Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

U.S. Democrats, Republicans joust over Biden's $32.5 billion Ukraine, COVID aid proposal

Published 03/03/2022, 07:11 AM
Updated 03/03/2022, 06:07 PM
© Reuters. U.S. President Joe Biden speaks to reporters upon his departure from the White House on Ash Wednesday, in Washington, D.C., U.S., March 2, 2022. REUTERS/Kevin Lamarque/File Photo

By Doina Chiacu

WASHINGTON (Reuters) - The Biden administration on Thursday unveiled a $32.5 billion emergency plan to help Ukraine respond to Russia's military invasion and provide more money to fight the COVID-19 pandemic, sparking a new partisan battle in Congress amid a March 11 deadline for settling budget matters.

There appeared to be strong, bipartisan support in the Democratic-controlled Congress for $10 billion in military and humanitarian aid for Ukraine following the Feb. 24 launch of Russia's invasion into its territory.

But some Republicans and a couple of centrist Democrats questioned the $22.5 billion in additional coronavirus pandemic aid on the heels of last year's $1.9 trillion "American Rescue Plan" that passed with only Democratic support.

The White House and congressional Democrats want to bundle the Ukraine and COVID-19 emergency funds with a much larger third package of around $1.5 trillion to keep regular government operations running beyond March 11, when stopgap funds expire.

Without action by Congress, many federal agencies would have to pare or shut down operations at the end of next week.

Republicans argued some of the American Rescue Plan money is unspent and should be used before a new tranche is considered.

"We shouldn't give money where it's not needed, because we're borrowing it," Senator Richard Shelby, the top Republican on the Senate Appropriations Committee, told Reuters.

Republican Senator Lindsey Graham (NYSE:GHM), however, signaled support for COVID-19 funding, saying "multiple crises are hitting at the same time."

Some lawmakers fretted that the budget dispute, if unresolved, could have far-reaching fallout - showcasing political divisions in the United States that could hearten Russian President Vladimir Putin, delaying military aid to Ukraine and flirting with a U.S. government shutdown.

Democratic Senator Dick Durbin downplayed such concerns, saying coupling the Ukraine money with other spending could speed budget negotiations.

"I think it could be a spark to get it (Ukraine money) moving quickly," Durbin told reporters.

A House Democratic aide said closed-door negotiations on the entire appropriations package were making progress, although disagreements still had to be ironed out. Negotiators hoped to unveil a massive bill in coming days so it can quickly move through the House and Senate and be sent to President Joe Biden for signing into law by the March 11 deadline.

The White House and congressional Democrats argued that funding of key portions of the American Rescue Plan was nearly exhausted for facilitating the manufacture and shipping of more vaccines and COVID-19 tests needed to battle future spikes in the deadly disease.

"We are therefore urging Congress to promptly provide $22.5 billion to cover immediate needs for tests, treatments and vaccines, investments in research and development of next-generation vaccines, and responding globally, including getting more shots in arms around the world," Office of Management and Budget Acting Director Shalanda Young said in a statement.

© Reuters. U.S. President Joe Biden speaks to reporters upon his departure from the White House on Ash Wednesday, in Washington, D.C., U.S., March 2, 2022. REUTERS/Kevin Lamarque/File Photo

More than 90% of American Rescue Plan funds have been committed, according to sources familiar with the matter.

Additional COVID-19 resources would allow the government to secure treatments, vaccines and tests for the coming months and fight future variants, Young said. The money would also ensure the continuation of free community testing, treatment and vaccination coverage for uninsured individuals.

Latest comments

No, enough is enough!  We are up to our eyeballs in debt.  We are in a financial war.  Who will help us?
God lor
Much of the aid will just go to the Russians when they topple Ukraine's government, just like $86 billion of military assets went to Taliban in Afghanistan.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.