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1 1 (January 13, 2025)

handle is hein.crs/govesaf0001 and id is 1 raw text is: 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 January 2025, Congress has appropriated a total of nearly $174.2 billion from FY2022 through FY2024 in supplemental appropriations 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 more than $30 billion for such support via three World Bank mechanisms (see below). Separately, USAID guaranteed repayment of a $20 billion loan to the Government of Ukraine. USAID backed the loan with FY2024 USSAA funds; the loan itself is to be repaid with revenues from immobilized Russian sovereign assets. Word Bank Mechansrs 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 Updated January 13, 2025 public employees. PEACE finances government salaries (at the central and regional levels), including ministry staff, teachers, first responders, and health care workers. PEACE also funds pensions and other social services, including to internally displaced persons. USAID obligated $27.5 billion to PEACE from FY2022 to FY2024; the most recent two obligations, totaling $7.3 billion, are not to fund pensions, pursuant to the FY2024 USSAA. Congressinal 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 the controls added by supplemental laws, 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; 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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