President Joe Biden signed into law the Ukraine Democracy Defense Lend-Lease Act of 2022 on May 9, 2022.
The law authorizes the administration, until fiscal year 2023, to loan or lease military equipment to Ukraine and other countries in Eastern Europe. The law would exempt the administration from certain legislative provisions that govern the loan or rental of military equipment to foreign countries, such as the five-year limit on the duration of the loan or the requirement that recipient countries pay all costs incurred. by the United States. States in the rental of defense equipment.
Any loan or lease of military equipment to Ukraine would still be subject to all applicable laws regarding the return of such equipment.
Under current law, payments received under leasing agreements with foreign countries are filed with the Treasury Department as miscellaneous revenue and are classified as direct expenses.
This law could increase the sums deposited in the Treasury if the administration lends or rents equipment that it would not otherwise have provided under the current law.
Conversely, these deposits would decrease if the administration loaned or leased equipment at a reduced cost under the law compared to the amounts it would otherwise have charged under its existing authorities.
Lend-lease has already been used during the Second World War.
At that time, a total of $50.1 billion, equivalent to $690 billion in 2020, of supplies were shipped. A total of $31.4 billion went to the United Kingdom, $3.2 billion to France, $1.6 billion to China, $11.3 billion to the Soviet Union and the 2 remaining $.6 billion to other allies.