Trump suspends US foreign assistance for 90 days pending reviews

National Legal News

Trump suspends US foreign assistance for 90 days pending reviews

President Donald Trump signed an executive order temporarily suspending all U.S. foreign assistance programs for 90 days pending reviews to determine whether they are aligned with his policy goals.

It was not immediately clear how much assistance would initially be affected by the Monday order as funding for many programs has already been appropriated by Congress and is obligated to be spent, if not already spent.

The order, among many Trump signed on his first day back in office, said the “foreign aid industry and bureaucracy are not aligned with American interests and in many cases antithetical to American values” and “serve to destabilize world peace by promoting ideas in foreign countries that are directly inverse to harmonious and stable relations internal to and among countries.”

Consequently, Trump declared that “no further United States foreign assistance shall be disbursed in a manner that is not fully aligned with the foreign policy of the President of the United States.”

Secretary of State Marco Rubio told members of the Senate Foreign Relations Committee during his confirmation hearing last week that “every dollar we spend, every program we fund, and every policy we pursue must be justified with the answer to three simple questions:

“Does it make America safer? Does it make America stronger? Does it make America more prosperous?” he said.

The order signed by Trump leaves it up to Rubio or his designee to make such determinations, in consultation with the Office of Management and Budget. The State Department and the U.S. Agency for
International Development are the main agencies that oversee foreign assistance.

Trump has long railed against foreign aid despite the fact that such assistance typically amounts to roughly 1% of the federal budget, except under unusual circumstances such as the billions in weaponry provided to Ukraine. Trump has been critical of the amount shipped to Ukraine to help bolster its defenses against Russia’s invasion.

The last official accounting of foreign aid in the Biden administration dates from mid-December and budget year 2023. It shows that $68 billion had been obligated for programs abroad that range from disaster relief to health and pro-democracy initiatives in 204 countries and regions.

Some of the biggest recipients of U.S. assistance, Israel ($3.3 billion per year), Egypt ($1.5 billion per year) and Jordan ($1.7 billion per year) are unlikely to see dramatic reductions, as those amounts are included in long-term packages that date back decades and are in some cases governed by treaty obligations.

Funding for U.N. agencies, including peacekeeping, human rights and refugee agencies, have been traditional targets for Republican administrations to slash or otherwise cut. The first Trump administration moved to reduce foreign aid spending, suspending payments to various UN agencies, including the U.N. Population Fund, and funding to the Palestinian Authority.

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Workers’ Compensation Subrogation of Administrative Fees and Costs

When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.

In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.

In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.