What happened?
The United States has announced the suspension of all foreign aid (putting a hold on such aid for 90 days) and ordered a review of American financial assistance to other countries to ensure it is efficient and consistent with its foreign policy under the America First agenda. The U.S. State Department has issued a halt to nearly all existing foreign assistance and paused new aid, according to an internal memo sent to officials and US embassies abroad. It makes exceptions only for emergency food aid and military funding for Israel and Egypt.
Why it matters to India
In the backdrop of U.S. President Donald Trump signing an executive order on his first day in office that no further foreign assistance will be disbursed in a manner that is not fully aligned with foreign policy, the U.S. mission in India has reported that it started a “review” to ensure their existing grants comply with executive orders. The United States Agency for International Development (USAID) partners with India to address critical development challenges through the US government’s Feed the Future, Global Health, and Global Climate Change initiatives. The announcement is likely to impact programmes on the environment, health, and other such initiatives run by the US embassy and the USAID in India for decades.