US reevaluates foreign aid strategy with a focus on alignment with national interests

Geopolitics
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Alexander Titolo Deputy Chief of Mission | U.S. Embassy in Serbia

The President of the United States has issued an executive order to reassess and realign the country's foreign aid strategy. This move reflects concerns that current foreign aid practices may not align with American interests and could potentially destabilize global peace by promoting conflicting ideas in other nations.

The policy outlined in the order emphasizes that future U.S. foreign assistance must be fully aligned with the President's foreign policy. To facilitate this, a 90-day pause on new obligations and disbursements of development assistance funds has been mandated. This pause is intended for reviewing programmatic efficiencies and ensuring consistency with U.S. foreign policy objectives.

Department and agency heads responsible for foreign development assistance programs are required to halt any new financial commitments during this period. The Office of Management and Budget (OMB) will enforce this pause through its apportionment authority.

Each program will undergo a review process led by department and agency heads under guidelines provided by the Secretary of State, in consultation with the Director of OMB. Based on these reviews, decisions will be made within 90 days on whether to continue, modify, or terminate each program, subject to approval from the Secretary of State.

Funding for paused programs may resume before the end of the 90-day period if reviews are completed early and approval is granted by the Secretary of State or their designee, alongside consultation with the Director of OMB. Any new foreign assistance initiatives will also require similar approvals.

The Secretary of State holds authority to waive this pause for specific programs if deemed necessary.

This executive order clarifies that it does not alter existing legal authorities or affect budgetary functions managed by OMB. Implementation will adhere to applicable laws and available appropriations, without creating enforceable rights against the United States government or its entities.

Issued from The White House on January 20, 2025, this directive marks a significant shift in how U.S. foreign aid will be managed moving forward.