The Biden administration has announced its intention to cancel $4.65 billion in debt owed by Ukraine. This decision was communicated to Congress in a letter obtained by Bloomberg News.

The debt cancellation is part of ongoing efforts to support Ukraine, particularly in light of the upcoming transition to President-elect Donald Trump. The cancellation will involve forgiving half of a $9 billion loan that was included in a $60 billion supplemental package approved in April. The loan concept was initially proposed by Trump during his campaign and was modified by House Republican leaders, although the administration had indicated from the beginning that a portion of the loan would be forgiven.