The Biden administration has disclosed plans to forgive a substantial portion of Ukraine's economic debt, amounting to $4.65 billion. This decision is part of a larger commitment to aid Ukraine amidst its ongoing conflict with Russia.
Fox News reported that this debt cancellation, which involves half of the economic assistance loaned earlier this year, has ignited debates in Congress about its potential impact and legality.
The announcement came from State Department spokesperson Matthew Miller during a press briefing on Wednesday.
Miller outlined that the administration intends to cancel $4.65 billion of the $9 billion loan sanctioned by Congress in April as part of a larger $60 billion support package for Ukraine.
The supplemental funding package passed in April not only included financial aid but also provisions for potential debt forgiveness.
Miller emphasized that Congress possesses the capability to reverse this decision through a resolution of disapproval, though this is seen as unlikely due to the current political alignment.
Following this announcement, Rep. Thomas Massie (R-Ky.) and Sen. Rand Paul (R-Ky.) took immediate steps to counteract the administration's decision. Massie introduced a resolution on Wednesday evening, and Paul expressed intentions to follow suit.
The supplemental funding terms allow the administration to cancel 50% of the loan immediately, with provisions to potentially cancel the remainder after January 2026. This has spurred discussions among lawmakers about the appropriateness and timing of such financial decisions.
Since Russia's invasion of Ukraine in February 2022, Congress has allocated more than $175 billion in aid to Ukraine, demonstrating a longstanding commitment to supporting its sovereignty and defense efforts against Russian aggression.
In light of President-elect Donald Trump's impending entry into office, President Biden has accelerated support for Ukraine.
This includes not only financial aid but also military support, with the authorization of long-range missiles and anti-personnel land mines to bolster Ukrainian defenses against Russian forces.
Defense Secretary Lloyd Austin also announced a new $275 million military aid package for Ukraine, which includes drones, artillery ammunition, and mortars, further enhancing Ukraine's combat capabilities.
With Biden’s term coming to an end, he has pledged to ensure the remaining $7 billion from the supplemental package is allocated to Ukraine.
His administration has also enabled U.S. military contractors to assist Ukraine with the maintenance and repairs of U.S.-made weapons systems.
This flurry of activity has not gone without criticism. Trump allies have accused Biden of unnecessarily "escalating" the conflict, labeling these actions as politically motivated. In contrast, other lawmakers have hailed the increased military aid as a necessary and overdue step to confront Russian aggression more effectively.
Matthew Miller’s statement, "So we have taken the step that was outlined in the law to cancel those loans, provide that economic assistance to Ukraine," reflects the administration's stance that these actions are grounded in legislative provisions.
Conversely, Rep. Thomas Massie criticized the decision sharply, stating, "On his way out, Joe Biden is trying to forgive $4.65 billion of debt Ukraine owes America's taxpayers." His resolution, H.J. Res 224, aims to halt what he calls an "America Last" policy.
The decision to forgive a portion of Ukraine’s debt is seen as a significant move in U.S. foreign policy, reflecting a continued commitment to supporting Ukraine against external threats and instability caused by the Russian military escalation.
