Yunus government in trouble! Trump stops foreign aid to Bangladesh

US President Donald Trump (L) and Blangladesh Interim President Muhammad Yunus(R) – File Photo

According to NPR, the memo signed by Secretary of State Marco Rubio said a comprehensive review of all foreign assistance would be completed within 85 days and a report would be submitted for the Secretary of State’s consideration and recommendation to the president.

The US Agency for International Development (USAID) on Saturday January 25 , 2025 as per India Times suspended funding to the interim Bangladesh government led by Muhammad Yunus, following President Donald Trump’s 90-day freeze on all foreign aid.

This comes after the US State Department on Friday ordered all existing foreign aid to be halted. Also, new aid has been halted under Trump’s new executive order. However, only Israel and Egypt have been excluded from this list.

‘Report will be sent to the President for recommendation’

According to NPR, the memo signed by Secretary of State Marco Rubio said that a comprehensive review of all foreign aid will be completed within 85 days and a report will be submitted for the Secretary of State’s consideration and recommendation to the President.

Citing Trump’s executive order on ‘reevaluating and restructuring’ foreign aid, USAID issued a statement to its partners in Bangladesh, instructing them to immediately halt any work done under their contracts.

Yunus government’s troubles increased

Let us inform you that Trump has claimed in his executive order that the foreign aid provided by America was ‘not consistent’ with America’s ‘interests and values’. USAID’s decision to suspend financial aid to Bangladesh can have serious consequences for the Yunus-led government.

According to USAID, its program in Bangladesh is the largest in Asia, which includes important global food security and health initiatives as well as important democracy, governance, education and environment projects.

How important is foreign aid for Bangladesh

International financing has been crucial for aid programmes that have helped the country deal with economic instability and manage the Rohingya crisis, as well as restore stability to Bangladesh’s key garment industry. Last year, the Yunus administration requested $5 billion in financial support from international lenders to stabilise its dwindling foreign exchange reserves. It also sought a $4.7 billion bailout from the International Monetary Fund (  IMF) .