In a major blow to Bangladesh, the Trump administration has announced an immediate termination or suspension of any work in Dhaka under contracts, work orders, grants, cooperative agreements, or other assistance or procurement instruments. The latest announcement was made by the United States donor agency USAID in a message on Saturday (25 January), stating the "immediate suspension". The suspension has also been felt in other areas dependent on US funding as well.
Immediately cease or suspend any work: Trump's order
The USAID, in its letter on the funding suspension, cited US President Trump's recent executive order, saying, "This letter is directing all USAID/Bangladesh implementing partners to immediately cease or suspend any work under your USAID/Bangladesh contract, work order, grant, cooperative agreement, or other assistance or acquisition instrument."
The United States is the largest provider of humanitarian aid in response to the Rohingya crisis, contributing nearly $2.4 billion since violence erupted in August 2017. Of this, nearly $2 billion has been directed towards assisting Rohingya refugees and host communities in Bangladesh, according to the USAID website.
In 2023 alone, the US allocated $490 million in obligations and disbursed an additional $550 million to support Bangladesh through various agencies. Just hours after taking office on January 20, President Trump ordered a 90-day suspension of US foreign assistance programs while reviewing their efficiency and alignment with his foreign policy. The full scope of the order was not immediately clear.
Impact of aid in Bangladesh
This decision raised concerns among various stakeholders, including US-funded NGOs in Bangladesh, about its potential impact. A cable seen by Reuters revealed that the US State Department issued a "stop-work" order on Friday, halting all ongoing foreign assistance and delaying new aid as part of Trump’s review to ensure that aid distribution matched his foreign policy goals.
The cable, prepared by the Department's foreign assistance office and approved by Secretary of State Marco Rubio, noted that waivers had been granted for military financing to Israel and Egypt, though no other countries were mentioned. This action could potentially cut off billions of dollars in critical assistance. The United States remains the world’s largest donor of foreign aid, having disbursed $72 billion in fiscal year 2023 alone.
According to the State Department cable, effective immediately, senior officials are required to "ensure that, to the maximum extent permitted by law, no new obligations shall be made for foreign assistance" until Rubio makes a decision following his review. Additionally, the cable stated that stop-work orders would be issued immediately for all existing foreign assistance awards until they are reviewed by Rubio.