The ongoing battle in Washington over funding for Ukraine’s conflict with Russia has intensified, with the White House urging Congress to pass overdue legislation to support Ukraine’s war efforts, citing the depletion of funds allocated for this purpose.
Despite this financial strain, President Joe Biden recently announced a new military aid package worth $200 million for Ukraine, sparking confusion about the actual status of available funding.
Complex aids
In a letter dated November 4, White House budget director Shalanda Young made a straightforward declaration to Congress
However, since that statement, the US has revealed three additional aid packages totaling $475 million. This apparent contradiction stems from the intricacies of aid disbursement to Ukraine, involving two distinct funding channels specifically designated for weapons and security assistance in the conflict.
What is PDA and USAI?
One of the funding channels is the Presidential Drawdown Authority (PDA), enabling the provision of existing US weapon stocks, while the other channel is the Ukraine Security Assistance Initiative (USAI), which finances long-term weapons contracts.
All the allocated funds for USAI have been exhausted, leaving an empty pot. Initially, it appeared the PDA funds were also depleted. But a reevaluation by the Pentagon revealed an overstatement of the value of weapons sent to Ukraine, resulting in an excess of $6.2 billion in charges to the Ukrainian weapons account. This surplus effectively provides Ukraine with a credit line now valued at approximately $4.4 billion, slowly diminishing with ongoing disbursements.
Insufficient funds
Subsequent PDA packages have been announced at reduced amounts, around $200 million or less, compared to previous larger allocations of $400 million to $500 million. Despite these efforts, there are concerns about insufficient Pentagon stock to fulfill these smaller packages.
The dwindling congressional funding — now approximately $1 billion — for replenishing weapons sent to Ukraine raises concerns within the military about meeting US defense needs. For instance, the high demand for 155 mm rounds used in artillery by Kyiv has pressured the Scranton Army Ammunition Plant to boost production to meet both war demands and US military requirements.
Political complications
Amidst these financial struggles, the political gridlock further complicates matters. While the US has already allocated substantial aid to Ukraine, a $110 billion aid package, including $61.4 billion for Ukraine, remains stalled in Congress. The broader dispute intertwines Ukraine funding with domestic needs and a political battle concerning the southern US border.
President Biden’s urging for this aid package, encompassing diverse security needs, faces uncertainty in securing compromise amid political tensions. Ukrainian President Zelenskyy’s warning about unresolved issues potentially empowering Putin’s agenda adds to the urgency surrounding this funding deadlock.
(With inputs from Associated Press)
