Will the debt ceiling deal affect US funding for Ukraine?

A bipartisan deal to avert a debt default will not affect the US's ability to provide more aid to Ukraine, Bloomberg reported, citing a White House official.

According to this official, the US Congress will approve any additional military assistance without having to depend on the federal spending limit stipulated in the agreement that Mr. Biden just reached with House Speaker Kevin McCarthy.

Asked on May 30 whether the deal would have any impact on the US administration’s ability to receive additional funding for Ukraine, White House budget director Shalanda Young also replied “No.”

This would be welcome news for President Volodymyr Zelensky and US allies in Europe, amid concerns that the US debt war could slow or stop the flow of weapons, ammunition and high-tech support to Ukraine's forces.

“As long as necessary”

Biden administration officials have repeatedly said the US will support Ukraine “for as long as necessary” to end its conflict with Russia. It remains unclear whether the White House will ask Congress for more aid to Ukraine, and if so, when.

In December, the US Congress approved the administration’s request for an additional $48 billion to help arm Ukraine and fight the Covid-19 pandemic, including $36 billion specifically for Ukraine. The additional funding will last until September 30, 2023.

World - Will the debt ceiling agreement affect US funding for Ukraine? — The additional $48 billion in funding for Ukraine that US President Joe Biden signed in December 2022 will expire in September 2023. Photo: CNN

Of that $36 billion, $2.3 billion is in aid through the PDA, the security assistance agency that helps send weapons to Ukraine, and $4 billion for the Ukraine Security Assistance Initiative (USAI), said Pentagon spokesman Lt. Col. Garron Garn.

According to the US State Department, the country has provided $36.9 billion in security assistance since the Russia-Ukraine conflict began in February 2022.

The White House and Republican leaders are urging US congressional lawmakers to pass the deal before June 5, the date the Treasury Department says the US will run out of money to pay its debt.

Every year, the United States sends billions of dollars in aid around the world in pursuit of its security, economic, and humanitarian interests, more than any other country in the world.

Entering 2022, US foreign assistance will be prioritized for goals of combating climate change and responding to the Covid-19 pandemic.

However, after the Russia-Ukraine conflict, Ukraine became the leading European country in the US foreign funding campaign.

Much of the aid goes toward providing weapons systems, training and intelligence needed by Ukrainian commanders.

Fears of escalating conflict

Many Western analysts believe that military aid provided by the US and other allies has played a key role in Ukraine's defense and counterattack against Russia.

More than a year into the conflict, the Biden administration has provided or agreed to provide Ukraine with a long list of defense capabilities, including Abrams battle tanks, air defense missiles, coastal defense vessels and advanced radar and surveillance systems.

However, the United States, like other countries, has been reluctant to provide Ukraine with certain advanced equipment, such as fighter jets, due to concerns that doing so could escalate the conflict.

World - Will the debt ceiling agreement affect US funding for Ukraine? (Figure 2). — The US government recently authorized the transfer of domestically produced F-16 fighter jets to Ukraine after months of hesitation due to concerns about escalating the conflict. Photo: spiegel.de

Since February 2022, the Biden administration and the US Congress have directed more than $75 billion in assistance to Ukraine, including humanitarian, financial and military assistance, according to the Germany-based Kiel Institute for the World Economy.

The funds have helped a wide range of Ukrainian people and organizations, including refugees, law enforcement agencies and independent radio stations, although most of the aid has been military-related.

The scale of US assistance to Ukraine is remarkable compared to that provided by other countries, but the numbers are still modest compared to what the Pentagon is budgeted for each year, or what the Treasury Department was authorized to do to bail out Wall Street banks, automakers, and other sectors of the economy during the US financial crisis.

Meanwhile, some European governments, such as Latvia and Estonia, are providing Ukraine with financial support that is larger than the size of their economies .

Nguyen Tuyet (According to Bloomberg, cfr.com, CNN)

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