President Donald Trump renews vow to end free foreign aid, touts shift in global trade and defense strategies.
Ending Free Foreign Aid
Under Executive Order 14169, signed on January 20, 2025, Trump paused all U.S. foreign development aid for 90 days to “reevaluate and realign” spending. Exceptions were made for humanitarian and military assistance to allies like Egypt and Israel Anadolu Ajansı+15Wikipedia+15Arab News+15.
The result: USAID has been effectively dismantled—over 90% of its aid contracts canceled, 94% of staff laid off, and the agency absorbed into the State Department Wikipedia.
Trump insists this move saves taxpayer money and redirects U.S. global engagement from “charity” to trade and self-reliance, though critics warn it creates a “power vacuum” benefiting China and undermining global health and stability CNN.
Massive Cuts to the State Department & Foreign Aid
Trump’s FY 2026 budget proposal slashes the State Department budget in half and cuts nearly 75% of foreign aid—including closing dozens of embassies and missions Reuters.
He’s now teamed with Senate Republicans to pass a supplemental rescission package totaling $9.4 billion in cuts, with $8.3 billion from foreign aid and $1.1 billion from public broadcasting. A Senate vote is looming Reuters.
Pivot to Trade & Defense
Trump’s new foreign policy emphasizes trade over aid:
On July 9, he hosted leaders from Gabon, Liberia, Mauritania, Senegal, and Guinea‑Bissau—promising partnerships via trade and investment rather than charity Arab News+3AP News+3Reuters+3.
He also signaled a broader transactional US‑Africa push, aimed at countering Chinese influence, including with infrastructure and mining investment AP News+14Reuters+14Arab News+14.
On the defense front, Trump proposes shifting budget priorities:
His administration is reviewing defense spending to reallocate toward border security and strategic systems, including a proposed U.S. “Iron Dome,” while reducing embassy security missions AP News+6Anadolu Ajansı+6Reddit+6.
The Bigger Picture: America‑First Strategy
Policy Shift Detail
Foreign Aid Cuts USAID frozen/dismantled; global health at risk
Budget Reductions State Department & aid slashed; government rescission bill advanced
Trade Pivot Africa and developing nations targeted for trade deals instead of aid
Defense Rebalance Emphasis on homeland defense, border security and deterrence systems
Overall, Trump is delivering on his “America First” agenda—reducing traditional diplomacy and aid, redirecting funds toward trade and security, and recalibrating U.S. global engagement. Critics fear the cuts will dent U.S. influence abroad, while allies and competitors like China and the EU may fill the void.