II 

118TH CONGRESS 

1ST SESSION S. 541 

To provide for the independent and objective conduct and supervision of 

audits and investigations relating to the programs and operations funded 

with amounts appropriated or otherwise made available to Ukraine for 

military, economic, and humanitarian aid. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 28, 2023 

Mr. KENNEDY (for himself, Ms. SINEMA, Mrs. HYDE-SMITH, and Mr. 

CRAMER) introduced the following bill; which was read twice and referred 

to the Committee on Homeland Security and Governmental Affairs 

A BILL 

To provide for the independent and objective conduct and 

supervision of audits and investigations relating to the 

programs and operations funded with amounts appropriated or otherwise made available to Ukraine for military, economic, and humanitarian aid. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Independent and Objective Oversight of Ukrainian As6 sistance Act’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Purposes. 

Sec. 3. Definitions. 

Sec. 4. Establishment of Office of the Special Inspector General for Ukrainian 

Military, Economic, and Humanitarian Aid. 

Sec. 5. Assistant Inspectors General. 

Sec. 6. Supervision. 

Sec. 7. Duties. 

Sec. 8. Powers and authorities. 

Sec. 9. Personnel, facilities, and other resources. 

Sec. 10. Reports. 

Sec. 11. Transparency. 

Sec. 12. Authorization of appropriations. 

Sec. 13. Termination. 

3 SEC. 2. PURPOSES. 

4 The purposes of this Act are— 

5 (1) to provide for the independent and objective 

6 conduct and supervision of audits and investigations 

7 relating to the programs and operations funded with 

8 amounts appropriated or otherwise made available to 

9 Ukraine for military, economic, and humanitarian 

10 aid; 

11 (2) to provide for the independent and objective 

12 leadership and coordination of, and recommenda13 tions concerning, policies designed— 

14 (A) to promote economic efficiency and ef15 fectiveness in the administration of the pro16 grams and operations described in paragraph 

17 (1); and 


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1 (B) to prevent and detect waste, fraud, 

2 and abuse in such programs and operations; 

3 and 

4 (3) to provide for an independent and objective 

5 means of keeping the Secretary of State, the Sec6 retary of Defense, and the heads of other relevant 

7 Federal agencies fully and currently informed 

8 about— 

9 (A) problems and deficiencies relating to 

10 the administration of the programs and oper11 ations described in paragraph (1); and 

12 (B) the necessity for, and the progress to13 ward implementing, corrective action related to 

14 such programs. 

15 SEC. 3. DEFINITIONS. 

16 In this Act: 

17 (1) AMOUNTS APPROPRIATED OR OTHERWISE

18 MADE AVAILABLE FOR THE MILITARY, ECONOMIC, 

19 AND HUMANITARIAN AID TO UKRAINE.—The term 

20 ‘‘amounts appropriated or otherwise made available 

21 for the military, economic, and humanitarian aid for 

22 Ukraine’’ means amounts appropriated or otherwise 

23 made available for any fiscal year— 

24 (A) for the Ukraine Security Assistance 

25 Initiative; 


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1 (B) for Foreign Military Financing fund2 ing for Ukraine; 

3 (C) to the Department of State under the 

4 heading ‘‘NONPROLIFERATION, ANTI-TER5 RORISM, DEMINING AND RELATED PROGRAMS’’; 

6 and 

7 (D) under titles III and VI of the Ukraine 

8 Supplemental Appropriations Act (division N of 

9 Public Law 117–103). 

10 (2) APPROPRIATE CONGRESSIONAL COMMIT11 TEES.—The term ‘‘appropriate congressional com12 mittees’’ means— 

13 (A) the Committee on Appropriations of 

14 the Senate; 

15 (B) the Committee on Armed Services of 

16 the Senate; 

17 (C) the Committee on Foreign Relations of 

18 the Senate; 

19 (D) the Committee on Homeland Security 

20 and Governmental Affairs of the Senate; 

21 (E) the Committee on Appropriations of 

22 the House of Representatives; 

23 (F) the Committee on Armed Services of 

24 the House of Representatives; 


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1 (G) the Committee on Foreign Affairs of 

2 the House of Representatives; and 

3 (H) the Committee on Oversight and Re4 form of the House of Representatives. 

5 (3) OFFICE.—The term ‘‘Office’’ means the Of6 fice of the Special Inspector General for Ukrainian 

7 Military, Economic, and Humanitarian Aid estab8 lished under section 4(a). 

9 (4) SPECIAL INSPECTOR GENERAL.—The term 

10 ‘‘Special Inspector General’’ means the Special In11 spector General for Ukrainian Military, