The U.S. State Department, under the leadership of Secretary of State Marco Rubio, has officially ended support for a major initiative aimed at rebuilding Ukraine’s energy grid.
The decision comes after a tense Oval Office encounter between President Donald Trump and Ukrainian President Volodymyr Zelensky.
According to an NBC News report citing two U.S. Agency for International Development (USAID) officials, the State Department abruptly terminated a USAID program that had pumped hundreds of millions of dollars into restoring Ukraine’s power infrastructure.
Ukraine has been grappling with extensive power outages, largely attributed to continuous attacks by Russian forces on its energy facilities over the last few years.
The timing of the State Department’s move coincides with a contentious meeting at the White House.
Zelensky arrived in Washington to finalize a rare earth mineral rights agreement but instead clashed with President Trump.
Witnesses report that the discussion quickly devolved into a heated exchange, with Trump voicing frustration over Ukraine’s stance on negotiations for a ceasefire.
At one point, the president told Zelensky, “You don’t have the cards right now. With us, you start having cards … You’re gambling with the lives of millions of people! You’re gambling with World War III!”
Shortly afterward, Zelensky was asked to leave the Oval Office, and a planned joint press conference was canceled.
The tension underscores President Trump’s skepticism about continued U.S. support for Ukraine while it remains locked in conflict with Russia.
Critics of the decision to end the USAID program argue that terminating American assistance leaves Ukraine’s energy grid vulnerable at a time when it is repeatedly targeted by Russian attacks.
A USAID official told NBC News that the move “significantly undercuts this administration’s abilities to negotiate on the ceasefire” and “signals to Russia that we don’t care about Ukraine or our past investments.”
Supporters of the administration’s approach, however, note that President Trump has stressed the need for Ukrainian leaders to negotiate peace terms and avoid further escalation. They argue that if Zelensky’s government is unwilling to seek a resolution, American taxpayers should not be expected to foot the bill for ongoing infrastructure support.
Moreover, some Trump allies say that reducing foreign aid in conflict zones is consistent with the president’s broader pledge to reevaluate overseas commitments and focus on domestic priorities.
USAID, currently operating under the authority of the State Department, will also reduce its footprint in Ukraine.
As a result, government officials in Kyiv may face increased difficulty maintaining stable power nationwide, especially if the grid continues to be a prime target for Russian strikes.