Senior State Department officials are actively working on compiling a list of additional exemptions to the current foreign aid freeze for Ukraine. These exemptions could potentially provide Ukraine access to crucial economic and security-related assistance that is presently on hold.
If enacted, the proposed waivers would extend beyond the worldwide exemptions already granted by Secretary of State Marco Rubio for “core life-saving” assistance. These include funding for essential programs such as demining and narcotics control, as per a State Department official and other sources familiar with the plans. A document obtained by POLITICO supports these claims.
It remains unclear if there will be an exemption for State Department-controlled foreign military financing for Ukraine, which is in its fourth year of conflict following a full-scale Russian invasion. While Congress has appropriated over $4 billion for Ukraine’s military aid, most of this funding has already been allocated for various expenses, including weapons and equipment contracts that span several years, making expenditure tracking challenging.
Despite the uncertainty in practical terms, the effort to broaden Ukraine exemptions highlights internal divisions within the Trump administration regarding the approach to Kyiv. President Donald Trump has recently criticized Ukrainian President Volodymyr Zelenskyy while engaging in peace talks with Russia. Concerns have been raised about a possible complete withdrawal of support for Ukraine.
Plans for these exemptions have been in discussion since at least late January, shortly after the Trump administration implemented the broad foreign aid freeze. The proposed exemptions cover a range of programs from economic support to health initiatives. Internal conversations continue, as seen in messages between bureau officials acquired by POLITICO.
The proposed exemptions also focus on funding support for Ukraine’s democratic institutions and civil society, known internally as transition initiatives and AEECA (Assistance to Europe, Eurasia, and Central Asia) funds. However, waivers are not permitted for programs promoting diversity, equity, and inclusion (DEI).
The slow bureaucratic process has left many programs eligible for waivers frozen. Numerous groups worldwide, including in Ukraine, remain unable to secure funding or identify contacts at USAID for waiver applications. The Senate Foreign Relations Committee’s ranking member, Sen. Jeanne Shaheen, has urged Rubio to prioritize waivers for Ukraine aid, lamenting the detrimental impact of the aid freeze on Ukrainians during her visit to Ukraine and Poland.
Yuri Kim, the principal deputy assistant secretary of State for Europe and Eurasia, has been tasked with compiling a list of relevant programs for Ukraine as part of this effort. The process notably bypasses the department’s foreign assistance office, led by Pete Marocco, who is known for his skepticism of foreign aid.
This ongoing situation underscores the critical need for strategic exemptions to support Ukraine amid continued geopolitical tensions.
