Published by Global Banking and Finance Review
Posted on January 26, 2025
By Humeyra Pamuk, Maggie Michael and Lena Masri
WASHINGTON (Reuters) - The Trump administration urged U.S. Agency for International Development (USAID) workers to join the effort to transform how Washington allocates aid around the world in line with Trump’s “America First” policy. It threatened "disciplinary action" for any staff ignoring the administration's orders.
A sharply-worded memo sent on Saturday to more than 10,000 staff at USAID offered further guidance to Friday’s “stop-work” directive that effectively put a sweeping freeze on U.S. foreign aid worldwide. The memo, reviewed by Reuters, laid out expectations for the workforce on how to achieve Trump’s goals.
"We have a responsibility to support the President in achieving his vision," Ken Jackson, assistant to the administrator for management and resources wrote in the internal memo, titled “Message and Expectation to the Workforce.”
"The President has given us a tremendous opportunity to transform the way we approach foreign assistance for decades to come," the memo said. Reuters confirmed the authenticity of the memo with several sources.
Since taking office last week, Trump has taken steps toward fulfilling his vow to remake a federal bureaucracy he believes was hostile to him during his 2017-2021 presidency. He has reassigned or fired hundreds of federal workers in simultaneous moves against a swath of agencies.
Hours after taking office, Trump ordered a 90-day pause in foreign aid to review if it was aligned with his foreign policy priorities. On Friday, the State Department issued a stop-work order worldwide even for existing and appropriated assistance, calling into question billions of dollars of life-saving aid.
The United States is the largest single donor of aid globally. In fiscal year 2023, it disbursed $72 billion in assistance.
USAID and the White House National Security Council (NSC) did not immediately respond to a request for comment on this story.
Friday’s memo shocked the humanitarian groups and communities conducting development aid across the globe. While the scope of the directive appears far-reaching, uncertainties linger over how it will be carried out.
The memo on Saturday offered only partial clarity.
The pause on foreign aid spending means “a complete halt,” it said. The only exceptions are for emergency humanitarian food assistance and for government officials returning to their duty stations. Waivers allowing delivery of emergency food during the review period will require “detailed information and justification.”
The memo said further waivers would require two layers of approval – one from USAID leadership and another by U.S. Secretary of State Marco Rubio.
"Any waiver must be thoroughly justified to demonstrate that the specific assistance for which the waiver is sought is necessary for lifesaving purposes, cannot be performed by current U.S. direct hire staff, or would otherwise pose significant risks to national security," the memo said.
All foreign assistance programs will undergo “comprehensive review” during the pause in spending, the memo says. “It is important to emphasize that it is no longer business as usual. Every program will be thoroughly scrutinized.”
Saturday’s directive also banned any communications outside the agency, including between USAID and the State Department, unless they are approved by the former’s front office.
"Failure to abide by this directive, or any of the directives sent out earlier this week and in the coming weeks, will result in disciplinary action," it said.
Separately, USAID sent contractors a notice ordering them to “immediately issue stop-work orders” and to “amend, or suspend existing awards.”
Humanitarian organizations and other donors are scrambling to understand how the directive will impact life-saving operations in countries across the globe. It is too soon to tell whether or what specific services will have to be paused, they said.
In 2024, the U.S. provided 42% of all humanitarian aid tracked by the United Nations.
(Reporting by Humeyra Pamuk in Washington, Lena Masri in London and Maggie Michael in Cairo. Additional reporting by Jaimi Dowdell in Los Angeles and Deborah Nelson in Washington.; Editing by Janet Roberts and Don Durfee)
Explore more articles in the Headlines category
