The United States, under President Donald Trump, has decided to halt all aid to the Bangladesh government, led by Nobel laureate Muhammad Yunus. The latest move comes as the US government, through its donor agency USAID, announced the immediate cessation of all work in Bangladesh, including contracts, grants, cooperative agreements, and other procurement instruments.
In a letter issued by USAID, the agency informed partners that all projects under its Bangladesh operations were to be suspended, citing a recent executive order by President Trump. The letter stated: “This letter is directing all USAID/Bangladesh implementing partners to immediately cease or suspend any work under your USAID/Bangladesh contract, work order, grant, cooperative agreement, or other assistance or acquisition instrument.”
This decision comes as a shock to many, especially given the current economic crisis in Bangladesh. The country, already grappling with a dire financial situation, now faces even more significant challenges following the suspension of US aid.
The suspension of foreign aid has also raised concerns among stakeholders, including US-funded NGOs operating in Bangladesh, who worry about the consequences of this abrupt decision on ongoing projects. The scope of the suspension was made clear when President Trump, hours after taking office on January 20, ordered a 90-day pause in all US foreign development assistance, pending a review of efficiency and alignment with his foreign policy priorities. While the details of the order were initially unclear, this latest action provides further clarity.
This significant decision comes just days after Indian External Affairs Minister S. Jaishankar had a brief discussion on Bangladesh with US Secretary of State Marco Rubio. On January 22, when asked whether the issue of religious minorities in Bangladesh was discussed, Jaishankar confirmed the conversation but refrained from providing further details.