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USAID Cybersecurity Aid to Ukraine Halted as Trump Administration Freezes Projects

USAID cybersecurity aid to Ukraine halted after Trump administration froze projects, risking Ukraine’s digital defenses and contractor funding.

 

Before and after Russia’s 2022 invasion, U.S.-funded initiatives played a crucial role in strengthening Ukraine’s cybersecurity. Many of these efforts, backed by the United States Agency for International Development (USAID), aimed to protect the country against cyber threats. 

However, progress has stalled since the Trump administration directed USAID and its contractors to halt operations. Meanwhile, Elon Musk’s DOGE undergoes restructuring, and unless legal action intervenes, the aid agency faces dismantlement. One of the most significant projects put on pause is the USAID Cybersecurity for Critical Infrastructure in Ukraine Activity, managed by Maryland-based DAI. In October, the initiative announced its collaboration with Ukraine’s Ministry of Foreign Affairs to secure diplomatic communications networks worldwide. 

At the time, Julie Koenen, USAID’s director in Ukraine, reaffirmed the agency’s commitment to maintaining essential government functions. Until January 17, the cybersecurity team remained active on social media, encouraging Ukrainian businesses to explore opportunities in the U.S. However, since Trump took office, its online presence has gone silent. Both USAID and DAI have not responded to inquiries regarding the program’s status. 

Former SSSCIP deputy head Victor Zhora, now a cybersecurity consultant, expressed concerns about funding uncertainty. Although he left his government position in 2023 amid a corruption probe—an allegation he denies—he remains hopeful that cybersecurity efforts will continue under another entity or a restructured version of USAID. He emphasized the program’s value in developing talent, training professionals, and advancing Ukraine’s cybersecurity infrastructure. 

Among its contributions, USAID had supplied over 5,000 Starlink devices for use across the country. Oleh Derevianko, founder of Ukraine’s Information Systems Security Partners, collaborated with USAID on various projects over the past five years. While he acknowledged inconsistencies in execution, he stressed the program’s overall benefit. USAID efforts focused on three key areas: legislative support, vulnerability assessments of critical infrastructure, and cybersecurity training programs.  

Looking ahead, even if Ukraine seeks international cybersecurity assistance, the absence of operational contractors could be a major obstacle. A source familiar with USAID’s funding model warned that if the freeze lasts beyond three months, many contractors will run out of funds. Since USAID-funded projects require contractors to cover expenses upfront and later invoice the government, delayed payments could cripple their financial stability. Additionally, banks may become reluctant to extend credit, further jeopardizing the sustainability of these projects.
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