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Political sources in Baghdad have warned that dozens of development projects overseen by American organisations in Iraq are at risk of suspension following US President Donald Trump’s decision to freeze American foreign aid, Iraqi sources told °®Âþµºâ€™sÌýArabic language sister outletÌý.

The move is part of a broader review intended to ensure that any new or extended funding aligns with President Trump’s policy agenda.

According to the sources, many of the threatened projects relate to reconstruction, rehabilitation, and support for displaced people in northern, western, and central Iraq.Ìý

The US State Department, the Pentagon, and the United States Agency for International Development (USAID) jointly manage a substantial portfolio of projects in Iraq.Ìý

These projects have, in recent years, contributed significantly to improving infrastructure and community services in regions that have suffered decades of conflict.Ìý

A considerable portion of the funding is channelled through local agencies and organisations to support programmes focused on child welfare, women’s empowerment, and the reintegration of internally displaced persons – initiatives implemented in close coordination with local governments and ministries.

Local political sources have told Al-Araby Al-Jadeed’s reporter in Baghdad, Mohammed Al-Basim, that many projects run by American organisations may soon be scaled back or halted altogether.Ìý

Aid agencies in Iraq have reportedly stopped accepting new applications, raising fears of a potential humanitarian crisis. An anonymous Iraqi parliamentarian warned that local organisations rely heavily on external grants – primarily American, followed by European funds and contributions from countries such as Britain and Canada.

Ìý"If these grants are completely cut off, it could lead to a further erosion of civil liberties, potentially benefiting groups that might seek to dismantle civil society activities," the official explained.

A civil society activist in Baghdad also highlighted concerns over corruption within international organisations and UN agencies involved in the distribution of American aid. He noted that one project at particular risk is the relocation of Iraqi families from the Al-Hol camp in Syria to the Al-Jadaa camp in Mosul – a programme managed by USAID – along with other key initiatives such as the Recovery Programme.

The United States has halted new funding commitments – except for aid to Egypt, support for the Israeli occupation, and emergency food assistance – pending a comprehensive review of all foreign aid spending. Emergency food aid remains exempt, particularly for the Gaza Strip following a recent ceasefire between Israel and Hamas.

US Secretary of State Marco Rubio issued a memorandum stating that "no new funding commitments or extensions to current funding will be approved until each case is thoroughly reviewed in line with President Trump’s agenda."Ìý

Rubio added that the new administration is currently unable to assess whether existing foreign aid commitments are effective, non-repetitive, and consistent with US foreign policy priorities.

Bashar al-Yousef, who works with an international organisation in Baghdad, added that the US decision is not confined solely to Iraq but applies to a global freeze on American grants for 90 days.Ìý

Ahmed al-Dabbagh, deputy head of the Rashid Development Centre in Baghdad, warned that the suspension of funding may have long-term impacts on sensitive issues, including efforts to counter violent extremism and facilitate the reintegration of conflict-affected communities.Ìý