In a significant meeting on the sidelines of the Munich Security Conference 2025 in Germany, US Secretary of State Marco Rubio and Philippine Foreign Affairs Secretary Enrique Manalo discussed the importance of their ongoing development cooperation. This dialogue took place against the backdrop of a comprehensive US review of foreign aid, initiated by the Trump administration on January 20, which temporarily halted new funding commitments and disbursements worldwide, with exceptions for certain programs in Israel and Egypt.
The Philippine Department of Foreign Affairs (DFA) highlighted the discussion, noting that both secretaries acknowledged the value of their collaborative efforts. However, they also recognized the ongoing US review of various development agencies, which remains incomplete. DFA spokesperson Ma. Teresita Daza emphasized this point in a statement released on February 16.
The review has caused uncertainty about the status of US-funded development projects in the Philippines. Secretary Manalo mentioned in a recent interview that the specifics of which projects are affected by the funding freeze are still unclear.
Legal challenges have emerged in response to the US funding pause. On February 13, US District Judge Amir Ali issued a temporary order to lift the suspension on programs that were active as of January 19. This ruling came after a lawsuit by nonprofit organizations, including the Aids Vaccine Advocacy Coalition and the Global Health Council, which rely on funding from the US Agency for International Development (USAID).
Judge Ali criticized the blanket suspension of congressionally approved foreign aid, pointing out its disruptive impact on thousands of agreements with businesses, nonprofits, and organizations across the globe. This decision underscores the complexities and far-reaching effects of the US foreign aid review.