The Biden administration forgave $4.7 billion in loans to Ukraine, State Department spokesman Matthew Miller said. Aimed at bolstering Ukraine against Russia, the move comes as officials expedite aid before leaving office. Congress could still block the loan forgiveness.
Biden Administration Moves to Forgive $4.7 Billion in Ukraine Loans
In an effort to help Ukraine in its conflict with Russia, the Biden administration is moving to cancel approximately $4.7 billion in U.S. loans to the country, according to State Department spokesperson Matthew Miller. Reuters reports that this move comes as the outgoing officials try to do all they can before leaving office.
Just over $9.4 billion in forgiven loans were included in the U.S. financing bill that Congress passed in April to help the Ukrainian government with their budget and economy. The president has until November 15 to decide whether to rescind half of these loans.
With the passage of this measure, a total of $61 billion was allocated to assist Ukraine in its struggle against the full-scale invasion that Moscow initiated in February of 2022.
State Department Confirms Loan Forgiveness Action
According to Miller, who was speaking at a press briefing, "We have taken the step that was outlined in the law to cancel those loans," and he said that the step was taken in the most recent instances.
According to Miller, Congress still has the ability to thwart the action.
Republican Senator Rand Paul, who has been vocal in his criticism of U.S. backing for Ukraine, has proposed a resolution to disapprove of student debt forgiveness for Ukraine. Per Investing.com, the Senate is scheduled to vote on this motion later on Wednesday. Help for Ukraine has the backing of most senators on both sides of the aisle.
Biden Administration Prepares for Transition Amid Ukraine Aid Concerns
Concerned that President-elect Trump may limit U.S. support, Vice President Joe Biden has instructed officials to expedite the shipment of aid to Ukraine before his departure from office on January 20.