US Diplomats in Dissent Cable to Rubio Protest USAID Dismantling, Cut in Foreign Aid

Secretary of State Marco Rubio arrives to President Donald Trump's joint address to Congress on March 04, 2025 in Washington, DC. (Getty Images via AFP)
Secretary of State Marco Rubio arrives to President Donald Trump's joint address to Congress on March 04, 2025 in Washington, DC. (Getty Images via AFP)
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US Diplomats in Dissent Cable to Rubio Protest USAID Dismantling, Cut in Foreign Aid

Secretary of State Marco Rubio arrives to President Donald Trump's joint address to Congress on March 04, 2025 in Washington, DC. (Getty Images via AFP)
Secretary of State Marco Rubio arrives to President Donald Trump's joint address to Congress on March 04, 2025 in Washington, DC. (Getty Images via AFP)

Hundreds of diplomats at the State Department and US Agency for International Development have formally written to Secretary of State Marco Rubio protesting the dismantling of USAID, saying the move undermines US leadership and national security and leaves power vacuums for China and Russia to fill.

In a cable filed with the Department's internal "dissent channel," which allows diplomats to raise concerns about policy anonymously, the diplomats said the Trump administration's January 20 freeze on almost all foreign aid also endangers American diplomats and forces overseas while putting at risk the lives of millions abroad that depend on US assistance.

"The decision to freeze and terminate foreign aid contracts and assistance awards without any meaningful review jeopardizes our partnerships with key allies, erodes trust, and creates openings for adversaries to expand their influence," said the cable, a copy of which was seen by Reuters.

More than 700 people have signed onto the letter, a US official speaking on the condition of anonymity said.

The Republican president, pursuing what he has called an "America First" agenda, ordered a 90-day pause on all foreign aid on his first day back in office. The order halted USAID operations around the world, jeopardizing delivery of life-saving food and medical aid, and throwing global humanitarian relief efforts into chaos.

"The freeze on life-saving aid has already caused irreparable harm and suffering to millions of people around the world," the letter said, adding that despite statements on waivers being issued for life-saving programs, the funding remained shut.

The president tasked billionaire and adviser Elon Musk with dismantling USAID as part of an unprecedented push to shrink the federal government over what both say is wasteful spending and abuse of funds.

"Foreign assistance is not charity. Instead, it is a strategic tool that stabilizes regions, prevents conflict, and advances US interests," the letter said.

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

In fiscal year 2023, the United States disbursed $72 billion of aid worldwide, on everything from women's health in conflict zones to access to clean water, HIV/AIDS treatments, energy security and anti-corruption work.

Upon evaluating 6,200 multi-year awards, the administration decided to eliminate nearly 5,800 of them worth $54 billion in value, a 92% reduction, according to a State Department spokesperson. USAID fired and put on administrative leave thousands of staff and contractors.

The letter also said that the government's failure to pay outstanding invoices to contractors and implementing partners has severe economic repercussions.

"The resulting financial strain not only undermines confidence in the US government as a reliable partner, it also weakens domestic economic growth at a time of mounting global competition," the letter said.

The US Supreme Court declined on Wednesday to let the administration withhold payments to foreign aid organizations for work they already performed for the government, upholding a district judge's order that had called on the administration to promptly release payments to contractors.



EU Plans Measures to Help EU Banks Build Scale and Compete with US Rivals

European Union flags flutter outside the European Commission headquarters in Brussels, Belgium Februrary 26, 2026. REUTERS/Yves Herman/File Photo
European Union flags flutter outside the European Commission headquarters in Brussels, Belgium Februrary 26, 2026. REUTERS/Yves Herman/File Photo
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EU Plans Measures to Help EU Banks Build Scale and Compete with US Rivals

European Union flags flutter outside the European Commission headquarters in Brussels, Belgium Februrary 26, 2026. REUTERS/Yves Herman/File Photo
European Union flags flutter outside the European Commission headquarters in Brussels, Belgium Februrary 26, 2026. REUTERS/Yves Herman/File Photo

The European Commission aims to limit political interference in European Union banking mergers and remove obstacles to cross-border banking within the bloc to allow EU banks to compete more effectively against larger US rivals.

An EU executive report released on Friday says internal barriers are preventing EU banks from expanding, leaving them at a disadvantage to US lenders that have benefited from economies of scale in a more integrated US market. EU mergers remain largely within national borders.

"This leads to an outcome where many banking groups in the EU are large relative to the size of their home economy, but not relative to the size of the EU or the banking union economy or international competitors," the report said.

Unjustified national interventions in cross-border bank mergers were preventing banks from acquiring scale at the EU level to reach a critical size, it said. The criticism comes after Germany rejected in June an offer from Italy's UniCredit to take over Commerzbank. UniCredit began its pursuit of Commerzbank back in September 2024, but has faced strong opposition - highlighting how hard it is to pull off cross-border banking deals in Europe.

While Germany officially cited the price offered by the Italian bank as the reason for its rejection, the government has also made clear that Commerzbank is a key lender to German companies and should remain under German ownership.

