US government shutdown freezes $5 billion in arms for Ukraine and NATO allies

The ongoing government shutdown in the United States has led to the suspension of over $5 billion worth of planned arms deliveries to Ukraine and NATO allies.

According to Axios, citing information from the US Department of State, the budget crisis has brought critical defense system deliveries to a near standstill.

Which weapons and countries are affected?

A State Department official stated that shipments of AMRAAM missiles, Aegis air defense systems, and HIMARS multiple launch rocket systems destined for Denmark, Croatia, and Poland are facing delays.

“This situation seriously harms both our allies and partners and the US defense industry, which provides these critical systems abroad,” the official said.

Why has the approval process stopped?

Under the US Arms Export Control Act, such transactions must be approved by Congress. However, because of the shutdown, most State Department staff responsible for notifying Congress and completing the process have been furloughed without pay. As a result, the approval mechanism has come to a complete halt.

According to the same official, pending agreements include both direct government-to-government sales to NATO allies and export licenses granted to American defense companies.

The heavy toll of the shutdown

The current shutdown, the longest in US history, has continued for 40 days. The government halted its operations on October 1 after Congress failed to reach a budget agreement.

Economists interviewed by Bloomberg estimate that the shutdown is costing the US economy between $10 billion and $30 billion per week.

Previously, The Telegraph reported that Washington had also suspended discussions about additional military aid to Ukraine due to the shutdown.

The first aid package to Ukraine following Donald Trump’s return to the White House was approved in September. Valued at $500 million, the package’s costs were covered by NATO countries in Europe. It included Patriot air defense system missiles and spare parts, HAWK air defense systems, and artillery ammunition.

NATO Secretary General Mark Rutte announced on October 22 that alliance members had purchased $2 billion worth of weapons from the US for Ukraine, with the first batch already delivered.

Meanwhile, Washington and Kyiv had begun negotiations on two major agreements involving the exchange of drone technology for weapons. Under these talks, the US was expected to acquire combat-tested drone technologies, while Ukraine would receive Patriot air defense systems, HIMARS launchers capable of firing GMLRS missiles, ATACMS systems, and multipurpose American fighter jets.