According to DOU, almost a third of GovTech projects were funded by the United States Agency for International Development (USAID). Now that this funding has been suspended for 90 days, only completed projects will be paid, and new initiatives will be put on hold.
According to DOU, almost a third of GovTech projects were funded by the United States Agency for International Development (USAID). Now that this funding has been suspended for 90 days, only completed projects will be paid, and new initiatives will be put on hold.
Earlier, US President Donald Trump signed an executive order stating that the United States must conduct an audit of all non-military foreign assistance programs distributed through USAID during this time.
«USAID has closed funding for about a third of all GovTech through various projects. Maybe even a little more. So all new initiatives are suspended, and only those that have already been implemented are paid for. Then all contracts will most likely be on hold for three months. But this is preliminary information, everything can change», — expert Roman Lanskytold DOU.
The IT company Kitsoft, which develops and implements digital technologies for government agencies and commercial organizations and is part of the GovTech Alliance (GTA UA), warns that this will lead to a «slowdown on the country’s digital transformation».
«We planned numerous projects, in particular from the Ministry of Digital Economy. The share of projects funded by USAID is up to 30%, they are important, but not the only ones. There are also others that are funded, for example, by UNDP, GIZ», — said Kitsoft CEO Oleksandr Yefremov.
He added that the funding halt does not affect the company’s global plans, but it is slowing down the growth rate.
Since the beginning of the Russian full-scale invasion on February 24, 2022, USAID has allocated $2.6 billion in humanitarian assistance, $5 billion in development assistance, and another $30 billion has been allocated in the form of direct budget support.
«USAID prioritizes issues such as anti-corruption activities, countering the influence of Russian aggression, and promoting the country’s economic development and energy independence. In addition, USAID will continue to support measures to strengthen democracy and good governance, improve health systems, and mitigate the consequences of the conflict in the east,» the Agency’s website states.
In 2025, USAID planned to allocate a significant part of its budget to support Ukraine, but the exact amount will become known after the US approves the country’s overall budget for the year.
