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Trump order stalls K493.7bn USAid funding to Malawi

President Donald Trump’s executive order on his country’s foreign assistance has put on hold $284.7 million (about K493.7bn) financing to Malawi alone, it has emerged.

Data published on the foreign assistance portal on the United States Agency for International Development (USAid) website shows that Malawi was set to get $284.7 million during Fiscal Year (FY) 2024.

For FY2025, the total foreign assistance budget request for the Department of State and USAid is $42.8 billion.

Trump signed the orders last week. | BBC

A statement published on January 26 2025 by the office of the spokesperson for the US Secretary of State Marco Rubio said they have paused all foreign assistance funded by or through the State Department and USAid for review.

The statement said Rubio was initiating a review of all foreign assistance programmes to ensure they are efficient and consistent with US foreign policy under the America First agenda.

In Malawi, USAid’s top investment sectors include HIV and Aids with K134.6 billion, basic health at K81.9 billion, agriculture at K53.7 billion, basic education pegged at K43.2 billion, family planning, maternal and child health worth K40.5 billion, disaster prevention and preparedness at K19.5 billion, government and civil society at K16.4 billion, post-secondary education at K14.7 billion and general environmental protection at K13.2 billion.

Minister of Finance and Economic Affairs Simplex Chithyola-Banda projected grants at K1.17 trillion in the 2024/25 National Budget, of which K1.10 trillion was expected from international organisations and K72.69 billion from foreign governments.

But the ministry’s spokesperson Williams Banda on Monday said only K9.2 billion of USAid funding appears in the 2024/25 National Budget.

He said the US government off-budget projection in FY2024/25 was about K307 billion.

Said Banda: “For USAid, it is only the government to government projects that are reflected in the budget framework. So, out of the K1.17 trillion, only K9.2bn is from USAid.

“The rest of their support is off-budget. That excludes funds for Millennium Challenge Corporation which we do not have records on projections.”

Trump on Monday last week issued an executive order for a 90-day halt in foreign assistance pending a review of efficiencies and consistency with his foreign policy.

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