Just six days after being sworn in as the 47th President of the United States, Donald Trump issued an executive order suspending all US operations in Bangladesh. In a directive dated January 25, 2025, the United States Agency for International Development (USAID) instructed its implementing partners to immediately halt all existing contracts, grants, and assistance programs in Bangladesh, following the executive order from President Trump.
“The notice instructs all USAID/Bangladesh implementing partners to immediately stop, cease, and/or suspend any work being carried out under their respective USAID/Bangladesh contracts, task orders, grants, cooperative agreements, or any other acquisition or assistance instruments,” the letter stated.
The notice further emphasises that “Partners must take all reasonable measures to minimise any costs associated with their awards. Work under these awards should not resume until written notification is received from the Contracting/Agreement Officer confirming that the Stop Work Order/Suspension has been lifted.”
The United States is the largest contributor of humanitarian aid in response to the Rohingya crisis, having donated approximately $2.4 billion since 2017. This development marks a significant setback for the Bangladesh government, led by Muhammad Yunus, which is already grappling with a severe financial crisis.
The suspension is reportedly part of a wider review of foreign aid allocations under a comprehensive ‘stop-work’ order issued by the US State Department on Friday. The order, drafted by the Department’s Foreign Assistance Office and approved by Secretary of State Marco Rubio, halts all existing foreign assistance, except for military financing to Israel and Egypt. No specific reasons have been given for the order.
Trump Reviews All US Foreign Assistance
Shortly after assuming office on January 20, President Trump issued an order imposing a 90-day moratorium on US foreign development assistance, pending a review of its efficiency and alignment with his policy. The full scope of the order remains unclear.
This move is expected to result in the cut of billions of dollars in aid. The US is the world’s largest donor of global aid, having allocated around $72 billion in assistance in 2023 alone. The timing of the order is a significant blow to Bangladesh, which is still grappling with the aftermath of last year’s violent revolution that toppled the Sheikh Hasina government.
