The impact of U.S. aid cuts on Armenia’s civil society and media

17.03.2025

 

By Tigran Grigoryan

 

As anticipated, the new Trump presidency is creating serious challenges for civil society and independent press around the world. The recent decisions by the administration to freeze foreign aid and curtail the activities of the U.S. Agency for International Development (USAID) have had a crippling effect on Armenia’s civil society and independent media. Apart from USAID, organizations like the National Endowment for Democracy, which has been a major supporter of Armenia’s civil society and media, have also faced difficulties accessing their allocated funds, forcing them to at least temporarily halt most of their operations. This has significantly impacted Armenian CSOs.

 

The funding halt has already led to the closure of multiple grassroots initiatives, with many organizations unable to meet their contractual obligations or even cover basic operational costs such as office rent. Larger civil society organizations, while able to survive, have been forced to significantly scale back their operations and narrow the scope of their activities. This has weakened Armenia’s democratic landscape at a time when external support for independent institutions is crucial.

 

The latest and most significant blow to Armenia’s independent media sector is the Trump administration’s decision to halt funding for Radio Free Europe/Radio Liberty (RFE/RL). The Armenian service of RFE/RL, commonly known as Azatutyun, is the largest media outlet in the country providing balanced and non-partisan news coverage. As noted in a previous Democracy Watch report, Azatutyun has been a frequent target of both government and opposition attacks precisely because of its independent editorial stance. The loss of U.S. funding for RFE/RL threatens to further undermine Armenia’s media landscape, leaving a vacuum that could be filled by partisan or foreign-influenced outlets.

 

This presents a daunting challenge for Armenia at a critical crossroads, where the country’s democratic trajectory may take an unpredictable turn. A strong civil society and independent media serve as the guardrails against democratic backsliding.

 

The broader implications of these developments are deeply concerning. With civil society organizations struggling to stay afloat and independent media facing financial ruin, the space for democratic discourse in Armenia might shrink. At a time when democratic backsliding is a global concern, these funding cuts risk undoing years of progress in governance, accountability, and press freedom.

 

CSOs and media outlets have long been criticized by various actors for relying on foreign funding. The current crisis underscores the risks of excessive dependence on external financial support. However, at this stage, independent organizations and media have few viable alternatives. Domestic funding, while an option, often comes with significant political strings attached. Many potential local funders have vested interests and political affiliations that could compromise the independence of these organizations.

 

While the European Union and other international partners should—and likely will—attempt to fill the funding gap, the process will take time due to bureaucratic hurdles. Even if new funding sources emerge, they may not fully compensate for the loss of U.S. financial support. Without sustainable alternatives, Armenia’s civil society and media sector risk becoming increasingly vulnerable to political pressures and external influence.

 

Ideally, the Armenian government should step in to provide immediate relief—whether through tax breaks or legislative incentives to encourage private donations to nonprofit organizations. While there has been some dialogue between civil society groups and the government, progress has been minimal. The government’s reluctance to intervene is likely influenced by the upcoming parliamentary elections and the growing authoritarian tendencies within the ruling party.

 

Although civil society and media have been heavily stigmatized by anti-democratic actors, and despite the challenges often highlighted in our Democracy Watch reports, it is undeniable that a strong and vibrant civil society and media are essential for the country’s progress and resilience. Without them, Armenia’s democratic future would remain uncertain. For this reason, it is crucial that everyone who is invested in the country’s democratic future, both within Armenia and abroad, step in to play an active role in safeguarding these fundamental pillars of democracy.

 

Democracy Watch is a joint initiative of CivilNet and the Regional Center for Democracy and Security.

 

This material has been funded by UK International Development from the UK government; however, the views expressed do not necessarily reflect the UK government’s official policies.