US Aid to Ukraine Facing Expiration, Billions at Risk

The US has reportedly been slow to spend approved funds for Ukraine due to concerns about its own weapons stocks.

Ukraine could lose nearly $6 billion in previously approved US military aid if Washington doesn’t find a way to withdraw or secure the money before the end of September, Reuters reported on Thursday, citing sources.

The funds in question come from the Presidential Drawdown Authority (PDA), a major part of the $61 billion aid package for Ukraine that Washington passed in April. The PDA is a key tool the US uses to supply weapons to Kiev, as it allows the president to authorize immediate transfers of goods and services from US stocks. The PDA’s cap changes every fiscal year, and is currently at $7.8 billion for FY2024, which ends on September 30.

However, according to Reuters, only a small portion of this year’s PDA has been used, leaving approximately $6 billion at risk of being lost. President Joe Biden’s administration has reportedly been holding urgent discussions with Congress to try and keep the funds available in FY2025.

One proposal reportedly involves tying the PDA with a continuing resolution, a temporary measure that Congress can use at the end of the fiscal year to extend funding. Another option is to make a large-scale PDA allocation before the funds’ expiration date, which would formally prove that the money has been spent.

While Washington has approved $175 billion in aid and military assistance for Ukraine since the escalation of the conflict with Russia in February 2022, many experts have noted that aid has been slow to come this fiscal year. Sources told Reuters it was “not fully clear” why this happened, but noted that it was likely due to concerns that America’s own stocks were running low.

US-based Ukraine advocacy groups have been quick to react to the Reuters report, demanding Washington “act immediately” to prevent the funds from expiring. They indirectly played the ‘Russia threat’ card, with one claiming that without the funds, “Ukrainian cities may become depopulated,” leading to a refugee crisis in both Europe and the US. Another signaled that NATO would have its hands full “supporting” its four members that border Ukraine if it “falls.”

Moscow has often warned against Western military aid for Kiev, stating that it will only prolong the fighting while not altering the course of the conflict. It has also stressed that deliveries of Western weapons to Ukraine make the suppliers direct participants in the fighting.