The Trump administration has halted most US foreign aid following allocations by the Biden administration, the State Department announced on Wednesday (January 29), affecting programmes such as contraceptive services in Gaza, clean energy initiatives for women in Fiji, and family planning efforts across Latin America, while also leading to job losses at USAID.

Hundreds of United States Agency for International Development (USAID) internal contractors have been put on leave or terminated amid the US freeze on global aid while investigations on misappropriated funds are ongoing.

As Washington conducts the 90-day review that Trump started hours after taking office on January 20, the furloughs coincide with Secretary of State Marco Rubio issuing an additional waiver for “life-saving humanitarian assistance” overnight.

White House Press Secretary Karoline Leavitt announced the decision to freeze USAID on Tuesday, saying the newly formed Department of Government Efficiency, headed by tech billionaire Elon Musk, identified the expenditure.

“This administration is taking into consideration how hard the American people are working…their tax dollars matter to this administration,” she added.

Leavitt called the spending “a preposterous waste of taxpayer money” and confirmed a 90-day review of all US aid. The freeze spares only emergency food programmes and military assistance to Israel and Egypt.

The State Department did not explain under which aid programs exactly the funding was provided but said that so far over $1 billion in spending “not aligned with an America First agenda has been prevented.”

Former State Department official, Andrew Miller, called it “outlandish.” He noted US foreign aid funds sexual health services but no evidence supports a US$50 million Gaza condom programme.

According to the administration, the investigation is being carried out to make sure that the tens of billions of dollars in U.S. foreign aid that is provided globally is in line with Trump’s ‘America First’ foreign policy and is not a waste of tax funds. In the

The United States is the world’s leading provider of foreign aid. In the 2023 fiscal year, it distributed US$72 billion in assistance worldwide, supporting initiatives such as women’s health in conflict areas, clean water access, HIV/AIDS treatment, energy security, and anti-corruption efforts.

According to Rubio, permitted assistance includes life-saving medicine, medical services, food, shelter, and basic supplies. However, funding will not cover programs related to abortion, family planning, gender policies, or diversity and inclusion initiatives, as outlined in a State Department memo.

The abrupt freeze has left global humanitarian organisations uncertain about whether to continue aid efforts at their own financial risk. Meanwhile, the State Department has approved national security-related waivers to protect U.S. personnel overseas and enforce non-proliferation commitments. Officials stated that necessary exceptions have been processed within hours when required.

On X, Miller wrote, “No, the Biden Administration did NOT spend $50 million on condoms for Gaza. White House either can’t read a simple spend table or it’s lying.”

Musk shared his opinion on why the Trump administration would block funds allocated to Gaza by Biden’s administration, stating:

“My guess is that a lot of that money ended up in the pockets of Hamas, not actually condoms,” Musk said. “Yes, even in the unlikely event that the money was actually spent on condoms, we should NOT be sending US taxpayer money to buy condoms for foreigners.” Musk also shared a meme on his X related to this issue and joked, “Explains why all condom orders were ‘Magnum’,”

UN Secretary-General António Guterres warned of severe humanitarian impacts. Some aid groups have already cut operations. A federal judge has temporarily blocked parts of the freeze, delaying restrictions until at least Monday, February 3.

The State Department, Public Health Institute (PHI and USAID have refrained from commenting on the matter.