What's New in the Latest Report?
Development and Humanitarian Assistance Paused
The Department of State reported that while some foreign assistance programs for Ukraine and other countries affected by Russia’s invasion continued following the foreign assistance pause, other programs were amended or terminated. Of the 158 foreign assistance programs for which State provided information, 84 were terminated, 76 continued unchanged, and 2 were amended. USAID reported that as of the end of the quarter, 25 programs had been terminated, 29 remained active, 5 were under stop-work orders, and 4 were status unknown.
Limited Oversight of Foreign Assistance: The termination of third-party monitoring contracts has limited USAID’s ability to oversee programs. Without this independent monitoring, USAID has said it cannot verify that programs are being implemented in line with award terms, increasing the risk of fraud, waste, and abuse, the potential for which is heightened in conflict-affected areas.
Programs transitioned from USAID to State: As of July 1, State assumed responsibility for administering most foreign assistance, including awards financed by, and selected statutory functions previously managed by USAID. By June 25, USAID Ukraine reported that nearly 80 percent of the mission’s technical and contract personnel had departed to comply with the July 1 deadline for their separation from service. USAID also shut down its “Phoenix” financial system, blocking access by staff and delaying payment to implementers that had already been approved and certified for payment.
Register of Damage for Ukraine: During the quarter, State made a one-time contribution of $1 million to the Register of Damage for Ukraine. Established by the Council of Europe, the register compiles and maintains evidence and claims of damage since February 24, 2022. According to State, these claims are necessary for understanding a realistic, objective total value of all claims. The goal is to use this total as leverage in peace negotiations and for reconstruction planning. Forty-three countries and the European Union are dues-paying participants to the register, while Canada, Japan, and the United States are associate members.
Read more about Assistance in the latest report