'Manufactured chaos': US freezes nearly all foreign aid including for Ukraine; military funding for Israel, Egypt excempted

The US Secretary of State Marco Rubiohas ordered a pause on nearly all foreign aid programmes including possibly for Ukraine, but excluding military funding for Israel and Egypt, according to an internal memo circulated to US officials and embassies abroad.

The leaked memo follows an executive order issued by President Donald Trump earlier in the week, which called for a 90-day pause on foreign development assistance to review spending efficiencies and ensure that the aid aligns with the president's foreign policy objectives.

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As the world’s largest donor of international aid, the US allocated $68 billion to foreign development efforts in 2023, according to official data.

The State Department’s directive affects a broad spectrum of aid, from development programmes to military support.

Exceptions granted for emergency food aid and military aid to Israel, Egypt

Exceptions have been granted just for emergency food aid and military assistance to Israel, which has benefitted from expanded arms packages since the Gaza conflict, and Egypt, a longstanding recipient of US defence funding following its 1979 peace treaty with Israel.

Israel currently receives approximately $3.3 billion annually in foreign military financing, while Egypt’s share is about $1.3 billion.

The memo read, “No new funds shall be obligated for new awards or extensions of existing awards until each proposed new award or extension has been reviewed and approved… as consistent with President Trump’s agenda.”

It further instructs US officials to "immediately issue stop-work orders, consistent with the terms of the relevant award, until such time as the secretary shall determine, following a review."

This review, expected within 85 days, will determine whether foreign assistance aligns with the administration’s foreign policy goals.

The directive's scope is wide, and it could potentially impact aid to numerous countries, including Ukraine, which previously received billions in military support under Joe Biden’s administration.

According to a Congressional request from Biden’s administration, countries earmarked for US funding in 2025 include Ukraine, Georgia, the Baltic states, Taiwan, Indonesia, the Philippines, Vietnam, Djibouti, Colombia, and Jordan, among others.

The request also seeks to support Lebanon’s military capabilities to address instability and counter Iranian influence.

Marco Rubio has previously said that US foreign spending should only proceed if it makes the country “stronger,” “safer,” or “more prosperous.”

A former senior official at the US Agency for International Development (USAID), speaking anonymously with The Guardian, described the move as “manufactured chaos.”

The official said, “Organisations will have to stop all activities, so all lifesaving health services, HIV/AIDS programmes, nutrition, maternal and child health, all agriculture work, all support for civil society organisations, education.”

(With inputs from agencies)