US suspends all aids to Bangladesh as part of President Trump's policy review
The suspension follows Trump’s 90-day pause on US foreign aid, announced after taking office on January 20
US President Donald Trump (left) and leader of Bangladesh interim government Muhammad Yunus.
Guwahati, Jan 26: The United States Agency for International Development (USAID) has abruptly suspended all ongoing projects in Bangladesh, citing a recent executive order by President Donald Trump.
The announcement was made in a letter issued on January 25, directing implementing partners to halt all contracts, grants, and assistance programs immediately.
“This letter is directing all USAID/Bangladesh implementing partners to immediately cease or suspend any work under your USAID/Bangladesh contract, work order, grant, cooperative agreement, or other assistance or acquisition instrument,” the letter read.
The suspension comes as part of a broader 90-day pause in US foreign development assistance ordered by Trump shortly after taking office on January 20. The review aims to assess efficiencies and align aid programs with his administration’s foreign policy objectives.
The decision has sparked concerns among project stakeholders, including US-funded NGOs operating in Bangladesh, given the substantial implications for ongoing initiatives.
USAID is a critical partner in Bangladesh’s development, overseeing programmes addressing issues such as poverty alleviation, education, and the Rohingya refugee crisis.
The US is the largest single donor of international aid, having disbursed $72 billion in the fiscal year 2023. Since August 2017, the United States has provided over $2.1 billion in humanitarian aid for the Rohingya crisis, with $250 million allocated to Bangladesh alone.
The sudden suspension has left many stakeholders uncertain about the future of critical projects. USAID's support has been instrumental in Bangladesh’s progress toward achieving its goal of becoming an upper-middle-income country by 2031.
Interestingly, the suspension also follows a recent meeting between Indian External Affairs Minister S. Jaishankar and US Secretary of State Marco Rubio on January 22, during which Bangladesh was briefly discussed.
When asked about the meeting, Jaishankar told the press, “Yes, we had a brief discussion on Bangladesh. I don’t think it’s appropriate that I get into more details.”