Key takeaways:

• The U.S. State Department has frozen new funding for almost all foreign aid programs.
• Exemptions include military aid to Israel and Egypt, along with humanitarian food programs.
• Immediate effects are anticipated with many aid organizations halting operations to avoid additional costs.
• The freeze implements an executive order by President Trump, affecting various global initiatives.

In a significant shift in U.S. foreign policy, the State Department announced on Friday the freezing of new funding for almost all U.S. foreign assistance programs. This decision leaves just a narrow margin for exceptions, allowing military aid to Israel and Egypt and certain humanitarian food programs, amidst a growing global need for assistance.

The directive was communicated through a cable to U.S. embassies worldwide, making it clear that new government spending is halted, restricting ongoing programs to operate only with the funds already available. As a result, many aid initiatives—spanning health, education, and development—are at risk, with immediate repercussions expected in various regions where the U.S. provides support. According to AP News, Friday’s order is seen as a potential stop-work order for U.S.-funded aid projects globally, as confirmed by a senior official from an aid organization who spoke under anonymity.

The funding freeze is part of a broader effort to align foreign assistance with President Trump’s foreign policy priorities and is implemented following an executive order he signed earlier in the week. Critics are particularly dismayed by the lack of exemptions for health-related programs, including vital initiatives like the President's Emergency Plan for AIDS Relief (PEPFAR), which has played a crucial role in combating HIV/AIDS worldwide. The stark reality of these funding restrictions raises concerns about their humanitarian implications, with experts warning that suspensions could “have life or death consequences” for children and families globally, as stated by Abby Maxman, head of Oxfam America.

As the review and assessment of aid programs continue, it is expected that a comprehensive report will be presented to Secretary of State Marco Rubio within three months, guiding future decisions on U.S. foreign assistance. During this period, organizations are left grappling with the uncertainties of funding limitations that profoundly affect millions reliant on U.S. aid, highlighting the critical and often fragile balance of international support.

For further details, read the original articles: Newsweek and Time.