As part of global funding suspension in line with US President Donald Trump's new policy, the US aid agency has directed all the implementing partner in Bangladesh to immediately stop, cease, and suspend any work of the USAID-funded projects.

However, the move excludes aid support for the Rohingya community sheltered in Bangladesh.

"This letter serves as a directive to all USAID/Bangladesh Implementing Partners to immediately stop, cease, and/or suspend any work performed under your respective USAID/Bangladesh contract, task order, grant, cooperative agreement, or other acquisition or assistance instrument," says a letter issued by Richard B Aaron, director for the Office of Acquisition & Assistance of USAID yesterday.

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Contacted, the US embassy in Dhaka today said it has no comments, but referred the Trump administration's executive order issued by the White House on January 20.

A diplomatic source has confirmed to The Daily Star of issuing of the letter.

The executive order by the White House has issues a 90-day pause in the US foreign development assistance.

"It is the policy of United States that no further United States foreign assistance shall be disbursed in a manner that is not fully aligned with the foreign policy of the President of the United States,"

There are now over 100 projects being implemented with USAID funds of over $200 million in the areas of health, agriculture, environment, good governance, democracy promotion, among others.

The US government provided Bangladesh about $490 million in 2023 for the development sector. In September last year, the USAID committed to provide $202.25 million in aid as part of the Development Objective Grant Agreement (DOAG).

The letter said the partners shall take all reasonable steps to minimise the incurrence of costs allocable to their awards and not resume work under their awards until notification has been received in writing from the contracting/agreement officer that this award stop work order or suspension has been cancelled.

It also asked the implementing partners to send a certification that they have completely ceased the activities concerned.

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USAID to provide over $200m

The letter also said that the USAID anticipates many questions concerning the notification that it will follow up with further guidance as soon as available.

A diplomatic source said the emergency food and other assistance may not be affected by the US policy.

Meanwhile, Chief Adviser Prof Muhammad Yunus in a statement expressed his gratitude to President Donald Trump for exempting life-saving food and nutrition support for the displaced Rohingya sheltered in Bangladesh from the US aid freeze.

"Officials of the US Embassy in Dhaka visited High Representative Dr Khalilur Rahman this afternoon and informed him about this exemption," said the CA's press wing in a statement.