US halts all foreign aid, except for Israel and Egypt
What's the story
The US has suspended nearly all of its foreign aid, with the exception of military assistance to Israel and Egypt.
The decision was conveyed through an internal memo from Secretary of State Marco Rubio.
The memo read that "no new funds shall be obligated for new awards or extensions of existing awards" until they have been reviewed and approved in accordance with President Donald Trump's agenda.
Aid impact
Aid freeze impacts military support and health initiatives
The aid freeze extends to all forms of assistance, including military support to Ukraine, which had received substantial funding under former President Joe Biden.
The directive also halts funding for PEPFAR, an anti-HIV/AIDS initiative that provides anti-retroviral drugs in developing countries, mainly in Africa.
Launched in 2003 under President George W Bush's administration, PEPFAR is credited with saving around 26 million lives.
Review timeline
Exceptions and review process for aid freeze
Despite the comprehensive freeze, exceptions have been made for emergency food assistance in crisis areas like Sudan and Syria.
The memo permits case-by-case exceptions and temporary funding for staff salaries and administrative expenses.
An internal review of all foreign assistance is to be completed within 85 days, indicating a potential timeline for when aid may resume.
Criticism voiced
Aid suspension sparks criticism and concerns
The decision to freeze aid has been criticized from all sides.
Oxfam America President Abby Maxman warned the suspension could have "life or death consequences" for those relying on humanitarian aid.
Democratic lawmakers Gregory Meeks and Lois Frankel raised concerns about the impact on US credibility and commitments to global partners, emphasizing the potential diplomatic repercussions of this policy shift.
Donor status
US remains largest donor despite policy shift
Until this major policy change, the US remained the world's biggest donor in dollar terms. It gave more than $64 billion in overseas development assistance in 2023 alone.
However, the freeze represents a major shift in US foreign policy under the Trump administration, which is in line with his "America First" policy to limit overseas assistance.