The State Department announced on Wednesday that it has moved to forgive about $4.7 billion in US loans to Ukraine as the Biden administration is trying to spend as much as it can on Ukraine during the transition period.
The $61 billion in aid for Ukraine that was authorized by Congress earlier this year included about $9.4 billion in economic and budgetary aid provided in the form of loans, an idea first promoted by President-elect Donald Trump. However, the law allows the president to forgive the loans if Congress doesn’t stop him.
After November 15, President Biden was allowed to forgive the first half of the loan. “We have taken the step that was outlined in the law to cancel those loans,” said State Department spokesman Matt Miller. On January 1, 2026, Trump will be able to forgive the second half of the loan if he chooses to do so and Congress allows it.
Sen. Rand Paul (R-KY) is leading an effort to try to block Biden from forgiving the $4.7 billion. “Today, US Senator Rand Paul (R-KY) will force a vote in the U.S. Senate on his joint resolution of disapproval (S.J.Res.117) to stop the Biden Administration from making Ukraine’s debt the responsibility of the American people,” Paul’s office said in a press release on Wednesday.
“The Biden Administration’s proposal shifts the burden of funding Ukraine’s small businesses, farmers, and corrupt bureaucrats onto the backs of hardworking Americans, who are already suffering during a time of high inflation,” the press release said.
Paul said that any senators who vote against his resolution “will be sending a message to all Americans that they clearly prioritize Ukraine over the people they represent and are for putting America last.”