Pentagon says it overvalued military equipment sent to Ukraine by $6.2 billion — 'valuation errors' will allow US to send additional aid

The Pentagon announced on Tuesday that it overvalued military equipment sent to Ukraine by $6.2 billion and that the "valuation errors" would allow the United States to send additional aid.

Last month, the Department of Defense estimated it overvalued the equipment by about $3 billion. While the error was discovered in March, Congress was not informed until May.

House Foreign Affairs Committee Chairman Michael McCaul (R-Texas) and House Armed Services Committee Chairman Mike Rogers (R-Ala.) released a statement calling the accounting and the delayed notification "extremely problematic." McCaul and Rogers urged the administration to use the unused funds to assist Ukraine.

Pentagon spokesperson Sabrina Singh explained that the DOD calculated the equipment cost based on its replacement value instead of its current value, the Associated Press reported.

"During our regular oversight process of presidential drawdown packages, the Department discovered inconsistencies in equipment valuation for Ukraine," Singh stated in May. "In some cases, 'replacement cost' rather than 'net book value' was used, therefore overestimating the value of the equipment drawn down from U.S. stocks."

At the time, the Pentagon noted that the accounting errors could increase as it reviewed previous military aid packages.

On Tuesday, Singh reported $6.2 billion in "valuation errors," which the Pentagon claimed would allow the U.S. to send additional weapons to aid Ukraine.

"Once we discovered this misvaluation, the comptroller reissued guidance on March 31st clarifying how to value equipment in line with the financial management regulation and DOD policy to ensure we use the most accurate of accounting methods," Singh stated.

She explained that the accounting error freed up additional funds that would "go back into the pot of money that we have allocated for the future Pentagon stock drawdowns."

Ukraine, which recently launched a counteroffensive to regain territories invaded by Russia, has reportedly received more than $40 billion in assistance from the Biden administration over the past 16 months. With the Pentagon's new estimates, that amount is likely closer to $34 billion.

The administration announced another $325 million package last week that would provide Ukraine with tanks and artillery.

In total, the U.S. has approved $113 billion in aid to Ukraine that was meant to last through the end of the fiscal year in September. Some of those funds would be used to replenish equipment taken from Pentagon stocks.

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