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    Home»News»Trump Moves to Block $5 Billion in Foreign Aid, Increasing Shutdown Fears
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    Trump Moves to Block $5 Billion in Foreign Aid, Increasing Shutdown Fears

    ObservernewsBy ObservernewsAugust 29, 2025No Comments3 Mins Read
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    US President Donald Trump has taken steps to block $5 billion in congressionally-approved foreign aid, a move that raises the possibility of a federal shutdown as Democrats strongly oppose the policy.

    What Happened

    On Friday, the White House confirmed that President Trump has moved to block funding for foreign aid programs, specifically targeting the Department of State and the United States Agency for International Development (USAID). This action is expected to heighten tensions as lawmakers face a looming government shutdown after September 30, should funding agreements not be reached.

    Who Is Behind This Decision?

    The decision to block $5 billion in foreign aid comes from President Donald Trump, who has made significant cuts to USAID and other federal agencies since taking office. Trump’s administration has actively pursued a strategy to reduce or eliminate government spending in areas such as foreign aid, immigration services, and environmental protections. These policies reflect Trump’s broader agenda to reshape the U.S. government’s role in the global arena.

    Background or Timeline

    USAID, founded in 1961 by President John F. Kennedy as part of Cold War strategy to influence the developing world, has been a critical component of U.S. foreign policy. However, under Trump, the agency has faced dramatic cuts. Secretary of State Marco Rubio has slashed up to 85% of USAID’s programming. Trump’s latest move to block foreign aid funding continues his efforts to scale back government intervention and refocus on domestic priorities.

    The decision to block the funding, however, has led to fierce opposition from Democrats. They have warned that any effort to reverse funding already approved by Congress would bring any budgetary negotiations to a halt, risking a government shutdown. If a deal is not reached by September 30, it could lead to a standstill in essential government functions.

    Public or Social Media Reaction

    The news of Trump’s foreign aid cuts has sparked intense debate, with many vocal critics from both domestic and international arenas. Opponents of the move argue that slashing foreign aid undermines U.S. efforts in global diplomacy and humanitarian aid, particularly in developing countries. Meanwhile, some supporters of Trump’s policies argue that the cuts are necessary to prioritize U.S. domestic interests, particularly in an era of tightening budgets.

    Official Statement or What Happens Next

    While the Trump administration has defended its decision to reduce foreign aid spending, it faces significant resistance from Congress, particularly Democrats, who view these cuts as detrimental to international relations and U.S. credibility. With the fiscal year ending on September 30, the pressure to resolve the funding issues mounts. If no resolution is reached, the U.S. government may face a shutdown, further complicating negotiations on the 2025 federal budget.

     

    This story may be updated with more information as it becomes available.

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