US Freezes Foreign Aid Except for Israel and Egypt Under 'America First' Policy
The newly sworn-in Donald Trump administration has reportedly ordered a sweeping freeze on foreign aid, sparing only Israel and Egypt, according to an AFP report. The decision aligns with President Trump’s “America First” policy, which aims to limit overseas assistance and prioritize domestic interests.
An internal memo from Secretary of State Marco Rubio revealed that no new funds would be obligated for new or extended awards unless reviewed and approved by the administration. This freeze impacts various forms of foreign aid, including military funding and development assistance, except for critical support to Israel and Egypt.
The exemptions for Israel and Egypt reflect their strategic importance to the United States. Israel, a longstanding ally, continues to receive substantial military assistance, which has increased following the Gaza conflict. Similarly, Egypt, a key defense partner since signing its 1979 peace treaty with Israel, remains a recipient of significant US defense funding.
The freeze also affects US contributions to the President’s Emergency Plan for AIDS Relief (PEPFAR), a global initiative launched in 2003 to combat HIV/AIDS. PEPFAR, which has reportedly saved 26 million lives, has enjoyed bipartisan support in the US. However, the freeze means a temporary halt in funding for anti-retroviral drugs in developing countries, particularly in Africa.
Ukraine, which previously received billions in US military aid to counter the Russian invasion, is among the countries impacted by the freeze. The order pauses funding for its defense, reflecting a major shift in US foreign aid priorities.
Despite the freeze, emergency food assistance funding will continue for global crises, including those in Sudan and Syria. The memo also permits case-by-case exceptions and temporary funding for administrative expenses.
The Trump administration plans to conduct an internal review of all foreign assistance programs within 85 days to ensure they are effective, non-duplicative, and consistent with US foreign policy goals. Rubio’s memo highlighted the need to reassess existing commitments to align with the administration’s priorities.
The United States remains the world’s largest donor in dollar terms, providing over $64 billion in overseas development aid in 2023, according to the Organization for Economic Cooperation and Development (OECD). However, the freeze marks a significant shift in US foreign aid policy under the Trump administration.
