Trump plans 'America First' foreign aid funding shift, document shows

The document, reviewed by Reuters, outlines that these foreign assistance funds will be used to address new challenges that align with US national security interests and help make America safer, stronger, and more prosperous.

The Washington Post first reported the administration’s plan to reallocate funds from programs previously approved by Congress.

A State Department spokesperson confirmed that the department looks forward to collaborating with Congress on the "America First Foreign Assistance" approach, emphasising that foreign aid should align with the administration’s policies.

"The US will prioritise trade over aid, opportunity over dependency, and investment over assistance," the spokesperson said in a statement.

Since President Trump began his second term in January, his administration has aimed to overhaul foreign aid, shifting away from the traditional view that food, medical, and economic assistance are crucial components of US global influence.

The notification, dated September 12, details that the $1.8 billion will be allocated to initiatives designed to "strengthen US global leadership." These initiatives will focus on areas central to the Trump administration's policy, such as diversifying critical mineral supply chains, promoting strategic infrastructure development, countering China's influence, and addressing immigration issues.

The document specifies that $400 million will be earmarked for projects in Europe, including energy and critical minerals programs in Ukraine and economic development and conservation work in Greenland.

Trump has expressed interest in securing control over Greenland, a resource-rich island within Denmark’s kingdom, given its strategic location and abundance of minerals essential for high-tech industries.

In the Western Hemisphere, the document reveals that another $400 million will go toward efforts to curb illegal immigration to the US, challenge China’s dominance in critical minerals and AI, and confront the "Marxist, anti-American regimes" of Venezuela, Cuba, and Nicaragua.

Dismantling USAID

Since January, the Trump administration has moved to dismantle the US Agency for International Development (USAID), freezing and slashing billions in foreign aid. The aim is to ensure taxpayer funds are directed only to programs that align with "America First" policies.

These cuts have led to the dismantling of USAID, resulting in job losses for thousands of employees and contractors. The reduced funding has disrupted life-saving aid operations and caused chaos in global humanitarian relief efforts.

Senator Jeanne Shaheen, the leading Democrat on the Senate Foreign Relations Committee, criticised the plan, arguing that it undermines Congress's constitutional authority over government spending.

"Funding politically driven projects like Greenland or using aid as leverage to influence African governments on immigration is misaligned with America's foreign policy goals and a misuse of taxpayer dollars," Shaheen said in a statement.

Aides to Senator Jim Risch, the Republican chairman of the committee, did not immediately comment.

In July, Secretary of State Marco Rubio, marking the transfer of USAID responsibilities to the State Department as part of Trump’s effort to reduce the federal government’s size, stated that the US was moving away from a charity-based aid model to focus on empowering nations to achieve sustainable growth.

Foreign aid traditionally makes up only about 1% of the US federal budget.

Reuters