'Chaos and Confusion Ensue After Trump Halts US Foreign Aid: “It will kill people”'

The recent directive places certain aid organizations in jeopardy of facing bankruptcy.

'Chaos and Confusion Ensue After Trump Halts US Foreign Aid: “It will kill people”'
The abrupt halt on U.S. foreign aid enacted by the Trump administration is creating turmoil among various organizations, including health providers and landmine removal groups, disrupting crucial programs as officials attempt to grasp the full impact of the directive.

In response to Secretary of State Marco Rubio's order issued on Friday, leaders of aid organizations are determining which initiatives to suspend and whether they need to cut staff or completely shut down operations. As they search for waivers, aid groups are feeling the pressure to adapt — from sourcing non-federal funds for refugees arriving in the U.S. to halting HIV clinic efforts in Africa.

“This ‘stop work’ order is cruel and deadly,” said Asia Russell, the executive director of Health GAP, a nonprofit that focuses on HIV treatment access in developing countries. “It will kill people.”

Confusion is prevalent among federal workers, spanning the Pentagon to the U.S. Agency for International Development (USAID), regarding the order's specific language and which activities might qualify for exemptions. In some instances, their ability to acquire information has been obstructed. A note to staff obtained by PMG revealed that a senior USAID official instructed employees to obtain prior top-level approval before communicating with outside institutions.

“The pause on all foreign assistance means a complete halt,” wrote Ken Jackson, USAID’s assistant to the administrator for management and resources, in an agency-wide email to around 10,000 employees. He stated that “all communications outside the agency, including to the State Department, must be approved by the Agency Front Office,” warning that failure to comply could lead to unspecified disciplinary consequences.

This situation has led some USAID officials to think twice about pursuing waivers. One anonymous official noted that “anyone that contradicts [the stop-work order] is seen as obstructionist, so putting something forward for a waiver can be risky.”

Both the State Department and USAID were unavailable for immediate comment.

The impact of the order extends to various aid organizations, including those focused on landmine removal from conflict areas, HIV testing and treatment initiatives across multiple African nations through the President’s Emergency Plan for AIDS Relief, and programs addressing food insecurity globally.

Furthermore, foreign military financing programs for countries like Ukraine, Jordan, and Taiwan are also affected, although the full extent of that impact remains unclear. “I’m not sure anyone knows all the details right now and key folks are almost certainly trying to unpack the actions and implications,” a former senior Pentagon official remarked.

The U.S. is recognized as the leading provider of humanitarian aid worldwide. While the funds allocated amount to less than 1 percent of the federal budget, advocates assert that these resources are vital for saving lives and enhancing America’s international standing amid competition with nations like China and Russia.

The foreign assistance budget encompasses various sectors beyond traditional humanitarian aid. One U.S. official familiar with the matter pointed out that “State Department counterterrorism advisers around the world may need to fly home since their contracts are also funded out of — guess what — foreign assistance.”

Upon taking office, President Donald Trump issued an executive order for a 90-day suspension of foreign assistance. However, it was unclear whether this applied solely to new grants or also impacted existing ones.

Rubio's recent directive clarified that nearly all foreign aid initiatives should cease immediately, prompting the State Department and USAID to inform organizations that they must halt their operations.

The purpose of this freeze, according to Rubio's directive, was to evaluate all foreign aid programs and compile information into “one centralized repository” for high-level assessments regarding alignment with U.S. priorities and interests.

Many in the aid sector reported that they had never witnessed such an abrupt funding freeze before and questioned the necessity of stopping programs to facilitate the new administration's inventory and review.

Several NGO leaders expressed concern that even a few weeks without funding could lead to shutdowns.

“We operate on a shoestring budget. In 30 days you’ll start to see a very significant cash crunch across the board and probably some bankruptcies,” said the head of one non-governmental group dependent on State Department and USAID funding, who requested anonymity for fear of losing future contracts. “It’s an absolute dumpster fire and no one has any idea what’s going on.”

Some major aid organizations are exploring legal avenues to challenge the order, arguing that the blanket freeze on aid programs conflicts with existing laws and regulations and may breach government contracts.

Many are seeking assistance from lawmakers on Capitol Hill, with some Democrats calling for a resumption of aid.

Reps. Gregory Meeks, the leading Democrat on the House Foreign Affairs Committee, and Lois Frankel, ranking member of the House Appropriations Subcommittee on National Security, Department of State, and Related Programs, cautioned Rubio in a letter that the freeze could be deadly, referencing programs like PEPFAR and the President’s Malaria Initiative that provide essential drugs for HIV and malaria to millions.

“These lives depend on an uninterrupted supply of medicines,” the two Democrats stated.

Russell of Health GAP emphasized that the stop-work order “will snatch HIV medicines, prevention services and support from the hands of adults, babies and young people across PEPFAR-supported countries.”

Healthcare workers in South Africa have also been instructed to suspend their work, according to Sibongile Tshabalala, chair of the Treatment Action Campaign. “They’re unable to continue, they’re frustrated, they don’t know what to do,” Tshabalala explained regarding overwhelmed healthcare workers who received notices from USAID to cease operations.

“We cannot afford 90 days because it will cost us lives,” she added, referring to the anticipated duration of the aid freeze. The suspension also threatens the employment of those working for organizations that have been ordered to stop.

Additionally, between 450 and 500 contractors in USAID’s global health bureau are awaiting news on whether they will go unpaid for 90 days, as they too fall under the foreign assistance pause, according to an informed source who requested anonymity. Their leadership is expected to pursue a waiver for them.

The order significantly impacts foreign military financing, which allocates grants and loans for defense purchases by allied nations. Proponents view it as essential for bolstering allies’ security.

While the new directive excludes Israel's $3.3 billion and Egypt’s $1.3 billion from the budget, approximately $1.5 billion allocated for other governments, such as Ukraine, Jordan, and Taiwan, remains uncertain.

This funding freeze poses a serious challenge for U.S. defense firms, particularly smaller companies with narrow profit margins. "We understand and respect a new administration’s desire to evaluate programs,” Keith Webster, president of the U.S. Chamber of Commerce’s Defense and Aerospace Council, stated. “However, given the fragility of our defense industrial complex, we would ask that this assessment be done very quickly."

Advocates for Ukraine are specifically attempting to comprehend the implications when it comes to military aid. While most assistance to Ukraine is dispensed through other programs outside of State’s foreign military financing, officials noted that billions allocated through this program could potentially be halted.

Much hinges on the specifics of individual contracts, but the ramifications may not be immediately felt, according to one former official. Humanitarian and economic relief for Ukraine is also likely to be curtailed.

The halt in aid also influences organizations that support refugees, including individuals who recently arrived in the U.S., like Afghans who assisted the American military. New arrivals typically qualify for temporary assistance aimed at securing housing, employment, and English language classes.

“Without these resources, 6,000 newly arrived refugees we are currently serving may face the prospect of eviction and food insecurity at a time of critical need,” remarked Krish O’Mara Vignarajah, president and CEO of Global Refuge, an aid organization.

Many leaders in the aid sector are concerned that the Trump administration may never restore much of the funding.

“All the organizations are having emergency meetings to figure out how they manage the little cash they have left,” explained Evelyn Farkas of the McCain Institute, a nonpartisan group advocating for democracy and human rights. "This feels to them like a hard-core game to close USAID and effectively shut down U.S. development efforts altogether. If that’s the case, the repercussions will be cruel and long-lasting.”

Joe Gould, Jamie Dettmer, Daniel Lippman, and Phelim Kine contributed to this report.

Allen M Lee contributed to this report for TROIB News