Trump’s freeze on foreign aid sends shockwaves through eastern europe

Trump’s freeze on foreign aid sends shockwaves through eastern europe

The U.S. State Department says the 90-day halt aims to root out waste and block ‘woke’ programmes contrary to U.S. interests; since the 1990s, U.S. Agency for International Development has invested billions in countries such as Moldova, Serbia, Albania, Kosovo, and Bosnia, all aspiring to join EU.

President Donald Trump’s abrupt freeze of U.S. foreign aid is sending shockwaves through Eastern Europe, leaving pro-democracy groups, independent media, civil society initiatives and local governments scrambling to make ends meet in a region often defined by rivalries between East and West.

The U.S. State Department said that the 90-day freeze aims to root out waste and block so-called woke programmes to expose U.S.-funded activities “that run contrary to our national interests” — as Mr. Trump aggressively rolls out his “America First” agenda.

Geopolitical impact

Eastern Europe has been a longtime geopolitical battleground where Western foreign policy interests often collide with those of Moscow or Beijing.

Many fear the cessation of U.S. funds could expose Washington’s allies — and create a vacuum that its foes could gladly seek to fill.

“In Moldova’s case, foreign donor support is vital to balancing the media landscape,” says Oxana Greadcenco, the director of independent media platform Moldova.org. “Many television networks and media institutions are funded by Russia so there needs to be a counterbalance.”

The U.S. Agency for International Development, or USAID, informed her that grants officially ended on January 24 and they aren’t allowed to spend any remaining funds in their accounts.

“We did not expect it to impact Moldova so severely, as we thought there would only be a partial cut in funds,” she said.

“Being aware of how much Moldova depends on U.S. funds, not just NGOs and the press but also local municipalities, many public institutions...this is a shock for everyone.”

Since the 1990s, USAID has invested several billion dollars in countries like Moldova, Serbia, Albania, Kosovo, and Bosnia and Herzegovina — all former communist countries with aspirations of joining the European Union.

In these countries, USAID money has promoted democratic institutions and reforms, aided infrastructure and energy security projects, bolstered businesses and economies, and supported a significant number of nongovernmental organisations and independent media platforms.”

“It’s no exaggeration to say that we have democracy in Moldova, in part thanks to American financial support,” Valeriu Pasa, the chairman of the Chisinau-based think-tank WatchDog, said in a statement on Wednesday. He added that the U.S. benefits “from us being more democratic and developed, ensuring we don’t turn into a Russian or Chinese colony.”

The wide-ranging effects of the USAID spending freeze spanning different sectors highlight how critical the funds are to the region.

Kosovo worries

Sytrime Dervisholi, executive director of the Prefabricated Construction Association of Kosovo, says the halted USAID funds will adversely affect her association’s ability to provide technical assistance to member companies that require vocational education and training, and access to grants. “Kosovo, but also our association...is dependent on foreign aid, mostly on U.S. aid,” she said. “So we really do hope that this measure will be...cancelled after 90 days,” when the funding reviews by U.S. officials have concluded.

Safet Gerxhaliu, an independent economic analyst in Kosovo, also believes the USAID freeze could have “a very negative impact” on the country’s future, affecting everything from the government to the private sector and education.

“I do believe that the impact is very bad, because those measures come at the same time that Kosovo is under sanctions from the European community,” he said. Brussels froze some funding to Kosovo in 2023 following a series of clashes with ethnic Serb minorities.

For the Promo-LEX Association, a longtime pro-democracy and human rights NGO in Moldova, USAID funds are vital since they account for about 75-80% of its projects, which include monitoring elections, political financing and parliamentary oversight.

“All USAID-funded activities have been put on hold. Without immediate alternative support, these crucial activities may not continue at the same scale or effectiveness,” said Ion Manole, the association’s executive director.

Moldova will hold a pivotal parliamentary election this fall which comes after the pro-Western government accused Russia of meddling in two key votes last year — including backing a vast vote-buying scheme in the country of about 2.5 million people.

“Without resources, we cannot deploy long-term observers, conduct election-day monitoring, or track foreign interference effectively, ” Manole said. “A change to an anti-Western government could affect Moldova’s European path and ... significantly destabilize the whole of Eastern Europe and the Black Sea region.”

“We remain hopeful that the U.S. government’s evaluation process will allow programmes like ours to resume,” he said, adding that his NGO is already seeking alternative funding, mainly from European donors.

The Trump administration has cast the aid freeze as an accountability quest to justify American spending abroad.

Beyond support for Ukraine in recent years, the U.S. is spending about $40 billion in foreign aid annually, according to the U.S. State Department.