U.S. keeps funds for Ukraine flowing despite congressional constraints

The White House has been increasingly pressuring Congress to pass stalled legislation to support Ukraine’s war against Russia, saying that funding has run out

The White House has been increasingly pressuring Congress to pass stalled legislation to support Ukraine’s war against Russia, saying that funding has run out.

On Tuesday, however, President Joseph Biden touted a new military aid package worth $200 million for Ukraine.

Money is dwindling. But the announcement of more weapons being sent to Kyiv just underscores the complexity of the funding. So has the money run out? Or are there still a few billion dollars floating around? It’s complicated.

In a November 4 letter to Congress, White House budget director Shalanda Young said flatly: “We are out of money to support Ukraine in this fight. This isn’t a next year problem. The time to help a democratic Ukraine fight against Russian aggression is right now.” Since then, the U.S. has announced three more aid packages totaling $475 million. That may seem contradictory, but it’s due to the complex programmes used to send aid to Ukraine.

There are two pots of money for weapons and security assistance set up specifically for the war. One is the Presidential Drawdown Authority (PDA) under which the U.S. provides weapons already in its stockpile. The other is the Ukraine Security Assistance Initiative (USAI), which funds long-term weapons contracts.

Money for USAI has all been spent. That pot is empty. And money for the PDA also appeared to be gone. But then the Pentagon determined that it had overstated the value of the weapons it had already sent Ukraine, overcharging the Ukraine weapons account by $6.2 billion. That effectively left Ukraine with a store credit that is slowly being whittled down. It now stands at around $4.4 billion.

PDA packages continued to be announced every few weeks. But in recognition of the dwindling money, the latest packages have been smaller — about $200 million or less, compared with previous ones that often totaled $400 million to $500 million. In theory, the Pentagon would have enough equipment to offer these smaller packages for months. But there’s a caveat: While the credit exists, there may not be enough stock on the Pentagon shelves. So some weapons may be unavailable.