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How to Understand the $54 Billion in US Spending in Ukraine

How to Understand the $54 Billion in US Spending in Ukraine

 


More than $40 billion in additional aid to Ukraine approved by Congress on Thursday brings the total U.S. commitment to the Russian invasion to more than $54 billion, combined with the aid package passed in March.

Source: Ukrainian Supplementary Appropriations Law, 2022

Most of the aid is allocated through the traditional channels of foreign aid. This includes funds to provide emergency support, health services and food aid to Ukrainian refugees inside and outside Ukraine. The latest bill, which had been delayed for a week by the objection of Senator Rand Paul of Kentucky, includes funds for logistical support and training for Ukrainian military and national security forces, as well as a fund for to ensure the continuity of the Ukrainian government.

Forty percent of the aid was directed towards arms transfers, to provide medical and intelligence support to allied countries in Europe and to deploy troops there. The bill passed Thursday allows President Biden to authorize the transfer of an additional $11 billion in US arms, defense equipment and supplies to Ukraine, and allocates $9.1 billion to replenish that stock.

Food aid, health care and other aid

Military and security assistance

Grants and loans for military supplies

Migration and refugee aid

Asst. for Europe, Eurasia and Central Asia

US military deployments and intelligence

Weapons and other supplies

Child and Family Administration

Diplomatic and other programs

Food aid,

health and other aids

Military and Security

assistance

Grants and loans for

military supplies

Migration and refugee

assistance

Asst. for Europe,

Eurasia and Central Asia

US military deployment-

ments and intelligence

Weapons and others

Provisions

Administration for

Children and families

Diplomatic programs

and other

Source: Ukrainian Supplementary Appropriations Law, 2022

A smaller part of the aid will go to national agencies to enforce sanctions and export control measures taken by the government to weaken the Russian economy. And some of the aid will be directed to diplomatic programs that help maintain services to American citizens in the region.

It can be difficult to understand the magnitude of such sums. Here are four ways to put it into context:

Compared to other foreign aid

Of the $54 billion in total US spending, $31.4 billion can be considered traditional foreign aid. That’s more than any annual amount given by the United States to a country in the past decade, according to data from the United States Agency for International Development.

The $31.4 billion may include funds that would not be counted in agency data, which is calculated differently. Still, that’s about twice the amount given in 2011 to Afghanistan, the largest recipient of US foreign aid so far.

Top recipients of U.S. foreign aid since 2010

Major Recipients of U.S. Foreign Aid

since 2010

Source: ForeignAssistance.gov Data not available for fiscal year 2021. Compared to the entire federal budget

The $54 billion in total US aid represents about one percent of the planned federal budget for this year. That’s less than a tenth of the $750 billion the government is expected to spend on defense this year. That’s more than the government spent last year on highway subsidies ($43 billion), but less than it spent on tax credits for health insurance premiums ($56 billion). billions of dollars).

Projected federal budget

$5.5 trillion

Projected federal budget

$5.5 trillion

Source: Congressional Budget Office

Although the table above helps give an idea of ​​the size of the aid programs, their actual impact on the federal budget is much smaller because they are supposed to be spent over 10 years. (Most of the funds are expected to be used sooner.) Over the next decade, aid to Ukraine will amount to less than a tenth of one percent of the estimated federal budget.

In relation to democratic priorities

The cost of aid isn’t as high as some of Democrats’ costliest policy priorities, like subsidized child care or paid family and medical leave. But it lines up with some of the small items House Democrats passed in a social policy and climate bill in November. (The bill stalled in the Senate, where support from all 50 Democrats was needed because no Republicans signed.)

Right to child custody (6 years)

Universal preschool (6 years old)

Medicare hearing benefits

Increase in Pell Grant (4 years)

Source: Congressional Budget Office Costs are over 10 years unless otherwise noted.

Some of the comparisons are tricky because Democrats shortened the timelines of many of the bill’s programs to cut costs. Six years of a universal preschool program, for example, would cost about twice as much as Ukraine’s aid programs.

Compared to what other countries have contributed

The United States has committed about three times as much money as all European Union countries combined, according to data compiled by the Kiel Institute for the World Economy, a German research institute.

The US total in the chart is closer to $45 billion, rather than the $54 billion passed by Congress, because certain categories of funding, such as money for institutions outside Ukraine or for troops US, are not included in institute comparisons.

Aid commitments, in billions

Aid commitments, in billions

Source: Kiel Institute for the World Economy. Other countries include Britain, Canada, Japan, Australia, South Korea, Turkey, Norway, New Zealand and Switzerland.

Relative to the size of the economy, the United States’ contribution to Ukraine ranks fourth, behind Estonia, Latvia and Poland. Refugee support costs are difficult to estimate and are not included in these figures. Including these costs would most likely put the relative contributions of several other Eastern European countries ahead of the United States, according to the Kiel Institute researchers.

Aid commitments as a percentage of GDP

Source: Kiel Institute for the World Economy Includes commitments between January 24 and May 10, in addition to the aid package passed by Congress on May 19. Countries whose contributions are less than 0.05% of GDP are not represented. Does not include commitments from the Commission or the Council of the European Union.

Sources

1/ https://Google.com/

2/ https://www.nytimes.com/interactive/2022/05/20/upshot/ukraine-us-aid-size.html

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