• Order halts funding to all USAID projects; staff of several US-funded initiatives issued stop-work orders
• Diplomat hopes assistance will resume after review

WASHINGTON: The Trump White House has ordered a pause of all federal grants and loans, as well as any money intended “for foreign aid” and for “non-governmental organisations”, a move with wide-ranging consequences that is also affecting ongoing projects in Pakistan.

In a memo on Monday, the Office of Management and Budget (OMB) said the money would be put on hold while the new administration reviews grants and loans to ensure they are aligned with the Republican president’s priorities.

As part of the foreign aid suspension, the administration began moving to stop the supply of lifesaving drugs for HIV, malaria and tuberculosis, as well as medical supplies for newborn babies, in countries supported by the US Agency for International Development (USAID) — considered the world’s single largest aid donor.

In addition, the Trump administration has put on leave about 60 senior career USAID officials and threatened “disciplinary action” for any staff ignoring its orders.

Those being put on leave comprised career staff in the leadership positions of almost all USAID bureaus based in Washington, with roles ranging from energy security to water security, children’s education and digital technology.

An internal memo sent to USAID employees on Monday evening said the new leadership identified several actions in the agency that “appeared to be designed to circumvent the President’s Executive Orders and the mandate from the American people.”

A second memo made it clear to USAID staff that the pause on foreign aid spending meant a complete halt. The only exceptions are for emergency humanitarian food assistance and for officials returning to their duty stations.

“It’s not Pakistan-specific. It’s an executive order affecting all nations, except Egypt and Israel,” a senior Pakistani diplomat told Dawn, adding that a suspension order implied that the assistance could resume after a review.

However, people employed in USAID-funded projects in Islamabad also confirmed the receipt of stop-work orders, some of which have resulted in furloughs and terminations.

“My new award from the State Department to help Pakistan grapple with air pollution and climate change is no more, thanks to this new administration,” scholar Dr Gabriel Filippelli lamented in a tweet following the suspension order.

Stop-work orders

Hours after taking office, Trump had ordered a 90-day pause in foreign aid to review if it was aligned with his foreign policy priorities. Last week, the State Department issued a stop-work order worldwide even for existing assistance.

While military financing waivers have been granted to Israel and Egypt, no such exceptions were made for Pakistan.

In fiscal year 2023, the US disbursed $72 billion in assistance and provided 42pc of all humanitarian aid tracked by the UN in 2024. This included $231 million to Pakistan, $440 million to Bangladesh, $1 billion to Afghanistan, and $175 million to India.

While statistics for 2024 are not yet available, USAID and other agencies were funding numerous projects in Pakistan.

The suspension impacts five energy projects, four economic growth initiatives, five agricultural programs, and several others in education and health in Pakistan.

Additionally, funds for democracy, human rights, and governance have been put on hold pending a review.

One of the affected projects had received $16 million for early recovery, risk reduction, and resilience (ER4) activities, focusing on strengthening vulnerable populations’ resilience to disasters induced by natural hazards.

The suspension could also have a devastating impact on Afghanistan. The head of the World Food Programme (WFP) in Afghanistan told reporters earlier this week that the agency could only feed half of the millions of Afghans in need after cuts in international aid and the impending freeze in US foreign funding.

Published in Dawn, January 29th, 2025