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The Facts About the Pause on U.S. Foreign Aid

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We’re tracking recent Executive Orders. Although circumstances are quickly changing, below are developments as of Feb. 5. 

Background

  • On Jan. 20, 2025, President Trump issued an Executive Order (EO) pausing U.S. foreign development assistance for 90 days to foreign countries, NGOs, international organizations and contractors.
  • The EO was followed by a global cable sent by the State Department on Jan. 25 that put an immediate pause on current and new foreign aid spending and programs. 
  • Exemptions in the original order included military aid to Israel and Egypt; additional waivers covered humanitarian assistance that “applies to core lifesaving medicine, medical services, food, shelter and subsistence assistance, as well as supplies and reasonable administrative costs as necessary to deliver such assistance.” However, its lack of details only raised more questions and ensured a multitude of programs in the field are stalled. UN Secretary-General Antonio Guterres called for the United States to consider additional exemptionsto “ensure continued delivery of critical development and humanitarian activities.”
  • On Feb. 4, the Administration announced a review “of all international intergovernmental organizations of which the United States is a member and provides any type of funding or other support, and all conventions and treaties to which the United States is a party…” within 180 days.  

The Role of USAID 

  • USAID is the primary organization responsible for providing U.S. humanitarian aid around the globe. Founded by Executive Order by President John F. Kennedy in 1961, it was later established as an independent organization by Congress. 
  • On Jan. 27, the Trump Administration put 57 senior career officials at USAID on administrative leave followed by an additional 600 personnel. 
  • As of Feb. 5, almost all USAID personnel both in the U.S. and abroad were put on paid administrative leave until otherwise notified.  

Examples of Impact from Funding Freeze

  • U.S. foreign assistance funds entry and exit screenings at the airport in Uganda and at two border crossings, where World Health Organization (WHO) officials are battling an outbreak of the Sudan Virus, a highly contagious variation of the hemorrhagic disease Ebola   
  • UNFPA, the UN’s sexual and reproductive health agency, warned that between 2025 and 2028 in Afghanistan, the absence of U.S. support will likely result in 1,200 additional maternal deaths and 109,000 additional unintended pregnancies. 
  • In Myanmar, where malaria cases increased tenfold over four years, the delivery of malaria tests and drugs have stopped. 
  • The International Organization for Migration is ending its assistance through its fund of last resort for human trafficking victims worldwide.
  • In 2023, in an effort to reduce drug trafficking via Mexican ports, the State Department, Mexican government and the UN Office of Drugs and Crime (UNODC) launched the Container Control Programme (CCP) in the port of Manzanillo Mexico’s largest. Manzanillo is the port on “the frontline of the U.S. battle against fentanyl.The CCP trains customs officers and law enforcement officials in identifying and inspecting high-risk containers and combating illicit trafficking. Over the past year because of UN assistance and U.S. funding  there have been major seizures of precursor chemicals from China, as well as methamphetamine and fentanyl at the port. Due to the Stop Work order, the Container Control Programme training of personnel has ceased, which will increase the risk that more fentanyl and illicit drugs come into the United States.    

Strategic Consequences 

  • Since the reconstruction of Europe following World War II, there has been bipartisan recognition that foreign assistance can be used to secure alliances, stabilize economies and foster prosperity.  
  • Halting aid not only undermines these goals but also opens the door for rival powers like China and Russia to expand their influence. 
  • China’s Belt and Road Initiative has already poured over $1 trillion into infrastructure projects across Asia, Africa and Latin America. Beijing’s investments, such as railways in Kenya and ports in Djibouti, bolster its strategic foothold in regions critical to U.S. interests.  
  • By suspending aid, the U.S. risks opening an opportunity for China to position itself as a more reliable and influential partner. 

Economic and Logistical Implications 

  • The 90-day pause, combined with the furloughs of USAID staff and a lack of clarity surrounding the waiver process, has created confusion within the international aid community, including American businesses.  
  • Last year, USAID awarded nearly $1 billion in contracts to U.S. small businesses. These companies have starting furloughing American workers. 
  • Many U.S.-based companies and small businesses that work as contractors are “not being paid for millions of dollars’ worth of services already rendered,” according to a report from CNN 
  • The pause will not save taxpayers money; history demonstrates that restarting halted programs is significantly more expensive than reallocating resources to new priorities. 

Next Steps 

  • Going forward, it is important to let Members of Congress and the Trump Administration know there is broad support for a thoughtful review of America’s foreign assistance programs to ensure they continue to deliver for our national interest. But to protect America’s interests, the Stop Work order should be halted or, at least, we must allow active and ongoing programs to continue  via the UN, State Department and USAID while the review process proceeds.