Vanishing lifeline: What freezing USAID funds means for journalism in Europe

Zselyke Csaky, a senior research fellow at the Centre for European Reform, does not believe that these funds will return. According to her sources, with the shutdown of USAID’s Central Europe programme, originally launched in 2022, only 10-30% of grant funding will remain available in the region compared to three years ago. 

...“Almost 90% of Ukrainian media receives foreign funding,” notes Csaky.

...Csaky warns of another consequence of the freeze: many news organisations supported by USAID also received EU grants, which usually require co-financing. However, for some, these two were essentially the only sources of funding, meaning they could now lose both, as they will no longer be able to co-finance EU-supported projects.

...This has raised concerns that the freeze will encourage other illiberal governments to crack down on media deemed unfriendly, as autocratic leaders now feel empowered, says Csaky. Similar measures, such as imposing “foreign agent laws,” will make the financial situation of independent media even more difficult. “Even if new donors emerge, actually accessing their grants will be very difficult in such environments,” she argues.

...A quick reaction is most important, says Csaky: “These outlets need the money now, within the next couple of months; otherwise, they may have to shut down.” She believes that now is the time for new donors to step up, as rebuilding the news ecosystem after a collapse would be much more difficult. “Governments that recognise the importance of independent media could introduce incentives to make supporting it worthwhile, which would add significant value,” she continues, adding that pooled funds could also offer a viable solution, as they ensure that grants do not depend on a single donor.