The European Union will review its multibillion-euro foreign aid program to align the distribution of funds "more closely" with its foreign policy interests, Bloomberg reported on Feb. 10.

The EU's move coincided with the Trump administration's plans to liquidate the U.S. Agency for International Development (USAID). Meanwhile, the European Commission is also grappling with the challenges of rising defense spending due to the war in Ukraine and views divergence with the new U.S. policies.

The European Commission will update the provision of foreign aid and make it more "targeted for partners," Bloomberg reported, citing the draft document.

The EU seeks to restructure its foreign aid to meet its strategic interests, including strengthening alliances with like-minded countries, securing access to raw materials, and curbing the influx of migrants, according to the media.

The EU's overall budget, which traditionally amounts to about 1% of the bloc's GDP, is overstretched given the wide range of demands, from the green transition to defense.

In the coming weeks, the European Commission will outline ideas for improving its next seven-year budget from 2028 to 2034, Bloomberg said.

Trump has targeted USAID, the U.S. government's lead humanitarian aid agency, from his first days in office. His administration has ordered a three-month freeze on nearly all international development funding and reportedly plans to lay off most of the agency's global workforce.

The White House has repeatedly accused USAID of widespread waste and fraud, even though foreign aid comprises only 1% of the federal budget.

The administration earlier this week placed the agency under the control of the State Department. Crews were seen on Feb. 7 removing the USAID signage from the front of the agency's headquarters in Washington.

Since the start of Russia's full-scale invasion in February 2022, USAID has provided Ukraine with $2.6 billion in humanitarian aid, $5 billion in development assistance, and more than $30 billion in direct budget support.

The agency's programs help to rebuild schools after Russian attacks, pay for bomb shelters, repair critical energy infrastructure, and fund civil society initiatives.