Trump's Suspension of Aid Affects Programs Worth Over P4 Billion in the Philippines

The sweeping freeze on foreign aid initiated by the U.S. President Donald Trump has placed at least 39 development projects in the Philippines in a state of uncertainty. This suspension jeopardizes essential initiatives, including a nationwide forest protection program and a Bangsamoro education project that is intended to run until 2029.

On January 24, Secretary of State Marco Rubio announced the suspension of all U.S. foreign aid programs globally for a comprehensive review, with the notable exceptions of Israel and Egypt.

In the Philippines, this aid freeze has impacted numerous projects funded by the United States Agency for International Development (USAID) and the State Department that were still in progress. Among the 39 ongoing projects, 14 were scheduled to conclude this year, while the remaining 25 were designed to extend their operations until 2026 and even as far out as 2029, according to publicly available data regarding U.S. foreign assistance in the Philippines.

Data indicates that USAID and the State Department had already allocated $69.7 million (approximately P4.06 billion) in new funding for these projects in the previous year, prior to the implementation of the freeze. It is important to note that this figure represents the obligations for 2024 and does not encompass the entire unspent budget for the programs.

The freeze has particularly affected environmental and health initiatives. According to fiscal year 2024 data, environmental protection programs have been hit the hardest, receiving the largest share of USAID funding among Philippine projects that are set to continue beyond January 2025. Specifically, seven conservation or environment-related projects were allocated $19.5 million last year.

Basic education programs were the second-largest recipients of funding, with a total of $13 million distributed across four different projects. Additionally, a significant portion of the funding was directed toward health programs, including a single HIV/AIDS initiative that received $6.7 million. Furthermore, government and civil society programs were allocated $6.5 million for a total of eight projects.

The suspension of these funds raises concerns about the future of critical development work in the Philippines, as many of these projects play a vital role in addressing pressing environmental, educational, and health challenges in the country.