What does USAID fund in Ukraine - which sectors are under threat?

The US has suspended external funding under USAID programmes. During a full-scale war, Ukraine is the largest recipient of USAID assistance. Find out how this will affect economic development

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Over the past three years, the United States has become one of Ukraine's key partners in providing financial and humanitarian assistance. Through the U.S. Agency for International Development (USAID), Ukraine has received record amounts to support the economy, strengthen democratic institutions, and develop social and humanitarian projects. However, the recent decision by the US State Department to temporarily suspend almost all foreign aid has put a number of important areas previously funded by the US at risk.

Major USAID funding sources

Rapid growth in 2022-2023

According to estimates by Slovo i Dilo, before the full-scale invasion of Russia in 2022, USAID support for Ukraine was relatively modest:

▪️ 2021 - $0.2 billion;

▪️ 2022 - $9 billion;

▪️ 2023 - $16 billion.

During the full-scale war, Ukraine became the largest recipient of USAID assistance. In 2023, the amount reached a record $16 billion.

Reduction in 2024

According to data for 2024, the planned amount is $5.4 billion, which is almost three times less than in 2023. However, even this figure remains significant.

Where are the funds going?

Although the main item of USAID spending is economic development support (more than half of the allocated funds), the funding also covered other important areas:

Economic development

▪️ 2022: $8.6 billion

▪️ 2023: $14.6 billion

▪️ 2024: $4.3 billion

These funds were used to support small and medium-sized businesses, promote exports, restore infrastructure and create new jobs.

Administrative costs (functioning of the USAID programme itself)

▪️ 2022: $23.9 million

▪️ 2023: $30.6 million

▪️ 2024: $53.3 million

Humanitarian aid

▪️ 2022: $205.1 million

▪️ 2023: $1.1 billion

▪️ 2024: $637 million

Development of democracy, human rights and governance

▪️ 2022: $132.4 million

▪️ 2023: $196.8 million

▪️ 2024: $286.1 million

Healthcare

▪️ 2022: $24.4 million

▪️ 2023: $43.4 million

▪️ 2024: $57.2 million

Peace and security

▪️ 2022: $16 million

▪️ 2023: $66.8 million

▪️ 2024: $22 million

Education and social services

▪️ 2022: $1 million

▪️ 2023: no separate line was specified

▪️ 2024: $20 million

Prior to the outbreak of full-scale war, USAID's top priority in Ukraine was to support democracy and human rights, but since 2022, the focus has shifted to economic recovery and direct humanitarian assistance.

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Funding freeze

Earlier, US President Donald Trump ordered a 90-day suspension of foreign aid to conduct an audit and check whether the funding is in line with the new White House policy. As a result, the US State Department froze almost all foreign aid, including USAID projects in Ukraine.

According to Iryna Vereshchuk, Deputy Head of the Presidential Office, the suspension of funding is a serious challenge, but not the first or last test for Ukraine. She emphasised that substantive consultations with American partners are planned in the near future to resume the programmes as soon as possible.

Mykhailo Podoliak, an adviser to the head of the Office of the President, also noted that after the audit, the United States is likely to resume financial support for humanitarian projects in Ukraine. However, while the pause continues, Ukraine is forced to look for alternative sources to support programmes aimed at helping children, veterans, people with disabilities and other socially vulnerable groups.

We remind you! The U4U programme for Ukrainians has been suspended in the United States, so it is still impossible to get protection in the country. For now, Ukrainians can travel to the US on a general basis. We told you about the proven ways to legally migrate to the United States.

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