USAID halts Ukraine projects amid U.S. foreign aid freeze

Nation

26 January 2025, 06:31 PM

Author: Demian Shevko
The United States Agency for International Development (USAID) in Ukraine has been ordered to suspend all projects and expenditures following a directive from the U.S. State Department to pause foreign aid programs for 90 days to conduct an audit, Ukraine’s Suspilne reported on Jan. 26, citing a USAID staff member in Kyiv.

According to the source, USAID staff in Kyiv have not yet received detailed instructions on how to implement the directive or whether any exceptions will apply.

USAID’s press office informed Suspilne that all media inquiries regarding the suspension have been redirected to the U.S. State Department.

USAID has been instrumental in Ukraine’s recovery efforts, supporting school reconstruction, medical services, and the repair of critical energy infrastructure. However, Ukrainian organizations funded by USAID or other U.S.-backed entities have reportedly begun receiving notices to suspend activities, Suspilne noted.

For instance, Ivona Kostyna, co-founder of Veteran Hub, announced on Facebook on Jan. 26 that her organization is being forced to close its Veteran Support Line and Hub in Vinnytsia. Kostyna urged businesses to step in and support the project.

Background on the U.S. foreign aid suspension

On Jan. 20, the first day of his return to the White House, President Donald Trump signed an executive order halting international aid programs for 90 days. The order aims to "evaluate alignment with U.S. national interests and foreign policy objectives."

The Pentagon clarified to Voice of America on Jan. 23 that the suspension does not affect U.S. security assistance to Ukraine.

However, Politico, citing officials, reported that the State Department's directive could potentially freeze aid to key allies, including Ukraine, Jordan, and Taiwan, while military financing for Egypt and Israel is expected to continue.

On Jan. 24, U.S. Secretary of State Marco Rubio announced the suspension of most existing foreign aid grants for the 90-day review.

Despite these developments, Ukrainian President Volodymyr Zelenskyy stated on Jan. 25 that U.S. military assistance to Ukraine has not been interrupted.

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