The U.S. State Department has ordered a halt to all existing foreign assistance and paused new aid, as detailed in an internal memo sent to officials and U.S. embassies worldwide. This memo follows President Trump's executive order issued on January 20, 2025, which mandates a 90-day pause in foreign development assistance for a review of efficiencies and alignment with his foreign policy. Exceptions are only made for emergency food aid and military funding for Israel and Egypt. The BBC has confirmed the memo's contents.

"No new funds shall be obligated for new awards or extensions of existing awards until each proposed new award or extension has been reviewed and approved," states the memo.

The halt in U.S. assistance is likely to have significant impacts on Bangladesh, including:

Disruption of Ongoing Projects: Many projects funded by the U.S., including those in sustainable agriculture, climate change adaptation, and public health, may face disruptions or complete halts.

1. Economic Impact: The suspension of aid could negatively affect Bangladesh's economy, particularly in sectors that rely heavily on U.S. funding.

2. Humanitarian Concerns: Programs supporting Rohingya refugees and host communities might be severely impacted, leading to increased humanitarian challenges.

3. Uncertainty and Instability: The sudden pause creates uncertainty for future projects and may lead to instability in sectors dependent on U.S. aid.

4. Strained Bilateral Relations: This move could strain diplomatic and strategic ties between the U.S. and Bangladesh.

According to USAID, its program in Bangladesh is the largest in Asia, encompassing essential food security and health programs, as well as initiatives in democracy, good governance, basic education, and environmental issues. The U.S. oversees a substantial humanitarian assistance program in Bangladesh to address the Rohingya crisis, having provided over $250 million since August 2017. The total assistance for Rohingya and local communities in Bangladesh amounts to $2.1 billion.

In 2023, the U.S. provided $490 million in assistance to Bangladesh, with a similar amount expected for 2024. Assistance is provided through various U.S. departments, including State, Agriculture, Justice, Energy, and the Federal Trade Commission.

AKM Jasim Uddin, director of the Association of Development Agencies Bangladesh (ADAB), told The Kaler Kantho, "Various U.S. agencies, including USAID, are large donor organizations. We need to understand more about which areas President Trump's decision to stop cooperation will apply."

Bangladesh is closely monitoring President Trump's policies and their implementation. There are concerns about the U.S. withdrawing from the World Health Organization (WHO), which may weaken the organization and impact Bangladesh and the global community.

Over the past 50 years, the U.S. has invested over $8 billion in Bangladesh's development. Key areas of U.S. assistance include:

1. Sustainable Agriculture and Food Security: Modernizing small-scale farming and increasing food security.

2. Climate Change Adaptation: Helping Bangladesh adapt to climate change and conserve biodiversity.

3. Public Health and Education: Improving public health systems and education infrastructure.

4. Disaster Preparedness and Response: Assisting in disaster preparedness and response efforts.

5. Humanitarian Support: Providing humanitarian support to Rohingya refugees and host communities.

6. COVID-19 Response: Donating vaccines and providing life-saving COVID-19-related assistance.

The U.S. also supports democratic institutions, human rights, and regional security in Bangladesh. The halt is intended to be temporary, lasting 90 days, but the long-term effects will depend on the review's outcomes and any subsequent decisions by the U.S. government.