Listen Top Shows Blog

The cost of freezing foreign aid

The cost of freezing foreign aid

Update: 2025-01-30

Share

Description

The Trump administration rescinded an order freezing federal grants — but not foreign aid. That is still suspended for a 90-day review. While some exceptions have been made, some aid groups say lives could be on the line. Plus, The Economist magazine ranks Spain’s economy as the strongest in the world. The Spanish economy grew 3.2% in 2024, which was faster than growth experienced in France, Germany, Italy and the United Kingdom.

Comments

In Channel

Medical debt and your credit: It's changing and we have an update

Medical debt and your credit: It's changing and we have an update

2025-06-0309:16

The hard path to rebuilding, with "This Old House Radio Hour"

The hard path to rebuilding, with "This Old House Radio Hour"

2025-06-0353:35

Tariffs and economic growth, both globally and at the checkout line

Tariffs and economic growth, both globally and at the checkout line

2025-06-0309:22

Global growth set for decline, as ballooning government debts take hold

Global growth set for decline, as ballooning government debts take hold

2025-06-0307:55

Defaulting on debt isn't the only way to scare investors

Defaulting on debt isn't the only way to scare investors

2025-06-0209:47

U.S.-China trade truce is on shaky ground

U.S.-China trade truce is on shaky ground

2025-06-0209:44

Britain boosts its defense spending

Britain boosts its defense spending

2025-06-0208:39

JetBlue and United announce new partnership

JetBlue and United announce new partnership

2025-05-3009:41

Appeals court allows Trump's tariffs to continue for now

Appeals court allows Trump's tariffs to continue for now

2025-05-3009:47

The waters are clearing for Japan’s seafood exports

The waters are clearing for Japan’s seafood exports

2025-05-3009:15

With a key tariff strategy blocked, the White House eyes alternatives

With a key tariff strategy blocked, the White House eyes alternatives

2025-05-2909:26

How to plan buying, selling and shipping after new court ruling on Trump tariffs

How to plan buying, selling and shipping after new court ruling on Trump tariffs

2025-05-2909:30

Tariff ruling boosts global markets

Tariff ruling boosts global markets

2025-05-2908:16

What is a "golden share"?

What is a "golden share"?

2025-05-2809:41

The Trump administration is building closer ties to crypto

The Trump administration is building closer ties to crypto

2025-05-2809:44

'State of emergency' in Panama

'State of emergency' in Panama

2025-05-2808:20

Why switching jobs is harder for older workers

Why switching jobs is harder for older workers

2025-05-2709:50

EU agrees to speed up trade talks

EU agrees to speed up trade talks

2025-05-2709:54

Shein accused of breaking EU sales laws

Shein accused of breaking EU sales laws

2025-05-2708:13

How new ways to prevent RSV are savings lives and money

How new ways to prevent RSV are savings lives and money

2025-05-2609:54

00:00

00:00

1.0x

Transcript

00:00:00

The cost of freezing for an aid.

00:00:04

From Marketplace, I'm Sabrina Benachor and for David Bruncaccio.

00:00:08

The Trump administration rescinded in order freezing federal grants, but not for an aid.

00:00:13

That is still suspended for a 90-day review.

00:00:16

In the meantime, aid groups say lives could be on the line.

00:00:19

Marketplace's Nancy Marshall-Genzar reports.

00:00:22

The State Department did make some exceptions to its freeze on for an aid.

00:00:26

Secretary of State Marco Rubio issued a waiver allowing deliveries of things like life-saving medicine, food, and shelter.

00:00:33

But Jeremy Kanindai, president of Refugees International, says most U.S.

00:00:37

foreign aid is still suspended.

00:00:40

He's worried that people will die because vital health programs are unhold.

00:00:44

Baddling TB, all sorts of global health activities, safe motherhood activities, safe child birth, are also still suspended.

00:00:53

There's a lot of confusion over what programs are covered by Secretary Rubio's waiver and can restart.

00:00:59

The nonprofit church world service supports tens of thousands of refugees in Africa.

00:01:04

George Devendorf, its senior director of external relations, says they get more than half their total funding from the federal government.

00:01:12

And right now, the only thing that we are truly confident in is that we have been instructed to stop work on our U.S.

00:01:20

government-funded programs.

00:01:22

Devendorf says he understands the need for periodic reviews of foreign aid, but with the funding cut off during the review process?

