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Reading: Trump admin reportedly implements widespread freeze on foreign aid—except to Israel and Egypt
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Westferry Times > World > World > Trump admin reportedly implements widespread freeze on foreign aid—except to Israel and Egypt
World

Trump admin reportedly implements widespread freeze on foreign aid—except to Israel and Egypt

Anjali Yadav
By Anjali Yadav Published January 27, 2025
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The Trump administration has reportedly issued sweeping guidance to freeze nearly all U.S. foreign assistance, with notable exemptions for emergency food aid and military financing directed exclusively to two key allies, Israel and Egypt. According to a cable obtained by multiple media outlets, including investigative journalist Ken Klippenstein, this directive reflects a dramatic recalibration of U.S. foreign policy priorities.

The investigative outlet Drop Site highlighted the selective nature of the exemptions, remarking, “Guess which country was exempted…?” This carve-out for Israel follows over a year of resolute U.S. support for its government during a controversial military campaign in Gaza, which began after Hamas’ October 2023 attacks. The violence claimed the lives of tens of thousands of Palestinians, according to local health officials. Despite a ceasefire declared on Sunday, subsequent Israeli military actions in Jenin in the West Bank have drawn further scrutiny.

Notably, other traditional U.S. allies such as Ukraine and Taiwan do not appear among the exemptions to the funding freeze. Former President Trump has frequently criticised NATO, to which Ukraine seeks membership, and has expressed scepticism about the extent of U.S. support for Kyiv in its ongoing conflict with Russia.

The freeze is part of an executive order issued on Trump’s first day in office, calling for a 90-day pause on U.S. foreign development assistance to assess its “programmatic efficiencies and consistency with United States foreign policy.” The latest memo, signed by Secretary of State Marco Rubio, solidifies this directive by halting both new and previously approved foreign assistance programs.

According to the cable, the U.S. “shall not provide foreign assistance funded by or through the department and USAID without the secretary of state’s authorization or the authorization of his designee.” Further, existing awards must be halted immediately through stop-work orders issued by contracting and grant officers.

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The implications of this freeze are extensive. As Politico reports, this guidance effectively blocks the disbursement of funds already appropriated by Congress. A State Department official reportedly described the move as the department “going nuclear on foreign assistance.”

In fiscal year 2023, the U.S. allocated $68 billion to foreign aid, supporting causes ranging from economic development to global health and environmental initiatives. Ukraine topped the list of aid recipients with $17 billion, followed by Israel, which received $3.3 billion. However, under the current guidance, Ukraine and other nations face immediate funding freezes, marking a significant policy shift.

Humanitarian officials have expressed dismay over the freeze, particularly its potential impact on critical health services worldwide. According to The Associated Press, aid workers hoped essential programs like health clinics might be spared, but the new directive offers no such relief.

The abrupt decision is expected to have widespread implications, raising questions about U.S. global commitments and leaving aid-dependent regions in uncertainty.

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