Reduction of US international aid: will it affect Ukraine?

21 January 17:59

The US suspension of international aid, announced by President Donald Trump on January 20, does not apply to Ukraine. This was reported by Komersant ukrainskyi with reference to AP.

The reason is that Ukraine receives military assistance under the PDA, USAI, and FMF programs, which are not mentioned in the US President’s decree.

Presidential Drawdown Authority (PDA): this is the fastest way to deliver military aid. The President can authorize the transfer of existing US defense equipment directly from US warehouses. It is ideal for immediate needs, but is limited by warehouse availability.

Ukraine Security Assistance Initiative (USAI): This program allows the US government to purchase new equipment directly from defense contractors. Unlike PDA, USAI provides more flexibility to purchase the latest equipment Ukraine needs, but procurement and delivery takes longer.

Foreign Military Financing (FMF): This program offers grants or loans to eligible countries, including Ukraine, to purchase U.S. defense goods and services. Ukraine uses FMF funds to purchase specialized equipment and training through government-to-government agreements. While offering procurement flexibility, FMF requires coordination and approval processes, resulting in a longer timeframe than PDA

What preceded it

President Donald Trump signed an executive order to temporarily suspend all U.S. foreign assistance programs for 90 days pending a review to determine whether they meet his policy goals.

The order, among many signed by Trump on his first day back in office, states that “the foreign aid industry and bureaucracy are not aligned with American interests and in many cases are contrary to American values” and “serve to destabilize world peace by promoting ideas abroad,” countries that are the direct opposite of harmonious and stable relations within and between countries.

Thus, Trump stated that “no further foreign assistance from the United States will be provided in a manner that is not fully consistent with the foreign policy of the President of the United States.”

Trump has long been opposed to foreign aid, despite the fact that such aid typically accounts for about 1% of the federal budget, except in extraordinary circumstances, such as the billions of weapons provided to Ukraine. Trump has criticized the amounts sent to Ukraine to help bolster its defenses against Russian invasion.

The last official report on foreign aid in the Biden administration dates from mid-December and the 2023 budget year. It shows that $68 billion was allocated to programs abroad that range from disaster relief to health care and pro-democracy initiatives in 204 countries and regions.

The AP writes that some of the largest recipients of US aid, Israel ($3.3 billion a year), Egypt ($1.5 billion a year) and Jordan ($1.7 billion a year), are unlikely to see drastic cuts because these amounts are included in long-term packages that date back decades and are in some cases governed by treaty obligations.

Мандровська Олександра
Editor