The modern conflict between Russia and Ukraine began in February, but there’s debate about which February. Depending on whom you ask, it was February 2014, thanks to President Obama, who did nothing in response to Russian actions, which was a response in itself. Or February 2022, thanks to President Biden, who then poured billions upon billions of our dwindling resources into the renewed conflict. Regardless of the start date, it seems like the only things accomplished were the wasting of two neighboring nations and the deaths of so many of their men.

On April 30, the United States and Ukraine signed a minerals deal. A text of the agreement, without appendices, was published in Kiev. The agreement establishes a framework for a reconstruction and modernization fund for Ukraine, utilizing revenues from natural resource deals. More than likely, this will be a very good thing. According to the White House, details are yet to be hammered out.

Trump Cabinet members made two announcements regarding the minerals deal.

Picture made using AI and public domain images.

Treasury Secretary Bessent said, “Thanks to President Trump’s tireless efforts to secure a lasting peace, I am glad to announce the signing of today’s historic economic partnership agreement between the United States and Ukraine, establishing the United States-Ukraine Reconstruction Investment Fund.”

He went on to say more, ending with “both the United States and the Government of Ukraine look to quickly operationalizing this historic economic partnership for both the Ukrainian and American people.”

Director of National Intelligence Gabbard said during an interview with Megyn Kelly, “This minerals deal is a way for the American people to get some...kind of a repayment based on the taxpayer dollars that have been expended and used to pay for someone else’s government.”

Appropriations, donations of excess government property, and the extension of the Lend-Lease Act to Ukraine have dedicated an estimated $350 billion in a variety of forms of taxbucks to Ukraine. According to my calculations, eight separate bills appropriated $131.6 billion to efforts to help Ukraine. My earlier analysis of a couple of these bills in draft pointed out that the bulk of this funding was to be spent right here at home.

We can anticipate that the full formation and maturation of the minerals deal and reconstruction fund will take some time. What do we do in the meantime?

We can certainly urge our allies, most importantly those who already have contributed to Ukraine’s defense, to participate in the reconstruction. The whole of the country, its transportation architecture, nuclear plant, and other energy infrastructure, agricultural sector, air and sea ports, and medical and instructional facilities and staffs will all need work. It should not fall solely to the United States to address every need.

One answer lies in how Ukraine appropriations were divided during the 117th and 118th Congresses, with expiration dates ranging from 2022 through 2026. The Department of Defense received nearly $93 billion for staff, operations and maintenance, procurement, research and development, health, working capital, and Inspector General operations.

Health and Human Services received $1.4 billion for refugee assistance.

The National Defense Authorization Act was increased by $1.7 billion.

The Department of State, USAID, and several Treasury international assistance programs got $2.4 billion.

Justice had $67 million to manage assets seized from Russian oligarchs. It sounds like it has cost more than that, and so far, no assets have been sold. Energy received $312 million.

The intelligence community got $2.5 million.

$32.7 billion was appropriated to the President to be expended at his discretion for a variety of purposes.

Some money was available for use until expended. Other funds have start and end dates that are more complicated. The way that federally appropriated funds are calculated to have been timely used is that they are obligated against a contract before the funds expire. These contracts can take years to execute, and even more years to be fully paid out after billing disputes are resolved.

To add to the complications, some of these funds are still waiting to be contracted. Others may have been contracted, but contractors may not have begun the work yet. Some contracts may no longer be necessary, considering the anticipated cessation of conflict, and could be cancelled at the government’s convenience. Any funds no longer required to support a war, or a country at war, could certainly be used to jump-start the reconstruction fund, and work could get going very soon.

How do we claw back such monies? First, we halt any further contracting until a full evaluation of the need is completed.

Then we audit the obligated funds. In 2024, the DOD issued an audit of its execution of funds to assist Ukraine. The auditors examined 479 disbursement transactions valued at a little more than $2 billion, or 4% of total DOD appropriations. It was able to validate only 154 of them, totaling $1.1 billion. Can we expect that, if every transaction were reviewed, fully half of them would be inadequately documented to the point of being classifiable as questionable costs?

Have any of the other agencies audited their funds? I think, given their excellent track record so far, we should turn this effort over to DOGE. DOGE-Ukraine could possibly recover billions.

In the meantime, perhaps we could insist that we only fund those portions of the Ukrainian government that are functioning, and only the staff who are showing up in person for their work. Kind of like what we’ve done right here at home. And maybe we should return their assets to the oligarchs, if the conflict is resolved.

Anony Mee is the nom de blog of a retired public servant who X-tweets at oh_yeahMee.

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