At the close of January, a pivotal moment emerged in the humanitarian landscape—a decision by the Trump administration to halt billions of dollars in foreign aid administered by the US Agency for International Development (USAID) and the State Department. This unexpected turn sent shockwaves through humanitarian organizations worldwide.
Nowhere was this more palpable than in Ukraine, a nation that has received approximately $7.6 billion in humanitarian aid and development assistance since the onset of Russia’s full-scale invasion. The stark reality of this funding freeze has left humanitarian actors grappling with uncertainty.
“It was completely unforeseen,” remarked Ivona Kostyna, chairperson of Veteran Hub, during a conversation with RTÉ News from her office in Kyiv. “We anticipated change, but the immediacy and magnitude of the situation were beyond comprehension.”
Veteran Hub is not just another charity; it serves as a beacon of hope for Ukrainian war veterans and their families, offering psychological support and employment guidance. With centers spread across Vinnytsia, Kyiv, and Dnipropetrovsk, their mission has become increasingly urgent amidst these tumultuous times.
Ms. Kostyna’s narrative resonates with the stories of countless humanitarian workers around the globe, many of whom partner with USAID. Upon receiving the grim news on January 24 that their funding would be frozen, Veteran Hub faced a dire predicament—slashing 31 out of 100 positions.
Moreover, the impacts were immediate and far-reaching: around 400 inquiries at Veteran Hub centers went unanswered in that last week of January alone. “We received a stop-work order that left us no time to reimagine or secure contracts intended for the long haul,” lamented Ms. Kostyna.
“For us, this means an inability to assist our clients or pay salaries to our team—individuals who have already borne the weight of tremendous loss.”
Fortunately, local authorities in Vinnytsia along with other benefactors stepped in, ensuring that the charity’s staff would continue to receive salaries through February for three months. While this offers a temporary reprieve until the end of April, the looming uncertainty casts a long shadow over the future of their humanitarian endeavors.
President Donald Trump’s sweeping executive order placing a 90-day freeze on all foreign aid has led to rampant speculation about the fate of established agencies like USAID. As the new administration reevaluates its charitable commitments, it raises a pressing question: how much of the over $64 billion allocated to foreign aid this year will be retrenched?
Although funding earmarked for essential food aid programs remains untouched, the very existence of USAID hangs in a precarious balance. On February 7, the agency’s website issued a stark announcement, detailing that all “direct hire personnel” would be placed on administrative leave, with only senior leadership retaining their positions. With around 10,000 employees worldwide, this represents a dramatic shift.
The United States has long stood as the leading purveyor of humanitarian aid globally. Last year alone, American contributions constituted about 41 percent of total global assistance, according to figures from the United Nations Office for the Coordination of Humanitarian Affairs. Yet, this shift in funding strategy aligns closely with the Trump administration’s ‘America First’ doctrine—a campaign promise emphasizing the prioritization of domestic concerns over international obligations.
Marco Rubio, who fervently advocated for USAID’s mission just three years ago, now leads the charge to review its operations as Secretary of State. His transformation underscores the unpredictable nature of political priorities.
This funding freeze has repercussions that extend beyond Ukraine’s borders; it has severely impacted humanitarian efforts in neighboring countries like Poland, which recently accommodated over one million Ukrainian refugees. “In an instant, we had to pull our staff from ongoing projects,” a humanitarian worker in Warsaw told RTÉ News, revealing the emotional toll on individuals navigating desperate circumstances. “Our personnel are deeply concerned; we work with vulnerable populations, and disruption like this can harm their mental well-being.”
USAID has enjoyed a presence in Ukraine since the early 1990s, shortly after the nation secured independence from the Soviet Union. The agency’s contributions have transcended mere financial assistance. Of the $7.6 billion allocated to Ukraine-based initiatives since February 2022, nearly $5 billion has been designated for development assistance.
Furthermore, USAID’s budgetary support has reached approximately $30 billion, financing everything from bomb shelters and project staff salaries to local procurement efforts. Additionally, the agency has provided vital guidance in reforming the energy sector and enhancing public governance.
Dmytro Boyarchuk, an esteemed economist based in Kyiv, stated, “USAID has been instrumental in fortifying Ukraine’s agricultural and energy sectors amid ongoing conflict. The agency has facilitated equipment purchases to replace destroyed assets—this support has proven critical for farmers needing liquidity.” Head of CASE, a think tank, Mr. Boyarchuk emphasized that a lack of forthcoming USAID financing could force many local organizations to radically alter their operations to remain viable.
USAID has also been pivotal in fostering independent media outlets in Ukraine, a crucial countermeasure against the rampant tide of Russian disinformation. One such outlet, ‘Ukrainer,’ showcases Ukrainian culture and history through articles and videos in multiple languages. Its founder, Bohdan Logvynenko, expressed concern over their long-term planning, stating, “While we never relied solely on one donor, the cessation of USAID funding undeniably constrains our capability to sustain certain projects.”
Interestingly, some observers have noted that USAID’s flexible approach towards funding diverse initiatives stands in stark contrast to the rigid protocols enforced by the European Union. Innovative proposals like financing independent media and supporting agriculture are emblematic of US soft power—yet they appear out of sync with the current administration’s worldview.
Reflecting on this seismic shift, Tammy Bruce, a spokesperson for the US Department of State, articulated the administration’s stance: “We are committed to reassessing and realigning foreign assistance in service of American taxpayers. This is not merely a financial decision; it is a moral imperative.”
As the dust settles from the freeze in funding, European Union resources may play a critical role in alleviating the deficits caused by the withdrawal of American aid. Notably, the EU for Ukraine Fund and humanitarian assistance have collectively reached around €2 billion since Russia’s invasion commenced.
Regardless, the abrupt cessation of US foreign aid has forced Ukrainian NGOs to initiate contingency plans and search for alternative funding. “We do not have the luxury of waiting for US policy to unfurl,” Ms. Kostyna articulated. “Our need for sustainable solutions is urgent, and as the immediate crisis abates, we must embark on proactive fundraising efforts.”
Edited By Ali Musa
Axadle Times International – Monitoring
