President Donald Trump's sudden freeze of US foreign aid has sent shockwaves through Eastern Europe, leaving pro-democracy groups, independent media, civil society initiatives and local governments in a scramble to make ends meet in a region often characterised by East-West rivalries. The US State Department stated that the 90-day freeze is designed to eliminate waste and block so-called woke programmes that expose US-funded activities "that run contrary to our national interests" — as Trump aggressively pushes his "America First" agenda.

Eastern Europe has long been a geopolitical hotspot where Western foreign policy interests frequently clash with those of Moscow or Beijing. Many are concerned that the cessation of US funds could leave Washington's allies exposed — and create a void that its adversaries could be eager to fill. "In Moldova’s case, foreign donor support is vital to balancing the media landscape," says Oxana Greadcenco, director of independent media platform Moldova.org. "Many television networks and media institutions are funded by Russia so there needs to be a counterbalance ... This is an unprecedented situation, but we are trying not to panic.".

The US Agency for International Development, or USAID, informed her that grants officially ended on January 24 and they aren’t allowed to spend any remaining funds in their accounts. This week, Greadcenco promoted their online Patreon campaign, which garnered 135 new backers in two days, which should cover salaries for the platform’s 16-strong staff through March, she said. "We did not expect it to impact Moldova so severely, as we thought there would only be a partial cut in funds," she said. "Being aware of how much Moldova depends on US funds, not just NGOs and the press but also local municipalities, many public institutions ... this is a shock for everyone.".

Since the 1990s, USAID has invested several billion dollars in countries like Moldova, Serbia, Albania, Kosovo, and Bosnia and Herzegovina — all former communist countries with aspirations of joining the European Union. In these countries, USAID money has promoted democratic institutions and reforms, aided infrastructure and energy security projects, bolstered businesses and economies, and supported a significant number of nongovernmental organizations and independent media platforms. The agency says it "tailors its approach to each country’s unique challenges and opportunities.".

"It’s no exaggeration to say that we have democracy in Moldova, in part thanks to American financial support," stated Valeriu Pasa, chairman of the Chisinau-based think-tank WatchDog. He went on to express the strategic advantages for the US, saying, "from us being more democratic and developed, ensuring we don’t turn into a Russian or Chinese colony.". The significance of the USAID funding freeze extends across various sectors, underlining the dependency of the region's critical operations on these funds.

Sytrime Dervisholi, executive director of the Prefabricated Construction Association of Kosovo, remarked that the suspended funds would negatively impact her association's capacity to offer essential technical assistance to member businesses reliant on vocational education, training, and grant access. "Kosovo, but also our association ... is dependent on foreign aid, mostly on US aid," she commented and expressed her hope that the measure would be rescinded. "So we really do hope that this measure will be ... canceled after 90 days," post the completion of funding reviews by U.S. officials.

Safet Gerxhaliu, an independent economic analyst in Kosovo, concurred with concerns over the USAID hold, suggesting that it might have "a very negative impact" on numerous aspects of the nation's development, from government to private sector and education spheres. "I do believe that the impact is very bad, because those measures come at the same time that Kosovo is under sanctions from the European community," he mentioned, referencing the halt of some Brussels-fuelled funding to Kosovo in 2023 after ethnically charged conflicts.

Despite Serbia receiving EU candidate status in 2012, it remains closely tied to Russia and China within Europe. Progress towards reforms in critical sectors like rule of law enhancement and corruption eradication has been lethargic under President Aleksandar Vucic's administration, with USAID's move potentially obstructing further developments. Nemanja Nenadic from Transparency International Serbia disclosed to the AP: "We currently have a USAID project about public financing. Training for local NGOs regarding following of public finances," adding, "This has been put on hold.".

Over in Moldova, for the Promo-LEX Association which champions democracy and human rights, USAID contributions are pivotal, as they form a substantial portion of its funding, backing projects that range from election and political finance monitoring to scrutinising parliamentary activities. Ion Manole, the director of the association, voiced his concerns: "All USAID-funded activities have been put on hold. Without immediate alternative support, these crucial activities may not continue at the same scale or effectiveness. Given previous Russian interference — through illicit campaign funding, political corruption, and disinformation — our observation mission is essential to ensuring electoral transparency.".