Update on US Foreign Assistance Review and Terminations 

The Issues

Update on US Foreign Assistance Review and Terminations

The ONE Campaign has compiled an update regarding US foreign assistance terminations and the review process to help you track recent developments. Last updated March 3, 2025.

What prompted the pause and review of foreign assistance?

A January 20th Executive Order (EO) announced a 90-day pause and review of U.S. foreign assistance for programmatic efficiency and consistency with U.S. foreign policy. According to the EO, “department and agency heads” were directed to review programs “under guidelines provided by the Secretary of State, in consultation with the Director of OMB,” leading to determinations by April 20 “on whether to continue, modify, or cease” each program. On January 24, in response to the EO, the State Department paused all new funding obligations with limited exceptions for lifesaving assistance.

What were the guidelines and processes guiding the review?

Both in internal communications and in discussions with partners and implementers, State Department officials described a review process involving the development of effectiveness metrics, the collection of program data from implementers, and then a review resulting in the submission of final recommendations to the President by the April 20th EO deadline.

On February 26th, the Office of Management and Budget (OMB) sent all federal departments and agencies a Budget Data Request outlining the process for collecting and submitting program data (starting on March 3rd), including a numerically-scored 36-item questionnaire for implementers, to assess program continuity with administration priorities. OMB set a March 17 deadline for the submission of program data, so that responsible department and agency heads (in consultation with the OMB Director and with the concurrence of the Secretary of State) are able to present recommendations to the President by April 20.

What is the current status of the review?

On February 26th, only 37 days into the 90-day review period, and absent the promised data-gathering or consultations, Peter Marocco, the State Department Director of the Bureau of Foreign Assistance (and acting Deputy Administrator for USAID) unexpectedly announced the conclusion of the review process. This resulted in the immediate termination of more than two-thirds of USAID and State Department assistance awards (5,800 of 6,300 USAID awards were terminated, as were 4,100 of 6,800 State awards). Alarmingly, many of the terminations were for activities that the administration had previously identified (and supposedly exempted) as critical lifesaving assistance. The rationale given in most of the termination letters was that “continuing this program is not in the national interest.”

Hasn’t lifesaving assistance been exempted from the pause?

Although Secretary Rubio issued an Emergency Humanitarian Waiver on January 28 to allow the continuation of lifesaving humanitarian assistance, those activities have not been turned back on, and many were terminated on February 26. On February 28, the now-furloughed acting head of USAID’s Global Health Bureau (GH) filed a memo asserting that the bureau had been wholly prevented from resuming lifesaving activities under the waiver by: contradictory and shifting guidance on required approval; failure of Agency leadership to process funding disbursements for approved activities; and severe staffing disruptions. That memo stated that no GH activities and awards identified as lifesaving had been resumed, and that “all or nearly all” were terminated on or before February 27. Another memo attempted to quantify the health and national security impacts of the pause.

Do the terminations impact the lawsuit currently playing out in court?

A DC District Court had granted a temporary restraining order (TRO) enjoining the administration from enforcing a blanket suspension of appropriated foreign assistance funds. The failure of the administration to restart payments or show any substantial compliance led the court to order the administration to pay implementers for work completed prior to the TRO by midnight on February 26th. The administration has appealed, and the Supreme Court has temporarily paused the district court’s payment order to allow the parties to file briefs on whether it should be vacated or allowed to stand.

It is possible that the review process and subsequent terminations were accelerated to avoid contempt findings and a court order to restart payments, by showing that there was no blanket suspension of foreign assistance funding.

What do we know about programs that have been terminated?

Here is a list of news stories to help you track impact stories regarding the mass termination of USAID and State Department contracts.

Global Health

Humanitarian Crises

National Security

Can implementers appeal terminations and have any terminations been reversed?

There have been a limited number of instances where implementers have received informal notification that their recent terminations were made in error. Organizations have received guidance that they are to reach out to a generic State Department foreign assistance review email with questions or requests for clarification.