The U.S. Agency for International Development (USAID) blew through millions of taxpayer dollars funding Ukrainian businesses, according to an investigation by Senator Joni Ernst (R-IA). USAID staff attempted to block the Iowa Republican’s investigation, appearing to insist certain documents pertaining to their Ukraine activities were classified. However, this was not actually the case.
In October 2024, Sen. Ernst and her staff were finally allowed to access the Ukraine assistance data and found that the agency had funded numerous businesses and start-ups in the country with only the most tenuous connections to actual aid needs related to the ongoing Russian invasion. The inquiry revealed millions of U.S. taxpayer dollars were allocated to various Ukrainian businesses, some of which included unexpected ventures such as a pet tracking app.
Ernst’s office noted significant financial support for projects initialized under USAID‘s Competitive Economy Program and Investment for Business Resilience funds. The investigation found approximately $300,000 earmarked for a pet collar manufacturer and $300,000 for a pet food packaging enterprise.
The investigation further identified that fashion-related businesses received a total of around $733,000. Various fashion enterprises benefitted notably from the funding, including a women’s clothing company and a bridal brand. Moreover, more significant disbursements were made to ventures such as a carpet manufacturer, which received nearly $2 million.
Financial assistance was extended to the food sector in addition to manufacturing, with grants provided to a pickle maker and a condiment manufacturer. A separate allocation provided approximately $319,000 to a meatpacking facility.
Subsequently, following President Donald J. Trump’s inauguration and an investigation by the Elon Musk-led Department of Government Efficiency (DOGE), USAID has seen over 1,600 staff dismissed from their jobs and its functions absorbed into the State Department—effectively ending the rogue agency.