The second Trump presidency has started with a huge bang, introducing radical change right across the federal government.
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Late last week, the US. Department of State dropped a bombshell that’s thrown the international development sector into disarray.
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To all intents and purposes, USAID is closed for business for the next three months.
On Friday, the State Department issued a memo that not only put a pause on all new foreign aid spending but also included a stop-work order for existing grants and contracts.
“Effective immediately, Assistant Secretaries and Senior Bureau Officials shall ensure that, to the maximum extent permitted by law, until such time as the Secretary shall determine, following a review,” reads the memo, which was sent by recent Trump appointee Peter Marocco and seen by Devex.
“For existing foreign assistance awards, contracting officers and grant officers shall , consistent with the terms of the relevant award, until such time as the Secretary shall determine, following a review.”
It’s a follow-up to the executive order signed by President Donald Trump on his first day in office, which put a 90-day pause on USAID funding.
The pause included a few exceptions, notably emergency food aid, but not the life-saving drugs the agency provides for conditions such as malaria and HIV.
It’s safe to say that leaders in the aid sector are furious. Some are biting their tongue, aware that they have to continue to do business with USAID and the Trump administration, but many have gone public to criticize. Meanwhile, senior lawmakers have demanded an end to the freeze.
For those who make a living providing services funded by USAID, this throws up huge questions — not least how to get through the next three months, and what the impact will be on vulnerable individuals who rely on USAID support. As this email goes out, my Editor-in-Chief Raj Kumar will be speaking live with aid leaders about exactly these questions. A recording will be available to our Pro members.
Exclusive — State Department issues stop-work order on US aid
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Meanwhile, there are major shifts in U.K. aid as well. This week, my colleague Rob Merrick will be meeting with experts to look at how the country’s aid has fared after six months of the new Labour government and what we can expect in the coming year. Our Pro members can book their spot here.
We publish tenders, grants, and other funding announcements on our Funding Platform. Here are some of the ones that have been viewed the most in the past 10 days.
The has approved a $170 million loan to improve the business climate and diversify sources of green growth in Egypt.
The is seeking a consulting firm to support project implementation activities in Nepal.
The intends to award up to €190,000 ($200,000) to strengthen the resilience of health systems in Burkina Faso.
The and the have announced €40 million ($42 million) of funding to upgrade water management systems in Azerbaijan.
The will provide $100 million for better drinking water access and conservation in Mali.
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In response to the funding freeze, USAID has issued a flurry of memos to staff, outlining everything that’s happening. My colleague Sara Jerving has seen all of them and she’s outlined what’s likely to happen next.
Senior leaders within USAID are scrambling to set up review protocols and gather the information that the Trump administration wants on grants and contracts. Meanwhile, , just as they are across the rest of the government.
Scoop — USAID tells staffers ‘every program will be thoroughly scrutinized’
Scoop — USAID issues staff guidance on DEIA, foreign aid pause orders
Trump also reinstated the Mexico City Policy, or “global gag rule,” which blocks U.S. health aid going to organizations that provide abortion-related services — even if they fund those services with non-U.S. money — and suspended funding to the World Health Organization, which has responded with emergency measures to tackle its funding crisis.
Trump reinstates Mexico City Policy, blocking US aid for abortion
In all the chaos, it’s easy to forget that last week saw the World Economic Forum in Davos — usually one of the key events of the development calendar. My colleague Elissa Miolene was present and chronicled all the discussions and debates.
She encountered optimism over long-time trouble spots in Syria and the Democratic Republic of Congo, pessimism over Gaza, and a huge buzz around the .
As one leader enters, another leaves. Justin Trudeau, premier of Canada for the best part of a decade, oversaw significant changes in his country’s aid policies, with contributions rising . The country focused the most on Syria and Iraq and spent more funding on health than it did any other sector.
How did Canadian aid change under Justin Trudeau? (Pro)
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