Pentagon Memo Allows Shift of Billions in Ukraine Weapons Funding to US Stockpiles, Adding Uncertainty to US Arms Shipments

A policy memorandum authored by the Undersecretary of Defense for Policy, Elbridge Colby, grants the Department of Defense the authority to redirect specific weapons and military equipment intended for Ukraine back into US reserves. This shift could potentially see billions of dollars previously allocated for Ukraine’s war efforts repurposed for replenishing American supplies facing depletion.

The memo adds further complexity to an already unclear picture regarding U.S. arms deliveries to Ukraine, in anticipation of President Donald Trump’s impending meeting with Russian President Vladimir Putin.

Although Trump has approved plans to sell U.S. weapons to Ukraine through NATO, there are lingering concerns within the Pentagon about arming Kyiv at the expense of U.S. stockpiles, particularly regarding scarce items such as interceptor missiles, air defense systems, and artillery ammunition.

Last month, Defense Secretary Pete Hegseth halted a significant shipment of weapons to Ukraine, acting in accordance with the policy outlined in Colby’s memo. Following public scrutiny, Trump later reversed Hegseth’s decision and committed to continuing defensive weapon provision to Ukraine amidst daily Russian attacks.

The Colby memorandum still stands and includes a previously undisclosed provision that enables the Pentagon to divert weapons back into U.S. reserves, initially earmarked for Ukraine under the congressionally funded Ukraine Security Assistance Initiative (USAI). Although no such redirection has been reported thus far, this provision could result in Ukraine losing billions of dollars’ worth of U.S.-manufactured materiel expected over the coming months and years.

This move contradicts the intent of the USAI, a nearly decade-old program established by Congress for the explicit purpose of allocating funds for direct Pentagon purchases of weapons from U.S. defense manufacturers intended for Ukraine.

The USAI was initiated in 2016 and historically provided Ukraine with a stable supply of weapons. The Senate recently allocated an additional $800 million to USAI as part of the annual Pentagon budget legislation known as the National Defense Authorization Act (NDAA). However, it remains unclear whether these new funds will eventually reach Ukraine under the new Pentagon policy.

The Pentagon declined to comment on this matter. Previously, top Pentagon officials believed that diverting weapons produced through USAI back into U.S. stockpiles would violate the Impoundment Control Act, according to a source familiar with the situation. This law reinforces Congress’s power of the purse and requires the president to notify lawmakers of any delay or withholding of congressionally authorized funds.

The new Pentagon policy is encountering some resistance from the Senate. The proposed NDAA for 2026 includes a provision that would only allow for weapons to be reabsorbed by the Pentagon if they haven’t already been transferred to Ukraine and are no longer needed to support USAI training, equipping, and advisory activities. Hegseth is also required to notify Congress prior to reabsorbing these stocks under this bill.

The new policy comes as the Trump administration explores ways to shift the burden of arming, equipping, and training Ukraine onto Europe and NATO. Colby has previously advocated for preserving more U.S. stockpiles for a potential future conflict with China.

Separately from the USAI, the Pentagon still holds nearly $4 billion in funding authority, authorized by Congress last year, to provide weapons to Ukraine directly from U.S. reserves. Some NATO allies, such as the UK, have urged the U.S. to utilize this authority to put additional pressure on Putin and have suggested reimbursing the U.S. for associated costs.

To address this, the chairmen of the Senate Armed Services Committee and Senate Foreign Relations Committee, Republican Sens. Roger Wicker and Jim Risch, recently introduced a bill that would create a U.S. Treasury fund into which allies could deposit money to backfill U.S. military equipment donated to Ukraine.

However, another source familiar with the matter suggested that the Pentagon is more likely to let this $4 billion in funding authority expire.

The Colby memo, approved by Hegseth, remains the department’s policy. It categorizes U.S. stockpiles into “red,” “yellow,” and “green” categories. The red and yellow categories include weapons assessed to be in short supply and now require explicit signoff by Hegseth before they are sent elsewhere. Interceptor missiles for Patriot air defense systems, for example, are classified as red.

The weapons package halted by Hegseth last month included dozens of interceptors, but Trump subsequently ordered Hegseth to maintain their delivery after learning about the hold. The Defense Department has generally followed this directive to send these interceptors. However, other red-categorized weapons in the package have yet to be delivered, despite Ukraine’s ongoing need for layered air defenses to protect its cities from daily Russian missile and drone attacks.

Ukrainian officials have consistently dismissed U.S. concerns over dwindling stockpiles, with the Biden administration citing this as a reason not to provide certain materiel. Sophisticated U.S.-made air defense systems, such as the Patriot system and interceptors for it, are Kyiv’s most pressing need as Russia has escalated its nightly aerial bombardment. In July, Russia launched a record 6,443 drones and missiles into Ukraine, according to the Ukrainian Air Force.

Meanwhile, the Defense Department is working with NATO to develop a unique system for selling weapons to European allies, which can then be provided to Ukraine. This mechanism would essentially create a NATO bank account that allies can deposit money into to purchase weapons from the U.S. Trump alluded to this new system last month, stating during a meeting with NATO Secretary General Mark Rutte that “we’ve made a deal where we are going to be sending them weapons and they’re going to be paying for them. We’re not buying it, but we will manufacture it, and they’re going to be paying for it.”

Under the system, Ukraine would submit a list of desired weapons and equipment directly to NATO, and U.S. Gen. Alexus Grynkewich—the current head of both US European Command and NATO’s allied military operations—would determine whether the U.S. has enough in its stockpiles to sell before presenting this list to potential European partners for purchase.

NATO allies are aiming for a $10 billion investment in the NATO account for weapons purchases for Ukraine, with allies already committing over $1 billion to arm Ukraine as announced by Rutte on Tuesday. For more urgent capabilities, some European countries have agreed to supply their own stock directly to Ukraine and await U.S. backfilling. The U.S. recently struck a deal with Germany, under which Germany will provide two of its U.S.-made Patriot systems to Ukraine and purchase new ones from the U.S., as soon as they become available.

A source who has read the memo noted that while this won’t deter Europe from pursuing the NATO mechanism for arming Ukraine in the short term, they are relying on being backfilled by the U.S—the Colby policy still in place could potentially hinder any actions not explicitly authorized by Trump.