- President Trump orders 90-day suspension of foreign assistance worldwide.
- USAID halts programs in India, affecting health, education, and clean energy.
- Rohingya refugee aid in Bangladesh exempt from the suspension.
- Military financing for Israel and Egypt remains unaffected.
- The suspension raises concerns about global health and development programs.
The US government has suspended nearly all foreign assistance globally, following an executive order issued by President Donald Trump on January 20, 2025. The decision halts existing aid and pauses new disbursements for 90 days, pending a review of foreign aid programs’ alignment with the current administration’s policy. The suspension will affect vital humanitarian and development initiatives worldwide, including in India and Bangladesh.
The memo detailing this move, confirmed by the BBC, specifies that no new foreign aid funds will be disbursed until a thorough review is completed. US officials are instructed to issue “stop-work” orders for existing programs until they are re-approved.
Global Impact of the Suspension
The United States, as the largest donor of international aid, allocated $68 billion globally in 2023, funding initiatives in healthcare, education, military assistance, and humanitarian relief. With the suspension, programs aimed at addressing health crises, such as tuberculosis and malaria, could be delayed or paused.
Despite the broad halt, certain critical programs, including emergency food aid, will continue. Military assistance to Israel and Egypt remains unaffected, reflecting longstanding US foreign policy priorities. However, projects like humanitarian de-mining efforts, which assist in post-conflict regions such as Syria and Afghanistan, will face significant disruptions.
Dave Harden, former USAID director, emphasised the negative impact on countries heavily dependent on US assistance for survival, particularly in conflict zones. “Employees of implementing NGOs will continue receiving wages, but aid distribution will stop,” he said, highlighting the seriousness of the situation.
USAID Suspension: Impact on India
The US foreign aid suspension, announced on January 20, 2025, will affect several countries, including India. The suspension halts US-funded programs aimed at addressing critical issues in India. These include public health, education, and the environment. USAID has been instrumental in funding initiatives for tuberculosis, maternal and child health, and climate change.
India’s global health programs will bear a heavy impact. USAID has played a major role in supporting the Indian government’s efforts to combat tuberculosis. India has one of the highest rates of multidrug-resistant TB in the world. Programs aimed at reducing child and maternal deaths and combating diseases like HIV/AIDS will be paused.
Environmental aid is another sector severely impacted by the suspension. US-funded initiatives to help India transition to a low-emission, energy-secure economy will be halted. The Partnership to Advance Clean Energy (PACE) has been vital for India’s clean energy projects. These include efforts like “net zero” energy buildings, smart grids, and emissions reduction.
Local NGOs and implementing partners working in India will face significant disruptions. With the “stop-work” orders issued by the US State Department, many contracts and projects will be frozen until the review period concludes.
USAID Continues Support in Bangladesh
In Bangladesh, the suspension of US aid has raised alarms. The US has been the largest contributor to aid for Rohingya refugees in Bangladesh. Since the crisis began in August 2017, the US has provided nearly $2.4 billion in assistance. This includes both humanitarian aid for the refugees and support for the communities hosting them.
On January 25, 2025, USAID directed its partners in Bangladesh to suspend all work under US-funded agreements. The suspension affects both humanitarian aid and development programs. However, there is an important exception: food assistance for the Rohingya refugees will continue.
This exemption was confirmed during a meeting between the US Embassy in Dhaka and Bangladesh’s Chief Adviser. The US Embassy conveyed that food and nutrition aid for the refugees would not be interrupted. Bangladesh’s Chief Adviser, Professor Muhammad Yunus, expressed gratitude for this continued support. The assistance is crucial for addressing food insecurity among the refugees living in overcrowded camps.
US Military Financing for Israel and Egypt
Military assistance for Israel and Egypt will remain uninterrupted despite the suspension of most foreign aid programs. This exception is consistent with historical US policy, which prioritizes military aid to these countries. Emergency food assistance for regions facing hunger, such as Gaza and Sudan, is also unaffected by the suspension.
The broader freeze, however, could significantly affect humanitarian programs in other parts of the world. Countries like India, which rely heavily on US aid for health and education, may experience substantial setbacks.
Global Repercussions
The 90-day suspension of US foreign assistance has global ramifications, with the potential to delay critical health and development programs in countries worldwide. While the suspension offers a chance to reassess the effectiveness and alignment of US aid programs, it also presents a significant challenge to global health initiatives, disaster relief efforts, and conflict recovery projects.
In Bangladesh, the exemption for Rohingya food aid provides hope that some assistance will continue despite the freeze. The outcome of the 90-day review will likely shape the future of US foreign aid, with consequences for international diplomacy, humanitarian efforts, and global development.