WASHINGTON — The Trump administration directed American diplomats worldwide to seek official support for a "trade over aid" declaration before its introduction at the United Nations later this month. Secretary of State Marco Rubio ordered diplomats on Wednesday to start gauging support for the proposal, which would represent a shift away from direct aid to poor nations in favor of increased trade led by private companies.

State Department Principal Deputy Spokesperson Tommy Pigott confirmed the initiative on Wednesday. "The idea that trade and free market capitalism is the surest path to prosperity has been proven by the facts and by history," Pigott said. "Those calling for 'aid not trade' are really arguing for lining the pockets of a corrupt NGO industrial complex," he said. The U.S. mission to the United Nations is expected to host a formal signing event for the declaration before the end of April.

Ambassador Mike Waltz previewed the effort during testimony before the Senate Foreign Relations Committee on Tuesday. The initiative has four stated aims, according to a State Department official: advancing pro-business reforms in developing economies, facilitating government-to-private sector dialogue to attract investment, highlighting countries that have pursued free-market development, and brokering business partnerships between developing nations and U.S. companies or international organizations.

The declaration comes after the administration moved to restructure American foreign assistance. Weeks after President Trump's second inauguration, plans were unveiled to eliminate approximately $60 billion in foreign aid spending by cutting 92% of grants issued by the U.S. Agency for International Development, before USAID was integrated into the State Department. An audit identified nearly 15,000 grants and targeted almost 10,000 for elimination, with the majority issued by USAID.

The State Department vowed to address decades of institutional drift and reform the way Washington delivers foreign assistance. A State Department memo stated that every dollar spent and every program funded must be justified by whether it makes America safe, stronger, and more prosperous. A U.S. diplomatic cable stated that government aid flowing from developed to developing countries has had only limited impact, has not solved economic development challenges, and has often created dependency, inefficiency, and corruption.

The U.S. reductions come as other major donor nations have also scaled back their aid commitments. Twenty-six of 34 donor nations shrank their aid budgets in 2025, with France, Germany, and the United Kingdom reducing their budgets by double-digit percentages, according to preliminary figures from the OECD. The 17 largest donor nations combined are on course to cut more than $60 billion in aid between 2023 and 2026, according to Chatham House estimates. British Prime Minister Keir Starmer announced in February that the United Kingdom would reduce its aid commitment to 0.3% of gross national income by 2027, its lowest share since 1999, to help fund an increase in defense spending.

A study published in the Lancet in February projected that global aid cuts, if sustained, could result in at least 9.4 million additional deaths by 2030, rising to 22.6 million under more severe scenarios. The Center for Global Development estimated that USAID cuts alone may have contributed to between 500,000 and one million deaths in 2025 relative to previous trajectories.