THE DOMINO EFFECT OR HOW FUNDING CUTS FROM USAID AND OTHER PROGRAMS IMPACT THE UKRAINIAN CIVIL SOCIETY SECTOR

Vladyslava Andrushchenko
Project manager
Author

The recent reduction in U.S. financial aid to Ukraine has created serious challenges for the country’s humanitarian and recovery efforts. American support has played a key role in helping Ukraine resist russian aggression and rebuild its communities. Changes in U.S. foreign policy are already having real consequences, putting at risk critical programs that millions of Ukrainians rely on every day.

While most media attention focuses on military aid, humanitarian and recovery initiatives are just as essential. Funding cuts are impacting the work of many non-governmental organizations (NGOs), including those assisting people on the ground since the beginning of the full-scale invasion. These organizations provide food packages to frontline towns, rebuild infrastructure, organize evacuations, offer medical and psychological support, restore housing for displaced families. Much of this work has been made possible thanks to U.S. funding.

Now, this vital support is disappearing, leaving many organizations at risk of shutting down their programs entirely.

The Scale of the Problem

Since the start of the full-scale invasion, USAID alone has provided over $7.6 billion for humanitarian and development programs in Ukraine. In addition, the U.S. has given another $30 billion in direct budget support to the Ukrainian government.

By the end of 2024, there were 39 active USAID programs in Ukraine, with a total budget of $4.28 billion. In 2024 alone, the U.S. provided $6.05 billion in aid, including $3.9 billion in direct budget support. The largest portions of this funding were directed to economic recovery ($1.05 billion), humanitarian aid ($580 million), and human rights protection ($340 million).

However, the consequences were felt immediately after funding was reduced or suspended. Dozens of charities and humanitarian groups, including local NGOs, were forced to scale back or shut down their programs. Job cuts, project closures, and reduced services have left tens of thousands of Ukrainians without access to healthcare, education, and psychological support. Organizations that previously assisted families with children, people with disabilities, and patients requiring urgent treatment can no longer operate on their former scale.

The Reality on the Ground

For many organizations, the situation has become critical. Practically overnight, they lost the ability to help those who need it most.

Imagine a mother who fled a war zone and relied on humanitarian aid to feed her children, only to find the food distribution center has shut down. Or a wounded veteran in need of rehabilitation who now faces endless delays because of funding shortages. Thousands of displaced people living in temporary shelters are left uncertain about their future as housing reconstruction projects have stopped.

Psychological support programs have also come to an end. A woman who lost her husband can no longer attend the therapy sessions where, for the first time in months, she had felt safe enough to speak about her grief. Children who had started adapting to life after evacuation are losing access to classes that gave them a sense of security and stability. Others, who began learning a new profession through reintegration programs, are now forced to stop because of a lack of funding.

In some communities, mobile teams have ceased operations. These teams delivered medicine, food, and psychological support to remote villages. Now, those residents are left to cope on their own.

This is the reality in Ukraine today. The work of charities, volunteer groups, and humanitarian organizations is not just supplementary—it is often the only help available to people.

How the Cuts Affect Our Organization

Even though our organization did not receive direct funding from USAID or other U.S. government sources, the suspension of this aid has significantly affected our work.

The reduction in U.S. support has impacted the entire charity sector, including our partners who collaborated with American donors. Many of them are now facing serious difficulties, making it harder to implement joint projects. Initiatives that were stable just yesterday now have little or no funding.

Another challenge is the sudden increase in people seeking help. Those who previously received support from other organizations are now turning to us. But our resources are limited, and it is becoming increasingly difficult to meet this growing demand.

Overall, the cuts in U.S. funding have triggered a domino effect. Some international donors have paused their programs; others are shifting their priorities and redirecting funds to different regions or sectors. This leads to delays, smaller aid packages, and a general slowdown in the work of the entire civil society sector. Even with a sustainable development model and diversified fundraising, our organization is feeling the strain. It has become harder to plan projects, predict the level of support we can offer, and guarantee consistent aid to vulnerable groups.

The impact of U.S. funding cuts is also evident in the medical facilities we support. Some hospitals report that equipment programs they relied on have stopped. New machines are no longer being delivered. International training programs for doctors have closed, slowing the adoption of modern treatment and rehabilitation methods. The situation is especially serious for programs that provide patients with rehabilitation aids—orthoses, prostheses, and wheelchairs. Previously, patients could receive these within three days; now, they may wait up to three months.

Over the past ten years, Ukraine’s charity sector has developed steadily. Thanks to this progress, we have not only responded quickly to emergencies but also promoted a culture of mutual support and social responsibility. Weakening this sector risks slowing down progress, depleting vital resources, and leaving the most vulnerable without help.

Reaction of the Charity Sector and Donor Community

In this situation, civil society and charitable organizations are joining forces, seeking new sources of support and new formats of cooperation. Some donor organizations are revising their approaches, focusing on targeted but longer-term support and assisting projects that bring about systemic changes.

Despite the challenges, many partners and donors remain committed to Ukraine and are looking for ways to continue their support, even with limited resources.

For charitable organizations, this is a period of adaptation and searching for new solutions. However, people’s needs are growing faster than the capacity to respond. There is no time for hesitation—it is necessary to create sustainable funding mechanisms, build new partnerships, and explore alternative models of support right now. Only by doing so can we maintain the necessary level of assistance and prevent the shutdown of vital programs.

Why It Is Important to Continue International Support for Ukraine

This is not just about material resources. It is about preserving space for the development of civil society, supporting democratic processes, and protecting human rights. Charitable and humanitarian organizations are among the pillars of this system. And when they are unable to do their work, the very foundation of a democratic society becomes weaker.

Ukraine needs stable support from its partners more than ever as the war continues and humanitarian challenges become increasingly complex. Every day of support matters, and to those who continue to stand with Ukraine, we express our sincere gratitude. However, this support remains urgently needed because today, it not only saves lives but also strengthens the foundation for the future.

Share via
facebook Linkedin