The Biden administration has informed Congress of its intention to cancel $4.65 billion in debt owed by Ukraine, which is approximately half of an economic loan offered earlier this year. State Department spokesperson Matthew Miller confirmed this decision during a briefing, stating that the administration is following the outlined law to provide economic assistance to Ukraine.
In April, Congress passed a supplemental funding package that allocated $60 billion in aid for Ukraine, including $9 billion structured as a loan, with a provision allowing the administration to forgive it. Miller explained that Congress could potentially pass a resolution of disapproval to overturn the cancellation, with Rep. Thomas Massie and Sen. Rand Paul introducing such resolutions.
However, the likelihood of these resolutions passing in a Democratic-controlled Senate is low, and President Joe Biden could veto them. The supplemental funding package granted the administration the authority to forgive 50% of the loan, with the remaining 50% eligible for forgiveness after January 2026.
Since Russia's invasion of Ukraine in February 2022, Congress has allocated over $175 billion for Ukraine. President Biden has intensified efforts to support Ukraine, recently authorizing the use of U.S.-provided long-range missiles and anti-personnel land mines. These decisions were made in response to Russia's deployment of 10,000 troops from North Korea to the conflict.
Biden has pledged to allocate the remaining $7 billion from the supplemental package to Ukraine before leaving office. Additionally, Defense Secretary Lloyd Austin announced $275 million in aid for Ukraine, including drones, artillery ammunition, and mortars.
While some Trump allies have criticized Biden for escalating the conflict, others view these actions as necessary. Biden also approved U.S. military contractors to assist Ukraine in maintaining and repairing U.S.-made weapons systems.
It remains uncertain whether President-elect Donald Trump will continue these policies upon taking office. Trump has expressed confidence in his ability to end the war swiftly through negotiations with Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin.
