US President Donald Trump issued an executive order on Monday temporarily halting all U.S. foreign assistance programs for 90 days while conducting reviews to assess their alignment with his administration's policy objectives, reports AP.

The immediate impact of the order on funding was unclear, as many programs have already been allocated funding by Congress, which is either obligated or already spent.

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In the order, one of several signed on his first day back in office, Trump criticised the “foreign aid industry and bureaucracy,” claiming they often contradict American interests and values. He further stated that such programs “destabilise world peace by promoting ideas in foreign countries that conflict with harmonious and stable internal and international relations.”

Trump declared that no U.S. foreign assistance would be disbursed unless it was fully aligned with the President's foreign policy objectives.

During his confirmation hearing last week before the Senate Foreign Relations Committee, Secretary of State Marco Rubio emphasised the importance of justifying all expenditures and programs with three key questions: “Does it make America safer? Does it make America stronger? Does it make America more prosperous?”

The order grants Rubio or his designee, in coordination with the Office of Management and Budget, the authority to evaluate foreign assistance programs. The State Department and the U.S. Agency for International Development remain the primary agencies overseeing such aid.

Trump has consistently criticised foreign aid, despite it typically accounting for about 1% of the federal budget, except in exceptional cases such as the extensive military aid provided to Ukraine. He has specifically voiced concerns about the volume of assistance sent to Ukraine to support its defense against Russia's invasion.

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The most recent official report on foreign aid under the Biden administration, from mid-December 2023, indicated that $68 billion had been allocated for programs abroad, including disaster relief, health, and pro-democracy initiatives in 204 countries and regions.

Major recipients of U.S. aid, such as Israel ($3.3 billion annually), Egypt ($1.5 billion annually), and Jordan ($1.7 billion annually), are unlikely to face significant cuts due to long-standing agreements, some governed by treaties.

Republican administrations, including Trump’s, have traditionally targeted funding to U.N. agencies for reductions or cuts. During Trump’s first term, payments to various U.N. agencies, such as the U.N. Population Fund, and funding to the Palestinian Authority were suspended.

Additionally, the U.S. had already exited the U.N. Human Rights Council under Trump’s leadership, ceasing related financial obligations. A bill signed by former President Joe Biden in March barred U.S. funding for the U.N. agency for Palestinian refugees (UNRWA).