Democrats open to loan strategy for Ukraine aid

Democrats in both chambers have signaled they would support Ukraine aid in the form of loans, but the idea is gaining traction among Republicans in Kiev who are rushing to break the deadlock in Congress and help Ukraine fight Russian forces. It’s gaining momentum.

This loan design is not to the liking of the Democratic Party. They are calling for adoption of the emergency foreign aid package that the Senate passed last month, including $60 billion in aid for Ukraine, but are criticizing Speaker Mike Johnson (R-Louisiana) for refusing to let the House consider it. .

But many Democrats say they would support the financing strategy Johnson proposed to Republican senators last week if it could break the impasse.

“Democrats support aid to Ukraine. Give them the money, whether you call it a loan or whatever,” said Rep. Bennie Thompson, Mississippi, the ranking Democrat on the Homeland Security Committee. State) said. “We have to get them to help us. So if it comes as a loan, that helps. Even if it comes as an aid package with no requirements, it still helps.”

The lending strategy has gained attention among Republicans in recent weeks, especially after former President Trump used his campaign to promote the idea that all U.S. foreign aid should be in the form of loans. This is because

Few believe that Ukraine will repay the loan, given the multitrillion-dollar reconstruction costs that Kiev is sure to face whenever the Russian conflict ends. But the loan plan could be a political cover for wary Republicans, who could pitch the idea to voters as a strategy to ease the financial burden on American taxpayers.

Last weekend, Sen. Lindsey Graham (RS.C.) raised this proposal with Ukrainian President Volodymyr Zelenskiy, arguing that: Current politics on Capitol Hill “Turning U.S. aid into interest-free, forgivable loans is the most likely path forward,” it suggests.

And if this is seen as the last best chance to secure support for Ukraine before the November elections, Democrats are increasingly open to the idea.

“Ukraine desperately needs money, and we are trying to find every possible way to get that money out. We don’t know what kind of ransom the Republicans will demand, but given the urgency of the moment, I understand sex,” said Sen. Elizabeth Warren (D-Mass.). “If there was a way to frame the money for Ukraine in a way that would get Republican votes, I would seriously consider it.”

Debate in recent weeks has focused on the House of Commons, where Prime Minister Boris Johnson is considering how to move money to Ukraine despite growing opposition from within his own party and from President Trump. No action on this matter is expected until mid-April at the earliest. Both houses of Congress are scheduled to go into recess for two weeks in the coming days.

Prime Minister Boris Johnson told reporters on Wednesday that aid to Ukraine remains a priority, adding: “We understand the importance of sending a strong signal to the world that we stand by our allies,” but said there was no way to mobilize aid. He emphasized that no plans have been finalized yet.

“We have not specifically talked about the mechanism of funding for Ukraine,” he said. “There is talk about what we call repo laws…that the seized assets of the Russian oligarchs could somehow be used to pay for aid to Ukraine.…And the concept of financing is being discussed. I am.”

He said the House of Commons would take up the issue “immediately” after Congress funds the government.

But one Senate Republican told The Hill that there is a feeling among Republicans that a loan is needed to ultimately finance Ukraine, and that the overall level of bipartisan support is It depends on what is included in the package. The emergency amendment passed by the Senate last month included aid for Israel, the Indo-Pacific, and humanitarian purposes.

Sen. Kevin Cramer (D) said, “If the House had done something like that…it would have been in the form of a return by the House, but I can’t imagine that it would be rejected here because it turned into a loan.” I can’t do it,” he said. He voted in favor of the aid bill last month, arguing that if the aid was framed as a loan, it could increase Republican support.

While there are political issues at hand, with the 2024 general election campaign already in full swing, these considerations reflect a desire within the Democratic Party for support, including President Trump’s welcome of the loan proposal. is expected to exceed.

“It’s hard to understand why [Democrats] I would object, except it’s Donald Trump’s idea, and hopefully we’ll stop doing it,” Cramer said. “We need aid. Ukraine needs it. Israel needs it. Frankly, we need it.”

However, not everyone is participating.

“Keep in mind that both Israel and Ukraine, especially Ukraine, are going to have to borrow a lot of money to fight this war,” said U.S. Rep. Brad Sherman (D-Calif.), a senior Foreign Service official. State) said. Committee. “So if you’re going to undermine their creditworthiness, and even Israel’s credit rating is going down, then you’re hurting an ally while pretending to be helping an ally.

“So these are not good changes.”

It is widely believed that of the $60 billion earmarked for aid to Ukraine, only $12 billion is scheduled to be delivered directly to Kiev, with the remaining $48 billion going to US industrial parks for weapons. It is being It is this $12 billion that Republicans are targeting for loans.

But leading Ukraine advocates on both sides of the aisle are disgusted by the idea, saying they need to act quickly to greenlight this aid to help the war-torn country.

“Time is running out. The best way to get Ukraine the help it needs is for the House to pass the Senate bill. The problem with changing that…is to do the simplest thing here in the Senate. That could take three days. We don’t have time,” Senate Minority Leader Mitch McConnell (R-Ky.) told reporters.

Some simply didn’t believe what could come out of House Republicans on topics with international implications as half-baked ideas.

“It feels like a superficial idea that no one has fleshed out,” said Sen. Chris Murphy, D-Conn., who led Democrats in negotiating the bipartisan Ukraine border bill. Eventually it was tanked by conservatives.

“Pass the Senate bill. Let’s do this. Stop fooling around,” he added.