Biden's Last Push: Forgiving Billions in Loans to Ukraine

The Biden administration has announced the forgiveness of approximately $4.7 billion in loans to Ukraine. This move stems from a law passed by Congress, which permits the cancellation of half of the $9.4 billion economic support package to Ukraine amidst its conflict with Russia. Congress may oppose it.

The Biden administration has taken decisive steps to forgive around $4.7 billion in loans to Ukraine, according to a statement by State Department spokesperson Matthew Miller on Wednesday. This action takes place as outgoing officials aim to strengthen Ukraine's position against Russia's ongoing aggression.

The move is part of a larger funding package passed by Congress in April, which included over $9.4 billion in forgivable loans intended for economic and budgetary support for Ukraine. Under the provisions of the funding bill, President Biden has the authority to cancel half of these loans after November 15. The legislation outlined a total of $61 billion to aid Ukraine in resisting Russia's 2022 invasion. "We have taken the step that was outlined in the law to cancel those loans," Miller declared during a press briefing, confirming that this action was taken only recently.

Despite this move, the possibility remains that Congress could oppose the loan forgiveness initiative. The Senate is scheduled to vote on a disapproval motion led by Republican Senator Rand Paul, who has been an outspoken critic of U.S. aid to Ukraine. While bipartisan support largely favors continued aid to Ukraine, the political landscape could shift following President Biden's term, especially with President-elect Donald Trump potentially reconsidering U.S. support.

(With inputs from agencies.)