USAID closure threatens continuity of US aid programs in Ukraine, insiders warn

The United States Agency for International Development (USAID), a vital pillar of US assistance to Ukraine since Russia’s invasion in February 2022, is officially being shuttered as the State Department assumes control of foreign aid programs.

Former officials and insiders warn this move risks disrupting critical support to Ukraine and could jeopardise the future of existing programmes, Caliber.Az reports citing foreign media.

USAID has provided over $30 billion in direct budget support and more than $3 billion in humanitarian aid to Ukraine since 2022, managing 39 active programmes with a combined budget of $4.28 billion. These efforts have been instrumental in sustaining government operations, public services, emergency response, and infrastructure repair amid ongoing conflict.

However, as reported by Kyiv Post, Secretary of State Marco Rubio announced on Tuesday that USAID will no longer administer foreign assistance globally.

Instead, the State Department will manage any aid initiatives the Trump administration opts to continue, shifting the focus towards “prioritizing trade over aid, opportunity over dependency, and investment over assistance.”

Senior State Department officials characterised USAID’s model as a “failed engagement” that fostered dependency rather than independence, stating: “We want to see trade deals, compacts, agreements to work together on stuff… more investment from our partners, co-investment.”

Two former senior USAID officials who worked closely with Ukraine programmes expressed concern over the abrupt transition. One noted, “Everyone at USAID was ready to work with the administration to figure out what an ‘America first’ policy and program implementation could look like in Ukraine,” highlighting prior discussions about supporting peace efforts and mineral deals.

Yet, they warned that “when push comes to shove,” the US Embassy in Kyiv lacks the embedded relationships USAID had to respond effectively to events like the Kakhovka Dam explosion and the liberation of Kherson and Kharkiv.

“By doing things on the ground, with the USAID brand, Ukrainians and Ukrainian government officials knew they had a reliable partner and that helped the US government on the policy front,” another former employee said.

While a senior State Department official insisted there would be no “operational gap” and that “life-saving work… will continue and be made more efficient,” insiders painted a grimmer picture.

They reported only “a handful” of USAID staff—around six to seven—were transferred to the State Department under a rushed internal hiring process, with unclear legal mechanisms to sustain contracts.

“Many of the implementers of these programs have gone bankrupt, and there has been no real opportunities to discuss ‘America first’ policy and strategy in Ukraine,” one former official warned.

The overarching fear among former USAID personnel is that the Trump administration and State Department “will try and make decisions for Ukraine, not with Ukraine,” risking the disintegration of what has been “likely our strongest ally in Eastern Europe” and a crucial partner in the defence of democracy against Russian aggression.

By Aghakazim Guliyev