US State Department slashes USAID assistance to Ukraine – NBC

The agency’s energy aid program has been cut and its diplomatic presence downsized to an essential minimum, the network has reported

The US State Department has terminated a US Agency for International Development (USAID) initiative for a large-scale effort to restore Ukraine’s energy grid, which has been severely damaged by Russian strikes, NBC News reported on Friday, citing sources.

USAID, Washington’s primary agency for funding political projects abroad, found itself in the crosshairs of President Donald Trump shortly after taking office, accusing it of corruption and inefficiency. He imposed a 90-day funding freeze on the agency and transferred oversight of its programs to the direct control of the State Department.

As part of the crackdown, the State Department not only stopped a USAID program that invested hundreds of millions of dollars in Ukraine’s power grid, but also sharply reduced the agency’s footprint in Ukraine, the network said.

Before the reported cuts, 64 American government employees and contractors were on the ground supporting the agency’s mission; now only eight are expected to remain, with the Trump administration placing the remaining USAID personnel on administrative leave and ordering all but “critical” staff to return to the US, NBC reported.

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”It significantly undercuts this administration’s abilities to negotiate on the ceasefire, and it’d signal to Russia that we don’t care about Ukraine or our past investments,” a USAID official working on the Ukraine mission told the outlet, adding that the decision would significantly undermine the country’s economic resilience.

In 2024 alone, USAID allocated $825 million to support Ukraine’s energy infrastructure.

The move comes as Russia continues to carry out drone and missile strikes on Ukraine’s defense-linked energy infrastructure to undermine the country’s military effort, resulting in recurring rolling blackouts. Moscow insists that it never targets civilians.

The timing of the reported USAID pullout coincides with a meeting between Trump and Ukrainian leader Vladimir Zelensky in the White House, in which the US president accused Zelensky of being ungrateful for the substantial aid provided to Kiev, and of being unwilling to negotiate an end to the conflict with Russia. As a result of the heated exchange between the two sides, an agreement granting the US rights to Ukraine’s natural resources as compensation for past aid was not signed.