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January 26, 2025Ethiopia is facing serious challenges following President Donald Trump’s decision to suspend U.S. foreign aid programs for 90 days. This move could hinder the country’s efforts to address ongoing crises.
However, some of the largest beneficiaries 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 experience major cuts. Their aid packages have long-standing roots, with some tied to treaty agreements spanning decades.
In 2024, Ethiopia received $1.2 billion in aid from the U.S., making American support a crucial part of its budget. Trump’s executive order seeks to temporarily halt aid distribution to reassess whether these programs align with his administration’s policy objectives. He has criticized the “foreign aid industry,” arguing that it conflicts with U.S. values and interests.
The immediate financial implications of the suspension remain uncertain, as congressional allocations for certain programs may limit the order’s full effect.
Nevertheless, critical funding for Ethiopia is at stake, including $719.9 million allocated for emergency relief and $118.1 million designated for food security. With over 20 million Ethiopians depending on humanitarian assistance, any disruption could worsen food shortages and displacement.
Additionally, $85.49 million for essential health services and $63.07 million for agricultural initiatives might be put on hold, potentially impacting public health and rural livelihoods.
The suspension could also jeopardize Ethiopia’s programs aimed at disarming and reintegrating former combatants, which are vital to maintaining stability in conflict-prone regions.
Ethiopia is the largest recipient of U.S. aid in both the East African region and among low-income countries, ranking first out of 43 East African nations and first among 29 low-income economies.