US freezes foreign aid, halting cybersecurity defense and policy funds for allies

Updated US Secretary of State Marco Rubio has frozen nearly all foreign aid cash for a full-on government review, including funds to defend America's allies from cyberattacks as well as steer international computer security policies.

The pause applies to "all US foreign assistance funded by or through the State Department and US Agency for International Development" while these programs undergo a probe to "ensure they are efficient and consistent with US foreign policy under the America First agenda," according to State Department spokesperson Tammy Bruce. Emergency food programs and military aid to Israel and Egypt are exempted from the freeze.

Realigning foreign assistance on behalf of hardworking taxpayers is not just the right thing to do, it is a moral imperative

"President Trump stated clearly that the United States is no longer going to blindly dole out money with no return for the American people," Bruce said in a Sunday statement.

"Reviewing and realigning foreign assistance on behalf of hardworking taxpayers is not just the right thing to do, it is a moral imperative," she continued. "The Secretary is proud to protect America's investment with a deliberate and judicious review of how we spend foreign assistance dollars overseas."

The directive follows President Donald Trump's executive order issued last week that, among a ton of other cuts to Biden-era programs, paused foreign aid for 90 days pending reviews "for programmatic efficiency and consistency" with US policy.

This includes State Department money funneled to the Bureau of Cyberspace and Digital Policy (CDP), according to The Record, citing "two people familiar with the matter."

CDP is an agency within the State Department, which was formed under the Biden administration in April 2022 and tasked with negotiating international cybersecurity policies and working with allies to improve privacy protections and responses to digital threats.

This work has previously included funneling millions of dollars to Costa Rica and Albania following cyberattacks on those two nations' governments; the money was intended to be spent on shoring up those countries' IT defenses.

The State Department did not immediately respond to The Register's inquiries, including which cyber-related programs and funding have been halted, and how this move supports homeland security, which increasingly involves strong digital defenses around the globe.

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Also over the weekend, the Senate confirmed former South Dakota Governor Kristi Noem to lead the US Department of Homeland Security by a 59-34 vote. During her confirmation hearing, Noem indicated she would make cuts to America's top cybersecurity agency.

Homeland Security oversees the US Cybersecurity and Infrastructure Security Agency, aka CISA, and both Noem and Trump have taken issue with CISA's efforts to combat misinformation online — especially as it relates to foreign trolls trying to influence US elections.

"CISA's gotten far off mission," Noem, a Republican, said during questioning by senators. "They're using their resources in ways that was never intended. The misinformation and disinformation that they have stuck their toe into and meddled with should be refocused back onto what their job is." ®

Updated to add on January 29

The freeze on foreign aid came as part of the White House's general pause on the disbursement of federal loans and grants to bodies while an efficiency audit is performed. That halting of all financial assistance sparked confusion, and the move was temporarily blocked by a judge on Tuesday.

Today, the Trump administration rescinded the memo it issued on Monday pausing disbursement, but again confusingly insisted: "This is NOT a rescission of the federal funding freeze."

While the White House said the freeze should not affect things like Medicare and Social Security, Medicaid portals went offline around the nation this week, amid general bafflement about the president's orders.