One of Ukraine’s most prominent investigative media outlets, Bihus Info, calculated that thanks to its investigations, which uncovered corruption in the Ukrainian army and government, around 1.2bn billion hryvnia ($29m) had been saved and returned to the state budget.
Whether that work will continue is uncertain. Ukrainian organizations with a wide range of roles have been hit by the January 20 administration decision to freeze payments from USAID’s $50bn annual budget. On February 2, Elon Musk called USAID “a criminal organization”, although he did not provide supporting evidence.
Bihus Info, which gets around two-thirds of its total funding from the US, turned to readers to seek emergency support to continue operations. Many other major Ukrainian independent media did likewise.
USAID is one of the less-heralded elements of Washington’s efforts to aid Ukraine, reaching deep into areas of the state and civil society. Around $4.3bn of the $5bn allocated to the country in 2024 was spent on economic development. This included support for smaller businesses, export promotion, and infrastructure restoration. A part was also spent on macroeconomic financial aid.
Everything else was small by comparison. This included support for health care and humanitarian aid. Funding for independent media came from the $290m set aside for democracy, human rights, and governance.
The sums aren’t huge and yet USAID has become the backbone of the country’s independent journalism.
Since the start of the full-scale invasion, The Ukraїner, one of the most prominent Ukrainian independent media, has been giving voice to the little-known Ukrainians who fight for victory. It launched a series by reporters who had visited frontline brigades.
Bohdan Logvynenko, the head of The Ukraїner, said on January 27 that the abrupt US decision has left his publication on the brink of closure; the American money provided around 80%-90% of its funding. As a result, it is slashing spending, and among the first projects to go are the reports about combat units. Ukrainian journalists worry that the resultant dearth of news will now be filled by Russia’s well-funded disinformation outlets.
The USAID decision has also hit Russian independent media and human rights organizations. The Moscow Times reported that for Russian civil society in exile, the decision has caused the biggest funding crisis since 2015 when the acceptance of Russia’s notorious law on “undesirable foreign organizations” caused several Western private foundations to shut their Russia programs.
Almut Rochowanski, a consultant to non-profit organizations and human rights defenders, compares the current situation to the “existential panic” caused by Putin’s so-called foreign agents law in 2012.
US funding to other important projects are also under threat. According to Hanna Pozdnyakova, Deputy Mayor of Odesa, the Odesa City Heat Supply Utility has received assistance worth about $4.3m since the beginning of the war. Veterans Hub Odesa, an organization providing psychological and legal assistance to veterans in remote communities, was also left without financial support.
The funding decision might achieve what Putin’s government has failed to do. Without a shot being fired, Ukraine may lose hundreds of media outlets and NGOs; it is naive to believe that Ukraine, whose budget is under huge pressure, will find the money itself. It’s possible some media will survive with the support of local oligarchs or selling advertisements for alcohol or gambling, which are growth industries in a country at war.
For now, Ukrainians must hope that the 90-day freeze is nothing more than that. And that the funds will return to rescue vital projects.
Mykyta Vorobiov is a Ukrainian political adviser, journalist, and political science student at Bard College Berlin. For the last two years, he has been developing articles on politics and law for CEPA, VoxEurop, JURIST, and others.
Europe’s Edge is CEPA’s online journal covering critical topics on the foreign policy docket across Europe and North America. All opinions expressed on Europe’s Edge are those of the author alone and may not represent those of the institutions they represent or the Center for European Policy Analysis. CEPA maintains a strict intellectual independence policy across all its projects and publications.
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