S. 3522 would authorize the Administration, through fiscal year 2023, to lend or lease military equipment to Ukraine and other Eastern European countries. The act would exempt the Administration from certain provisions of law that govern the loan or lease of military equipment to foreign countries, such as the five-year limit on the duration of the loan or the requirement that receiving countries pay all costs incurred by the United States in leasing the defense equipment. Any loan or lease of military equipment to Ukraine would still be subject to all applicable laws concerning the return of such equipment.
Under current law, payments received under leasing agreements with foreign countries are deposited in the Treasury as miscellaneous receipts and are classified as direct spending. Enacting the legislation could increase amounts deposited in the Treasury if the Administration lends or leases equipment under S. 3522 that it otherwise would not have provided under current law. Conversely, those deposits would decrease if the Administration lends or leases equipment at a reduced cost under the act relative to amounts it otherwise would have charged under its existing authorities.