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Trump Administration Halts Foreign Aid, Exempts Israel and Egypt Amid Sweeping “America First” Policy

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In a bold move signaling a significant shift in U.S. foreign policy, the newly inaugurated Donald Trump administration has issued a sweeping freeze on all foreign aid, including billions of dollars in military and development assistance, with the notable exceptions of Israel and Egypt. According to reports from AFP, emergency food and military funding to the two nations will continue uninterrupted.

An internal memo from Secretary of State Marco Rubio revealed that all new and extended aid agreements will require thorough reviews and explicit approval. Rubio emphasized the need for a comprehensive assessment to ensure that existing foreign aid commitments are not redundant, are effective, and align with President Trump’s “America First” agenda. The memo also initiated an internal review of all foreign assistance programs, set to be completed within 85 days.

Ukraine and Global Aid Programs Affected

The freeze extends to military aid for Ukraine, which previously received billions in weapons under the Biden administration to counter Russian aggression. The directive also halts funding for the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR), a globally recognized initiative launched in 2003 under George W. Bush. PEPFAR has been credited with saving an estimated 26 million lives by providing anti-retroviral treatments, primarily in Africa.

This pause in funding is expected to last several months, sparking concern among global health advocates and development agencies. PEPFAR, which has historically enjoyed bipartisan support, now faces an uncertain future.

Exceptions for Israel and Egypt

While most nations face funding cuts, the memo explicitly exempts military aid to Israel, a country that has seen its defense packages grow significantly in recent years, especially following the Gaza conflict. Egypt also remains unaffected, continuing to receive substantial U.S. defense funding in recognition of its peace treaty with Israel, signed in 1979.

The memo further allows for limited exceptions on a case-by-case basis and provides for temporary funding of staff salaries and administrative expenses to maintain minimal operational capacity.

Emergency Food Assistance Still Funded

Despite the broad freeze, the U.S. will continue contributing to emergency food assistance in crisis zones, including regions like Sudan and Syria, where humanitarian needs remain critical.

A Global Shift in Foreign Aid Leadership?

The United States has long been the largest donor of foreign aid in dollar terms, providing over $64 billion in overseas development assistance in 2023, according to the Organization for Economic Cooperation and Development (OECD). However, the Trump administration’s policy shift raises questions about America’s role in global development and its impact on international alliances.

Critics argue that the freeze could erode U.S. influence abroad and harm vulnerable populations reliant on American assistance. Proponents, however, view the measure as a necessary step to ensure U.S. resources are used strategically and in line with national interests.

As the administration undertakes its review, the world watches closely to see how this “America First” approach will reshape U.S. foreign aid priorities—and the global balance of power.

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