Where Does The Money Go?

There has been a considerable amount of talk of late about military aid to Israel and Ukraine.   To suggest it must be either one or the other is a false dilemma fallacy.  For reasons that I will get to in the conclusion of this post I believe it can and should be both.  If you want to condition it on a more muscular approach to securing our southern border I'm OK with that too.  Horsetrading is how you govern.  As you read this you will get the impression I'm comfortable with security; both here and abroad.

Today I want to dispel some of the misinformation I catch from media soundbites and from the general cesspool of deceptions planted on social media by Russian and Communist Red Chinese trolls specifically as it relates to aid to Ukraine.

Congress has appropriated $113.3 billion since February of 2022 to assist Ukraine in its fight against Russia's unprovoked invasion.  This money has been provided in four tranches known as supplementals.  

To better understand  the purpose of the support these funds are divided among nine buckets including:  Economic support, weapons back-fill, Ukraine Security Assistance Initiative, Defense Department accounts, humanitarian and civil society assistance, Foreign Military Financing (FMF), other non-defense efforts, oversight and other defense efforts.

From a defense perspective, the supplemental appropriations allow for the rapid transfer of equipment and supplies from Department Of Defense (DOD) stockpiles to Ukrainian forces under something called the Presidential Drawdown Authority (PDA).  This is an executive power granted by congress in 1961 to the commander in chief.

Some have mischaracterized US support to Ukraine as a blank check.  The political spin is to leave an undiscerning individual with the impression we are shipping pallets of cash currency to a country at war.  The truth is that the vast majority of the money is actually spent here at home for production contracts with US companies manufacturing ammunition, weapons and equipment to back-fill our own stocks.

Almost all of the military aid sent to Ukraine is older cold war weapons systems and materiel.  This stuff represents a sunk cost budgeted under prior defense authorizations dating back as far as the 1970s.  There is no small amount irony in the knowledge that stuff our military purchased for an expected European land war with the Soviets is being given to Ukrainians to defend against Russians.  It also happens to save the US taxpayer the cost and trouble of eventual disposal.

Naturally, older inventory sent to Ukraine has to be replaced.  It is important to note that the replacement of US weapons stocks will include the latest version of war fighting technology and will stimulate the development of newer, necessary technologies.  Why is this important?  The nature of warfare has changed and if expensive systems such as HIMARS can be electronically jammed, then we'd be well-served to know that now and build replacements that cannot be compromised. 

Before Ukraine who knew we had the capability to shoot down Russian hypersonic missiles with the Patriot system?  Or how to deal with the broad deployment of drones on the battlefield - something US forces have not had to face.  This is real-time testing of American military equipment against the best Russia has to offer. This affords us an opportunity to build better systems to defend against a sophisticated adversary.  Peace through strength.

And yes, helping Ukraine defend itself against an unprovoked Russian invasion is money well-spent because Russia will not stop at Ukraine.  Putin has stated that his next objective after Ukraine will be Poland and the Baltic states.  Sweden and Finland have joined NATO as they know they are targets of Russian expansionism.  And China would see our non-support of Ukraine as an open invitation to invade Taiwan.  But I digress.

Getting back to where the money is going, about $69 billion of the $113 billion (60 percent) will be spent in the United states, benefiting our armed forces and US industry. 

In conclusion, I do not support Ukraine because it is better for our military preparedness, the economy or as a shareholder.  To be absolutely clear, we should never forget the human cost of war.  And this disastrous conflict wasn't started by the west or Ukraine.  Russia picked this fight and if Russia is allowed to succeed the US may pay for it many times over, in treasure and in lives.  

I believe it is proper to be thoughtful and judicious about military and humanitarian aid to others.  This is not warmongering jingoism.  Consider this:  Russia and Hamas are the nexus of aggression and disinformation along with their Iranian patrons.  You can bet that China and North Korea are paying close attention.  Countries such as Ukraine and Israel are worthy of our material support to defend themselves from aggressors bent-upon their annihilation.

The moral depravity of the pro-Hamas left and the pro-Putin right have made our world an exceedingly dangerous place.  Helping Israel and Ukraine stand up to the bad guys is doing the right thing.  

Charts: American Enterprise Institute