January 26, 2025

Trump administration freezes all US foreign aid, exempts Israel, includes Ukraine

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The newly sworn-in Donald Trump administration froze all foreign aid on Friday, including funding to Ukraine. The exception is military assistance to Israel and Egypt. The freeze follows President Trump’s “America First” policy, which seeks to tighten US foreign aid.

Secretary of State Marco Rubio issued an internal memo, stating that no new funds would be approved for new or extended foreign aid until each case undergoes review. The freeze affects everything from development assistance to military aid, including billions in weapons previously sent to Ukraine to aid its defense against Russia’s invasion.

Additionally, the freeze halts US funding for PEPFAR, a major anti-HIV/AIDS initiative launched in 2003 under President George W. Bush. The program has saved millions of lives but faces a delay due to the new policy. The freeze also applies to various humanitarian initiatives like emergency food assistance, though Rubio made an exception for contributions to urgent crises in places like Sudan and Syria.

The directive temporarily excludes funding for military aid to Israel and Egypt, two long-standing allies. Israel’s defense aid has grown since the Gaza conflict, while Egypt has received US military funding since signing a peace treaty with Israel in 1979. Rubio’s memo also allows the State Department to make case-by-case exceptions and to cover administrative expenses.

The Trump administration’s decision marks a significant shift in US foreign policy. It pauses funding for programs previously supported across party lines in Washington. It is also the first step in an internal review, set to conclude in 85 days. Rubio emphasized that this review is necessary to ensure foreign aid aligns with Trump’s policies and is not duplicated.

While other nations contribute more as a percentage of their economies, the US remains the world’s top donor in dollar terms. In 2023, the US gave over $64 billion in overseas development assistance. The freeze affects this ongoing commitment, placing foreign aid under increased scrutiny as part of Trump’s push to prioritize domestic concerns over international spending.