Key Takeaways:

• The U.S. State Department issued a "stop-work" order on nearly all foreign aid following President Trump's directive.
• Exceptions have been made for military financing to Israel and Egypt amid a near-total funding halt for other nations.
• Former officials warn this could lead to significant humanitarian impacts globally.
• The halt could affect ongoing projects in Ukraine and numerous other countries.
• A waiver for emergency food assistance has been approved, particularly relevant given recent crises in Gaza and Sudan.

In a sweeping move fulfilling President Donald Trump's directive, the U.S. State Department has issued a "stop-work" order affecting virtually all foreign aid programs, with notable exemptions for military financing earmarked for Israel and Egypt. A memo circulated among officials and U.S. embassies confirmed that this order halts both existing foreign assistance and new aid initiatives, pending a comprehensive review. The review aims to assess how these allocations align with Trump's foreign policy objectives, as emphasized by Secretary of State Marco Rubio.

According to the memo, effective immediately, senior officials are instructed to ensure that “no new obligations shall be made” for foreign assistance until Rubio completes his review within the next 85 days. Only waivers for military financing for Israel and Egypt, and for emergency food assistance, will proceed during this period. The implications of this halt are vast, raising concerns from international aid groups and former government officials over the detrimental effects on humanitarian aid and development initiatives worldwide.

Critics, including former USAID officials, have labeled this action as “manufactured chaos,” arguing that it endangers countless lives and undermines U.S. influence abroad. “Freezing these international investments will lead our international partners to seek other funding partners—likely U.S. competitors and adversaries,” cautioned a source familiar with congressional deliberations on the matter, as reported by South China Morning Post.

The halt is expected to affect a wide range of projects, including vital health services, education, and humanitarian initiatives in crisis areas such as Ukraine, Gaza, and Sudan. Amid current humanitarian efforts escalating due to a ceasefire between Israel and Hamas, the U.S. has committed to maintaining some emergency aid, but the broader freeze may severely constrain efforts to address the urgent needs resulting from recent conflicts and natural disasters.

The full ramifications of this funding freeze are still unfolding, but as the world’s largest donor of foreign aid—with a record spending of $72 billion in FY 2023—the sustainability of U.S. initiatives in global health, food security, and stability hangs in the balance. As Rubio emphasizes the need for alignment with national interests in foreign spending, many wonder what this means for America’s historical role in international development.

Important decisions regarding the continuation, modification, or termination of current programs are expected to be made post-review by Rubio, who has the authority to approve necessary waivers during this pause.

For more information, read the full article at The Guardian.