The cessation of funding from USAID has left many GovTech projects in Ukraine without financial support.

This information comes from expert Roman Lansky.

"USAID has been financing about one-third of the GovTech initiatives. Currently, all new initiatives are on hold, and only projects implemented before January 24 are receiving funding. Other contracts, including those with individual entrepreneurs, will likely be on hold for three months. However, this is preliminary information, and the situation may change," Lansky stated.

At Kitsoft, a company that develops and implements digital technologies for government agencies, they note that this situation will lead to a slowdown in the country's digital transformation. Companies may need to rethink their strategies.

"We had planned a significant number of projects, including those with the Ministry of Digital Transformation. Projects funded by USAID account for up to 30% of our initiatives. While they are important, they are not the only ones. Therefore, our overall plans remain unchanged, although the pace of growth is slowing down," commented Kitsoft's CEO Oleksandr Yefremov.

Reminder:

On January 25, 2025, U.S. Secretary of State Marco Rubio issued an order halting funding for most foreign aid programs, including support for Ukraine.

On January 16, 2025, the U.S. Agency for International Development (USAID) in Ukraine received an order to stop all projects following the State Department's directive to halt aid programs to other countries for auditing purposes.