Cyber diplomacy funding halted as US issues broad freeze on foreign aid

The U.S. State Department’s move to halt nearly all existing foreign assistance applies to the programs and funds of its relatively young cyber diplomacy bureau, according to two people familiar with the matter.

Secretary of State Marco Rubio sent the directive to all consular and diplomatic posts on Friday, according to multiple news reports. It follows President Donald Trump’s executive order on Monday that paused new obligations and disbursements of foreign aid for 90 days, pending a review of the efficiencies and consistency with his foreign policy.

The guidance, which has not been released publicly, includes the Bureau of Cyberspace and Digital Policy, these two people said, essentially bringing it to a standstill. 

The freeze comes shortly after it turned on a multimillion-dollar spigot to pay for a slew of initiatives meant to promote U.S. values around the world.

The bureau was created by Congress in 2022 to serve as the focal point for cyber diplomacy against potential threats and pursue international norms on emerging technologies. 

Its foreign assistance accounts have grown from $17 million to more than $90 million since it was established, with funds derived from the 2022 CHIPS and Science Act, its baseline budget and its Digital Connectivity and Related Technologies Fund — which lawmakers created in 2023 with a $50 million reservoir.

To date, efforts have included, among others, sending a first-of-its-kind cyber incident response team to Costa Rica, landing a subsea cable in Tuvalu and a training workshop with members of the Vietnamese government focused on malicious North Korean activity.

Before leaving office on Monday, Nate Fick, the nation’s first cyber ambassador, said he had spoken with Trump transition officials about maintaining the bureau’s initiatives.

“Our foreign assistance is essential in our ability to meet the growing demand for tech-related partnerships, and especially with regard to urgent cyber issues,” he told Recorded Future News.

In the case of Costa Rica, he described the U.S. program used there as a “diplomatic tool — not just to remediate cyber incidents, but to prove to partners the value of working with us” and to “build consensus against the malign actors that conduct these attacks.”

Trump and his allies have long derided foreign aid as wasteful. He has not yet announced a nominee to fill Fick’s position. 

Jennifer Bachus, the bureau’s principal deputy assistant secretary, is serving as the acting chief.

The State Department did not respond to a request for comment.