US Military Support for Ukraine is Helping Put American Industry Back on Track

Kristine Berzina, Sophie Arts & Parker Nash

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While some argue that Ukraine aid is a drain on the US economy, the numbers suggest that sustained support is a win-win for Ukrainians and the American people. A large portion of the money designated for Ukraine is being reinvested at home, bolstering the defense industry and sustaining American manufacturing jobs. This translates to more business for US companies and sustained employment for rural communities in which they operate.

Amid claims that the United States cannot foot the bill of a long, drawn-out war in Ukraine, a faction of Republican lawmakers is threatening to shut down the US government if further Ukraine funding is included in a continuing resolution. But this approach does not take into consideration the benefits to US strategic interests and the American economy. A large portion of the money designated for Ukraine is being reinvested at home, bolstering the defense industry and sustaining American manufacturing jobs.

So far, the American people have provided the lion’s share of Ukraine’s military aid—$46.6 billion with an additional package of $10.5 billion now under consideration. This support has been essential to Ukraine’s war effort, enabling its forces to reclaim occupied territory. And, critically, it serves key US interests—first and foremost, by defeating Russia’s imperialist ambitions and preserving territorial integrity in Europe. Beyond this, supporting Ukraine brings its own economic benefits.

Despite claims to the contrary, the United States is not sending bags of unaccounted-for cash to Ukraine. Most US contributions go to military aid, including weapons and equipment made by American defense contractors who employ communities across the country. When the United States spends money to purchase military equipment as part of an international aid package, the materiel may go overseas, but the money and jobs stay in America.

Similarly, appropriations for the US Foreign Military Financing program provide incentives for NATO allies and partners to secure US-made capabilities. This translates to more business for US companies and sustained employment for rural communities in which they operate.

For instance, Lockheed Martin, maker of the HIMARS—which has been central to Ukraine’s counteroffensive—plans to increase its Camden, Arkansas facility’s workforce by 20%, and recently announced increased profit projections through the end of the year. Similarly, General Dynamics has committed to building new production facilities in Mesquite, Texas, bringing money and jobs to the region. Change like this takes place only when the Pentagon sends strong and stable market signals to the defense industry, giving it the confidence to expand and hire.

In short, the numbers suggest that continued support for Ukraine is a win-win for Ukrainians and the American people. The United States can continue to defend stability and democratic governance across the globe, while at the same time boosting American industrial output and advancing US economic interests.