By Patricia Zengerle and Mike Stone
WASHINGTON (Reuters) - Pro-Ukraine U.S. congressional leaders and President Joe Biden's administration are near an agreement to seek a one-year extension of $6 billion in military aid for Ukraine that is due to expire this month, according to two sources familiar with the matter.
There is bipartisan support for the plan to include the extension of the Presidential Drawdown Authority (PDA) in a Continuing Resolution, a short-term emergency spending bill that the Senate and House of Representatives must pass in the next 11 days to avoid a Sept. 30 government shutdown, they said.
The issue comes at a crucial time in the war, as Russia pummels Ukraine's energy grid ahead of the critical winter months.
Reuters reported on Sept. 5 that Biden's administration has been engaged in urgent discussions with lawmakers about how best to keep the funding from expiring before it can be used.
The issue has become more urgent as the deadline approaches. The House of Representatives failed on Wednesday to pass a funding bill supported by the chamber's Republican leaders that included a controversial voting measure backed by former President Donald Trump, the Republican candidate in the Nov. 5 presidential election, and opposed by Democrats.
That bill did not include an extension of the Ukraine PDA authority.
Senate Majority Leader Chuck Schumer said on Thursday the Democratic-led Senate would prepare its own temporary spending legislation that would avert a shutdown. Negotiations on that bill are continuing, but the sources said it is expected to include the one-year extension of the Ukraine aid.
It was not yet clear whether Republican House Speaker Mike Johnson, who held up Biden's last Ukraine spending request for months, would support a Senate spending bill including the extension for Ukraine.
Johnson's office did not respond to a request for comment. A State Department spokesperson declined comment.
Another congressional aide, speaking on condition of anonymity to discuss ongoing negotiations, said there are "active conversations" involving relevant House committees and Johnson's office about an extension of PDA authority.
The $7.8 billion of Presidential Drawdown Authority was a key component of a $61 billion aid package for Ukraine that easily passed both the House and Senate in April after months of delay by Republican opponents of Ukraine aid. PDA allows the president to transfer defense articles and services from U.S. stocks in response to emergencies.
However, most of the $7.8 billion in PDA in the bill has not been used, largely due to supply-chain issues, leaving officials scrambling to find a way to keep the remaining $6 billion from expiring as the Sept. 30 deadline - the end of the 2024 fiscal year - approaches.
PDA has been the primary mechanism the Biden administration has used to ship weapons to Ukraine.
Congress has approved nearly $175 billion of aid and military assistance for Ukraine and allied nations since Russia launched its full-scale invasion in February 2022.
Much of that has come in the form of long-term funding for U.S. defense production, as the Pentagon looks to replace equipment sent to Kyiv. Ukraine supporters have stressed the benefits for U.S. industry as they look to overcome resistance from a vocal bloc of Republicans who say taxpayer money should be spent at home, not sent abroad.
Companies like RTX's Raytheon (NYSE:RTN) in Arizona which makes Patriot missile systems and General Dynamics (NYSE:GD)' 155 millimeter artillery plants in Pennsylvania, are receiving contracts for products that will replace those sent to Ukraine using PDA. Arizona and Pennsylvania are among the "swing" states expected to decide the presidential election.