Phl secures P3B U.S. aid as rare exemption from aid freeze

Despite a broad suspension of U.S. foreign assistance under the Trump administration, the Philippines has secured a P3-billion grant. This marks one of the few exceptions to Washington’s current aid policy.

The announcement came after President Ferdinand Marcos Jr.'s meeting with U.S. President Donald Trump at the White House on 23 July 2025. Among the outcomes of the visit was a commitment from the U.S. Department of State to work with Congress on allocating P825 million, or $15 million. The assistance is intended to support key sectors including transport, logistics, energy and semiconductors, and to help attract private investment while generating local jobs.

This development follows the earlier decision by the United States to halt foreign aid programs across most sectors. The Trump administration said these forms of assistance no longer aligned with its policy direction. President Trump also remarked that such aid was "in many cases antithetical to American values."

“The United States is our oldest and only treaty ally. And my visit to meet the new president is important in advancing our historic and dynamic cooperation, mutual respect and shared strategic interest,” Marcos said in a statement.

This is the second time the Philippines has received an exemption from the U.S. aid freeze. The first involved the retention of $500 million in military support to aid in the modernization of the country's defense forces.

According to data published on ForeignAssistance.gov, the Philippines ranked 32nd among recipients of U.S. aid in 2023. Eighty percent of the support was directed toward economic programs, while the remaining 20 percent went to military-related assistance. The total aid reached $258.4 million, or nearly P15 billion.

The newly pledged aid aims to reinforce the country’s economic security by supporting programs that create jobs and strengthen industries. It also reflects growing cooperation between the Philippines and the U.S. at a time of regional transition.

The aid comes ahead of the Philippines’ assumption of the ASEAN chairship in 2026. Officials are working to align national development goals with the ASEAN Vision 2045, which includes promoting digital trade, advancing sustainable and creative industries, and empowering micro, small and medium enterprises.

President Marcos says the funding reflects renewed international confidence in the country’s development agenda, and offers an opportunity to strengthen both domestic growth and regional collaboration.