The American and Ukrainian flags wave outside the Capitol in Washington. AP
The American and Ukrainian flags wave outside the Capitol in Washington. AP
The American and Ukrainian flags wave outside the Capitol in Washington. AP
The American and Ukrainian flags wave outside the Capitol in Washington. AP

US Senate approves $95bn foreign-aid package after months of delay


Ellie Sennett
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The US Senate on Tuesday passed $95 billion in foreign aid, ending months of chaos that threatened Ukraine's chances of staving off a Russian victory and blocked President Joe Biden's ambitions of sending more money to Israel for the war in Gaza.

The aid package easily passed with broad bipartisan support in a 79-18 vote.

“Tonight we tell our allies, we stand with you,” Senate Majority Leader Chuck Schumer said. “We tell our adversaries, don't mess with us. We tell the world, the United States will do everything to safeguard democracy and our way of life.”

The funding measures include $60 billion for Ukraine, $26 billion for Israel and $8 billion for Taiwan and Indo-Pacific security.

A fourth bill contains, among other Republican-led foreign policy provisions, a measure that would ban of TikTok in the US if its Chinese parent company does not sell it.

“This is an extremely important day in the history of our country and of the free world,” Senate Minority Leader Mitch McConnell said.

Senate foreign relations committee chairman Ben Cardin called the vote “a major victory for democracy and international unity”, but celebration was tempered by the chaotic pathway to passage.

The package is similar to the $95 billion foreign aid bill already passed by the Senate in February, which Republican Speaker of the House Mike Johnson held up for months amid threats from his own party.

But Iran's recent strike on Israel broke the impasse, forcing the Republican Speaker to act on the funding requests.

“This critical support, however, arrived tragically late due to a relentless partisan campaign of obstructionism and misinformation, which had profound consequences for those on the front lines of conflict and in desperate need of humanitarian aid,” Mr Cardin told The National in a statement.

A far-right faction of the Republican Party affiliated with presidential front-runner Donald Trump has taken an increasingly anti-Ukraine stance.

Mr Trump has advocated Moscow's invasion of US Nato allies.

The movement has invoked a civil war of sorts within the conservative opposition party, between the more moderate old guard and a new wave of alt-right personalities.

Republican Senate minority leader Mitch McConnell did not mince words on Ukraine and American interests on the European continent.

“There's no question the delay was harmful,” he told reporters at a Tuesday media conference.

Pentagon press secretary Maj Gen Pat Ryder, meanwhile, said the Ukrainian military would quickly start to receive US assistance, once Mr Biden signs the funding legislation into law.

“In general terms, I would say that we would expect to be able to deliver aid within days,” Maj Gen Ryder told reporters, noting that the security assistance package would be based on Ukraine’s most urgent needs.

“It’s a good assumption to expect that it’ll include air defence capabilities, as well as artillery ammunition.”

Ukrainian President Volodymyr Zelenskyy celebrated news of the coming relief for Kyiv at the weekend, after the funds cleared that critical hurdle in the House of Representatives.

“The people of Ukraine are counting on this decision,” he tweeted as bipartisan members of Congress celebrated with him in Kyiv.

The swift passage did not come without critics from right and left in the Senate.

In a sweeping floor speech, progressive Senator Bernie Sanders, who voted against the measure, denounced the body's decision to lump together the four House bills into one vote and deny the option for amendments.

Quoting a provision on Washington foreign aid policy, Mr Sanders asserted on the Senate floor that: “It is illegal to continue current military aid to Israel, let alone send another $9 billion with no strings attached.”

“What we can say about the House is they at least gave their members the opportunity to vote yes or no on funding for Ukraine and on aid to Israel … that is more than can be said for the US Senate right now.”

Democrat Dick Durbin meanwhile cautioned: “My greatest fear is that [Israeli Prime Minister Benjamin] Netanyahu and his right-wing coalition, once they receive these American funds, will act irresponsibly.”

Mr Sanders introduced a now-failed amendment to the bill that would have blocked “unfettered military aid for Netanyahu’s war on the Palestinian people” and restored funding for the UN Palestinian refugee agency, the UNRWA, “so that children in Gaza don’t starve”.

Meanwhile, Republicans in the House have intensified threats to remove Mr Johnson as Speaker, as he allowed the legislation to reach the floor.

And the handful of Trump-aligned Republicans in the Senate chamber, like first-term Ohio Senator JD Vance, are confident that while they lost this battle on Ukraine, they are winning the larger war within the party.

“Europe needs to step up and the United States needs to focus on Asia. Notwithstanding some lingering cold warriors, we’re winning the debate because reality is on our side,” Mr Vance told US outlet The Hill.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

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Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

History's medical milestones

1799 - First small pox vaccine administered

1846 - First public demonstration of anaesthesia in surgery

1861 - Louis Pasteur published his germ theory which proved that bacteria caused diseases

1895 - Discovery of x-rays

1923 - Heart valve surgery performed successfully for first time

1928 - Alexander Fleming discovers penicillin

1953 - Structure of DNA discovered

1952 - First organ transplant - a kidney - takes place 

1954 - Clinical trials of birth control pill

1979 - MRI, or magnetic resonance imaging, scanned used to diagnose illness and injury.

1998 - The first adult live-donor liver transplant is carried out

Updated: April 24, 2024, 4:19 AM