Why is Jordan Affected by the Cuts?
Jordan, which heavily relies on foreign aid for its economy, is now facing a serious financial challenge as the economic situation continues to worsen. The country receives substantial aid from the US, including $350 million in USAID funding and direct budgetary support, which are crucial for its economic stability. While wealthy Gulf states have been key supporters of Jordan, many of these countries have reduced their financial contributions in recent years, forcing Jordan to find new ways to survive.
Economic Threat to the Hashemite Kingdom
Jordan's worsening economy poses a significant threat to the Hashemite monarchy, which has traditionally relied on government patronage to buy support from the East Bank tribes—named so for being located on the eastern side of the Jordan River when the kingdom was established. If these economic difficulties are not addressed, they could destabilize the political structure of the country.
Trump's Expectations for Jordan
During a phone call with King Abdullah II in January, President Trump expressed his hopes that Jordan would accept more Palestinian refugees in exchange for increased US financial aid. Trump said, “I told him I want you to take more aid because I’m looking at the Gaza Strip now, and it’s chaotic, really chaotic.”
Experts Weigh In on the Situation
According to Amer Sabaileh, a regional security expert and university professor based in Amman, King Abdullah II must be careful in handling the pressure from Trump. Sabaileh argues that "The worst thing now is to say ‘no’ to Trump," and stresses that Jordan needs to enhance its relationship with Israel and leverage security issues as a bargaining chip.
Meanwhile, some analysts suggest that Trump’s surprising call for the US to take over the Gaza Strip may be a negotiation tactic to extract more financial support from Arab partners, including Jordan. However, Tariq Tell, a professor at the American University of Beirut, doubts that King Abdullah II will secure additional aid from the US. He believes the meeting with Trump may not yield any benefits for Jordan.
The Future of Jordan’s Politics and Economy
As tensions rise between Jordan and the US, many are wondering about the future of the Hashemite kingdom. As a country highly dependent on foreign aid, Jordan must quickly find ways to address its growing economic and political challenges that threaten the country’s stability.
Post-war Gaza governance, reconciliation with Israel, and the diminishing influence of Gulf states will all play a crucial role in shaping Jordan’s policy direction in the future.
Trump’s decision to exempt Israel and Egypt from foreign aid cuts while leaving Jordan vulnerable raises complex economic and political issues for the Hashemite kingdom. It is hoped that King Abdullah II can find a middle ground to ensure Jordan continues to receive financial support while maintaining political stability in a region that is becoming increasingly unstable.