US court blocks Trump’s funding freeze as Ukrainian aid programs hang in balance

A federal judge’s intervention offers temporary hope for Ukrainian aid organizations already grappling with suspended USAID programs affecting thousands.
American aid to Ukraine USAID
USAID funds were used to modernize Ukraine’s healthcare system. Photo: Vladyslav Sodel
US court blocks Trump’s funding freeze as Ukrainian aid programs hang in balance

A federal judge has temporarily blocked the Trump administration’s sweeping funding freeze as Ukrainian civil society organizations struggle with suspended USAID programs that have already affected thousands of beneficiaries across the countryю

Judge Loren AliKhan’s ruling on Tuesday, reported by the New York Times, came as Ukrainian organizations were already grappling with Secretary of State Marco Rubio’s earlier order to suspend foreign aid programs. While military assistance to Ukraine remains protected, numerous humanitarian initiatives have been forced to halt operations, leaving critical support services in limbo.

The impact has been particularly severe in Ukraine, which received nearly $18 billion in US aid in 2023, making it the top recipient of USAID funding. The Veteran Hub, a key support organization for Ukrainian service members, reported indefinitely closing its Vinnytsya center, which had provided over 9,900 services and handled more than 29,000 inquiries from military families since Russia’s full-scale invasion.

“Thirty-one people have already lost their jobs, and the remaining team members face uncertainty about their future,” a Veteran Hub statement reads.

USAID halt hit Ukraine hardest: Ukrainians speak out
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USAID halt hit Ukraine hardest: Ukrainians speak out

The situation varies across different USAID-funded initiatives in Ukraine. While some organizations have received immediate stop-work orders, others continue operating normally. One large-scale USAID-funded project reported no disruption to its operations or planned payments, according to an employee speaking on condition of anonymity due to lack of authorization to talk to the press.

The White House Office of Management and Budget’s acting director Matthew Vaeth had directed federal agencies to “temporarily pause all activities related to obligation or disbursement of all Federal financial assistance,” specifically targeting diversity, equity, and inclusion programs.

The court’s temporary block will remain in effect until 3 February 2024, when Judge AliKhan is expected to make a more permanent decision. Meanwhile, organizations across Ukraine are seeking emergency funding from alternative donors to maintain their operations.

The ruling comes amid a broader policy shift in Washington, as evidenced by a memo from the Office of Management and Budget that criticized using “Federal resources to advance Marxist equity, transgenderism, and green new deal social engineering policies.”

For Ukraine’s civil society organizations, the timing is particularly challenging. A Poland-based Ukrainian researcher working on Russian indoctrination of Ukrainian children told Euromaidan Press that her employer must now use reserve funds for January salaries. “Some colleagues who received the stop order are already inquiring about the American unemployment system,” she said, speaking on condition of anonymity.

The temporary judicial stay offers a brief respite, but Ukrainian organizations face continued uncertainty. While Ukraine was the top recipient of US aid in 2023, receiving nearly $18 billion with $16.6 billion disbursed, many organizations now must seek alternative funding sources to maintain their operations.

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