Drastic change in policy: The new US government has made a decision - Freezing US foreign aid worldwide

An exclusive article by Michael Igoe (Devex, January 24, 2025) titled "State Department issues stop-work order on US aid" details the key and controversial decision by the US State Department to immediately halt foreign aid spending.

Secretary of State Marco Rubio ordered an immediate freeze on all new foreign aid grants and contracts, while contracts and grants officials were directed to "immediately issue stop-work orders ... until the Secretary decides, after review."

The directive, outlined in a memo sent by a member of the Office of Foreign Assistance's transition team, heralds significant changes in US aid policy under President Donald Trump's administration. The directive follows an executive order titled "Reevaluation and Adjustment of US Foreign Assistance" (January 20, 2025), which aims to align foreign aid with the administration's strategic priorities.

Rubio also centralized oversight of all international aid programs, ordering that any aid distributed by US agencies or departments must first be reviewed and approved by the secretary of state.

A controversial decision

The executive order, described as a move to eliminate programs that are "inconsistent with American interests and, in many cases, opposed to American values," drew sharp criticism from experts and advocates. Nina Schwalbe, a senior fellow at Georgetown University's O'Neill Institute and former director of vaccine access and distribution at USAID, called the decision "deadly," noting its potential to threaten public health programs that help millions of people around the world.

Development of the situation and consequences

“Effective immediately, Assistant Secretaries and Senior Bureau Officials shall ensure that, to the maximum extent permitted by law, no new obligations shall be made for foreign assistance until such time as the Secretary shall determine, following a review,” reads the memo, which was sent by recent Trump appointee Peter Marocco and seen by Devex.

This directive has wide-ranging implications for current and future aid initiatives. According to the memorandum, new appropriations or extensions of foreign aid funding are suspended until each proposal passes review and approval by the Office of Foreign Assistance. Existing grants and contracts are subject to emergency stop-work orders pending a decision on whether the programs will continue, modify or terminate. This directive creates significant uncertainty within the US foreign aid system, particularly among actors who rely on predictable and continuous funding.

Exceptions and reactions

The policy, which Health GAP executive director Asia Russell called "cruel, anti-scientific, anti-humanitarian and completely unnecessary," does have some exceptions. Military funding for Israel and Egypt, emergency food aid and administrative costs are earmarked, while key global health initiatives such as PEPFAR (President's Emergency Plan for AIDS Relief) are excluded from the exemptions.

The decision drew sharp criticism from advocacy groups and public health experts. Nina Schwalbe emphasized that the US is the primary donor for programs to fight malaria, tuberculosis, HIV and vaccine distribution, and that stopping this funding could endanger the lives of millions of people.

Conclusion

Freezing US foreign aid spending represents a drastic policy change with profound consequences for global development and humanitarian efforts. While the administration's emphasis on efficiency and alignment reflects a strategic recalibration, the abrupt implementation of the policy threatens significant disruption. Development actors face a double challenge - adapting to the new political environment and advocating for the continuity of programs that are key to saving lives and improving human rights. The broader question of what constitutes "American values" remains contentious, leaving aid organizations to grapple with the political and ethical implications of this development.