Chaos and uncertainty are swirling around the Trump administration’s new order halting most foreign aid grants for three months – and introduced the possibility that organizations dependent on federal funds could soon face bankruptcy, according to a report in Politico.
By Monday, groups spanning from health providers to landmine removers were still digesting the Friday directive issued by Secretary of State Marco Rubio, with some bewildered by its scope and still struggling to make sense of it, the report added.
“This ‘stop work’ order is cruel and deadly,” Health GAP executive director Asia Russell told Politico. “It will kill people.”
The sudden freeze, which reportedly shocked State Department officials, is spurring organizations to weigh which programs to cut and whether to trim employees or even cease operations, according to the publication.
“We operate on a shoestring budget,” the head of one non-governmental organization on the receiving end of funding from the State Department and USAID told Politico, who was granted anonymity “as they feared they would lose future contracts if they spoke out publicly.”
“In 30 days, you’ll start to see a very significant cash crunch across the board and probably some bankruptcies,” the source added. “It’s an absolute dumpster fire and no one has any idea what’s going on.”
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The order also includes foreign military financing programs to countries including Ukraine, Jordan and Taiwan, though the scope of the effect remains uncertain. Aid groups said they couldn’t recall a similar situation involving a sudden halt to funding in the past.
“As they seek waivers, aid groups are scrambling to adjust — from seeking non-federal funds to help refugees arriving in the U.S. to halting efforts at HIV clinics in Africa,” the report said. “Many federal workers, from the Pentagon to the U.S. Agency for International Development, are confused by the wording of the order, such as what exactly could qualify for an exemption.”
President Donald Trump swiftly halted foreign aid for 90 days just after sweeping back into the presidency. But the move has also kicked off a legal battle as some top aid organizations argue the blanket half violates existing regulations and government contracts.
“I’m not sure anyone knows all the details right now and key folks are almost certainly trying to unpack the actions and implications,” a former senior Pentagon official told Politico, added that the United States “is the world’s No. 1 provider of humanitarian aid.”