Ukraine Aid Isn’t Leaving the US—It’s Supercharging American Production. Here’s How

Many people believe that American taxpayers are “sending money overseas,” but the reality is more nuanced. A large share of this spending remains within the US economy, supporting domestic industry, expanding production capacity across multiple states, and strengthening key supply chains.

At the same time, transatlantic mechanisms such as the Prioritized Ukraine Requirements List (PURL) have emerged, enabling Europe to finance US-made weapons for Ukraine, further increasing the flow of funds into American manufacturing.

How much US money stays in the US economy?

In 2023, roughly sixty percent of the $113 billion in US Ukraine-related spending remained within American borders, according to the Center for Strategic and International Studies (CSIS). This amounts to approximately $67.8 billion retained domestically, much of which flows into factories, laboratories, industrial facilities, and defense contractors across more than thirty US states.

Since then, the Prioritized Ukraine Requirements List (PURL) initiative has been introduced, enabling European countries to finance the purchase of US-made weapons for Ukraine. European governments are therefore paying American suppliers directly. With four PURL-funded deliveries already totaling $2 billion, this money is also entering the US industrial base.

Combined, the funds that have either remained in or entered the US economy since the outset of the full-scale invasion total nearly $70 billion. Specifically, this includes the $67.8 billion from US aid that stays within the country, plus the $2 billion in European-financed PURL contracts awarded to American manufacturers. As a result, an estimated $69.8 billion has flowed into the US economy due to Ukraine-related defense activity.

Why so much aid stays in the US

A major reason for the high domestic retention rate is the revitalization of American defense manufacturing. Factories in Florida, Arkansas, Alabama, Ohio, and many other states have increased production of HIMARS launchers, Bradley Fighting Vehicles, artillery shells, air-defense interceptors, and a wide variety of other equipment. These efforts expand industrial capacity, safeguard domestic jobs, and accelerate modernization of US military stockpiles. In many cases, systems sent to Ukraine are replaced with more advanced versions, meaning that assistance to Ukraine simultaneously upgrades US military readiness.

This flow of spending also strengthens American supply chains. Increased demand for steel, electronics, plastics, microchips, sensors, propulsion systems, and explosive materials has stimulated domestic production and supported a wide network of US industries. Rather than simply disappearing overseas, much of Ukraine-related spending cycles through American companies, workers, and technological sectors.

What US aid actually includes

Although discussion often focuses narrowly on weapons, US aid to Ukraine consists of several interconnected categories. It includes support for US forces repositioned to Europe, drawdowns of existing US military stockpiles, direct procurement of weapons and equipment for Ukraine, humanitarian assistance for civilians, direct budget support for the Ukrainian government, intelligence sharing and coordination, and funding for US agencies responsible for sanctions implementation and diplomatic operations. Because much of the spending tied to these activities occurs inside the United States, misconceptions frequently arise about the true flow of funds.

The EU: increasing support but not a full replacement for the US

European countries have significantly stepped up military, financial, and humanitarian support for Ukraine. However, constraints on industrial capacity, defense stockpiles, and bureaucratic processes make it difficult for the European Union to match the scale and speed of US military assistance. Instead, Europe has increasingly focused on reconstruction planning, refugee support, and long-term economic stabilization, complementing the United States’ dominant role in frontline military support.

How US and Ukraine can benefit from PURL

The Prioritized Ukraine Requirements List (PURL) is a new mechanism established by Ukraine, the United States, and European partners to accelerate the delivery of US-made weapons, particularly systems critical to air defense such as Patriot missiles. Under PURL, Ukraine submits requests that are first approved by the Supreme Allied Commander Europe (SACEUR) and then endorsed by the United States.

By late 2025, PURL-funded deliveries have already totaled $2 billion. Four tranches—ranging from approximately $486 million to $500 million—have been executed, and by October 2025, total contributions are expected to reach $3.5 billion.

For Ukraine, PURL guarantees a steady flow of the most urgently needed weapons, ensuring that the country does not experience the damaging supply gaps that previously cost lives and allowed Russian forces to inflict serious damage on infrastructure.

Meanwhile, for American manufacturers, PURL provides stable, long-term contractual demand, supporting investments in production capacity and research.

Ukrainian battlefield expertise boosts Western defense

As US and European aid fuels weapons production for Ukraine, Ukrainian troops are also reshaping NATO training with frontline experience from drone-heavy battlefields. In Poland and Czechia, soldiers are showing that traditional tactics—like driving armored vehicles directly to trenches—are now obsolete and that digital systems and drones are essential. At Poland’s Jomsborg UAV center, Ukrainians are helping design new modules on FPV drone tactics, thermal camouflage, and modern infantry movement.

Their expertise complements US industrial support, ensuring both Ukraine’s defense and NATO’s adaptation to modern warfare.

Support our frontline reporters

We report from the front lines to show the reality of war. Your support helps us stay there and tell the stories that matter.

DONATE NOW