The Trump administration is preparing to redirect $1.8 billion in foreign aid toward its 'America First' initiatives, including investments in Greenland, countering China’s global influence, and confronting leftist governments in Latin America, according to a Congressional Notification reviewed by Reuters.
Aid redirection under 'America First'
The document, dated September 12, outlines plans to reallocate funds from previously approved congressional programs to new projects aligned with President Donald Trump’s foreign policy agenda. The notification, as per Reuters' report, argues the shift is necessary to make America 'safer, stronger, and more prosperous.'
The strategy marks a sharp departure from traditional U.S. foreign aid policy, which has long viewed food, medical, and economic assistance as essential tools of American soft power.
Where the money will go
Europe & Greenland: $400 million earmarked for energy, mineral diversification, economic development, and conservation projects in Ukraine and Greenland. The semi-autonomous Danish territory, rich in critical minerals, has been a personal interest of Trump, who has previously floated the idea of acquiring it.
Western Hemisphere: Another $400 million would target illegal immigration, counter China’s grip on artificial intelligence and critical minerals, and confront what the administration calls 'Marxist, anti-American regimes' in Venezuela, Cuba, and Nicaragua.
Global goals: Additional funding would be dedicated to strategic infrastructure, supply chain diversification, and programs framed as bolstering U.S. global leadership.
USAID dismantled, foreign aid slashed
The reallocation comes after Trump’s administration dismantled the U.S. Agency for International Development (USAID) earlier this year, freezing and cutting billions in aid and laying off thousands of staff and contractors. Critics say the cuts jeopardised humanitarian relief, disrupted life-saving food and medical aid, and sowed chaos across global assistance programs.
Secretary of State Marco Rubio defended the overhaul in July, saying the U.S. was moving away from a 'charity-based model' and toward policies that encourage 'sustainable growth' abroad.
Criticism from Congress
According to the Reuters report, the plan has sparked backlash on Capitol Hill. Senator Jeanne Shaheen, the top Democrat on the Senate Foreign Relations Committee, accused the administration of bypassing Congress’ constitutional authority over federal spending.
“Funding politically driven, unaccountable, pet projects in places like Greenland or using aid to pressure African governments on immigration is out of step with America’s foreign policy interests and an abuse of taxpayers’ dollars,” Shaheen said in a statement.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.