organizations on Friday were interpreting the directive as an immediate stop-work order for US-funded aid work globally, a senior aid organization official said. Many would likely cease operations immediately so as not to incur more costs, the official said.

The official was not authorized to speak publicly and spoke on condition of anonymity.

The State Department during the freeze will conduct a review of which of the thousands of US aid and development programs can continue. Its order spells out the execution of the aid-freezing executive order Trump signed on Monday.

Friday's order especially disappointed humanitarian officials by not including any exemptions sparing health clinics and other health programs worldwide from the new funding freeze.

The freeze was necessary to ensure that "appropriations are not duplicated, are effective, and are consistent with President Trump's foreign policy, the global cable stated.

Within the next month, standards for a review of all foreign assistance are expected to be set to ensure that it is aligned with President Trump's foreign policy agenda."  Within three months, the government-wide review is expected to be completed with a subsequent report to be produced for Secretary of State Marco Rubio to make recommendations to the president.