Biden administration proposes canceling $4.65 billion of Ukraine’s economic aid loan
It seeks congressional approval to forgive $4.65 billion of Ukraine’s economic aid debt, with minimal opposition expected.
The Biden administration has formally notified Congress of its intention to cancel $4.65 billion, or half, of Ukraine’s conditional economic aid loan, Voice of America reported. This action follows provisions outlined in the Additional Security Appropriations Act for Ukraine, passed in April 2024.
The legislation authorized $61 billion in overall security and economic assistance to Ukraine, with approximately $10 billion allocated as conditional loans. It granted the president authority to forgive up to 50% of these loans starting 15 November, with the remaining half eligible for forgiveness on 1 January 2026 under the next presidential administration.
The State Department confirmed the decision, with spokesperson Matthew Miller emphasizing that the administration is following the law’s provisions. Congress now has the opportunity to issue a resolution opposing the move, though Miller expressed confidence that such opposition is unlikely, citing broad bipartisan support for Ukraine.
The Biden administration’s notification to Congress comes just days after the 2024 US presidential election. As lawmakers review the decision, bipartisan backing for continued support to Ukraine remains a critical factor in ensuring its passage.
Related:
- Reuters: Ukrainian corn seed exports to EU surge amid wartime trade shifts
- Ukraine auctions iconic hotel in Kyiv’s center, other Soviet-times state properties to raise more money for army
- Ukrainian government approves 2025 state budget draft
- Ukraine’s exports surge 17.5% year-on-year in August 2024
- West can “easily” afford Ukraine aid to avoid much greater future costs, economist says
- Ukraine receives $3.9 billion grant from the US for budget support
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