"A humanitarian official told CNN that organizations are concerned about foreign powers like China and Russia using the US aid freeze to increase their own soft power overseas. And there are concerns that non-state actors, like terrorist groups and child soldier recruiters, could gain influence in areas where US funding currently supports refugee camps, the official highlighted."

The US Agency of International Development (USAID) has issued 'stop-work orders' impacting multiple sectors following a directive from Secretary of State Marco Rubio to pause most US foreign aid.

J. David Ake/Getty Images/File

US foreign aid freeze is upending global aid and the work of contractors

By Lauren Kent, CNN

The extent of the impacts of the Trump administration’s sudden 90-day freeze of almost all foreign aid is still unclear almost a week on, as officials and aid workers overseas try to make sense of which activities must be suspended.

The suspension of foreign aid was outlined in a diplomatic cable from Secretary of State Marco Rubio last Friday.

In addition to widespread confusion around ongoing aid projects, the suspension means some aid contractors are not being paid for contracts and work that they have already completed, one aid industry source told CNN, speaking anonymously for fear of retribution.

Contractors working with USAID – many of them US-based companies and small businesses – often front the money for aid work, then submit invoices and get reimbursed later.

Now, some are not being paid for millions of dollars’ worth of services already rendered, the aid industry source said. That means there will be significant furloughs of staff at many aid contractors and subcontractors...  READ MORE  https://www.cnn.com/2025/01/30/world/us-foreign-aid-freeze-intl-latam/index.html