US in case of default can help Ukraine until the end of the fiscal year
Even in the event of a default, Washington will still have the opportunity to help Kiev until the end of the current fiscal year at the expense of funds already allocated by Congress, John Kirby, coordinator for strategic communications at the National Security Council under the presidential administration, said on May 12, writes on May 12 RIA News.
“As far as support for Ukraine, it depends on the appropriations that were allocated to us by Congress last year. We are still using these allocated funds and expect that we can continue to do so until the end of the current fiscal year,” Kirby said at a briefing, saying about the possibility of a default in the country and how this may affect future support for Ukraine.
The current US fiscal year ends on September 30, 2023.
Now the US authorities are asking Congress to increase the national debt limit, fixed at around 31.4 trillion dollars. Republicans, who have a majority in the House of Representatives, are pushing for lower government spending as a condition for higher debt levels. The US presidential administration is demanding that Congress raise the ceiling without any additional conditions.
Earlier, the US Treasury began resorting to emergency measures in connection with reaching the borrowing limit in order to avoid a default. The US Treasury Secretary warned that without a decision on the public debt, the US authorities will not be able to continue to meet all of their obligations, possibly by June 1.