President Donald Trump initiated a 90-day suspension of all U.S. foreign aid programs. This action, effective immediately, is intended to facilitate a review process aimed at ensuring alignment with his administration’s policy objectives.
The immediate financial impact remains unclear. Significant portions of the aid funding are already allocated by Congress and may be legally obligated for disbursement.
The executive order asserts that the current foreign aid system is misaligned with American interests, potentially counteracting U.S. values and destabilizing global peace by promoting ideologies contrary to international stability.
The order mandates that future U.S. foreign assistance must strictly conform to the President’s foreign policy directives.
During his Senate confirmation hearing, the Secretary of State emphasized that all foreign aid spending must meet three criteria: enhancing U.S. safety, strength, and prosperity.
The order delegates the responsibility of determining aid alignment to the Secretary of State, working in conjunction with the Office of Management and Budget. The State Department and USAID are the primary agencies managing foreign aid distribution.
Trump has consistently criticized foreign aid, despite its relatively small share (approximately 1% of the federal budget), with exceptions like significant military aid to Ukraine. He has voiced concerns about the volume of aid sent to Ukraine.
The latest official data from the Biden administration (mid-December 2023) indicated $68 billion in obligated funds for programs across 204 countries and territories. These programs encompassed various initiatives such as disaster relief, health initiatives, and pro-democracy efforts.
Major aid recipients, including Israel, Egypt, and Jordan, are unlikely to experience substantial reductions due to long-term agreements and treaty obligations.
Funding for UN agencies has historically faced cuts from Republican administrations. The Trump administration previously reduced funding to various UN agencies, including the UN Population Fund and the Palestinian Authority.
Furthermore, the U.S., under the previous Trump administration, withdrew from the UN Human Rights Council, and a bill signed by President Biden barred U.S. funding for UNRWA.