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EU cannot replace USAID funding but sees opportunity to boost visibility, Kallas says

by Tim Zadorozhnyy February 13, 2025 2:11 PM 2 min read
Estonian Prime Minister Kaja Kallas talks to media in the Europa building, the EU Council headquarter in Brussels, Belgium on March 21, 2024. (Thierry Monasse/Getty Images)
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The European Union cannot fully replace U.S. Agency for International Development (USAID) funding but sees the situation as an opportunity to make its aid more visible, EU foreign policy chief Kaja Kallas said, ENR reported on Feb. 13.

"We agreed that we are not automatically filling the void with European money because, first, we don't have those funds," Kallas said.

U.S. President Donald Trump’s administration has ordered a three-month freeze on nearly all international development funding and reportedly plans to lay off most of USAID’s global workforce. The White House has accused the agency of widespread waste and fraud, despite foreign aid making up just 1% of the federal budget.

The White House has accused the agency of widespread waste and fraud, despite foreign aid comprising only 1% of the federal budget.

Kallas emphasized that EU funding will be more explicitly linked to recipients in the future, ensuring they understand the support comes from Europe.

She said that the EU supports many organizations with substantial funds, but its presence is scarcely visible, adding that this is an opportunity to make the European flag more prominent.

Last week, USAID was placed under the control of the U.S. State Department, and crews were seen removing its signage from the agency's Washington headquarters on Feb. 7.

Since Russia launched its full-scale invasion of Ukraine, USAID has provided $2.6 billion in humanitarian aid, $5 billion in development assistance, and more than $30 billion in direct budget support to Kyiv.

The agency has funded school reconstruction, bomb shelters, critical energy repairs, and civil society initiatives.

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