Information Brief: Ukraine Supplemental Appropriations Act, 2023 Mandated Assessment

In September 2022, Congress passed the Ukraine Supplemental Appropriations Act, 2023 (the Act),¹ providing $4.5 billion in Economic Support Funds (ESF).² Section 1302(a) of the Act states that “[f]unds appropriated by [Title III] shall be made available for direct financial support for the Government of Ukraine. . . and may be made available as a cash transfer.”³ Section 1302(a) of the Act included several additional funding provisions, including that, at least 15 days prior to the initial obligation of such funds, the Secretary of State, in consultation with the U.S. Agency for International Development (USAID) Administrator, “shall certify and report to the appropriate congressional committees that mechanisms for monitoring and oversight of such funds are in place and functioning and that the Government of Ukraine has in place substantial safeguards to prevent corruption and ensure accountability of such funds.”⁴

The Act also requires the Inspectors General of the Department of State (Department) and USAID to “submit a report to the appropriate congressional committees detailing and assessing the mechanisms for monitoring and safeguards” described in the Secretary of State’s report not less than 45 days after initial obligation of such funds.⁵ Accordingly, the Office of Inspector General (OIG) conducted this engagement to review the process and activities the Department used to certify and report to Congress on direct financial support for the Government of Ukraine, which is one of the Act’s five specific funding provisions.⁶ Specifically, OIG reviewed the process the Department followed and actions it took to ensure that the Secretary of State certified and reported to Congress.⁷

_{1 Continuing Appropriations and Ukraine Supplemental Appropriations Act, 2023, Public Law 117-180, Division B, September 30, 2022.
2 Ibid., Title III, “Bilateral Economic Assistance,” page 136 STAT. 2131.
3 Ibid., § 1302(a), page 136 STAT. 2131.
4 Ibid., pages 136 STAT. 2131 and 2132.
5 Ibid., page 136 STAT. 2132. Although the Act states that the Inspectors General reports are due to Congress “not less than 45 days after the initial obligation of such funds,” OIG notes that this was likely an error, and it interpreted the requirement as not more than 45 days after initial obligation.
6 Ibid., Title III, “Bilateral Economic Assistance,” § 1302, pages 136 STAT. 2131 and 2132.
7 USAID is the agency responsible for implementing and managing direct financial support for the Government of Ukraine. Therefore, in accordance with the Act, the USAID Office of Inspector General is charged with “detailing and assessing the mechanisms for monitoring and safeguards,” which it performed and reported separately. See the Background section of this report for the five funding provisions included in the Act.}