The Biden administration has announced it will cancel $4.65 billion in debt owed by Ukraine, sparking debate in Congress over the decision.

According to Fox News, the loan forgiveness is part of ongoing U.S. efforts to support Ukraine amidst its conflict with Russia.

Debt Cancellation Stems From Prior Legislation

The loan relief represents approximately half of a $9 billion economic loan offered to Ukraine earlier this year. This financial assistance was included in a $60 billion supplemental funding package passed by Congress in April. The package provided broad economic and military support for Ukraine as it continues to face an escalating war with Russia.

Matthew Miller, a State Department spokesperson, confirmed the debt cancellation plans during a briefing. He stated that the administration is acting within the provisions outlined in the legislation passed earlier this year. “So we have taken the step that was outlined in the law to cancel those loans, provide that economic assistance to Ukraine,” Miller explained.

The legislation authorized the Biden administration to forgive 50% of the loan immediately. The remaining balance of the loan may be forgiven after January 2026, depending on future conditions and agreements.

Lawmakers Oppose Loan Forgiveness Move

The announcement has met opposition from some members of Congress. Representative Thomas Massie introduced a resolution of disapproval in an attempt to block the loan forgiveness. He criticized the move, stating, “On his way out, Joe Biden is trying to forgive $4.65 billion of debt Ukraine owes America's taxpayers."

Massie’s comments echo concerns among other critics who argue that U.S. resources should focus more on domestic issues. Senator Rand Paul has similarly voiced his opposition and filed a comparable resolution in the Senate. Both resolutions aim to halt the implementation of debt cancellation.

The broader supplemental funding package that included the loan was passed by Congress with provisions allowing for such forgiveness. This highlights the ongoing tension between supporting Ukraine and addressing skepticism over the financial burden on U.S. taxpayers.

Debt Relief Is Part Of Larger Aid Package

Since Russia’s invasion of Ukraine in February 2022, the United States has allocated over $175 billion in aid to support Ukraine’s defense and recovery. The funding encompasses both economic and military assistance. The debt cancellation decision reflects a continuation of these extensive aid measures.

President Biden has recently authorized the use of U.S.-provided long-range missiles and anti-personnel land mines against Russian forces.

These military moves come as Russia has increased its troop presence in Ukraine, reportedly bolstered by forces from North Korea.

In addition, Defense Secretary Lloyd Austin announced $275 million in new military aid for Ukraine. The package includes drones, artillery ammunition, and mortar systems to help Ukraine counter Russia's ongoing offensives.

Funding Allocation To Continue Through 2024

President Biden has committed to using the remaining $7 billion from the April supplemental funding package to assist Ukraine before the end of his term. This allocation will include additional economic and military support to sustain Ukraine's resistance efforts.

The administration has also approved U.S. military contractors to help Ukraine maintain and repair American-made weapons systems. This support aims to enhance the effectiveness and longevity of the U.S. equipment provided to Ukraine.

While the loan forgiveness decision aligns with Biden’s broader Ukraine policy, it remains a contentious issue. The ongoing debate highlights differing perspectives on the role of the United States in supporting foreign conflicts and the financial implications of such aid.