The program had already received hundreds of millions of dollars in funding.
According to the publication, support for the initiative was halted this week.
“This will significantly undermine the administration’s ability to negotiate a ceasefire and sends a signal to Russia that we do not care about Ukraine or our past investments,” a USAID employee told reporters.
The employee also stated that Russia is conducting an "economic war" against Ukraine, but USAID has played a central role in helping the Ukrainian economy remain resilient.
"We have provided substantial support to the Ukrainian government to avoid a macroeconomic crisis," the source added.
USAID had previously operated with 64 staff members in Ukraine. However, after the Trump administration's decision to place nearly all of them on leave and return them to the United States, only eight agency personnel remain in Ukraine.