Joe Biden’s administration told Congress it plans to cancel $4.65 billion in debt owed to the U.S. from Ukraine, around half the amount of an economic loan offered earlier in the year.
Matthew Miller, spokesperson for the State Department, confirmed the plans in a Wednesday briefing. “So we have taken the step outlined in the law to cancel those loans, provide that economic assistance to Ukraine,” he said.
In April, Congress passed a supplemental funding package earmarking $60 billion worth of aid for Ukraine, including $9 billion structured as a loan—including a provision that allowed the administration to forgive it, per Miller.
Miller added that Congress could pass a disapproval resolution to overturn the cancellation. GOP Representative Thomas Massie of Kentucky introduced such a resolution Wednesday evening. GOP Senator Rand Paul of Kentucky said he would immediately introduce a resolution to block the measure.
This resolution is unlikely to pass the Senate, which Democrats control and President Joe Biden could veto. The supplemental funding package gave the administration the power to forgive 50% of the loan, with the remaining 50% able to be forgiven after January 2026.
“On his way out, Joe Biden is trying to forgive $4.65 billion of debt Ukraine owes America’s taxpayers. I just introduced H.J. Res 224 to stop this ‘America Last’ policy from taking effect,” posted Massie on X.
Congress has appropriated over $175 billion for Ukraine since Russia invaded in February 2022.
President Biden has gone into overdrive to assist Ukraine in the weeks following the election of President-elect Donald Trump.
After hesitation for months, the president authorized Ukraine to utilize U.S.-provided long-range missiles to strike Russia this week. Shortly after, he allowed them to use anti-personnel land mines, drawing the ire of human rights groups.
The Biden-Harris administration said the decision was made after Russia brought in 10,000 troops from North Korea to fight in the Ukraine-Russia war.
Biden has vowed to commit the remaining $7 billion of a supplemental package to Ukraine
Joe Biden has also vowed to commit the remaining $7 billion from the supplemental package to Ukraine before he leaves office. On Tuesday, Defense Secretary Lloyd Austin announced $275 million for Ukraine, including more mortars, drones, and artillery ammunition.
Allies of Trump have accused Joe Biden of “escalating” the war on his way out the door “for politics.”
Other hawkish legislators say it’s a step that’s long overdue.
Earlier in the month, the president also approved U.S. military contractors going to Ukraine to assist the country in maintaining and repairing U.S.-made weapons systems.
It remains unclear whether Trump will continue such policies when he assumes office, although he has suggested he believes he could end the war “in 24 hours” at the negotiating table with Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin.
