The Inspectors General for the Department of Defense, Department of State, and the U.S. Agency for International Development conduct oversight of and report on the overseas contingency operation "Operation Atlantic Resolve (OAR)," including U.S. Government activities related to Ukraine, pursuant to Section 1250B of the National Defense Authorization Act for Fiscal Year 2024 and Lead IG reporting responsibilities under 5 U.S.C. 419. This report also discusses the planned, ongoing, and completed oversight work conducted by the Department of Defense (DoD), the Department of State (State), and the United States Agency for International Development (USAID) Offices of Inspector General, as well as the other U.S. oversight agencies that coordinate their activities through the Ukraine Oversight Interagency Working Group. OAR is the U.S. contingency operation to deter Russian aggression against NATO and to reassure and bolster the alliance in the wake of Russia’s 2022 full-scale invasion of Ukraine. OAR also includes security assistance activities in support of Ukraine.
USAID fully disbursed $30 billion to the World Bank by December 2024. Responsibility for DBS transferred from USAID to State in July 2025. As a result of the Foreign Assistance Review, one USAID contract that assisted with oversight verification and support to the Ukrainian government to conduct and implement audit recommendations was cancelled. On July 1, State assumed management of the remaining DBS oversight activity from USAID. State reported that the sole contractor responsible for the remaining activity was in place in July and August 2025, and the contract was then extended. State said that the purpose of the contract is to audit the full DBS, and, by tracking funds to the end-beneficiary level, the activity provides visibility into the flow of U.S. assistance, deterring fraud, waste, and abuse. USAID Ukraine staff previously expressed concern that assigning a single firm to both help prepare and then audit these financial statements creates a potential conflict of interest. After absorbing USAID’s responsibilities for oversight of appropriated U.S. DBS funding, State was not expected to maintain the same level of oversight of DBS as USAID had from 2022 to 2024.
Over the course of 2025, State cancelled more than 83 percent of USAID programs, and transferred management of 37 continuing programs with a combined value of $2.7 billion in Ukraine from USAID to State. State entered into agreements with USAID regarding the transfer of funds associated with the programs that transferred from USAID to State.
During the reporting period, USAID OIG followed up on the previously reported risks and challenges; however, staffing cuts at USAID and the ongoing operational drawdown at the agency limited the amount of information that USAID OIG could collect on USAID activities.
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