Biden aims to eliminate over $4.5 billion of Ukraine's debt.

US President Joe Biden has submitted a proposal to Congress to cancel half of Ukraine's economic debt, amounting to approximately $4.65 billion, reported on November 20 during a briefing by US State Department spokesperson Matthew Miller.

The additional security assistance package worth $61 billion that Congress provided to Ukraine in April included about $10 billion in economic aid as loans rather than grants. The terms of the proposal granted Biden the authority to forgive up to 50% of the loan to Ukraine, which he intends to utilize, as noted by Bloomberg.

The debt relief, “will help Ukraine achieve victory, aligns with the national interests of the US and their partners in the EU, G7, and NATO,” the State Department stated in a letter to Congress dated November 18.

“We have taken the legally required step to forgive these loans and provide economic assistance to Ukraine, and now Congress can act on this if they choose to,” the State Department spokesperson told reporters.

Miller mentioned that Biden's intentions were communicated to Congress over the past week.

The spokesperson also pointed out that while Congress has the option to reject the president's request, he expects lawmakers to support the debt forgiveness.

“I would be surprised if Congress took such a step (to not accept the request), given the overwhelming bipartisan support in Congress for providing assistance, but we will adhere to the law,” he said.

This plan has faced opposition from Republicans. Senator Rand Paul stated on social media platform X that he would seek a Senate vote to “prevent the Biden administration from making Ukraine's debt a burden on the American people.” Bloomberg reminds us that Democrats control the Senate, and even if a resolution is passed, Biden could veto it.

With only two months remaining until the inauguration of elected President Donald Trump, the Biden administration has promised to increase support for Kyiv before his arrival.

In particular, Biden has pledged to provide Ukraine the remaining $6 billion in aid before Trump's inauguration. He also approved the supply of anti-personnel mines to Ukraine and reportedly allowed Kyiv to strike targets within Russia using long-range ATACMS missiles.