The immediate impact of the suspension remains unclear, as many foreign aid programs have already been allocated funds by Congress, which are either obligated or already spent.
In the order, one of several he signed on his first day back in office, Trump criticized the "foreign aid industry and bureaucracy," claiming that these programs often contradict American interests and values. He argued that such aid “destabilizes world peace by promoting ideas in foreign countries that conflict with stable internal and international relations.”
The executive order stipulates that no US foreign assistance will be disbursed unless it is fully aligned with the President’s foreign policy goals. Secretary of State Marco Rubio, during his confirmation hearing last week before the Senate Foreign Relations Committee, underscored the need to justify all foreign assistance with three guiding questions: “Does it make America safer? Does it make America stronger? Does it make America more prosperous?”
The order grants Rubio, or his designee, the authority to review foreign assistance programs, in coordination with the Office of Management and Budget. The State Department and the US Agency for International Development (USAID) will continue to oversee such aid.
Trump has long been critical of foreign aid, which typically makes up about 1% of the federal budget, with the exception of military aid to countries like Ukraine. Trump has specifically raised concerns about the substantial US support for Ukraine amid its conflict with Russia.
The latest report on US foreign aid, from mid-December 2023, showed $68 billion allocated for programs abroad, including disaster relief, health, and democracy promotion in 204 countries. Major recipients of US aid, including Israel, Egypt, and Jordan, are unlikely to see significant cuts due to long-standing agreements and treaties.
Historically, Republican administrations, including Trump’s, have sought to reduce or eliminate funding for UN agencies. During his first term, Trump cut payments to various UN bodies, such as the UN Population Fund, and suspended funding to the Palestinian Authority. The US also withdrew from the UN Human Rights Council during his presidency, ceasing related financial obligations.