Ukraine Already Feeling the Effects of USAID Cuts and Reforms

(Patria) - A Ukrainian charity working with war veterans and their families has announced it has suspended its activities due to its reliance on USAID funding.

And it's not the only one. Across the country, businesses and non-profit organizations are struggling to cope with the new situation as their funding sources have been cut off.

"I am now doing everything I can to save the team. The news was a shock," Nataliia Parhitko, acting director of the charity "Dostupno" (Accessible), told the Ukrainian service of Radio Free Europe (RFE).

US President Donald Trump restricted USAID's operations when he ordered a 90-day spending freeze on January 24. Layoffs and suspensions have led thousands of people to join protests in Washington.

USAID is the primary US government agency responsible for providing civilian foreign and development assistance. It operates in over 100 countries, distributes billions of dollars in foreign aid annually, and employs around 10,000 people worldwide.

The Trump administration has criticized USAID's programs as inefficient and not aligned with US interests, arguing that some of the agency's functions could be handled by the State Department.

Critics also argue that certain social and cultural programs funded by USAID are not aligned with its core mission.

"Dostupno" has been working for years on accessibility issues for people with disabilities, a group that has grown significantly since Russia's invasion of Ukraine in 2022.

The organization's activities include helping wounded soldiers reintegrate into civilian life by providing psychological support, prosthetics, and disability benefits.

Parhitko says the charity, which employs eight people, is now seeking alternative funding and also hopes to generate additional funds through a social enterprise that will conduct architectural accessibility audits for businesses.

"We will not allow 'Dostupno' to close all projects and cease operations. Despite the funding cuts, we will continue our activities," she promised.

Currently, the organization is unable to pay its staff salaries.

Since 2022, USAID has provided billions of dollars in humanitarian aid, development assistance, and direct budget support to Ukraine. The agricultural sector in Ukraine has been a key beneficiary.

USAID stated that since 2022, it has assisted one-third of Ukrainian farmers, providing them with seeds, fertilizer, and financial resources.

One of the recipients was the All-Ukrainian Agrarian Council, a non-governmental organization that supports farmers and advocates for agricultural reforms.

Its head, Andriy Dikun, told RSE that USAID's support is crucial for small and medium-sized agricultural enterprises in former occupied and frontline areas to continue their operations or store their harvests.

"For example, grain storage bags, dryers, fertilizers, seeds. With USAID's support, land reform has been actively implemented, and now we are working together on developing irrigation reforms, supporting farmers who are establishing water user associations.

Grants, consulting services, legal support – all of this is significant assistance to Ukrainian farmers," said Dikun.

The situation also affects the Ukrainian government, with the budgets of the ministries of energy, health, and education, as well as local governments and other state agencies, being impacted.

Ukrainian MP Inna Sovsun says that as much as $325 million was secured in September last year to strengthen the energy sector, which is under constant Russian bombardment.

"We are not commenting at this time as we study all the details. Perhaps USAID can provide you with information on this matter," the press service of the Ukrainian Ministry of Energy responded to RFE's inquiry.

The USAID office in Ukraine did not respond to the question of which state programs will be suspended.

"USAID's assistance has fundamentally changed the game. It has impacted the lives of hundreds of thousands of Ukrainians, setting new standards for the weak state machinery," said Vladyslav Sodel, a photographer who documented USAID's work for eight years.

He added that he is struck by the scale and diversity of the projects funded by the agency, "from beds with mattresses in a refugee shelter... to multi-billion dollar injections into the stability of our energy grids."