(CNN)The United States is cutting off aid to the Northern Triangle, otherwise known as the Central American countries of El Salvador, Guatemala and Honduras, the State Department told CNN Saturday, one day after President Donald Trump said they had "set up" migrant caravans for entry into the United States.

"We were paying them tremendous amounts of money. And we're not paying them anymore. Because they haven't done a thing for us. They set up these caravans," Trump said Friday.

"At the Secretary's instruction, we are carrying out the President's direction and ending FY 2017 and FY 2018 foreign assistance programs for the Northern Triangle," a State Department spokesperson said. "We will be engaging Congress as part of this process."

On Wednesday, Department of Homeland Security Secretary Kirstjen Nielsen signed what she called a "first of its kind" regional compact agreement with the Northern Triangle countries aimed at preventing irregular migration, combating criminal organizations and ultimately helping with US border security.