📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

US debt ceiling battle rekindles debate over Ukraine funds

Published 06/06/2023, 05:42 PM
Updated 06/06/2023, 07:55 PM
© Reuters. FILE PHOTO: U.S. House Speaker Kevin McCarthy (R-CA) speaks as he holds a press conference after the House approved the debt ceiling deal he negotiated with the White House to end their standoff and avoid a historic default, at the U.S. Capitol in Washing

By Patricia Zengerle

WASHINGTON (Reuters) -The battle to raise the U.S. debt ceiling rekindled debate in Congress over funding for Ukraine, as House of Representatives Speaker Kevin McCarthy said on Tuesday he had no immediate plans to take up legislation to boost defense spending beyond what was in last week's deal.

McCarthy's comments could signal a tougher road through Congress when President Joe Biden next asks for additional funds for Ukraine. The House and Senate last approved aid for the Kyiv government - $48 billion - in December, before Republicans took control of the House.

That money is expected to last at least through Sept. 30, the end of the current fiscal year. Lawmakers said Biden is expected to request more funds by August or September.

The debt ceiling agreement, which Biden signed into law on Saturday, capped national security spending in the year ending Sept. 30, 2024 at $886 billion, the amount Biden requested but below what congressional defense hawks wanted.

After some Republicans threatened to vote against the deal over the tightened defense spending, the Senate's Democratic and Republican leaders promised that the caps would not prevent the chamber from passing supplemental spending legislation to provide more money for Ukraine and the Department of Defense.

However, McCarthy, who negotiated the agreement with Biden, said he would not automatically allow a vote on supplemental spending legislation in the Republican-led House.

"It doesn't matter if it's Ukraine or anything else. The idea that someone wants to go do a supplemental after we just came to an agreement is trying to blow the agreement," McCarthy told reporters at the Capitol.

SOME SENATE REPUBLICANS DISAGREE

However, some Republican senators still said they believed a supplemental spending bill would be necessary.

"I strongly believe we are going to need a supplemental for defense," Senator Susan Collins, the top Republican on the Senate Appropriations Committee, told reporters.

McCarthy said he supported Ukraine and helping Ukraine to defeat the Russian invasion but would want more information before moving ahead.

"I'm not giving money for the sake of giving money. I want to see what is the purpose, what is the outcome you want to achieve and then show me the plan to see if I think that plan actually can work?" he said.

© Reuters. FILE PHOTO: U.S. House Speaker Kevin McCarthy (R-CA) speaks as he holds a press conference after the House approved the debt ceiling deal he negotiated with the White House to end their standoff and avoid a historic default, at the U.S. Capitol in Washington, U.S. May 31, 2023. REUTERS/Jonathan Ernst

House Republicans want any money for Ukraine - or other priorities - to move ahead via "regular order," with Congress debating and passing the 12 appropriations bills lawmakers will work on this summer to fund government programs in the fiscal year beginning Oct. 1.

Overall, the House and Senate have approved more than $113 billion of military assistance and other aid for Ukraine since Russia invaded in February 2022. The four tranches of assistance all passed with strong support from both Republicans and Democrats, although all were approved while Democrats controlled both the Senate and House.

Latest comments

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.