Grants under threat: which communities and businesses in Mykolaiv region may be left without support

The decision to stop funding programs and projects by the United States Agency for International Development (USAID) came as a surprise to Ukrainian government agencies and civil society organizations across the country, including in the Mykolaiv region. Calls for help began to appear on social media due to the loss of 80% of funding.

This was reported by News.pn with reference to an article by Ekonomichna Pravda.

The USAID office in Ukraine was ordered to suspend funding for all programs after the US State Department decided to conduct a 90-day audit of international aid.

In 2024, Ukraine received $6.05 billion from USAID, of which $3.9 billion came as a grant to finance non-military state budget expenditures. The rest of the funds were allocated for economic development ($1.05 billion), humanitarian assistance ($580 million), and democracy and human rights promotion ($340 million).

USAID is implementing a number of long-term programs in Ukraine, with funding to last until 2029. According to the Secretariat of the Cabinet of Ministers and the USAID website, as of December 31, 2024, there were 39 programs in Ukraine with a total budget of $4.28 billion. They were divided into five main areas:

• Democracy, Human Rights, and Governance - $1.09 billion;
• Economic development - $1.15 billion;
• Critical infrastructure - $1.4 billion;
• Healthcare - $381.8 million;
• Humanitarian assistance and transition - $252 million.

Mykolaiv Mayor Oleksandr Senkevych confirmed that USAID had suspended funding for projects in the city.

"We have received an official notification of the suspension. We are keeping in touch and analyzing the situation to determine the next steps," he said.

The suspension of funding affected both government agencies and NGOs in the Mykolaiv region. The projects that lost funding include:

1. "Media Program in Ukraine, which supported the Mykolaiv Center for Investigative Journalism and Mykolaivski Novyny to increase public access to quality information.
2. "Democratic Governance in Eastern Ukraine" - helped to build trust between citizens and the authorities, and to engage citizens in community development.
3. "DOBRE - Decentralization Brings Better Results - helped communities improve their self-governance and engage citizens in decision-making.
4. "GOVERLA - Improving the Efficiency of Local Self-Government - aimed at institutional support for local councils and promoting the recovery of regions affected by the war.
5. "Energy Security of Ukraine - supported by JSC Mykolaivoblenergo, Mykolaivoblteploenergo and other enterprises that ensure energy stability in the region.
6. "SAFE Med - Safe and Affordable Medicines - aimed at supporting medical institutions, including Mykolaiv Regional Hospital and pharmaceutical companies.
7. "Counteracting Tuberculosis" - funded by the Mykolaiv Regional Phthisiopulmonary Medical Center.
8. "REACH 95: Services for HIV-positive people" was supported by the Health Department of Mykolaiv Regional State Administration.

On January 28, the U.S. State Department revised its decision to introduce exemptions for humanitarian programs that provide medicines, medical services, food, shelter, and other critical assistance.

Deputy Head of the President's Office Iryna Vereshchuk announced "substantial consultations" with the United States on resuming funding for humanitarian projects. President Volodymyr Zelenskyy instructed the government to identify priority programs that could be funded from the state budget.

Since the start of the full-scale war, USAID has provided Ukraine with $2.6 billion in humanitarian aid and $5 billion in development assistance. Another $30 billion has been provided as direct budget support. Funding for some programs has now been restored, but the question of restoring other key initiatives remains.

USAID is an important partner of Ukraine in the areas of economic development, energy, healthcare, and local government. The further fate of the projects depends on the outcome of negotiations with the US and the search for alternative sources of funding.

Recently, the Odesa-based independent media outlet Intent, which has been informing residents about events in the region for more than 15 years, faced financial difficulties. The publication has always operated without the support of business or politics, has not received government funds and has maintained its independence.

Previously, international grants covered a significant part of the costs, but due to changes in the global context, funding has decreased. The editorial board appeals to all concerned to support independent journalism. Despite the difficulties, the publication does not intend to give up and is confident that Ukrainians will help preserve honest and professional journalism in the city.

Анна Бальчінос