Biden Pushes to Cancel $4.7 Billion in Ukraine Debt as Trump Threatens to Cut Aid—Congress and Senate Hold Power to Block It
The Biden administration has canceled $4.7 billion in U.S. loans to Ukraine, aiming to strengthen the nation’s defenses against Russia as President Joe Biden’s term draws to a close. State Department spokesperson Matthew Miller confirmed the decision, describing it as a critical step in supporting Ukraine amid its ongoing war.
Congress Approved Forgivable Loans in April
This loan cancellation comes from a funding bill passed in April, which allocated $9.4 billion in forgivable loans for Ukraine’s economic and budgetary support. The legislation permitted the president to forgive half of these loans after November 15. According to Miller, this step was recently finalized to comply with the law’s provisions.
“We have taken the step outlined in the law to cancel those loans,” Miller explained during a press briefing.
Congress and Senate May Block the Move
While the Biden administration acted within the legal framework, Congress and the Senate retain the authority to block the loan forgiveness. A motion of disapproval has been introduced by Republican Senator Rand Paul, a frequent critic of U.S. support for Ukraine. The motion highlights concerns over the financial and strategic impact of such aid on the U.S.
Despite Paul’s objections, bipartisan support for Ukraine remains strong in Congress, making it unlikely that the loan forgiveness will be overturned.
Biden Races Against Time as Trump Prepares to Take Office
With President-elect Donald Trump set to take office on January 20, Biden has instructed officials to accelerate aid shipments and finalize key support measures for Ukraine. Trump’s previous skepticism toward U.S. aid for Ukraine raises concerns about potential policy changes that could affect the nation’s war effort against Russia.
This loan forgiveness reflects the urgency of Biden’s efforts to solidify U.S. commitments to Ukraine amid one of the most consequential conflicts in recent history. As Ukraine continues to resist the full-scale Russian invasion that began in February 2022, this move signals Washington’s determination to provide support before a potential shift in policy under the incoming administration.
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