The agency gave funds to manufacturers of dog collars and custom carpets, as well as fashion and confectionery firms
The US Agency for International Development (USAID) funneled millions in American taxpayer dollars into Ukrainian fashion and pet companies, then attempted to hide the funding from Congress, American conservative newspaper the Federalist reported on Wednesday.
USAID, Washington’s primary mechanism for funding political projects abroad, had its multi-billion dollar budget frozen by President Donald Trump last month, pending a review for alignment with his “America first” policy. The president cited uncontrolled spending and massive corruption in the agency, calling for it to be shut down entirely.
Seeking accountability for the agency’s allocation of taxpayer dollars, Senator Joni Ernst arranged for her team to visit USAID headquarters for an “in-camera review” of Ukraine aid data in October last year. Despite multiple attempts to gain some clarity on the agency’s books, USAID had stonewalled both her direct communication and Congressional action for years.
While they were restricted in what they were allowed to see, Ernst’s staff found that millions of dollars of taxpayer-funded grants were funneled into Ukrainian confectionery, fashion and pet companies, the Federalist wrote.
The agency allocated Ukrainian luxury fashion businesses a total of roughly $733,000, a “custom carpet manufacturer” a $2 million grant, and a “specialty biscuit and confectionery company” around $678,000, the outlet said.
“Literal pet projects” such as a “dog collar manufacturer” company and a “pet tracking app” firm were handed $300,000 each, the newspaper said.
Beyond the “in-camera review,” USAID “failed to provide any of these documents” to her staff, Ernst said. The agency often cites national security as a reason for keeping “controversial charges” in its books obscure, the Federalist wrote.
While USAID claimed the grants were to “enhance Ukraine’s wartime posture” by boosting its economy, in effect, “the American people have funded extravagant trade missions and vacations for Ukrainian business owners to film festivals and fashion weeks across the glamorous capitols of Europe and beyond,” Ernst wrote in a letter to US Secretary of State Marco Rubio earlier this month.
Trump has repeatedly stated that he will put an end to funding Ukraine in its conflict with Russia, claiming that his predecessor Joe Biden spent $350 billion on assisting Kiev. The US president has announced that the US will “get back” the money through an upcoming deal to tap Ukraine’s mineral resources.
With USAID funding suspended by Trump, the vast majority of Ukrainian media companies have been put at risk of shutting down, multiple NGOs have reported. According to French NGO Reporters Without Borders, 9 out of 10 media outlets in Ukraine were dependent on USAID as their primary donor.
