U.S. Secretary of State Marco Rubio Halts Most Foreign Aid Grants

U.S. Secretary of State Marco Rubio on Friday issued a directive suspending most existing foreign aid grants for 90 days, a move that stunned State Department officials and appeared to target funding for military aid to Ukraine, according to a report by Politico.

The guidance, circulated to U.S. diplomatic and consular missions, instructed department personnel to issue “stop-work orders” on nearly all “existing foreign aid awards,” according to a document obtained by Politico. The directive, effective immediately, reportedly goes further than a recent executive order by President Donald Trump, which required a review of foreign aid grants by the secretary but left unclear whether already allocated funds or assistance to Ukraine would be impacted.

According to three current and two former officials familiar with the matter, the new instructions effectively halt further actions on distributing funding for U.S. government-approved aid programs.

“The department has just gone nuclear on foreign aid,” said one State Department official, expressing shock at the broad mandate.

The directive allows for some exceptions, including continued foreign military financing for Egypt and Israel, emergency food assistance, and “legitimate expenditures incurred prior to this guidance under existing awards.” The document also emphasizes that decisions must “comply with the terms of the relevant award.”

Nevertheless, officials said the pause is likely to disrupt aid to key allies, including Ukraine, Jordan, and Taiwan. Several sources, granted anonymity to discuss internal government deliberations, suggested the pause could expose the U.S. government to potential civil liabilities due to breaches of unfulfilled contracts.

Azerbaijan’s Reaction Raises Questions

The directive comes amid broader geopolitical shifts, including Azerbaijan’s recent decision to end support for USAID programs. Azerbaijani authorities had accused the agency of anti-government activities, announcing the formal closure of USAID operations in the country on July 1, 2024, after 33 years of activity.

Azerbaijani Foreign Minister JeyhunBayramov revealed the decision at a press conference on January 16, describing it as the culmination of years of strained ties. “It is time to end USAID operations in Azerbaijan,” Bayramov stated, accusing the U.S. of prioritizing its own interests and imposing conditions on Azerbaijan.

Observers suspect Baku may have had prior knowledge of Washington’s policy shift and framed its decision as an independent move. While Azerbaijan remains critical of foreign support for independent voices, it continues to accept Western grants that align with government policies.