Trump Administration Freezes US Foreign Aid, Including Ukraine's; Exempts Israel, Egypt

In a sweeping directive, the newly inaugurated Donald Trump administration in the United States reportedly froze all foreign aid on Friday, with the exception of assistance to Israel and Egypt.

Emergency food aid and military funding for these two nations will continue, according to a report by news agency AFP.

Photo Credit: AP/PTI

An internal memo, cited in the report, reveals that US Secretary of State Marco Rubio stated: "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."

This move aligns with President Donald Trump's "America First" policy, which seeks to impose stringent restrictions on foreign assistance.

The freeze is expected to impact various forms of aid, including development and military assistance, notably to Ukraine, which had received billions in weaponry under Trump's predecessor, Joe Biden, to counter the Russian invasion.

According to AFP report, the directive also entails a suspension of US funding for PEPFAR, the anti-HIV/AIDS initiative that provides anti-retroviral drugs to combat the disease in developing nations, predominantly in Africa.

Established in 2003 under President George W. Bush, PEPFAR is credited with saving approximately 26 million lives and has historically enjoyed bipartisan support in Washington.

Israel and Egypt Exempt

The memo explicitly exempts military aid to Israel, whose already substantial arms packages from the United States have increased further since the Gaza conflict.

Egypt, which has benefited from significant US defence funding since its 1979 peace treaty with Israel, is also excluded from the freeze.

Marco Rubio also authorised exceptions for US contributions to emergency food assistance, which have supported crises worldwide, including in Sudan and Syria.

Additionally, the State Department retains the discretion to make further exceptions on a case-by-case basis and to temporarily fund administrative costs, including staff salaries.

The memo mandates an internal review of all foreign assistance programmes within 85 days. Rubio wrote that the new administration required this time to ensure existing aid commitments "are not duplicated, are effective and are consistent with President Trump's foreign policy."

While European nations often contribute a higher proportion of their economies to aid, the United States remains the largest donor in absolute terms.

According to the Organisation for Economic Co-operation and Development (OECD), the US provided over $64 billion in overseas development assistance in 2023. Data for 2024 was unavailable, the report noted.