The Biden administration plans to cancel $4.7 billion in loans to Ukraine. This move raises concerns about continued U.S. financial support for the war-torn nation.
State Department spokesperson Matthew Miller confirmed on Wednesday that the decision aligns with provisions in a funding bill passed by Congress in April. The bill authorized $9.4 billion in forgivable loans for Ukraine, with half eligible for cancellation after November 15.
A total of $61 billion was allocated in the legislation to assist Ukraine’s government and military in resisting Russia’s full-scale invasion.
“We have taken the step that was outlined in the law to cancel those loans,” Miller stated during a press briefing. He added that the action was completed “in recent days.” However, the loan forgiveness is not final, as Congress retains the power to block the move.
The Senate is scheduled to vote on Wednesday on a motion of disapproval introduced by Senator Rand Paul, a Republican and vocal critic of the United States’ expansive aid to Ukraine.
Paul has consistently argued that such financial support diverts resources away from pressing domestic issues. While bipartisan backing for Ukraine’s aid remains strong in Congress, the vote reflects growing divisions about U.S. involvement in Ukraine’s conflict.
The urgency behind the decision appears tied to concerns about the incoming administration. President Biden has reportedly directed his team to expedite aid to Ukraine before his term ends on January 20. He fears that President-elect Donald Trump may curtail U.S. assistance to the Eastern European nation.
Trump has been a strong opponent of the U.S. involvement in Ukraine. He has repeatedly stated that he would in the war in Ukraine once he gets into office. This resonates with his base of supporters who prioritize focusing resources on domestic matters.
With the debate over the forgiveness of loans heating up, the move is expected to fuel broader conversations about the future of U.S. aid to Ukraine and its alignment with American interests.