By Humeyra Pamuk
WASHINGTON, March 5 (Reuters) - Hundreds of diplomats at the State Department and U.S. Agency for International Development have written a letter addressed to Secretary of State Marco Rubio protesting the dismantling of USAID, saying its demise would undermine U.S. leadership and security and create a power vacuum which China and Russia could exploit.
In a cable expected to be filed with the department's internal "dissent channel," which allows diplomats to raise concerns about policy anonymously, the diplomats said the Trump administration's January 20 freeze on almost all foreign aid also endangers American diplomats and forces overseas while putting at risk the lives of millions abroad that depend on U.S. assistance.
More than 700 people have signed the letter, a U.S. official speaking on the condition of anonymity said.
"The decision to freeze and terminate foreign aid contracts and assistance awards without any meaningful review jeopardizes our partnerships with key allies, erodes trust, and creates openings for adversaries to expand their influence," said the cable, a copy of which was seen by Reuters.
The Republican president, pursuing what he has called an "America First" agenda, ordered a 90-day pause on all foreign aid on his January 20 return to office. The order halted USAID operations around the world, jeopardizing the delivery of life-saving food and medical aid, and throwing global humanitarian relief efforts into chaos.
"The freeze on life-saving aid has already caused irreparable harm and suffering to millions of people around the world," the letter said, adding that despite statements on waivers being issued for life-saving programs, the funding remained shut.
The president tasked billionaire and adviser Elon Musk with dismantling USAID as part of an unprecedented push to shrink the federal government over what both say is wasteful spending and abuse of funds.
"Foreign assistance is not charity. Instead, it is a strategic tool that stabilizes regions, prevents conflict, and advances U.S. interests," the letter said.
A State Department spokesperson, when asked about the cable, said: “We do not comment on leaked internal communication."
In fiscal year 2023, the United States disbursed $72 billion of aid worldwide, on everything from women's health in conflict zones to access to clean water, HIV/AIDS treatments, energy security and anti-corruption work.
Upon evaluating 6,200 multi-year awards, the administration decided to eliminate nearly 5,800 of them worth $54 billion in value, a 92% reduction, according to a State Department spokesperson. USAID fired or put on administrative leave thousands of staff and contractors.
The cable said the government's failure to pay outstanding invoices to contractors and implementing partners has severe economic repercussions.
"The resulting financial strain not only undermines confidence in the U.S. government as a reliable partner, it also weakens domestic economic growth at a time of mounting global competition," the cable said.
Organizations and companies that contract with USAID last month sued the administration, calling the dismantling of the agency unlawful and saying funding had been cut off for existing contracts, including hundreds of millions of dollars for work that is already done.
The U.S. Supreme Court declined on Wednesday to let the administration withhold payments to foreign aid organizations for work they already performed for the government, upholding a district judge's order that had called on the administration to promptly release payments to contractors.
(Reporting by Humeyra Pamuk; Editing by Mark Porter and Howard Goller)
