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Trump pause applies to all foreign aid; Israel, Egypt get waiver, says State Dept memo

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January 24, 2025
in Economy
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Trump pause applies to all foreign aid; Israel, Egypt get waiver, says State Dept memo

By Humeyra Pamuk

WASHINGTON (Reuters) – U.S. President Donald Trump’s 90-day foreign aid pause applies to new and existing assistance, according to a State Department memo seen by Reuters on Friday, which also states that waivers have been issued for military financing for Israel and Egypt.

Just hours after taking office on Monday, Trump ordered the pause in foreign development assistance pending assessments 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 U.S. Congress sets the federal U.S. government budget.

The State Department memo, signed by the new Secretary of State Marco Rubio and dated Friday, said 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.

Across the board, “decisions whether to continue, modify, or terminate programs will be made” by Rubio following a review over the next 85 days. Until then Rubio can approve waivers.

The State Department memo said waivers have so far been approved by Rubio for “foreign military financing for Israel and Egypt and administrative expenses, including salaries, necessary to administer foreign military financing.”

Rubio has also issued a waiver for emergency food assistance. This comes amid a surge of humanitarian aid into the Gaza Strip after a ceasefire between Israel and Palestinian militants Hamas began on Sunday and several other hunger crises around the world, including Sudan.

This post appeared first on investing.com
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