The Biden administration plans to cancel over $4.6B of Ukraine’s debt.

US President Joe Biden submitted a statement to the US Congress stating his intention to forgive half of Ukraine’s debt for economic assistance that was received as a loan.

State Department spokesman Matthew Miller said the amount of forgiven debt is approximately $4.65B. In the spring, the US Congress passed the Additional Ukraine Supplemental Appropriations Act, which provided about $61B in funding for Ukraine. The terms indicate that about $10B in economic aid were provided to Ukraine a conditional revolving loan, rather than a grant. The terms also give the US president the authority to forgive 50% of this loan, and the next US president can forgive the remaining 50% after January 1, 2026. However, the US Congress may protest this by passing a resolution of disapproval.

“I would be surprised if Congress took such a step, given the overwhelming bipartisan support in Congress for aid to Ukraine. But we will abide by the law,” Miller added.