U.S. Suspends New Foreign Aid Funding, Exempting Israel and Egypt

The Trump administration has announced a freeze on nearly all new foreign assistance funding, with the exceptions of Israel and Egypt, as well as some emergency food programmed.

The U.S. State Department issued the directive on Friday, with newly confirmed Secretary of State Marco Rubio ordering officials to halt new foreign aid obligations “to the maximum extent permitted by law.”

Impact on Global Aid and Health Programs
The temporary freeze, expected to last at least three months, has sparked concern among humanitarian organizations. Health programmed, including PEPFAR (President’s Emergency Plan for AIDS Relief), are among those affected, raising fears of worsening global health crises.

Oxfam America’s President, Abby Maxman, condemned the move, stating that it threatens lives, destabilizes communities in crisis, and undermines long-standing bipartisan U.S. foreign aid policies.

Experts estimate PEPFAR has saved over 25 million lives since its launch in 2003 under President George W. Bush. However, its funding is set to expire in March 2025, aligning with the three-month freeze period.

Ukraine Aid Left in Limbo
The freeze notably excludes U.S. military aid for Israel and Egypt, two of the largest recipients of American defense funding, despite ongoing scrutiny over their human rights records.

Ukraine, however, was not granted a similar exemption, raising concerns about continued U.S. military support amid its ongoing war with Russia.

Experts Warn of Devastating Consequences
Critics, including former USAID official Jeremy Konyndyk, have denounced the decision.

In 2023, the U.S. spent over $60 billion on foreign aid, accounting for only 1% of total government spending. However, some aid projects have already received work-stop orders, highlighting the immediate impact of the suspension.

As the review period progresses, Rubio will determine whether to continue, modify, or terminate** various programs, potentially reshaping U.S. foreign aid policy.