Philippines minimally impacted by US aid freeze

A DFA official stated that the U.S.'s freeze on foreign aid is unlikely to severely impact the Philippines, emphasizing that military agreements under the alliance are not affected.

Socioeconomic Planning Secretary Arsenio Balisacan said on Monday that the Philippines will be 'not so much directly' impacted by the US Department's decision to halt most of its assistance and aid packages to foreign countries.

Undersecretary Eduardo De Vega noted that while talks with the US continue, the aid freeze does not signify a permanent cut-off and stressed that economic partnerships remain robust, as much of the Philippines’ current infrastructure projects are funded by Japan, Korea, ADB (Asian Development Bank), and World Bank.

In 2024, USAID allocated $9.27 million for various aid packages to the Philippines, slightly higher than in 2023, but the impact could be more indirect due to US's major shareholding in multilateral institutions.

Malacañang confirmed the DFA's stance, highlighting ongoing cooperation between both nations despite the temporary halt in foreign assistance and emphasizing efforts to diversify trade and strengthen local economy resilience.