The U.S. State Department announced on January 24 a freeze on new funding for nearly all American international aid programs as part of President Donald Trump’s initiative to align these programs with his foreign policy objectives, reports RFE.
These programs are primarily implemented through the United States Agency for International Development (USAID), which has played a significant role in global development, including investing over $1 billion in Kosovo since 1999. Recent USAID efforts in Kosovo have included projects to support legislative reforms, combat corruption, and promote renewable energy.
Key Developments:
- Executive Order Signed: On January 20, Trump signed an executive order halting further U.S. international aid that does not fully align with his administration’s foreign policy.
- Evaluation Period: A 90-day suspension was ordered to review the effectiveness and alignment of current aid programs.
- Rubio’s Directive: Secretary of State Marco Rubio issued a memorandum to U.S. embassies detailing the suspension and its scope, affecting foreign aid to NGOs, international organizations, and contractors.
- Excluded Programs: Emergency food aid and military assistance to Israel and Egypt are exempt from the freeze.
Impact on Kosovo:
USAID’s contributions to Kosovo include:
- A $34.5 million grant signed in 2024 to strengthen institutions.
- Support for economic development, judicial independence, and good governance.
- Investment in Kosovo’s wood processing sector, which saw exports rise from €2.5 million in 2014 to over €150 million in 2024, driven by USAID funding.
Local beneficiaries, such as Kreshnik Shehu, a wood processor from Drenas, emphasize the crucial role of U.S. aid in advancing Kosovo’s economy. Shehu notes that without this support, the sector would lag significantly behind.
Criticism and Response:
Democratic lawmakers, including Representative Gregory Meeks, criticized the decision, arguing that U.S. international aid fosters global stability and aligns with American strategic interests. They warn that suspending aid programs risks undermining U.S. credibility and leadership, leaving space for adversaries like China and Russia to expand their influence.
While the executive order does not explicitly address U.S. military assistance to Ukraine, concerns linger about the potential impact on authorized but unspent funds for future weapons deliveries.
Global Implications:
The suspension of U.S. aid, the largest in the world, could reverberate globally, particularly in conflict zones and developing nations reliant on American support. Democrats have pledged to scrutinize the decision, asserting that such cuts harm U.S. interests and diminish its role on the international stage.
The decision reflects Trump’s broader policy shift, prioritizing America’s immediate interests over long-standing international commitments. The outcome of the 90-day review will determine the future direction of U.S. foreign aid.
