Watan-In a notable development regarding the future and nature of U.S.-Jordan relations, the U.S. State Department has issued an order to halt all existing and new foreign aid to all countries for 90 days.
However, Egypt and Israel were exempted from this decision, which implicitly means that Jordan—a strategic ally of the U.S.—was not included in the exemption and will be affected by the suspension of its annual U.S. aid.
Jordan heavily relies on foreign aid, including U.S. assistance, which plays a vital role in supporting the Jordanian economy, funding development programs, and maintaining the country’s stability.
Concerns Over Aid Suspension
According to observers, in recent years, there have been extensive discussions about reducing or stopping U.S. aid to Jordan, raising concerns about the potential impact on various sectors, particularly the economy, given the difficult circumstances the kingdom is experiencing.
Economic expert Amer Al-Shobaki criticized the Jordanian government, stating that it should have anticipated this situation and prepared an “emergency austerity budget” in advance, considering its prior knowledge of Trump’s potential return to power.
Controversial Decisions
The U.S. administration’s decision to freeze financial aid to Jordan comes despite a multi-year Memorandum of Understanding signed between Amman and Washington in September 2022 (covering 2023-2029). Under this agreement, the U.S. pledged to provide Jordan with at least $1.45 billion annually in economic and military aid—a 13.7% increase compared to the previous agreement.
It was also expected that by 2025, U.S. congressional-approved aid to Jordan would reach $2.1 billion annually.
This latest decision follows another order by U.S. President Donald Trump for the immediate withdrawal of the U.S. ambassador in Amman. The reasons behind the termination of the accreditation of Yael Lambert, who had only recently assumed the position, remain unclear.
Trump’s Remarks on Palestinian Displacement Spark Backlash
Trump’s recent statements regarding the displacement of Palestinians from Gaza to Egypt and Jordan have triggered widespread condemnation from both the public and officials. His remarks suggested that both countries should accept more Palestinian refugees due to the worsening humanitarian crisis in Gaza caused by the Israeli war.
Economic expert Amer Al-Shobaki urged Jordan to reject any projects that undermine Palestinian rights or threaten Jordan’s stability. He called for national unity and internal cohesion to counter shared risks and protect Jordan’s social fabric.
Al-Shobaki further argued that Jordan should have preemptively adopted an emergency austerity budget, knowing in advance that Trump’s return to power would likely lead to threats of aid cuts.
He also called on the government to take immediate measures to address pressing economic issues by eliminating unnecessary expenditures, merging independent institutions to reduce costs, cutting the budget deficit, and avoiding excessive borrowing to strengthen Jordan’s economy and reduce reliance on foreign aid.
No Cause for Concern?
A high-level Jordanian source told Al Jazeera Net that the U.S. aid freeze should not be seen as a major concern. He clarified that the decision is part of a broader evaluation process by the new U.S. administration, lasting three months, and that it applies to multiple countries, not just Jordan.
The source, who requested anonymity, stated that Jordanian officials are not worried about the aid review and that it does not indicate a crisis between Amman and Washington.
He expressed confidence that U.S. aid would resume as usual in April, after the review period ends. When asked about Egypt’s exemption from the decision, the source explained that most U.S. aid to Egypt is military, whereas aid to Jordan is predominantly economic.
The “Madman Theory” Strategy
Responding to Trump’s decision to freeze aid and his comments on resettling Palestinian refugees in Jordan, political analyst Dr. Munther Al-Hawarat remarked:
“Listening to the new U.S. president as he makes promises and threats, one gets the impression that this man can do whatever he pleases.”
Al-Hawarat noted that Trump is employing a strategy known as the “Madman Theory”, a complex political tool originally used by former U.S. presidents Richard Nixon and Ronald Reagan. Trump is now reviving it in a bold and unconventional manner.
This strategy involves creating uncertainty among both adversaries and allies, making them believe that the president’s actions are unpredictable and that he is willing to take extreme measures if necessary. This uncertainty forces opponents to act cautiously, giving Trump a stronger negotiating position.
Impact on Civil Society and Past Rejection of Palestinian Resettlement
Al Jazeera Net has learned that civil society organizations in Jordan have recently informed their staff of an immediate suspension of all projects funded by the U.S. Agency for International Development (USAID) following Washington’s decision to halt aid for 90 days. USAID provides Jordan with assistance in food security, water, shelter, healthcare, and environmental projects.
Trump’s recent remarks on resettling Palestinian refugees in Jordan have also reignited discussions about Jordan’s stance on the “Deal of the Century”, a proposal Trump promoted during his previous term in 2019. At that time, he pressured King Abdullah II to accept more Palestinian refugees. Jordanian political, parliamentary, and party leaders strongly rejected any plans aimed at displacing Palestinians or undermining the Palestinian cause.
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