US Lawmakers Evaluate Foreign Aid Freeze Impact on USA-China Competition

"I'm particularly concerned about the expansion of China's influence, both at home and abroad, as a result of a freeze on our foreign assistance — and, in particular, the way it's implemented in its cascading effect," Democratic Senator Chris Coons of Delaware said in a hearing about Chinese influence abroad.

Share:

Alade-Ọrọ̀ Crow

U.S. lawmakers on Thursday considered the implications of President Donald Trump’s 90-day freeze on foreign aid, particularly its effect on competition with China. Trump enacted an executive order shortly after taking office, halting all U.S. international assistance while the new administration evaluates whether the aid aligns with his “America First” strategy.

Senate Foreign Relations Committee Chairman Jim Risch emphasized the necessity of this pause to prioritize fiscal responsibility as the United States grapples with a staggering $36 trillion debt. “This is obviously a work in progress,” Risch, a Republican from Idaho, remarked. “It was intended to underscore the fact that we’re going into debt at the rate of $1 trillion every 100 days. This issue has certainly been highlighted as a result of this. If you think this is bad, just wait until our creditors come demanding payment and we are unable to pay; that will be disastrous,” he explained. “This situation has prompted everyone to reevaluate our spending practices, ensuring efficiency in how we allocate our financial resources. While there have been some inconveniences along the way, efforts to address this are ongoing.”

In contrast, Democrats voiced concerns that the aid freeze would create a vacuum that China would exploit. “I’m particularly worried about the expansion of China’s influence, both domestically and internationally, due to the halt in our foreign assistance — especially regarding its cascading effects,” stated Democratic Senator Chris Coons of Delaware during a hearing focused on Chinese influence abroad. “China seeks to diminish our global influence and strengthen its own. This makes us appear as an unreliable partner to nations worldwide, particularly in the Global South, jeopardizing our security, economic, and diplomatic interests, as we abruptly halt actions that counter the malign activities of the PRC and invest in critical infrastructure projects.”

Senator Jeanne Shaheen of New Hampshire, the leading Democrat on the Senate Foreign Relations Committee, asserted that the responsibility for evaluating and restoring the aid should not rest solely on Democrats. “I hope my colleagues across the aisle will express their concerns to the administration and recognize that this is not merely a partisan issue. It’s about how we can ensure our influence remains strong globally for the sake of our national security,” she noted.

Globally, U.S.-funded foreign aid programs are already shutting down operations and laying off staff in response to the freeze. The United States stands as the world’s largest foreign aid provider but has been outspent by China in several domains. According to the Government Accountability Office, between 2013 and 2022, China invested $679 billion in global infrastructure projects, compared to the United States’ $76 billion.

“Foreign aid is a crucial component of U.S. national security, alongside other tools like diplomacy and military assistance,” stated Jennifer Lind, an associate professor of government at Dartmouth College. “Ideally, we should utilize all our different tools in a coordinated manner to achieve our objectives. For this reason, it is understandable that the administration wants to take a brief pause to assess whether we are using the right tools effectively.”

However, Melanie Hart from the Atlantic Council criticized the freeze, arguing it hampers America’s ability to compete with China across all fronts. “Over $1 billion in foreign military financing for Taiwan is frozen. The National Democratic Institute and the International Republican Institute are shutting down their global operations. Human rights organizations are also frozen out,” she said. “Washington has effectively abandoned the pro-democracy movement in Hong Kong. While I understand the administration’s intent to maximize the strategic focus of the aid and appreciate the waivers issued by the State Department, this sweeping freeze undermines America at a critical moment in our struggle against China.”

“It is a significant advantage for Beijing. The longer this freeze continues, the more challenging it will be to regain the ground we are already losing today, tomorrow, and this week,” Hart added.

U.S. Secretary of State Marco Rubio recently issued a waiver allowing emergency food assistance and another waiving restrictions on humanitarian assistance earlier this week. The top Democrat on the House Select Committee on Strategic Competition with China welcomed Rubio’s waivers but insisted that more action is needed. “While periodic evaluations of foreign assistance’s contribution to U.S. national security are essential, abruptly freezing any foreign assistance directly cedes ground to our primary adversary: the CCP,” stated Representative Raja Krishnamoorthi, a Democrat from Illinois, in a statement. “At a time when the CCP is aggressively investing abroad, rerouting supply chains, and winning over authoritarian allies, the United States must enhance foreign assistance — not undermine our own efforts.”

Latest in

GettyImages-2207287069

Le Pen’s Political future: Down but Not Out Yet

By Alade-Ọrọ̀ Crow
April 15, 2025