USAID suspension puts Estonian aid projects on hold

Estonia's development cooperation center and several local NGOs have put some of their work on hold after U.S. President Donald Trump's decision to halt foreign aid agency USAID's activities for 90 days. The Ministry of Foreign Affairs hopes the confusion can be resolved.
"For Estonia's development cooperation, this means that the projects we planned to carry out with USAID, or in some cases are already implementing, have had their execution and U.S. funding temporarily suspended," Mariin Ratnik, deputy secretary general for economic and development affairs at the Ministry of Foreign Affairs, told ERR on Thursday.
At the same time, Estonia itself does not have direct contact or broad cooperation with USAID. Estonia's development aid is distributed through the Estonian Center for International Development (ESTDEV), which channels funding to NGOs that have won project contracts.
ESTDEV only has one ongoing project in Ukraine where funding with USAID is split 50/50. This project is now on hold, said agency director Klen Jäärats.
The official says ESTDEV does know which NGOs receive money from USAID, how much, or what for, as it is not required to tell the agency. He stressed this information should be requested directly from the organizations themselves.

Agne Kuimet, executive director of the Estonian Roundtable for Development Cooperation, which brings together development aid NGOs, has previously said around €30 million worth of aid money has been frozen in Estonia. These activities have been completely stopped, virtually overnight, Kuimet told ERR on Thursday.
Trump's decision means the organizations are now having to cover project expenses themselves, such as salaries, rent, and taxes. This has caused financial difficulties for these NGOs.
A lot of uncertainty
Jäärats also spoke about how the Americans have so far aimed to involve new partners in development cooperation, with Estonia being one of them.
"They have created incentive schemes to attract new partners. For us, cooperation with the Americans is very important; they have been a crucial partner, so we really want to work with them," he said.
However, in light of the recent decisions, it is unclear if and how this cooperation will continue, he added.
"Right now, we are in a situation where we simply do not know what comes next. Maybe in a month, they will say, 'Yes, we have reviewed everything, and we will turn the tap back on, reverse our suspension decision, and carry out the projects,'" the official said.

At the same time, things could go differently, he acknowledged: "What existed has now been put on pause, but we do not yet know what the new world they want to build in the future will look like. When I read Elon Musk's tweets, they paint a very different picture from what the United States has traditionally pursued in development cooperation. So we still do not know what this new world will be like, and perhaps its activities, focuses, priorities, and even values may not be entirely in sync with what we do in development cooperation."
Kuimet also stressed that there is a great deal of uncertainty and ambiguity surrounding the suspension of USAID activities, Much of the available information is unofficial.
She said NGO has been explicitly told that their activities have been completely shut down, yet at the same time, they have been advised not to speak to the media, with the threat of sanctions if they do.
MFA official remains optimistic
At the same time, Ratnik, deputy secretary general of the Ministry of Foreign Affairs, was more optimistic: "Firstly, I still believe that aid will not be entirely suspended. It is likely to be halted to some extent, with a reassessment of needs and a redirection of funds according to the new administration and its policies, as development cooperation and humanitarian aid are also instruments of foreign policy."
The official said it is quite natural for development cooperation projects to be periodically reviewed and reassessed.
"We do this more systematically, while other countries have different approaches — some form of review should take place every now and then. The method used is another matter, but the process itself is relatively standard. We will see what happens over the next 90 days," she said.

Kuimet pointed out that dismantling USAID may take longer than expected The move would likely require the approval of the U.S. Congress. However, she added that given the Republican majority in both chambers of Congress, obtaining that approval might not be very difficult for President Trump.
Additionally, there are numerous ongoing lawsuits related to the suspension of USAID activities, which could further delay its closure.
U.S. is the world's largest aid donor
Kairi Saar-Isop, director general of the development cooperation and humanitarian aid department at the Ministry of Foreign Affairs, told "Vikerhommik" on Thursday that the U.S. plays a crucial role in global development cooperation and humanitarian aid. It is the world's largest donor country.
Data from the OECD shows the U.S. provided $65 billion in aid in 2023. The second-largest donor, Germany, contributed $37.9 billion, while European Union countries collectively provided $95 billion in aid.
USAIDs programs have been suspended for 90 days until April 21 while its programs and activities are reviewed.
The only exceptions are life-saving humanitarian aid, as well as ongoing programs in Egypt and Israel.
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Editor: Mait Ots, Helen Wright