The U.S. House of Representatives in April passed the bill, which effectively revives a lease program last used during World War II, on a 417-10 vote following its approval by the Senate.
Under the new law, the administration can lend or lease equipment to Ukraine, which is resisting the recent invasion by Russia, or other Eastern European allies affected by the invasion, with the nominal promise of later payment — in effect allowing equipment to be donated — and without requiring specific approval by Congress.
"I want to thank members of Congress here for getting this passed and everyone who supported the bill. And the bill demonstrates that support for Ukraine is pivotal at this moment," Biden said in the Oval Office before signing the bill. "Every day, Ukrainians pay with their lives, and they fight along — and the atrocities that the Russians are engaging in are just beyond the pale. And the cost of the fight is not cheap, but caving to aggression is even more costly. That's why we're staying in this."
Specifically, the new lend-lease law suspends a requirement that loaned equipment must be returned within five years and another that requires reimbursement for related costs, such as depreciation or broken equipment.
It also lifts a requirement that each proposed lease or loan be submitted to lawmakers for approval, while requiring the administration to establish procedures for expedited delivery of that loaned or leased equipment. The streamlined authority under the law would expire at the end of fiscal year 2023, with the possibility of being extended by Congress if deemed necessary.
The last time a similar program was used was during World War II, after the Lend-Lease Act was signed into law in March 1941, allowing the U.S. to send military items to allies, starting with Great Britain and eventually expanding to include more than 30 countries between 1941 and 1945.
In effect, the equipment was largely given to those countries, sent in exchange for "consideration," which did not usually mean a monetary payment but instead something like an agreement to cooperate on joint action in the future, according to a U.S. Department of State history of the program.
--Additional reporting by Daniel Wilson. Editing by Rich Mills.
For a reprint of this article, please contact reprints@law360.com.
