Congress of $4.65 Billion Loan Forgiveness for Ukraine Amid Escalating Military Aid

Congress of $4.65 Billion Loan Forgiveness for Ukraine Amid Escalating Military Aid

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By YourNews | Source

The Biden administration forgives half of a $9 billion loan to Ukraine, invoking provisions in a 2024 funding package as aid efforts intensify.

The Biden administration has informed Congress of its decision to cancel $4.65 billion in economic loans provided to Ukraine earlier this year. The forgiveness represents half of a $9 billion loan included in a $60 billion aid package passed by Congress in April 2024, a move authorized under the supplemental funding law.

State Department spokesperson Matthew Miller confirmed the decision during a briefing Wednesday, stating, “We have taken the step that was outlined in the law to cancel those loans, providing that economic assistance to Ukraine.” Miller also noted that Congress retains the power to challenge the decision through a resolution of disapproval.

Congressional Pushback

Rep. Thomas Massie, R-Ky., and Sen. Rand Paul, R-Ky., have both announced their intention to introduce resolutions opposing the loan forgiveness. “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,” Massie wrote on X, formerly Twitter.

Despite the opposition, such resolutions face significant hurdles. With a Democratic-controlled Senate and President Biden’s veto authority, the likelihood of overturning the loan cancellation is slim.

The law also permits the administration to forgive the remaining half of the $9 billion loan after January 2026, leaving room for further debates on the issue.

Intensified Aid Ahead of Transition

The loan cancellation comes as the Biden administration accelerates its support for Ukraine in the final weeks before President-elect Donald Trump takes office. Over $175 billion in U.S. assistance has been provided to Ukraine since the start of Russia’s invasion in February 2022, and President Biden has vowed to commit the remaining $7 billion from the 2024 funding package before his term ends.

In recent days, the administration approved the use of U.S.-supplied long-range missiles and anti-personnel land mines, actions that have drawn both praise and criticism. Defense Secretary Lloyd Austin announced an additional $275 million in military aid on Tuesday, including drones, artillery ammunition, and mortars.

The administration’s actions follow reports of Russia deploying 10,000 North Korean troops to the conflict, further complicating the situation on the ground.

Political Reactions

Trump allies have criticized Biden’s recent moves as politically motivated, accusing him of escalating the conflict in Ukraine. Conversely, hawkish lawmakers have described the administration’s actions as necessary and overdue in response to Russia’s aggression.

President-elect Trump, who has suggested he could broker a resolution to the war “in 24 hours” through negotiations with Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin, has not clarified whether he intends to continue Biden’s Ukraine policies.

Earlier this month, the Biden administration also approved U.S. military contractors to assist Ukraine in maintaining and repairing U.S.-made weapons systems, further cementing its commitment to Ukraine’s defense capabilities.

As the transition approaches, the direction of U.S. policy in Ukraine under the Trump administration remains uncertain, though it is likely to spark continued debate on Capitol Hill.

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