The U.S. Department of Defense has completed a key stage of fund allocation under the Ukraine Security Assistance Initiative (USAI). According to an official report by the auditors of the Inspector General for Operation Atlantic Resolve, a significant portion of the allocated budget remains unallocated. The amount of funds for which the statutory deadline for incurring new financial obligations has expired totals $910 million. These resources are legally closed to new contracts with U.S. defense contractors, yet they remain within the Pentagon's logistics system.

Expenditure Structure and Current Contract Status

The USAI program, established by Congress in 2014, operates on the principles of long-term procurement of weapons and services from industrial manufacturers. This distinguishes it significantly from the Presidential Drawdown Authority (PDA) mechanism, which involves the direct shipment of property from military stockpiles. The slowdown in signing new contracts, noted by auditors, is attributed to the complexity of supply chains and changes in administrative regulations in Washington.

Consolidated reporting shows that the total budget of the USAI program since February 2022 has amounted to $33.51 billion. As of the first half of 2026, the fund allocation looks as follows:

  • Actual expenditures: $19.21 billion (57.3%). Weapons and related services have been fully produced and delivered.
  • Active contracts in production: $13.49 billion (40.3%). Orders are placed at U.S. factories and are in the execution stage.
  • Unallocated free balance: $110 million (0.3%). Funds are allocated, but agreements have not yet been finalized.
  • Lapsed appropriations: $910 million (2.1%). The deadline for concluding new contracts has expired; funds are blocked for new deals.

Legal Status of "Frozen" Billions

Defense sector analysts emphasize that the status of lapsed appropriations (expired/lapsed funds) under U.S. budget legislation is not equivalent to full annulment or a funding deficit. In accordance with the financial management rules of the U.S. Department of Defense, these $910 million transition to a category closed for new contracts but remain available for the following five years—until the end of the fiscal cycle.

Pursuant to the United States Code (Title 31), lapsed budget appropriations may legally be used by agencies to cover unforeseen expenses, adjust costs, or compensate for deficits in previously concluded contracts within the same targeted program. This means the money does not disappear, but its use becomes strictly regulated and limited.

Change in Funding Sources

The report also notes an important trend in funding sources. Since April 2024, the U.S. Congress has not approved large-scale emergency funding packages. Fund allocation under USAI for the 2025 and 2026 fiscal years was carried out exclusively from planned annual appropriations—amounting to $5.06 billion and $6.3 billion, respectively.

Parallel to U.S. government funds, the international support platform coordinates the attraction of resources through special treasury accounts. Specifically, the PURL initiative (Pooling of Ukraine Replenishment for Logistics) accumulated receipts totaling $4.15 billion by the end of the reporting period, indicating the growing role of allies in the logistical support of the program.