Biden administration acknowledges $3B mistake in Ukraine aid.

Biden Administration Admits $3 Billion Accounting Error on Ukraine Aid

The Pentagon has overestimated the value of ammunition, missiles, and other equipment sent to Ukraine by around $3 billion, according to a Senate aide and a defense official. This error may lead to more weapons being sent to Kyiv for its defense against Russian forces. The mistake was the result of assigning a higher than warranted value on weaponry that was taken from U.S. stocks and then shipped to Ukraine. Congress is being notified of the accounting adjustment, and it is possible that the amount of overvalued weaponry could grow beyond $3 billion as the Pentagon examines the situation more thoroughly.

Valuation Method

In its accounting, the Pentagon used replacement cost to value the weapons aid, instead of the weaponry’s value when it was purchased and depreciated. Changing the valuation of the equipment could delay the Biden administration’s need to ask Congress to authorize more funds for Ukraine as the debt ceiling fight intensifies.

Equipment Sent to Ukraine

The U.S. has sent a wide variety of equipment to Ukraine in 37 Presidential Drawdown Authority packages, including High Mobility Artillery Rocket System (HIMARS) launchers, Javelin anti-tank weapons, and a Patriot surface-to-air missile system. It will take time to work through the accounting for billions of dollars worth of equipment sent to Ukraine.

Reaction from U.S. Senator Roger Wicker

U.S. Senator Roger Wicker, the top Republican on the Senate Armed Services Committee, said, “The Department of Defense’s change in evaluating the costs of arms sent to Ukraine is a major mistake. Its effect would be to underestimate future needs for our European allies. Our priority should be a Ukrainian victory over Putin. Unilaterally altering military aid calculations is an attempt at deception and undermines this goal.”

• The error was the result of assigning a higher than warranted value on weaponry that was taken from U.S. stocks and then shipped to Ukraine.
• The Pentagon used replacement cost to value the weapons aid, instead of the weaponry’s value when it was purchased and depreciated.
• The U.S. has sent a wide variety of equipment to Ukraine in 37 Presidential Drawdown Authority packages.
• U.S. Senator Roger Wicker criticized the Department of Defense’s change in evaluating the costs of arms sent to Ukraine.