US puts a halt on almost all foreign aid, except for Israel and Egypt

Secretary of State Marco Rubio has issued an order suspending almost all US foreign aid, making a significant exception for military assistance to Israel and Egypt, according to an internal State Department memo distributed to staff. The decision marks a major shift in US foreign policy, with far-reaching implications for nations relying on American support, from development aid to military assistance.

The memo, obtained , states that “no new funds shall be obligated for new awards or extensions of existing awards until each proposed new award or extension has been reviewed and approved … as consistent with President Trump’s agenda.” The halt appears to be a part of a broader review of US foreign aid aimed at aligning it with the Trump administration’s foreign policy goals.

How this will affect aid programmes globally
Rubio’s directive is expected to affect a wide range of programs, including potentially halting military aid to Ukraine, which had received billions of dollars in US weapons to combat Russian aggression under Trump’s predecessor, Joe Biden. However, the memo makes clear that military assistance to Israel and Egypt will not be affected by the freeze.

Israel, a major US ally in the Middle East, has long benefited from generous American arms packages, which have only expanded since the recent conflict with Hamas in Gaza. Egypt has similarly received substantial defence funding from the US since signing a peace treaty with Israel in 1979.

Trump’s 90-Day pause on foreign aid
Just hours after being sworn in on Monday, President Donald Trump ordered a 90-day pause in foreign development assistance, pending a review of its effectiveness and consistency with his foreign policy goals. The scope of this freeze was initially unclear, but Rubio’s memo has since provided more detail, revealing that the freeze applies broadly to all types of foreign aid.

Some experts and sources familiar with discussions in Congress have raised concerns about the legality of Trump’s order, arguing that Congress ultimately controls the federal budget, including foreign aid. “Freezing these international investments will lead our international partners to seek other funding sources—likely U.S. competitors and adversaries—to fill this gap and diminish U.S. influence,” said one source, who spoke on condition of anonymity.

“Manufactured chaos” in US aid programmes

In the memo, the State Department instructed senior officials to ensure that, “to the maximum extent permitted by law, no new obligations shall be made for foreign assistance” until Rubio has reviewed each case. For existing aid programs, immediate stop-work orders are being issued pending further review.

Critics within the US Agency for International Development (USAID) described the sudden freeze as “manufactured chaos.” One former senior USAID official, speaking on condition of anonymity, said the decision would force organizations to halt all activities, including critical health and education services. “All lifesaving health services, HIV/AIDS treatment, maternal and child health, agriculture work, and civil society support will be frozen,” the official warned.

The ripple effects of the freeze are already being felt in Ukraine, where aid officers have been instructed to stop work on projects ranging from emergency maternal care to childhood vaccinations. A USAID official confirmed that decisions on whether to modify or terminate programs will be made by Rubio after a review period of 85 days.

What do the waivers for Israel and Egypt mean

Despite the sweeping nature of the aid freeze, the memo notes that Rubio has issued waivers for some forms of assistance, including emergency food aid and military funding for Israel and Egypt. Both countries have long been major recipients of US foreign military financing, with Israel receiving around $3.3 billion annually and Egypt about $1.3 billion.

The freeze comes at a delicate time, as humanitarian aid is urgently needed in the Gaza Strip, where a ceasefire between Israel and Hamas militants has been in place since Sunday. Other crises, such as ongoing hunger emergencies in Sudan, could also be affected by the aid stoppage.

The freeze could also disrupt US military assistance to other nations, many of which rely on US funding for defence and security operations. Countries identified for foreign military financing in 2025 include Ukraine, Georgia, Estonia, Latvia, Lithuania, Taiwan, and several others in Asia, Latin America, and Africa, according to a request from the Biden administration to Congress.

The Biden request had also sought to support the Lebanese Armed Forces in countering instability and curbing Iranian influence. Lebanon is currently trying to deploy forces in its southern region, as Israeli troops withdraw under a ceasefire agreement that also calls for the removal of Iran-backed Hezbollah fighters.

For now, Rubio’s review process will determine the future of many US foreign aid programs, leaving the fate of international partners in limbo.