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1 1 (August 15, 2024)

handle is hein.crs/goveqjg0001 and id is 1 raw text is: Congressional Research Sei Informing the legislitive debate s~nee 1914 ice Updated August 15, 2024 U.S. Direct Financial Support for Ukraine Background Congress has enacted five emergency supplemental funding measures to address Russia's ongoing invasion of Ukraine. These include * the Ukraine Supplemental Appropriations Act, 2022 (FY2022 USAA, P.L. 117-103, Div. N); * the Additional Ukraine Supplemental Appropriations Act, 2022 (FY2022 AUSAA, P.L. 117-128); * the Ukraine Supplemental Appropriations Act, 2023 (FY2023 USAA, P.L. 117-180, Div. B); * the Additional Ukraine Supplemental Appropriations Act, 2023 (FY2023 AUSAA, P.L. 117-328, Div. M); and * the Ukraine Security Supplemental Appropriations Act, 2024 (FY2024 USSAA, P.L. 118-50, Div. B). As of August 2024, Congress has appropriated a total of $174.2 billion from FY2022 through FY2024 in response to Russia's war against Ukraine. Of that amount, Congress appropriated $37.8 billion for the Economic Support Fund and Assistance for Europe, Eurasia, and Central Asia accounts, directing that a portion of such assistance be made available for direct financial support for the Government of Ukraine's (GOU's) central budget. To date, the U.S. Agency for International Development (USAID) has obligated $26.8 billion for such support via three World Bank mechanisms. Word Bank Mechanisms The World Bank established a Multi-Donor Trust Fund for Ukraine (MDTF) in March 2022. It is meant to reduce procedural steps and transaction costs associated with individual transfers by consolidating donors' resources for transfer to Ukraine. USAID obligated $1.0 billion in FY2022 to the MDTF. The Transfer Out Single Donor Trust Fund (SDTF) was established in July 2022 as a dedicated mechanism for direct U.S. support to Ukraine. It has been used to fund health care services under a rapid, standalone agreement not subject to the negotiated terms of the MDTF, PEACE Fund, or World Bank accountability procedures. USAID obligated $1.7 billion to the Transfer Out SDTF in FY2022. The Public Expenditures for Administrative Capacity Endurance (PEACE) Fund was established in June 2022 to support the GOU's ability to continue compensating public employees. The initial scope included government salaries (at the central and regional levels) and school employees. It has since expanded to include local employees such as first responders and health care workers, pensions, and other social services. The PEACE Fund may also provide for grants to internally displaced persons. USAID has obligated $24.1 billion to PEACE between FY2022-FY2024; the most recent obligation of $3.9 billion will not fund pensions, pursuant to the FY2024 USSAA. As of June 2024, USAID has reported using only these three mechanisms to provide direct financial support to Ukraine. Congress onal Oversight Measures Each supplemental measure has subjected appropriations to the authorities and conditions of regular appropriations for the corresponding fiscal year. Each measure also added new controls and oversight provisions. (Separate oversight provisions address other U.S. funding for Ukraine, particularly military assistance.) Among new controls, Section 507 of the FY2022 AUSAA requires USAID to use a separate, auditable account for direct financial support to Ukraine. Section 1705 of the FY2023 AUSAA mandates a U.S.-GOU memorandum of understanding (MOU) on safeguarding of funds and third- party monitoring. The FY2024 USSAA continues those provisions, adds requirements for in-person monitoring, and provides more guidance on monitoring and oversight approaches. It also mandates an arrangement for repayment of budget support by the GOU (see Assistance via Grants versus Loans). For congressional oversight, Section 1705 of the FY2023 AUSAA mandates certifications on safeguards from administration officials, Office of Inspector General (OIG) reporting to assess those safeguards, and reporting to Congress every 45 days on uses of those funds, as well as a summary of other donors' contributions. The FY2024 State, Foreign Operations, and Related Programs (SFOPS) appropriation (P.L. 118-47) mandates a comprehensive report on assistance made available for Ukraine since February 24, 2022, to be updated every 90 days. World Bank Oversight Measures As noted, the United States channels direct U.S. financial support to Ukraine through the World Bank. These funds are subject to the World Bank's Standard Conditions for multidonor trust funds (to which CRS does not have access); a bilateral U.S.-World Bank Administration Agreement detailing obligations between the parties; and an agreement between Ukraine and the World Bank detailing financing terms, scopes of activity, requirements, and oversight standards. The MDTF was created under a broader project framework that predates Russia's renewed invasion in 2022. That framework set conditions for Ukraine's macroeconomic policy stability and various governance reforms; the World

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