Memo allows to fund salaries for staff & administrative costs temporarily
US freezes most foreign aid, excluding arms for Israel & Egypt: Memo. The United States of America has announced a freeze on nearly all foreign aid on Friday, making exceptions only for emergency food assistance and military funding to Israel and Egypt.
Secretary of State Marco Rubio issued an internal memo shortly after President Donald Trump took office, emphasizing an “America First” policy aimed at tightly restricting overseas assistance. The memo stated, “No new funds shall be obligated for new awards or extensions of existing awards until each proposed new award or extension has been reviewed and approved.”
This sweeping directive affects various forms of aid, including development assistance and military support, notably impacting Ukraine, which has received billions in weapons under Trump’s predecessor, Joe Biden, as it seeks to fend off a Russian invasion.
The order will also pause funding for PEPFAR, the US anti-HIV/AIDS initiative that provides vital anti-retroviral drugs in developing countries, particularly in Africa. Launched in 2003 under President George W. Bush, PEPFAR has been credited with saving approximately 26 million lives and has historically enjoyed bipartisan support in Washington.
While the memo specifies exceptions for military assistance to Israel and Egypt—countries that have long benefited from substantial US defense funding—the freeze raises concerns among lawmakers. More than 20 million people rely on medication through PEPFAR, and 63 million depend on US-funded anti-malaria efforts, including mosquito nets.
Democratic lawmakers, including Representative Gregory Meeks and Representative Lois Frankel, expressed alarm over the potential damage to US credibility, stating, “Now our credibility is on the line, and it appears we will cut and run from American commitments to our partners around the world.”
The memo allows the State Department to make case-by-case exceptions and temporarily fund salaries for staff and administrative costs. It also calls for an internal review of all foreign assistance within 85 days.
Rubio justified the freeze by stating that the new administration needs to assess whether existing commitments are effective and align with Trump’s foreign policy.
Despite the freeze, the US remains the largest donor in dollar terms, contributing over $64 billion in overseas development assistance in 2023, according to the Organization for Economic Cooperation and Development.
Anti-poverty group Oxfam criticized the decision, suggesting it signifies a departure from the US’s longstanding consensus on foreign assistance. Oxfam America president Abby Maxman warned that suspending these programs could have “life or death consequences” for countless individuals facing crises.