US issues pause on foreign aid, leaked memo says

The US State Department has suspended all existing foreign aid and paused new aid, according to an internal memo sent to officials and US embassies abroad.

The leaked notice follows President Trump’s executive order issued Monday for a 90-day pause in foreign development aid pending a review of its effectiveness and consistency with foreign policy.

The United States is the world’s largest donor of international aid, spending $68 billion in 2023 according to government data. The State Department notice appears to affect everything from development aid to military aid.

It makes exceptions only for emergency food aid and for military funding for Israel and Egypt. The content of the leaked memo has been confirmed by the BBC.

“No new funds will be appropriated for new awards or extensions of existing awards until each proposed new award or extension has been reviewed and approved,” the memo to staff said.

It added that U.S. officials “immediately issue stop-work orders, consistent with the terms of the applicable award, until such time as the Secretary determines upon review.”

It also orders a wide-ranging review of all foreign aid to be completed within 85 days to ensure aid adheres to President Trump’s foreign policy goals.

Secretary of State Marco Rubio – the US’s top diplomat – previously said that all US spending abroad should only happen if it makes America “stronger”, “safer” or “more prosperous”.

A former senior State Department official told the BBC the announcement meant a “potentially huge” impact on US-funded foreign aid programmes.

“One could imagine, for example, that humanitarian demining programs around the world were suddenly told to stop working. It’s a pretty big deal,” said Josh Paul, who led congressional relations on arms transfers at the State Department through the end of 2023.

Dave Harden, former director of the US Agency for International Aid’s (USAID) Middle East mission, told the BBC the move was “very important”, saying it could lead to an immediate halt to humanitarian and development programs , funded by the US around the world while the review takes place.

He said this could affect a wide range of critical development projects, including water, sanitation and shelter.

“The staff of the implementing partner or the (non-governmental organisation) will be able to be paid, but the actual aid, I think, should be stopped,” Mr Harden said.

“I’ve been through (aid suspensions) many times when I was mission director in the West Bank and Gaza, but this was specific to this bill. It’s global … it’s extremely broad,” he said.

“Not only does it pause aid, it puts a ‘stop work’ order on existing contracts that are already funded and underway.” It is extremely broad,” he added.

The AFP news agency reported that the funding freeze could potentially also affect Ukraine, which received billions of dollars worth of weapons under Trump’s predecessor, Joe Biden.

Rubio’s memo justifying the freeze said it was impossible for the new administration to assess whether existing foreign aid commitments “are non-duplicative, effective and consistent with President Trump’s foreign policy.”

Rubio issued a waiver for emergency food aid, according to the memo.

It comes amid an influx of humanitarian aid into the Gaza Strip following the start of a truce between Israel and Hamas and several other hunger crises around the world, including Sudan.

The memo also said Rubio has so far approved waivers for “foreign military financing for Israel and Egypt and administrative expenses, including salaries, required to administer foreign military financing.”

The State Department has been reached for comment.