This sudden halt in funding has left numerous non-governmental organisations, international bodies, and contractors in limbo, unsure of their future operations. In some parts of the world, there is despair, but in other areas, this executive order may be a sign of the US relinquishing control.

What does the executive order entail?

President Donald Trump’s executive order, ‘Reevaluating and Realigning United States Foreign Aid,’ was issued on 20 January 2025, and mandates a 90-day pause on nearly all US foreign development assistance worldwide, with notable exceptions for major aid recipients and military allies such as Israel and Egypt.

The order aligns closely with Trump’s ‘America First’ policy framework, emphasising that every dollar spent on foreign aid must enhance America’s safety, strength, and prosperity. This approach reflects a shift away from what the administration views as inefficient or ideologically misaligned aid programmes, towards what is being billed as a more focused use of resources that directly benefits American interests.

The order’s preamble explicitly states that the current foreign aid industry and bureaucracy are often ‘antithetical to American values’. Under the new directives, the criteria for aid allocation are likely to prioritise programs that demonstrate clear economic benefits to the United States and support nations willing to shoulder collective defence efforts. This shift may result in reduction of funding for traditional development and humanitarian programs.

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