US Secretary of State Marco Rubio announced Tuesday that the United States Agency for International Development (USAID) will officially cease implementing foreign assistance programs as of July 1, Kyiv Post’s Chief Correspondent in Washington DC Alex Raufoglu reported on X.
USAID, established in 1961, has been the primary US government agency responsible for administering civilian foreign aid and development assistance worldwide.
“As of July 1st, USAID will officially cease to implement foreign assistance,” Rubio said, according to a readout of his speech shared by Kyiv Post’s correspondent.
“We will do so by prioritizing trade over aid, opportunity over dependency, and investment over assistance,” Rubio added
According to an analysis by the Assessment Capacities Project (ACAPS), since the Russian invasion in 2022, the US government has provided over $30 billion in direct budget support to the Ukrainian government through USAID and related mechanisms to help sustain government operations and public services.
Humanitarian assistance from USAID to Ukraine has exceeded $3 billion between 2022 and the end of 2024, covering approximately 30% of Ukraine’s humanitarian response costs. As of late 2024, USAID was managing 39 active programs in Ukraine with a total budget of $4.28 billion.
The closure follows a review ordered by the Trump administration earlier this year, which resulted in the cancellation of about 80% of USAID’s programs globally.
Remaining functions will be absorbed by the State Department, moving toward trade and investment rather than traditional aid.
The administration stated the change aims to reduce dependency on foreign assistance and promote economic opportunity through market-driven solutions, but critics warn the move could undermine global humanitarian efforts and diminish US influence abroad.
In Ukraine, where USAID has supported governance reforms and humanitarian aid amid the ongoing war, the closure has disrupted many projects and local organizations that depend on US funding.
For example, USAID terminated a grant agreement with the Ukraine Energy Support Fund, reducing available funds for essential energy sector equipment.
US military assistance to Ukraine is unaffected by the closure of USAID.