State Department freezes new funding for nearly all US aid programs worldwide

[January 25, 2025]  By ELLEN KNICKMEYER and FARNOUSH AMIRI

WASHINGTON (AP) — The State Department ordered a sweeping freeze Friday on new funding for almost all U.S. foreign assistance, making exceptions for emergency food programs and military aid to Israel and Egypt.

The order threatened a quick halt to many of the billions of dollars in U.S.-funded projects globally to support health, education, development, job training, anti-corruption, security assistance and other efforts.

The U.S. provides more foreign aid globally than any other country, budgeting about $60 billion in 2023, or about 1% of the U.S. budget.

Secretary of State Marco Rubio's order, delivered in a cable sent to U.S. embassies worldwide, specifically exempted emergency food programs, such as those helping to feed millions in a widening famine in warring Sudan.

The cable spells out the execution of the aid-freezing executive order President Donald Trump signed on Monday.

But Friday's order especially disappointed humanitarian officials by not including specific exemptions for life-saving health programs, such as clinics and immunization programs.

A globally acclaimed anti-HIV program, the President's Emergency Relief Plan for AIDS Relief, was among those included in the spending freeze, slated to last at least three months. Known as PEPFAR, the program is credited with saving 25 million lives, including those of 5.5 million children, since it was started by Republican President George W. Bush.

Some aid projects began receiving their first stop-work orders under the freeze Friday afternoon.

Some leading aid organizations also were interpreting the directive as an immediate stop-work order for U.S.-funded aid work globally, a former senior U.S. Agency for International Development official said. Many would likely cease operations immediately so as not to incur more costs, the official said. The official was not authorized to speak publicly and spoke on condition of anonymity.

Suspending funding “could have life or death consequences” for children and families around the world, said Abby Maxman, head of Oxfam America.

“By suspending foreign development assistance, the Trump administration is threatening the lives and futures of communities in crisis, and abandoning the United States’ long-held bipartisan approach to foreign assistance which supports people based on need, regardless of politics,” Maxman said in a statement.

At the United Nations, deputy spokesman Farhan Haq said: “These are bilateral decisions but nonetheless we expect those nations who have the capability to generously fund development assistance.”

Secretary of State Marco Rubio speaks after being sworn in by Vice President JD Vance in the Vice Presidential Ceremonial Office in the Eisenhower Executive Office Building on the White House campus, Tuesday, Jan. 21, 2025, in Washington. (AP Photo/Evan Vucci)

While Rubio's order exempted military assistance to allies Israel and Egypt from the freeze, there was no indication of a similar waiver to allow vital U.S. military assistance to Ukraine through.

The Biden administration pushed military aid to Ukraine out the door before leaving office because of doubts about whether Trump would continue it. But there is still about $3.85 billion in congressionally authorized funding for any future arms shipments to Ukraine and it is now up to Trump to decide whether or not to spend it.

The sweeping freeze begins enforcement of a pledge from Trump and other Republicans to crack down on U.S. aid programs.

Also on Friday, the State Department agency overseeing refugee and resettlement sent guidance to the resettlement agencies it works with, saying they had to immediately “suspend all work” under the foreign assistance they were receiving. While there was little clarity in the guidance, the notification suggests resettlement agencies that work with refugees, including Afghans who arrived on special immigrant visas, might have to halt their work at least temporarily.

Florida Republican Rep. Brian Mast, the new chairman of the House Foreign Affairs Committee, promised this week that Republicans would question “every dollar and every diplomat” in the State Department's budget to ensure it met their standards for strictly necessary.

The freeze was necessary to ensure that "appropriations are not duplicated, are effective, and are consistent with President Trump’s foreign policy,” the global cable stated.

Within the next month, standards for a review of all foreign assistance are expected to be set to ensure that it is “aligned with President Trump’s foreign policy agenda," the cable said. And within three months, the government-wide review is expected to be completed with a subsequent report to be produced for Rubio to make recommendations to the president.

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Associated Press writers Edith M. Lederer at the United Nations and Rebecca Santana contributed.

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