US stops work on foreign aid after Trump orders review

The US State Department has issued a “stop-work” order for all existing foreign assistance and paused new aid, according to a memo seen by Reuters, fulfilling an order issued by President Donald Trump.

The cable, drafted by the Department’s Foreign Aid Bureau and approved by Secretary of State Marco Rubio, says waivers have been issued for military financing for Israel and Egypt. No other countries were mentioned in the cable.

Just hours after taking office on Monday, Trump ordered a 90-day pause in foreign development assistance pending a review of efficiencies and consistency with his foreign policy.

But the scope of the order was not immediately known and it was unclear what funding could be cut given that the US Congress sets the federal government budget.

Trump’s order is unlawful, argues a source familiar discussions in Congress on the move.

“Freezing these international investments will lead our international partners to seek other funding partners – likely US competitors and adversaries – to fill this hole and displace the United States’ influence the longer this unlawful impoundment continues,” the source says on condition of anonymity.

The State Department memo says effective immediately, senior officials “shall ensure that, to the maximum extent permitted by law, no new obligations shall be made for foreign assistance” until Rubio has made a decision after a review.

It says that for existing foreign assistance awards stop-work orders shall be issued immediately until reviewed by Rubio.

“It’s manufactured chaos,” says a former senior official with the US Agency for International Development (USAID), speaking on condition of anonymity.

“Organizations will have to stop all activities, so all lifesaving health services, HIV/AIDS, nutrition, maternal and child health, all agriculture work, all support of civil society organizations, education,” says the official.

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