Why $6 billion in US aid could be lost and how it can be saved
On 1 October, US President Joe Biden’s administration may lose access to nearly $6 billion that Congress had allocated for Ukraine's defence as the Presidential Drawdown Authority (PDA).
The Pentagon has stated that they are working with Congress to extend the authority and ensure they can continue to send weapons to Ukraine, assuring that they will ultimately use all available resources.
Read more in the article by Ostap Yarysh and Kateryna Lisunova, Voice of America reporters – The $6 billion question: Will Ukraine lose part of the US funds in aid?
In April, Congress passed additional funding for Ukraine and its partners in the $61 billion supplemental bill. Along with these funds, in the Ukraine supplemental, Congress approved $7.8 billion in PDA.
The PDA (Presidential Drawdown Authority) allows for the rapid transfer of weapons directly from US stockpiles to Ukraine. The Pentagon notes that weapons packages under this programme can be delivered within days of announcement, making PDA the most immediate tool for addressing Ukraine's urgent battlefield needs.
The weapons provided are later replenished by the US through orders from manufacturers, with Congress allocating separate funds for this replenishment.
According to the law, the authority to send weapons to Ukraine in the PDA lasts until the end of the 2024 fiscal year, 30 September. As of today, $5.9 billion remains unused, with $5.8 billion set to expire at the end of the month, according to the Pentagon.
If the authority to use these funds is not extended, the White House may lose access to the money.
There are two options to avoid this, as Mykola Murskyi, Advocacy Director of Razom for Ukraine, explained to Voice of America:
1. Congress could pass a provision extending the president's authority to use the remaining amount in the next fiscal year.
2. The Biden administration could notify Congress of its intent to use these funds.
A formal notification would need to come from the Secretary of State, as has been done in the past.
However, the US Department os State has not yet given a clear answer on whether the Secretary of State will notify Congress soon about the intention to use the remaining $5.8 billion.
Another issue is that not all US lawmakers interviewed by Voice of America were aware of the risk of losing access to nearly $6 billion. However, some congressmen have assured that if necessary, the authority will be extended.
The Pentagon has also indicated that they are in discussions with Congress about extending the authority to continue sending weapons to Ukraine under the PDA programme. Pentagon spokesperson Pat Ryder confirmed that the US Department of Defense is working with Congress to extend the authority and will announce more details soon.
If, for any reason, access to the $6 billion expires at the end of September, the administration can use other funds for military support to Ukraine. These additional funds were discovered due to errors in previous calculations by the US Department of Defense.