USAID funds frozen, allies in dark over money they parked

Three European allies provided millions of dollars that the United States was supposed to spend for low-income countries. Then the President Donald Trump and Elon Musk's government-cutters arrived.

Government officials from Sweden, Norway and the Netherlands told AP that a combined $15 million they contributed for joint development work overseas has been parked at the US Agency for International Development for months.

After the Trump administration and Musk's Department of Government Efficiency cut USAID's funding and the bulk of its programs, the Europeans asked whether their money would be funneled to projects as expected or refunded.


They have gotten no response.

The true total may be larger. Other foreign governments also had money entrusted with USAID for distribution in a range of joint development projects at the time Trump ordered the funding freeze on January 20, according to an official.

The worries point to the extent to which the new administration's abrupt cutoff of foreign assistance and canceling of contracts for humanitarian and development work are raising questions about Washington's financial reliability. They also show further strain between allies as Trump revamps American foreign policy.