US Pauses Foreign Aid: 90 Days to Align with National Interests
Published Date: 1/30/2025
Presidential Document
Summary
The U.S. is hitting pause on all new foreign aid for 90 days to make sure every dollar supports America’s goals and values. Government leaders will review each aid program to decide if it should keep going, change, or stop. This shake-up affects foreign countries, NGOs, and contractors, aiming to make aid smarter and more aligned with U.S. interests starting early 2025.
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Analyzed Economic Effects
3 provisions identified: 1 benefits, 2 costs, 0 mixed.
Aid Programs Subject to Review and Possible End
Agency heads must review each foreign assistance program and, within 90 days of January 20, 2025, decide to continue, modify, or cease each program with the Secretary of State's concurrence. Non‑governmental organizations, international organizations, and foreign partners that receive U.S. development assistance face the risk that some programs may be changed or permanently ended after the review.
90-Day Pause Halts New Aid Contracts
Starting January 20, 2025, the President ordered an immediate 90-day pause on new obligations and disbursements of U.S. foreign development assistance to foreign countries, implementing non‑governmental organizations, international organizations, and contractors. If you are a U.S. contractor or small business that relies on new foreign‑aid contracts or grants, new awards and payments are delayed while agencies review programs.
Secretary Can Resume or Waive Pause Early
Some paused programs may resume before the 90‑day period if a review is done and the Secretary of State, in consultation with the OMB Director, decides to continue a program in the same or modified form. The Secretary of State also may waive the 90‑day pause for specific programs, allowing early restart of new obligations and disbursements for those programs.
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