The move is in response to throngs of central Americans fleeing violence in their nations and seeking asylum in the US.
Trump further threatened to close the border altogether, if Mexico does not do more to stop the migrants crossing over.
“I’ve ended payments to Guatemala, to Honduras and El Salvador,” said Trump.
“No money goes there anymore. We were paying them tremendous amounts of money and we’re not paying them any more because they haven’t done a thing for us.”
The BBC reported that Guatemala, Honduras and El Salvador received $248m, $175m and $115m respectively in aid in 2017.
Homeland Security secretary Kirstjen Nielsen revealed there has been a drastic increase in asylum seekers and the US government is currently taking care of over 6,000 migrant families and 1,200 unaccompanied children.