State Department Officials Advocate for Releasing Additional Frozen Funds for Ukraine

The efforts underscore the internal discord within the Trump administration regarding the approach to take toward Kyiv.

State Department Officials Advocate for Releasing Additional Frozen Funds for Ukraine
Senior State Department officials are developing a list of additional exemptions to the foreign aid freeze for Ukraine, potentially allowing the country to access some economic and security assistance currently on hold.

If enacted, these waivers would extend beyond those that Secretary of State Marco Rubio has approved globally for “core life-saving” assistance, funding programs such as demining and narcotics control, according to a State Department official, along with two others familiar with the planning and a document obtained by PMG.

It remains unclear if an exemption for State Department-controlled foreign military financing is being planned for Ukraine, which recently entered its fourth year of fighting a full-scale Russian invasion. Congress has allocated over $4 billion so far for such military aid to Ukraine. Most of these funds have already been designated for various costs, including weapons like javelin missiles and equipment such as radios. Due to the long duration of some contracts, it is challenging to determine precisely how much has been spent.

Practically, it is uncertain whether additional aid for Ukraine would reach Kyiv even with new exemptions, given that existing waivers for humanitarian assistance have faced significant obstacles.

Politically, the initiative to broaden Ukraine's exemptions suggests divisions within the Trump administration regarding how to engage with Kyiv.

Last week, President Donald Trump criticized Ukrainian President Volodymyr Zelenskyy while seeking peace talks with Russia, raising concerns that he might completely forsake Kyiv. The Trump administration has even worked to block a resolution at the U.N. Security Council condemning Russia's invasion of Ukraine.

However, some of Trump’s aides, including Keith Kellogg, the special envoy for Russia and Ukraine, along with Rubio, have expressed a more critical stance towards Russia, albeit cautiously or in private discussions.

The State Department did not respond directly to inquiries about whether new waivers for Ukraine had been approved, offering instead a statement indicating that “programs that serve our nation’s interests will continue. However, programs that aren’t aligned with our national interest will not.” Spokespersons from both the State Department and the National Security Council declined to comment on whether discussions regarding additional waivers for Ukraine were ongoing.

The State Department official and two individuals familiar with the developments spoke anonymously, as they were not authorized to discuss internal administration policies publicly.

Since Russia’s full-scale invasion, Congress has allocated $175 billion for aid to Ukraine, other countries impacted by the conflict, and related programs, as per an analysis by the Council on Foreign Relations from the previous fall. A small portion of that—approximately $3 billion, according to CFR—is set aside for humanitarian aid, which can be particularly effective since such materials are generally less costly than weapons.

The plans for the new exemptions date back to at least late January, shortly after the Trump administration implemented the expansive foreign aid freeze, according to the document. The suggested exemptions would encompass various programs, including general economic support, landmine removal, narcotics control, and health initiatives.

Internal discussions regarding these exemptions have continued as recently as last week, as confirmed by the State Department official and internal communications reviewed by PMG.

The proposed exemptions also cover accounts responsible for funding Ukraine’s democratic institutions and civil society, known internally as transition initiatives and what’s referred to as assistance to Europe, Eurasia, and Central Asia (AEECA) funds.

According to the document, waivers would not apply to programs that promote diversity, equity, and inclusion (DEI).

Yuri Kim, the principal deputy assistant secretary of State for Europe and Eurasia, has been assigned the task of compiling a list of programs related to Ukraine from various bureaus and offices within the department to aid in expanding the exemptions, the State Department official shared with PMG.

Kim did not respond immediately to a request for comment.

The precise chain of command in this matter remains ambiguous. The State Department official indicated that the process is circumventing the department’s foreign assistance office, which is led by Pete Marocco, a Trump ally and critic of foreign aid who has taken a leading role in reducing the operations of USAID. However, the document noted that the foreign assistance office would be consulted.

Marocco did not immediately respond to a request for comment.

An inefficient bureaucratic process has left many programs, whose leaders believe they are eligible for waivers, in a state of limbo. Numerous organizations globally—particularly in Ukraine—have struggled to have their funding restored or even to identify whom to contact within USAID for a waiver.

The State Department requires each program to establish a detailed case demonstrating its eligibility for a waiver. Even when waivers are approved, payment systems frequently remain inactive, preventing funds from reaching aid organizations, according to a congressional aide who spoke anonymously about this sensitive issue.

Sen. Jeanne Shaheen, ranking member of the Senate Foreign Relations Committee, has urged Rubio to prioritize waivers that facilitate aid to Ukraine. During a recent visit to Ukraine and Poland, she witnessed firsthand the detrimental impact of the freeze on U.S. aid.

One organization in Poland providing mental health care to Ukrainian refugees was unable to treat patients, including a young woman at risk of self-harm, due to lack of funding, Shaheen reported.

“It was heartbreaking,” Shaheen expressed, adding that the aid freeze “undermines our national interest.”

Veronika Melkozerova contributed to this report.

Mark B Thomas for TROIB News