GAO Finds $2 Billion in Overvalued U.S. Military Aid to Ukraine, Revealing Significant Miscalculations

In June, during the G7 Summit in Italy, Ukrainian President Volodymyr Zelenskyy and U.S. President Joe Biden held a joint press conference. On July 26, the Government Accountability Office (GAO) reported that additional miscalculations in the value of weaponry sent from the U.S. to Ukraine were discovered.

These errors resulted in an additional $2 billion being available for Ukraine’s defense, highlighting the Pentagon’s ongoing adjustments to its aid calculations.

The U.S. has been Ukraine’s largest supporter in its ongoing conflict with Russia, providing over $53 billion in military assistance. Last year, the Pentagon informed Congress that it had overestimated the value of some defense items sent to Ukraine by approximately $6.2 billion.

This revelation led to Congress instructing the GAO to audit the funds allocated for Ukraine’s support through the Consolidated Appropriation Act spending bill.

The GAO’s report identified nearly $2 billion in additional valuation errors. Most of these miscalculations involved Operational Maintenance and Support (OM&S) items, such as spare parts, ammunition, and missiles.

These errors were linked to presidential drawdowns, where items were taken from Pentagon stockpiles, with their values incorrectly based on replacement costs rather than their actual value at the time of transfer.

The report noted that many of the items provided were past their normal operational life, and thus had a value of zero dollars, though they were recorded at higher costs. For instance, ten vehicles provided to Ukraine were valued at $7 million, despite their book value being zero. This discrepancy has led to a larger drawdown authority being available than initially accounted for.

To address these issues and prevent future miscalculations, the GAO recommends that Congress clarify the definition of “value” in relation to the president’s drawdown authority. Additionally, it suggests that the Pentagon develop specific guidance for drawdown authority.

As of March, President Biden had authorized a record 45 drawdowns totaling nearly $24 billion, a significant increase compared to the 94 drawdowns from 1961 to July 2021, which amounted to approximately $3 billion or $8.5 billion adjusted for inflation.