Grant funds previously provided to Ukraine through the United States Agency for International Development (USAID) will be replaced through state and regional budgets, as well as via loans and support from other international donors.
Viktor Mykyta, Deputy Head of the Office of the President of Ukraine, said this in a comment to Ukrinform.
“Currently, we are looking for resources in the state budget (although the needs of the Ukrainian Armed Forces remain the primary priority), as well as in regional budgets, working closely with heads of regional administrations. We will strive to compensate for the lost funds in affected sectors. We are also engaging with the National Bank and financial institutions regarding loan programs. In the near future, we plan to hold a meeting with representatives from communities and regions, along with officials from the Ministry of Economy, the Ministry of Finance, and banking institutions, to find options for replacing suspended USAID funding beyond the state budget, including loans based on community capacities,” Mykyta said.
He noted that, following instructions from President Volodymyr Zelensky, central government authorities, along with regional and local officials, are analyzing suspended programs planned for 2025 that relied on U.S. financial support.
Mykyta highlighted four priority areas where funding must be secured. The first involves financing border checkpoints, particularly in the Chernivtsi, Lviv, and Zakarpattia regions. He noted that Ukraine is collaborating with the Deputy Prime Minister for Ukraine’s Recovery and Minister for Communities and Territories Development, Oleksii Kuleba, on this issue.
“The president has instructed the concerned ministry to review funding allocations for other projects and focus on supporting this sector,” Mykyta added.
At the same time, Ukraine has lost donor funding for certain cogeneration projects.
“Some projects have already been implemented. During Russia’s full-scale war against Ukraine, USAID provided Ukrenergo with nearly $130 million worth of equipment and technical support. However, a significant portion of the planned funding remains unfulfilled. We will assess this issue based on the current energy situation in Ukraine,” he said.
USAID had also financed the development of master plans for up to seven communities, with each plan costing around UAH 20 million.
“Spatial planning or a master plan is crucial for communities as it directly impacts their economic development. Investors use these plans to understand the community’s direction, future industrial capabilities, population dynamics, and job availability,” Mykyta said.
Additionally, seven NGOs that provided psychological and legal assistance to veterans lost USAID funding — ranging from UAH 200,000 to UAH 1 million per month.
“Veteran support programs are a top priority. These include veteran hubs, support spaces, educational initiatives, and veteran entrepreneurship programs. Regional authorities have been instructed to develop mechanisms to sustain these projects using local budgets and alternative donor support. Resources for this exist,” Mykyta said.
Regional military administrations are already coordinating with NGOs that implemented veteran support projects to create a roadmap for further collaboration.
“It’s important to note that Ukraine is expanding a network of veteran support centers funded by the state budget. There should be no disruption in providing services to veterans, as these centers are state-supported. The USAID-funded initiatives were an additional component,” Mykyta added.
President Volodymyr Zelensky has asked the European Bank for Reconstruction and Development (EBRD) to assist with veteran support programs following the suspension of USAID operations.
On January 20, U.S. President Donald Trump signed an executive order suspending all foreign aid programs for 90 days pending a review to determine whether they align with his policy objectives.
Source: Ukraine's presidential office outlines plans to compensate for frozen USAID programs
