The administration of former United States President, Donald Trump, has announced plans to suspend billions of dollars in foreign aid tied to gender ideology and diversity-related programmes.
According to reports, the decision was disclosed on Thursday, January 22, 2026, by a senior U.S. government official. The official explained that the move is aimed at stopping American funds from being used to support gender ideology and diversity initiatives in other countries.
The policy update is an extension of the long-standing Mexico City Policy, which was first introduced during the administration of former President Ronald Reagan. The policy bars the United States from providing financial support to foreign organisations involved in abortion services or advocacy.
Under the expanded version of the policy, U.S. foreign aid will now also be denied to programmes that promote gender ideology as well as diversity, equity and inclusion (DEI) initiatives.
The official stated that the goal of the new rule is to ensure that U.S. taxpayer funds are not used to support abortion-related services, gender programmes, or policies the administration considers discriminatory.
The revised policy could impact over $30 billion in potential foreign aid—far exceeding the approximately $8 billion affected under the previous version of the rule.
However, the full implications remain uncertain, as the Trump administration had already implemented widespread cuts to foreign assistance programmes. The government has also significantly reduced the influence of the U.S. Agency for International Development (USAID), which was once the world’s largest public aid provider.
Throughout his campaign and presidency, Trump repeatedly opposed transgender rights and rolled back several policies introduced under former President Joe Biden. His administration blocked transgender girls from participating in female sports and removed the “X” gender marker option from U.S. passports.
Trump has also consistently criticised DEI programmes in schools and workplaces, arguing that they unfairly disadvantage white Americans, a key segment of his support base.