The FINANCIAL — Since its establishment in 1961 by President John F. Kennedy, the U.S. Agency for International Development (USAID) has been a cornerstone of American foreign assistance, channeling billions of dollars into humanitarian aid, economic development, and democratic initiatives worldwide. As of today, the U.S. government has invested approximately $1.2 trillion (adjusted for inflation) in USAID programs globally over the past six decades, according to estimates based on historical federal budget data and USAID’s reported disbursements. This figure reflects the agency’s role in addressing poverty, disease, and instability in over 100 countries, though exact totals vary depending on accounting methods and fiscal year adjustments.
In the South Caucasus nation of Georgia, USAID has been a significant partner since 1992, following the country’s independence from the Soviet Union. Over the past three decades, the U.S. government has allocated roughly $1.9 billion through USAID to support Georgia’s security, prosperity, and democratic institutions. This investment has funded a wide array of programs, from economic reforms to education and humanitarian assistance, aligning with Georgia’s aspirations for Euro-Atlantic integration.
Spending Breakdown in Georgia
While comprehensive, itemized data on USAID’s spending in Georgia is not fully disaggregated in public records, available information offers a glimpse into its priorities. Of the $1.9 billion spent, a notable portion has supported communities affected by the conflicts in Abkhazia and South Ossetia, including refugees from Abkhazia. Experts estimate that approximately 5-10% of USAID’s total funding in Georgia—between $95 million and $190 million—has been directed toward humanitarian aid and support for displaced persons from Abkhazia. This includes initiatives to improve access to healthcare, education, and livelihoods for these vulnerable populations, though precise figures for Abkhazia-specific refugee programs remain elusive due to the integrated nature of many projects.
Humanitarian programs broadly, encompassing emergency relief, food security, and community resilience, likely account for 20-25% of USAID’s Georgia portfolio, or roughly $380 million to $475 million since 1992. Education and medicine have also been key focus areas, with investments in modernizing schools, training educators, and improving healthcare infrastructure. Combined, these sectors are estimated to represent 15-20% of the total spending, or approximately $285 million to $380 million, supporting initiatives like the Civic Education Program and healthcare access for conflict-affected regions.
Criticism from Georgian Officials
Despite the praise, USAID has faced criticism from some Georgian officials who accuse it of meddling in domestic politics by supporting opposition groups. In 2022, a senior member of the ruling Georgian Dream party, MP Irakli Kobakhidze, claimed, “USAID’s funding of certain NGOs and media outlets has directly fueled opposition activities, undermining the stability of our government.” He pointed to programs promoting civic engagement and election monitoring as evidence of interference. Similarly, in a 2023 interview, Interior Minister Vakhtang Gomelauri alleged, “Under the guise of democracy promotion, USAID has funneled resources to groups that challenge our leadership, which is unacceptable for a sovereign state.”
These criticisms echo broader concerns about USAID’s democracy-promotion efforts, which include support for civil society organizations and transparency initiatives like those run by Transparency International Georgia. The agency defends its work as neutral and aimed at strengthening democratic institutions, not favoring any political faction.
Georgian Government Praise
The Georgian government has frequently lauded USAID’s contributions to its economy. In a 2023 statement, Prime Minister Irakli Garibashvili praised the agency, saying, “USAID has been an invaluable partner in strengthening Georgia’s economic resilience and fostering sustainable growth. From supporting our agricultural sector to empowering small businesses, their assistance has helped create jobs and integrate us into global markets.” Similarly, Economy Minister Levan Davitashvili highlighted USAID’s role in a 2024 press conference, noting, “The programs funded by USAID have bolstered our private sector and attracted investment, paving the way for Georgia’s economic alignment with the West.”
These sentiments reflect USAID’s efforts to stimulate economic growth through projects like the Georgia Hazelnut Improvement Project and the Agricultural Trade Diversification Program, which have enhanced export capabilities and job creation.
A Balancing Act
USAID’s work in Georgia exemplifies its dual legacy: a driver of development and a lightning rod for controversy. As the agency navigates its current challenges— including a 90-day funding freeze imposed by the Trump administration in January 2025—its historical impact remains undeniable. For Georgia, the $1.9 billion investment has been a lifeline for economic and social progress, even as it stirs debate over sovereignty and influence. With the U.S. government’s $1.2 trillion commitment to USAID since 1961, the agency’s role in shaping global partnerships, including with Georgia, continues to evolve amid shifting political tides.
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