US Mission in India initiates aid review following Trump's executive order
Following an executive order signed by US President Donald Trump on his first day in office, the US mission in India has begun reviewing its foreign aid programs. The order mandates that all foreign assistance must align fully with US foreign policy objectives.
This review is expected to impact longstanding programs in areas such as environmental conservation, public health, and other initiatives managed by the US Embassy and the United States Agency for International Development (USAID) in India.
According to a report published in the Financial Times on Saturday, US Secretary of State Marco Rubio directed an immediate suspension of nearly all ongoing foreign aid programs, pending a comprehensive review. The report, citing an internal communication, revealed that Rubio ordered, 'All new foreign aid disbursements to be halted, and contracting and grant officers to issue stop-work orders until the review process is completed.'
When asked about the potential effects on aid activities in India, a US Embassy spokesperson confirmed, 'We are conducting a review to ensure that all existing grants comply with the executive orders.'
The Financial Times report further elaborated that the directive was communicated via a cable sent to the State Department and USAID on Friday, emphasizing the need for compliance with the newly issued order before any further disbursements or activities resume.
The review period is expected to last as long as 85 days, leaving the fate of hundreds of US foreign aid contracts, which were worth more than 70b US dollar in the 2022 fiscal year, potentially in limbo for as long as three months.
This development raises concerns about the future of US-funded programs in India, which have historically contributed to significant progress in health, environmental sustainability, and development initiatives.
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