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State Department freezes new funding for nearly all U.S. aid programs | Real Time Headlines

U.S. President-elect Donald Trump’s nominee Marco Rubio during his confirmation hearing before the Senate Foreign Relations Committee on Capitol Hill in Washington, U.S., January 15, 2025 On the day he testified, he was nominated for U.S. Secretary of State.

Nathan Howard | Reuters

The State Department ordered a fresh funding freeze on nearly all new funding for U.S. foreign aid, with exceptions for emergency food programs and military aid to Israel and Egypt.

The order threatens to quickly halt billions of dollars in U.S.-funded programs around the world that support health, education, development, job training, anti-corruption, security assistance and other efforts.

The United States provides more foreign aid globally than any other country, with a 2023 budget of approximately $60 billion, approximately 1% of the U.S. budget.

Secretary of State Marco Rubio’s order sent a cable to embassies around the world, specifically exempting emergency food programs such as those that help feed millions of dollars in famine-stricken Sudan.

cable illuminated Execute assistance executive orders President Donald Trump signed it on Monday.

But Friday’s orders were particularly disappointing to humanitarian officials because they did not include specific exemptions for life-saving health programs such as clinics and immunization programs.

A globally acclaimed anti-HIV program, the President’s Emergency Plan for AIDS Relief, is included in the spending freeze and is set to last at least three months. The program, known as Pepfar, has saved 25 million lives, including 5.5 million children, since it was launched by Republican President George W. Bush.

Some aid programs began receiving their first stop orders under the freeze Friday afternoon.

Some leading aid groups also interpreted the directive as an immediate halt to U.S.-funded aid efforts, the former top U.S. international development agency said. Many may cease operations immediately to avoid incurring further expenses, the official said. The official was not authorized to speak publicly and spoke on condition of anonymity.

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

“By suspending foreign development assistance, the Trump administration is threatening the lives and futures of communities in crisis and abandoning America’s longstanding bipartisan approach to foreign aid with a single statement,” McMahon said.

At the United Nations, deputy spokesman Farhan Haq said: “These are bilateral decisions, but we look to countries that can generously fund development assistance.”

While Rubio’s order exempts Israeli and Egyptian military aid from the freeze, there is no indication of a waiver to allow critical U.S. military aid to Ukraine.

The Biden administration pushed military aid to Ukraine before leaving office amid uncertainty over whether Trump would continue. However, there is still about $3.85 billion authorized by Congress for any future weapons shipments to Ukraine, and it is now up to Trump to decide whether to spend the money.

The sweeping freeze kicks off a pledge by Trump and other Republicans to crack down on U.S. aid programs.

Also on Friday, the State Department, which oversees refugees and resettlement, sent guidance to resettlement agencies it works with, saying they must immediately “pause all work” on the foreign aid they receive. While the guidance offers little clarity, the notice suggests that resettlement agencies working with refugees, including Afghans arriving on special immigrant visas, may have to halt operations at least temporarily.

Rep. Brian Mast, R-Fla., the new chairman of the House Foreign Affairs Committee, pledged this week that Republicans would question “every dollar and every diplomat” in the State Department budget to ensure it is rigorous. meet its standards as necessary.

Global Cable said the freeze was necessary to ensure “that appropriations are not duplicative, effective and consistent with President Trump’s foreign policy.”

Within the next month, it is expected to review criteria for all foreign aid to ensure “consistency with President Trump’s foreign policy agenda,” Cable said. And, within three months, a government-wide review is expected to be completed, with a subsequent report for Rubio to make recommendations to the president.

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