"It is a mistake from our point of view. If it's okay by the supervisor and the competition authority, cross-border mergers are good things," a senior EU official said, adding that US banks were outcompeting European peers across many business lines in Europe.

"The main driver of competitiveness is not the rulebook ... it's the absence of scale," the official said.

The EU executive, the report said, will propose a range of measures in the first quarter of 2027.

These include plans to crack down on EU members that breach EU rules limiting the circumstances under which they can intervene in proposed mergers.

Other proposals would allow cross-border banking groups to meet capital and liquidity requirements more at the parent level, rather than the current system with additional requirements for subsidiaries. Removing such constraints could release €230 billion ($263.1 billion) of liquid assets, the report said.

It will also replace its proposal from a decade ago to create a European deposit insurance scheme with a new plan to simply deposit insurance measures in the bloc.

The banking industry gave the report a mixed reception. French banking lobby FBF described the report as containing "several positive orientations" but said concrete measures on key issues were required, including better regulatory coordination and limits on country-specific rules. Christian Sewing, Deutsche Bank CEO and president of the Association of German Banks, urged swift action, calling for adjustments to the lower limit on capital requirements known as the output floor, relief for trade finance and improvements on software investments, as well as urging a review of financial stability buffers.


Iran Urges Citizens to Cut Electricity Use after US Strikes

FILE PHOTO: A man walks next to a symbolic mockup of an Iranian missile and an Iranian flag at Imam Hussein Square in Tehran, Iran, July 12, 2026. Reuters
FILE PHOTO: A man walks next to a symbolic mockup of an Iranian missile and an Iranian flag at Imam Hussein Square in Tehran, Iran, July 12, 2026. Reuters
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Iran Urges Citizens to Cut Electricity Use after US Strikes

FILE PHOTO: A man walks next to a symbolic mockup of an Iranian missile and an Iranian flag at Imam Hussein Square in Tehran, Iran, July 12, 2026. Reuters
FILE PHOTO: A man walks next to a symbolic mockup of an Iranian missile and an Iranian flag at Imam Hussein Square in Tehran, Iran, July 12, 2026. Reuters

Iran's energy ministry called on citizens to reduce electricity use on Friday after the power grid came under strain following US strikes on energy infrastructure in the south, AFP reported.

The ministry in a statement urged people to switch off air conditioners in peak hours "to help ensure a stable electricity supply in the southern provinces, which are currently facing extreme heat and attacks on electricity supply facilities".


UN Agency: Transport of Dead Bodies Within Congo Risks Further Ebola Spread

FILE PHOTO: A health worker in personal protective equipment stands near displaced people waiting for the burial of suspected Ebola victims at the Kigonze displaced persons camp, one month after an outbreak was declared, in Bunia, eastern Democratic Republic of Congo, June 18, 2026. REUTERS/Gradel Muyisa Mumbere//File Photo/File Photo
FILE PHOTO: A health worker in personal protective equipment stands near displaced people waiting for the burial of suspected Ebola victims at the Kigonze displaced persons camp, one month after an outbreak was declared, in Bunia, eastern Democratic Republic of Congo, June 18, 2026. REUTERS/Gradel Muyisa Mumbere//File Photo/File Photo
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UN Agency: Transport of Dead Bodies Within Congo Risks Further Ebola Spread

FILE PHOTO: A health worker in personal protective equipment stands near displaced people waiting for the burial of suspected Ebola victims at the Kigonze displaced persons camp, one month after an outbreak was declared, in Bunia, eastern Democratic Republic of Congo, June 18, 2026. REUTERS/Gradel Muyisa Mumbere//File Photo/File Photo
FILE PHOTO: A health worker in personal protective equipment stands near displaced people waiting for the burial of suspected Ebola victims at the Kigonze displaced persons camp, one month after an outbreak was declared, in Bunia, eastern Democratic Republic of Congo, June 18, 2026. REUTERS/Gradel Muyisa Mumbere//File Photo/File Photo

The transport of Ebola victims' bodies between different areas of the Democratic Republic of Congo, often for funerals in their home communities, risks further spreading the virus, the UN migration agency said on Friday.

More than 2,000 Ebola cases and 700 deaths have been recorded in Congo and neighboring Uganda as of July 14, and around two-thirds of the deaths occurred outside clinics or ⁠hospitals, said the International ⁠Organization for Migration.

The often fatal viral disease spreads through direct contact with bodily fluids from infected people or animals, and causes symptoms that can include high fever, vomiting and internal and external bleeding. This ⁠particular epidemic is caused by the Bundibugyo strain of the virus.

Ebola remains highly infectious after death, making funeral practices a critical component of outbreak control.

"If we don't really manage the dead bodies well, if we don't engage the community ... then it means there will be more spread within the community," Reuters quoted Andrew Mbala from IOM as saying.

IOM officials said the ⁠transport ⁠of bodies across districts within Congo was a particular challenge as families seek to bury relatives in their home communities.

"There hasn't been any crossing of dead bodies to another country, but we have seen a lot of crossings of dead bodies within the country," said Mbala.

Such movement risks carrying the virus into new areas if bodies are not handled safely, the IOM warned.