00:01:31

It remains to be seen how intensive reviews will be done of programs that, by the time the review arrives, may have, frankly, already disbanded.

00:01:41

Devendorf says his organization now has to decide how and whether it can maintain local staffers on the ground in Africa.

00:01:49

I'm Nancy Marshall-Genzar, for Marketplace.

00:01:53

Thousands of homeowners in Southern California saw the biggest investments of their lives turn to ash in the wildfires there.

00:02:00

Among those homeowners were my colleague David Brancaccio and his wife Mary Brancaccio.

00:02:05

I look around and now all I see is all the hard work it's going to take to bring it back.

00:02:14

And I'm wondering if I still have it in me to do it.

00:02:17

I still, if I'm still young enough to do it.

00:02:20

Tomorrow on the Marketplace Morning Report, David reports on the challenge of finding contractors who know how to build a house from the ground up many don't.

00:02:29

[Music]

00:02:39

[Music]

00:03:05

If you had to guess, what would you say is the strongest economy in the world?

00:03:09

According to the Economist magazine, Spain was one of the European economies that suffered the most during the pandemic, but it has bounced back with a vengeance.

00:03:19

The Spanish economy grew through 3.2% in 2024, as faster than France's, Germany's, Italy's and the UK's.

00:03:26

The BBC's Guy Hedgecoke has more on the Spanish surge.

00:03:31

In 2024, Spain received a record 94 million visitors helping drive GDP growth of over 3%.

00:03:40

That's four times the Eurozone average.

00:03:44

I'm in the historic city of Sigavia, which is just north of Madrid, and I'm looking up at the city's vast, famous Roman aqueduct, and this is a place which has become a very popular tourist destination,

00:03:59

even though it's not associated with the beaches and the coastal resorts which have made Spain so popular over the years.

00:04:09

Elina Miron is a tour guide in Sigavia.

00:04:12

There was a moment in which when we were around the Covid, I thought that maybe the tourism will be never ever like it used to be before.

00:04:23

This became little by little much better.

00:04:26

Now things are very good, and I thought this year is going to be also a good year like it was maybe 2023 or 2024.

00:04:36

There are other reasons for Spain to be cheerful too.

00:04:39

After a cost of living crisis, inflation is now under control, and although unemployment is higher than in many neighbouring countries, it's currently at a 17 year low.

00:04:50

The socialist-led government says labour reform has helped create quality jobs, and the targeted subsidies offset the cost of living crisis.

00:04:59

Carlos Cuertepo is the economy minister.

00:05:02

Spain is proving to be more resilient to successive shocks, including the inflation shock that came with the war in Ukraine.

00:05:09

We are getting out of the Covid without scars, and we are getting out of that by modernizing our economy and therefore lifting our potential GDP growth up.

00:05:19

Along with Italy, Spain is the biggest recipient of EU pandemic recovery funds, and it's using them to create a greener economy.

00:05:29

I'm in a car production factory in Marta Real, just outside Barcelona, and this factory belongs to the Spanish car company Seat, and it's one of the reasons why Spain is the second biggest car producer in Europe.

00:05:45

Spain, Griffith, CEO of the company, believes there's room for further growth.

00:05:51

So it is one of the key industries in the country, and also looking towards the future as well particularly with electrification, I think that's an opportunity not only of maintaining that level of industry,

00:06:02

but with the game changer of renewable energy that this country has to make Spain even bigger in terms of car industry in the future.

00:06:11

Spain's growth is expected to remain robust this year, although the cleanup following recent tragic floods in Valencia is expected to lower GDP slightly.

00:06:22

There are also some clouds on the horizon, public debt remains high, and a housing crisis is preventing many Spaniards from finding an affordable home, but in the meantime,

00:06:32

the country is enjoying its moment in the sun.

00:06:35

In Spain, I'm the BBC's Guy Hedgecoe for Marketplace.

00:06:39

And in New York, I'm Sir Rivenna Shore with the Marketplace Morning Report from APM American Public Media.

00:06:45

[BLANK_AUDIO]

00:06:55

The cost of freezing foreign aid

The cost of freezing foreign aid

Marketplace / David Brancaccio and Leanna Byrne

We and our partners use cookies to personalize your experience, to show you ads based on your interests, and for measurement and analytics purposes. By using our website and our services, you agree to our use of cookies as described in our Cookie Policy.