Philippine Economic Authority Downplays Impact of U.S. Aid Suspension

The National Economic Development Authority (NEDA) of the Philippines has minimized the potential impact of a temporary halt in U.S. foreign aid, announced by President Donald Trump. NEDA Secretary Arsenio Balisacan stated in a recent media interview that the suspension would not significantly affect the nation’s development projects. He pointed out that the U.S., although a key donor, contributes a minor portion of the Philippines’ economic activities. Balisacan emphasized that the country’s loans are predominantly from other nations and multilateral organizations, reducing the direct impact of the U.S. decision. He also mentioned that any indirect effects might arise from the U.S.’s influence in global lending bodies like the World Bank and the Asian Development Bank, but these would likely be felt over the medium term. The Philippines’ major infrastructure projects, funded mainly by Japan, Korea, and international institutions, are expected to remain largely unaffected. The U.S. State Department’s ‘stop-work’ order on existing aid and the halt on new assistance is part of a 90-day review to align aid with broader U.S. foreign policy objectives. In 2023, the U.S. provided around USD147.7 million in aid to the Philippines, part of its global commitment of USD68 billion. Senate Minority Leader Aquilino Pimentel III advocated for the Philippines to enhance its self-reliance, suggesting the country should not depend on foreign aid but remain open to unconditional assistance.