The US State Department has ordered a freeze on new funding for almost all American foreign development assistance following an executive order issued by Donald Trump.
Hours after taking office on Monday, the US president ordered a 90-day pause in US-funded global projects pending a review of their efficiency and to check they are consistent with his foreign policy.
Secretary of state Marco Rubio’s directive excludes funding for emergency food programmes and military aid to Israel and Egypt. However, it remains to be seen whether it will affect the flow of vital US military assistance to Ukraine to help it fend off Russia’s invasion.
Joe Biden’s administration stepped up military aid to Ukraine before he left office due to doubts over whether Mr Trump would continue funding Kyiv.
Around $3.85bn (£3bn) in funding for future arms shipments to Ukraine – authorised by the US Congress – remains, but it is unclear whether Mr Trump will decide to spend it or not.
The US provides more foreign aid than any country around the world and budgeted around $60bn (£48bn), or 1% of the US budget, in 2023.
The waiver for emergency food programmes comes as humanitarian aid surges into the Gaza Strip following the ceasefire between Israel and Hamas, and amid famine in war-torn Sudan.
But the order has been criticised by humanitarian officials because it did not exclude life-saving health programmes such as clinics and immunisation programmes.
Abby Maxman, head of Oxfam America, warned suspending funding “could have life or death consequences” for children and families around the world.
“By suspending foreign development assistance, the Trump administration is threatening the lives and futures of communities in crisis, and abandoning the United States’ long-held bipartisan approach to foreign assistance which supports people based on need, regardless of politics,” she added.
Read more from Sky News:
Shackled men led on to US military jet as immigration arrests rise
‘Unduly lenient’ sentence for Southport killer to be reviewed
Trump orders JFK assassination files to be made public
US correspondent
On the face of it, this decision looks set to have wide-ranging consequences for the application of US aid globally.
Officials within the State Department and within the US Agency for International Development (USAID) are themselves working to understand the impact of the directive.
The consequences are likely to be widespread across the substantial foreign assistance portfolio.
We can expect significant confusion within USAID offices globally as well as within government departments of recipient countries.
In terms of Ukraine, there is likely to be little impact on the military assistance being provided because this has come from a mechanism known as a “presidential drawdown”, rather than a foreign assistance grant.
Former president Joe Biden also sought to “pre-load” his administration’s support for Ukraine in order to “Trump proof” it from precisely this sort of policy shift.
However, the new directive may impact economic aid for Ukraine and other programmes like de-mining.
We can expect plenty of shock policy shifts like this in many different areas as Mr Trump’s team takes control. It will take time to understand the impact these decisions have.
The order by Mr Rubio, which was delivered in a cable to US embassies worldwide, said the pause was necessary to ensure “appropriations are not duplicated, are effective, and are consistent with President Trump’s foreign policy”.
Standards for a review of all foreign assistance are expected to be set within the next month to ensure it is “aligned with President Trump’s foreign policy agenda,” the global cable said.
Follow our channel and never miss an update.
The government-wide review is expected to be completed within three months and a report will be produced for Mr Rubio to make recommendations to Mr Trump.
Be the first to get Breaking News
Install the Sky News app for free
The outcome could have a significant impact on the flow of US foreign assistance and the impact it has around the world.
