US President Donald Trump has suspended the distribution of aid via USAID. Ukraine is currently its biggest recipient, reports Statista.
US President Trump has suspended the work of USAID. Ukraine is the biggest loser, as in 2023 the agency spent $16bn on Ukraine, by far the biggest recipient of its help. / bne IntelliNews
The website of the United States Agency for International Development went dark over the weekend and employees were put on leave, as Elon Musk said on Monday, 3 February, that President Trump wanted to shut down the largest disburser of US foreign aid. The remarks were made by Musk during a live stream discussing the work of his government task force, the so-called Department of Government Efficiency, that he was appointed by the president to lead. Media reports meanwhile said that USAID could be absorbed into the State Department, while many of the projects it supports – from health to infrastructure and disaster-relief programs – would be slashed significantly. USAID spending equals less than 1% of the federal budget.
The United States Agency for International Development, USAID for short, is the biggest dispenser of US foreign aid, according to the federal website Foreignassistance.gov. It disbursed almost $44bn in the fiscal year of 2023 (latest available), with $16bn going to Ukraine. The number represents more than 60% of all US foreign aid listed on the website. The agency pays out only economic aid, with military aid being handled by the Department of State and the Department of Defence.
After Ukraine, USAID payments were predominantly going to the Middle East and Africa in 2023. Ethiopia, Jordan, Afghanistan and Somalia all received more than $1bn from USAID that year. US aid recipients are found all over Latin America, Africa, Asia and Eastern Europe. Together with the Department of State/Defence spending, which focuses on the Middle East even more due to military aid components, it is the widest-ranging US foreign aid paid out.
The details of the peace deal presented today by US special envoy Steve Witkoff are consistent with the report in the Financial Times discussed in my previous article and with Larry Sparano in the posted interview. Putin will halt the Russian advance prior to driving Ukrainian soldiers out of all of the territory that has been reincorporated into Russia. It appears to be the case that the borders between Russia and Ukraine will be the current front line, so Putin is withdrawing Russia’s claim to the Russian territories still under Ukrainian occupation.
Russia and the US seem near a Ukraine peace deal. Kyiv’s role may be moot.
President Donald Trump’s hopes of securing a quick Ukraine peace deal hang in the balance after Washington’s envoy, Steve Witkoff, held his fourth Kremlin meeting with Russian President Vladimir Putin Friday.
