The National Economic Development Authority (NEDA) has reassured the public that the recent temporary halt in U.S. foreign aid, initiated by President Donald Trump, will not significantly affect the Philippines’ economic development. NEDA Secretary Arsenio Balisacan emphasized in a recent media interview that the U.S. suspension would have a negligible direct impact on the Philippine economy, given that the country’s loans are predominantly sourced from other nations and multilateral organizations.
Balisacan pointed out that U.S. foreign assistance constitutes only a minor segment of the Philippines’ economic activities. He noted that any indirect effects might arise from the U.S.’s significant stake in global lending bodies like the World Bank and the Asian Development Bank (ADB), though these impacts would likely be felt over the medium term.
The NEDA chief also confirmed that the country’s major infrastructure projects, which are primarily financed by Japan, Korea, and institutions such as the ADB and World Bank, would remain largely unaffected by the U.S. decision. The U.S. State Department’s announcement of a 90-day pause on foreign aid is part of a broader review to align aid distribution with U.S. foreign policy objectives.
Despite the U.S. being the largest global donor of international aid, contributing around USD68 billion in 2023 across 204 countries, its aid to the Philippines amounted to approximately USD147.7 million in the same year. Senate Minority Leader Aquilino Pimentel III advocated for the Philippines to enhance its self-reliance, suggesting that the nation should not rely heavily on foreign aid but should accept it without restrictive conditions.