New Memo
In a sweeping move that could reshape U.S. foreign assistance, the U.S. State Department has issued a directive halting all new foreign aid spending and placing existing grants and contracts under an immediate stop-work order, according to a Devex report monitored by AkweyaTV. The announcement follows President Donald Trump’s executive order earlier this week, which called for a 90-day pause on foreign aid programmes to conduct a comprehensive review of their alignment with his administration’s foreign policy objectives.
A memorandum sent by Peter Marocco, the new director of the Office of Foreign Assistance (F), and approved by Secretary of State Marco Rubio, outlines the drastic measures. It directs all State Department and USAID officials to cease making new obligations for foreign aid and to suspend work on current programs until further notice.
“Chaos in the System”
The move has sent shockwaves through the global development community, with many experts warning of severe disruptions. A former senior USAID official described the directive as an unprecedented disruption that could leave critical aid programmes in limbo.
“It effectively halts almost all foreign assistance and sends USAID and its partners into a tailspin,” the official told Devex.
The guidance also requires that no new funding opportunities, proposals, or extensions of existing awards be issued unless explicitly reviewed and approved by the Office of Foreign Assistance. This additional layer of oversight is meant to ensure all programs align with President Trump’s policy priorities.
Strategic Review Underway
The memo specifies that within 30 days, review standards will be developed to evaluate foreign aid programmes for effectiveness, duplication, and consistency with Trump’s agenda. A comprehensive review of all foreign aid programs is expected to conclude within 85 days, after which recommendations will be presented to the president.
The memo criticised the current state of aid oversight, stating that there is insufficient data aggregation to ensure that appropriations effectively support U.S. foreign policy goals.
Waivers and Exceptions
While the directive applies broadly to U.S. foreign assistance, certain exceptions have been granted. These include:
- Foreign military financing for Israel and Egypt.
- Emergency food assistance.
- Salaries and administrative expenses necessary for existing aid programmes.
- Legitimate expenses incurred prior to the stop-work order.
Reaction from Development Experts
Olga Wall, a government procurement expert and CEO of Avallon Consulting, said the decision was not entirely unexpected. “They’ve been signalling this for a while. I’m surprised that people are surprised,” she said.
Wall urged global development organisations to rally together and make a strong case for the continuation of critical programmes. “This is an emergency like any other. Use your resources and expertise to defend the programmes you believe in.”
What’s Next?
The immediate impact of this directive on U.S. aid programmes worldwide remains uncertain, but experts warn of widespread disruptions if the pause persists. With the State Department now holding the reins, the global aid community faces a period of intense scrutiny and potential realignment.
This is a developing story. Stay tuned for updates.
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