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Trump plans to block funding to groups that promote diversity policies abroad

Carmen Paun and Nahal Toosi
Last updated: October 1, 2025 11:13 pm
Carmen Paun and Nahal Toosi
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The Trump administration plans to block U.S. funding to organizations that do work abroad on issues related to gender identity and diversity, according to a U.S. official and nonprofit groups informed of the plan.

It’s a major expansion of the Mexico City Policy, which prevents foreign groups receiving U.S. global health funding from providing or promoting abortion, even if those programs are paid for with other sources of financing.

The expanded policy would include Trump administration priorities related to “human flourishing,” said the U.S. official, who was granted anonymity to discuss policy issues that have not been formally announced.

While human flourishing typically describes a state of physical and mental wellbeing, the Trump administration sees it as including fighting racial discrimination and policies that harm women, according to the official. The policy is expected to apply to “diversity, equity and inclusion” programs, which the Trump administration considers racial discrimination, and transgender programs, which it says are harmful to women.

The State Department and the Department of Health and Human Services are working on the new policy, the U.S. official said. The State Department declined to comment. An HHS spokesperson said the department does not comment on potential future policy decisions.

Three nonprofit groups informed about the details — the Global Health Council, MSI Reproductive Choices and another one granted anonymity — said the policy is expected to apply to all non-military foreign funding to U.S-based and foreign entities, including United Nations organizations and other governments.

President Donald Trump reinstated the Mexico City Policy in January, following a tradition for Republican presidents that Ronald Reagan started in 1984. Democratic presidents have repeatedly rescinded the policy. It only applies to foreign-based groups.

The expanded policy is expected to be revealed soon, but it’s unlikely it would be during the ongoing government shutdown, the official added.

MSI and other nonprofits with knowledge of the policy worry that the Trump administration would use this new policy to compel foreign governments to change their policies around abortion and DEI and other issues the administration disavows in exchange for any kind of U.S. foreign funding.

“That’s part of what looks really insidious here,” said Beth Schlachter, a senior director of U.S. external relations at MSI Reproductive Choices.

The Daily Signal previously reported that the Mexico City Policy would be expanded.

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