USAID has announced the immediate suspension of new funding obligations and the renewal of existing agreements as part of a re-evaluation process outlined in President Trump’s Executive Order on Re-evaluating and Realigning United States Foreign Aid. The move, confirmed in a January 24, 2025 memo from USAID’s Senior Procurement Executive, Jami J. Rodgers, marks a significant shift in the administration’s foreign assistance strategy.
“In accordance with the President’s Executive Order, USAID is pausing all new obligations of funding and sub-obligations under Development Objective Agreements, pending a comprehensive review of foreign assistance programs,” the notice stated. The freeze applies to all program accounts except operating expenses and the Capital Investment Fund Account.
USAID officers have been directed to issue stop-work orders and suspend awards where necessary. They are also prohibited from releasing new Requests for Proposals (RFPs) or Applications (RFAs) until activities are reviewed and approved as consistent with the Executive Order. “Contracting and Agreement Officers must immediately issue stop-work orders, amend, or suspend existing awards,” the notice emphasized.
Despite the sweeping pause, exceptions have been granted for specific critical activities, including emergency food assistance and salaries. The memo detailed waivers for “legitimate expenses incurred prior to January 24, 2025, under existing awards” and those “associated with stop-work orders or pause-related amendments.”
The Department of State’s Policy Planning Staff has been tasked with developing new review standards within 30 days, with the re-evaluation process set to conclude within 85 days. According to the memo, the goal is to align all foreign aid programs with the administration’s policy agenda.
This development signals a recalibration of U.S. foreign assistance priorities, with implications for contractors and global aid recipients. USAID stated that questions should be directed to the relevant Contracting Officers for further clarification.
