US Congress nears agreement on extending expiring Ukraine aid, sources say
Bipartisan support for extending $6 billion in Ukraine aid
Senate prepares temporary spending bill to avert shutdown
Uncertainty over House Speaker Johnson's support for Ukraine aid extension
By Patricia Zengerle, Mike Stone
WASHINGTON, Sept 19 (Reuters) -Pro-Ukraine U.S. congressional leaders and President Joe Biden's administration are near an agreement to seek a one-year extension of $6 billion in military aid for Ukraine that is due to expire this month, according to two sources familiar with the matter.
There is bipartisan support for the plan to include the extension of the Presidential Drawdown Authority (PDA) in a Continuing Resolution, a short-term emergency spending bill that the Senate and House of Representatives must pass in the next 11 days to avoid a Sept. 30 government shutdown, they said.
The issue comes at a crucial time in the war, as Russia pummels Ukraine's energy grid ahead of the critical winter months.
Reuters reported on Sept. 5 that Biden's administration has been engaged in urgent discussions with lawmakers about how best to keep the funding from expiring before it can be used.
The issue has become more urgent as the deadline approaches. The House of Representatives failed on Wednesday to pass a funding bill supported by the chamber's Republican leaders that included a controversial voting measure backed by former President Donald Trump, the Republican candidate in the Nov. 5 presidential election, and opposed by Democrats.
That bill did not include an extension of the Ukraine PDA authority.
Senate Majority Leader Chuck Schumer said on Thursday the Democratic-led Senate would prepare its own temporary spending legislation that would avert a shutdown. Negotiations on that bill are continuing, but the sources said it is expected to include the one-year extension of the Ukraine aid.
It was not yet clear whether Republican House Speaker Mike Johnson, who held up Biden's last Ukraine spending request for months, would support a Senate spending bill including the extension for Ukraine.
Johnson's office did not respond to a request for comment. A State Department spokesperson declined comment.
Another congressional aide, speaking on condition of anonymity to discuss ongoing negotiations, said there are "active conversations" involving relevant House committees and Johnson's office about an extension of PDA authority.
The $7.8 billion of Presidential Drawdown Authority was a key component of a $61 billion aid package for Ukraine that easily passed both the House and Senate in April after months of delay by Republican opponents of Ukraine aid. PDA allows the president to transfer defense articles and services from U.S. stocks in response to emergencies.
However, most of the $7.8 billion in PDA in the bill has not been used, largely due to supply-chain issues, leaving officials scrambling to find a way to keep the remaining $6 billion from expiring as the Sept. 30 deadline - the end of the 2024 fiscal year - approaches.
PDA has been the primary mechanism the Biden administration has used to ship weapons to Ukraine.
Congress has approved nearly $175 billion of aid and military assistance for Ukraine and allied nations since Russia launched its full-scale invasion in February 2022.
Much of that has come in the form of long-term funding for U.S. defense production, as the Pentagon looks to replace equipment sent to Kyiv. Ukraine supporters have stressed the benefits for U.S. industry as they look to overcome resistance from a vocal bloc of Republicans who say taxpayer money should be spent at home, not sent abroad.
Companies like RTX's RTX.N Raytheon in Arizona which makes Patriot missile systems and General Dynamics' GD.N 155 millimeter artillery plants in Pennsylvania, are receiving contracts for products that will replace those sent to Ukraine using PDA. Arizona and Pennsylvania are among the "swing" states expected to decide the presidential election.
Reporting by Patricia Zengerle and Mike Stone in Washington; Editing by Don Durfee and Matthew Lewis
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
