U.S. Diplomatic Missions Ordered to Scrutinize Global Aid for Compliance with Expanded Social Policy Restrictions

By Simon Lewis and Humeyra Pamuk

WASHINGTON, Jan 29 (Reuters) – The U.S. State Department has instructed its diplomatic missions globally to conduct a sweeping review of all foreign assistance programs, according to an internal cable obtained by Reuters. The directive aims to enforce recently expanded regulations that bar federal funding for organizations working on abortion-related family planning, diversity and inclusion programs, or initiatives the administration categorizes under "gender ideology."

The order follows last week's announcement by the Trump administration broadening the scope of the Mexico City Policy—a rule revived by Republican presidents and rescinded by Democrats since its 1984 inception. Previously focused on abortion, the policy now also restricts funding for groups engaged with diversity, equity, inclusion (DEI), gender identity, and transgender rights advocacy. Vice President JD Vance unveiled the expansion at an anti-abortion rally in Washington.

The move significantly widens the policy's reach, affecting an estimated $30 billion in U.S. foreign aid and extending restrictions to U.S.-based non-governmental organizations (NGOs) for the first time. Foreign NGOs are now prohibited from using even non-U.S. funds for the banned activities if they also receive American aid.

The cable, dated last Wednesday, urges department bureaus and overseas posts to begin assessing projects they oversee and to consider appointing focal points or forming specialized "tiger teams" to manage compliance. The new rules take effect on February 26 and will be incorporated into all new grants and added to existing agreements during future funding renewals.

State Department officials anticipate some organizations will choose to forgo U.S. funding rather than comply. The cable includes an internal email address for reporting groups that decline to adhere to the new standards. Secretary of State Marco Rubio is authorized to issue limited waivers to prevent major disruptions to critical, lifesaving programs and disaster response efforts.

The Trump administration has pursued a systematic overhaul of foreign aid since the President's return to office last year, which included dismantling the primary aid agency USAID. This latest step has drawn sharp criticism from humanitarian and advocacy groups, who argue it will further weaken a strained global aid sector and stifle civil society in developing nations.

"This isn't just policy tightening; it's an attempt at global social engineering," said Cristal Downing, Gender and Conflict Project Director at the International Crisis Group. "It's part of a slash-and-burn strategy that started with last year's aid cuts. This will directly harm access to safe spaces for survivors of gender-based violence and undermine women's participation in peacebuilding—work that saves lives."

Internal talking points accompanying the cable instruct U.S. diplomats to frame the move as part of a broader effort to refocus foreign assistance on "programs that effectively save lives, support allies, and create commercial opportunities for the American economy," while eliminating support for "divisive social causes" and "radical ideologies."

The State Department did not respond to a request for comment.

Reaction & Analysis:

Dr. Aris Thorne, a foreign policy analyst at the Georgetown Institute for Strategic Studies, offered a measured perspective: "This expansion institutionalizes a highly ideological lens for aid distribution. While administrations have always shaped aid priorities, the scale and scope here are unprecedented. The operational challenge for embassies will be immense, and the long-term impact on U.S. soft power and grassroots partnerships could be profound."

Maya Chen, a program director with the humanitarian aid coalition 'Global Response,' expressed frustration: "It's devastating. We're already operating on razor-thin margins in conflict zones. This isn't about efficiency; it's a punitive measure that will force us to abandon vulnerable communities. The paperwork alone is a weapon meant to paralyze. Calling lifesaving women's rights work 'radical ideology' is not just dishonest, it's dangerous."

Senator Clay Davis (R-Ohio), a longtime supporter of the policy, applauded the move: "Finally, we're ensuring American taxpayer dollars aren't subsidizing a radical social agenda abroad. Foreign aid should serve our national interests and core values, not fund groups that push concepts undermining the family and national sovereignty. This is a prudent, America-first recalibration."

Elara Voss, a legal scholar specializing in international humanitarian law, raised procedural concerns: "The extension of restrictions to an organization's non-U.S. funding sources is a novel and aggressive interpretation of conditionality. It effectively seeks to control a grantee's entire budget, not just the U.S. portion. This will likely face legal challenges and may violate existing bilateral agreements."