Explained: The $10 billion Ukraine aid package that US Congress is looking to pass

A look at what the Bill is all about and the response to it.

What is the Ukraine Funding Bill?

The Bill is aimed at providing assistance to Ukraine in different ways— humanitarian, security and military. According to the letter by Young, it is expected to be passed before the funding deadline of March 11, after which the current funds would be exhausted and the US government would require a stop-gap Bill or partial shutdown of the US government in times of international crisis.

“Given the rapidly evolving situation in Ukraine, I anticipate that additional needs may arise over time. This funding request is based on the Administration’s best information on resource requirements at this time, and we will remain in touch with the Congress in the coming weeks and months as we assess resource requirements beyond these immediate needs,” the letter read.

The bill requires $4.8 billion to be sanctioned to the US Department of Defense “to support US troop deployments to neighbouring countries in support of broader NATO efforts, as well as to provide additional military equipment to Ukraine”.

Of the $4.8 billion, $1.8 billion would be covering the funding for US military units that would be deployed to support the US European Command and NATO Response Forces, “including costs for transportation of personnel and equipment, temporary duty, special pay, flying hours, airlift, weapons system sustainment, medical support, and other unit support costs”.

$1.25 billion would be sanctioned for funding defence components like “accelerated cyber capabilities, weapons systems upgrades, increased intelligence support, and classified programs. Details available at a higher classification”. And $1.75 billion would fund the replenishing of the Department of Defence’s stocks that are expected to be offered to the Ukrainian government. These include $200 million to replenish “military drawdown of DOD stocks for Ukraine”, $350 million for immediate military assistance to Ukraine, including “defense articles and services, and military education and training”, and $1.2 billion for foreign assistance

The Act for additional Presidential authority

Another $5 billion has been requested to be sanctioned to the Department of State and the United States Agency for International Development (USAID) to give a boost to the assistance provided to Ukraine and its neighbouring allies —Poland, Lithuania, and the Baltics. This would be in terms of security and finances, including emergency food aid and support for the vulnerable population and communities.

Of this, $2.75 billion would be sanctioned for humanitarian assistance. “This funding would provide lifesaving humanitarian assistance, including the provision of emergency food assistance, and additional support for internally displaced as well as vulnerable populations and communities inside Ukraine and for anticipated refugee outflows in the region… Of this funding, $2.0 billion is estimated to be for International Disaster Assistance and $750 million for Migration and Refugee Assistance,” the Bill states. $500 million would be sanctioned for military assistance to build the capacity of Ukraine and its regional neighbours to deter Russian aggression.

$1.75 billion of the $5 billion would be sanctioned for economic assistance. “These resources would provide maximum flexibility to respond to the most critical needs in Ukraine to support continuity of government and the resilience of the people, as well as emergent needs in the region.”

The bill also states that $21 million would be allocated for the Department of Commerce to fund the Bureau of Industry and Security’s resources for “analysis and the development of responses to Russia’s and China’s technological development and dependence on US technologies”.

$30 million would be sanctioned for the Department of Energy to help increase energy security and provide assistance to Ukraine for electrical grid integration to the European Network of Transmission System Operators for Electricity. Currently, the Ukrainian electrical grid is functioning in an isolated manner.

Another $59 million would be allotted to the Department of Justice to support the Task Force KleptoCapture and the multinational taskforce that was announced by US President Biden and other nations like France, Germany, the United Kingdom, Canada, Italy to enforce sanctions and export restrictions on Russia.

Lastly, the bill states that $91 million is to be provided to the Department of Treasury for analysing Russian economic vulnerabilities, targeting sanctions, finding resources to implement the sanctions, tracing financial activities relating to Moscow, and monitoring the impact of sanctions on the domestic and international economy.

The response to the Bill

While there has been wide-scale support in the US Congress for the assistance to be provided to Ukraine, there have been some reservations to pass the rest of the $22.5 billion for Covid-19 aid in the US, according to news agency Reuters.

The democrats have presented a bundled Bill, which integrates the funding required for Ukraine’s crisis and Covid-19 assistance in the country. Many have apprehensions as last year, a $1.9 trillion aid Bill was passed to provide Covid-19 assistance in the US.

“We shouldn’t give money where it’s not needed, because we’re borrowing it,” Republican Senator Richard Shelby told Reuters.

However, there are also leaders like Republican Lindsey Graham who have supported the Covid-19 Bill, saying, “multiple crises are hitting at the same time”.

Explaining as to why a bundled Bill was presented, Democratic Senator Dick Durbin said that it would fasten the Budget negotiations. “I think it could be a spark to get it (Ukraine money) moving quickly,” he added.

Newsletter | Click to get the day’s best explainers in your inbox