Ukraine under pressure from US debt ceiling deal

According to the debt ceiling bill proposed by President Joe Biden and recently passed by both houses of Congress, the US plans to limit national security spending in fiscal year 2024 to $886 billion, The New York Times reported.

Therefore, according to Reuters, after being passed, the debt ceiling raising law will cause $16 billion for US defense projects to be stuck.

American Abrams tank

Specifically, a $16 billion product portfolio for lower-priority defense items such as tanks, helicopter and ship upgrades could see funding cut after the debt ceiling law officially takes effect.

On the "no priority funding" list are Abrams tanks made by General Dynamics, aircraft made by Lockheed Martin and Marine Corps ships made by arms maker Huntington Ingalls Industries.

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Each of these weapons is considered vital to the defense of the United States, so the deal to avoid default has been a headache for Congress, the Department of Defense , and other agencies involved.

The US has been steadily increasing defense spending in recent years. In 2022 and 2023, Congress increased defense spending by more than $20 billion each year. Previously, the Pentagon used Overseas Contingency Operations (OCO) funds to meet congressional requests for spending cuts. This year, the debt ceiling deal could make that more difficult.

Amid concerns that aid to Ukraine could be disrupted, many believe Mr. Biden will seek additional funding in August or September to support Kyiv, after the $48 billion approved by lawmakers in December 2022 is used up.

"I'm sure there will be an emergency supplemental spending bill for Ukraine that includes non-Ukrainian defense priorities and needs," said Mackenzie Eaglen, a senior fellow at the American Enterprise Institute.

This supplement may not be enough to completely cover the shortfalls, but it will act as a release valve, helping to relieve pressure on all parties, according to Ms. Eaglen.

Source link: https://thanhnien.vn/ukraine-duoi-ap-luc-tu-thoa-thuan-tran-no-cong-cua-my-185230603083023034.htm