State Department enacts an immediate, extensive halt on foreign aid

The "stop-work orders" seem to encompass US aid for every country with the exception of Israel and Egypt.

State Department enacts an immediate, extensive halt on foreign aid
Secretary of State Marco Rubio announced a cessation of spending on most existing foreign aid grants for 90 days starting Friday. The directive, which surprised State Department officials, seems to impact funding for military aid to Ukraine.

According to a document obtained by PMG, Rubio's guidance mandates that diplomatic and consular staff issue “stop-work orders” on nearly all "existing foreign assistance awards." This order is effective immediately.

This action appears to extend beyond a recent executive order from President Donald Trump that directed a 90-day pause on foreign aid grants pending review by the secretary. It was unclear from Trump’s order whether already appropriated funds, including those for Ukraine, would be affected.

As a result of the new directive, no further actions will be taken to distribute aid funding for programs previously approved by the U.S. government, as stated by three current officials and two former officials familiar with the situation.

The sweeping nature of the order caught some department officials off guard. “State just totally went nuclear on foreign assistance,” remarked another State Department official.

However, the document does allow for some interpretation and includes exceptions. It states that foreign military financing for Egypt and Israel will proceed and permits emergency food assistance and “legitimate expenses incurred prior to the date of this” guidance “under existing awards.” Additionally, it emphasizes that decisions should be “consistent with the terms of the relevant award.”

According to one current State Department official and two former Biden administration officials, the pause appears to affect aid to important allies like Ukraine, Jordan, and Taiwan. They, along with others, spoke anonymously to discuss sensitive internal government documents.

The guidance raises concerns that it could expose the U.S. government to civil liability, as lawsuits may arise over unmet contracts if terms are interpreted as violated, although it notes that decisions must remain “consistent with the terms of the relevant award."

The guidance indicates that “decisions whether to continue, modify or terminate programs will be made following the review” by the secretary.

A spokesperson for the State Department did not immediately respond to requests for comment. Devex had previously reported on the directive.

The exclusion of Ukraine particularly troubles American officials intent on supporting its resistance against Russia.

For several years, Trump and Republicans have targeted what they claim are wasteful foreign aid expenditures during the Obama and Biden administrations. Recently, however, Trump has intensified his rhetoric toward Russia, threatening sanctions if it does not conclude its ongoing invasion of Ukraine and stating that Putin is responsible for ending the conflict.

The Ukrainian government has not yet commented on the order, but supporters of Kyiv remain hopeful that the pause won’t hinder its military efforts.

“We’re working to understand what this means for Ukraine. We’re confident that the administration isn’t going to let America fall for Putin’s scare tactics,” said Mykola Murskyj of Razom, a U.S.-based group advocating for Ukraine.

Concerns are rising among global health advocates regarding the impact of the order on programs like the President’s Emergency Plan for AIDS Relief, which funds HIV testing and treatment primarily in Africa and has received approximately $5 billion annually in recent years.

“This stop-work order is cruel and deadly,” stated Asia Russell, the executive director of Health GAP, a nonprofit focused on improving access to treatment for individuals living with HIV.

The guidance received clearance from various top officials at the State Department, including counselor Michael Needham and policy planning director Michael Anton.

A report is expected to be prepared by the State Department within 85 days of the guidance's issuance, which will accompany Rubio's recommendations to Trump regarding which foreign assistance programs to maintain and which to cease.

Carmen Paun contributed to this report.

Frederick R Cook contributed to this report for TROIB News