Amid reports of serious impacts on critical sectors such as health and education in developing and least-developed countries following cuts in U.S. aid, senior State Department officials have said that Washington has not pulled back assistance but is instead recalibrating it.
Speaking at a conference on U.S. foreign assistance in the Indo-Pacific held in Washington, the officials said the United States continues to provide support in the Indo-Pacific region in line with U.S. national security interests and President Donald Trump’s foreign policy priorities.
Allison Hooker, U.S. Under Secretary of State for Political Affairs, said the administration’s aid strategy in the region represents a calibration, not a pullback. “The U.S. is a Pacific power, and the future of the Indo-Pacific is directly tied to our core national interests,” she said, highlighting that Washington’s commitment to the Indo-Pacific remains unwavering.
In his second term as president, the Trump administration dismantled the U.S. Agency for International Development (USAID), a move that has stressed the health and education systems of scores of countries that had long relied on American aid.
“Our foreign assistance needs to be a force multiplier as we safeguard our national security with the greatest military in the world, along with our allies and like-minded partners,” Hooker said.
Speaking at the same conference, Assistant Secretary of State for East Asian and Pacific Affairs Michael DeSombre said, “We never got out of the foreign assistance business as some media narratives have claimed. During the review period of foreign aid, however, we saw an opportunity to fundamentally reimagine how foreign assistance is done, which required us to step back and examine the underlying principles that would guide our work.”
The resulting principles, he said, form a strategic framework aligned with the core tenets of the National Security Strategy and will guide U.S. efforts to ensure programs remain focused and effective. The statements by senior officials clearly indicate that the U.S. will continue to provide support in selective and narrow areas that align with its national interests.
The Trump administration issued a new National Security Strategy in November that places the Indo-Pacific region high on its list of priorities.
The document states: “The Indo-Pacific is already the source of almost half the world’s GDP based on purchasing power parity (PPP), and one third based on nominal GDP. That share is certain to grow over the 21st century, which means the Indo-Pacific is already—and will continue to be—among the next century’s key economic and geopolitical battlegrounds.”
“To thrive at home, we must successfully compete there—and we are,” the document says, noting that President Trump signed major agreements during his October 2025 travels that further deepened ties in commerce, culture, technology, and defense, reaffirming U.S. commitment to a free and open Indo-Pacific.
The strategy also emphasizes improving commercial and other relations with India to encourage New Delhi’s contribution to Indo-Pacific security, including continued quadrilateral cooperation with Australia, Japan, and the United States under the “Quad.” It further states that the U.S. will work to align the actions of its allies and partners to prevent domination by any single competitor nation.
In Nepal, as in other countries, more than 80 percent of USAID assistance has been cut, though Millennium Challenge Corporation (MCC) investments have continued. Nearly a year after Trump returned to power, no senior U.S. officials have visited Nepal, even as there have been frequent visits to other smaller South Asian countries, notably Bangladesh, Sri Lanka, and Pakistan. Similarly, following the Gen Z movement, the U.S. has maintained a low-key profile in Nepal.
