The U.S. Agency for International Development (USAID), in consultation with the U.S. Department of State, submits this report pursuant to section 1705(c) of the Additional Ukraine Supplemental Appropriations Act, 2023 (Public Law 117-328, Div. M) (FY 2023 AUSAA), which reads as follows:
The Secretary of State or the Administrator of the United States Agency for International Development, as appropriate, shall report to the appropriate congressional committees on the uses of funds provided for direct financial support to the Government of Ukraine pursuant to subsection (a) not later than 45 days after the date of enactment of this Act and every 45 days thereafter until all such funds have been expended: Provided, That such reports shall include a detailed description of the use of such funds, including categories and amounts, the intended results and the results achieved, a summary of other donor contributions, and a description of the efforts undertaken by the Secretary and Administrator to increase other donor contributions for direct financial support: Provided further, That such reports shall also include the metrics established to measure such results.
USES OF FUNDS:
U.S. government (USG) budget support is ensuring the survival of the Government of Ukraine (GOU) as its fight against Russia’s unprovoked aggression enters its second year. By providing critical budget support for the GOU, the USG is enabling Ukraine to continue operating and to win the war, deliver essential services, and meet immediate needs created by the Kremlin’s brutal war. Without steady tax revenue from a functioning economy, the GOU cannot supply emergency services for internally displaced persons, or provide paychecks for public employees who deliver critical services – including but not limited to healthcare providers and first responders, educators, and cybersecurity specialists.
As of May 31, 2023, the USG obligated $19.25 billion in direct budget support (DBS) for the GOU (via the World Bank), to help ensure continuity of core government functions and delivery of essential services in wartime circumstances. This includes $5.0 billion from the FY 2023 AUSAA, which the World Bank has transferred to the GOU, following verification of eligible expenditures. The $18.0 billion transferred to the GOU as of May 311 has been used to support grants to internally displaced persons (IDPs); social assistance payments to vulnerable populations; payment of pensions; salaries for civil servants, educators, healthcare workers, and first responders; and purchase of humanitarian goods. (See table below and prior reports for more details.)
Funds transferred to the GOU after May 31, 2023, will be captured in a subsequent report
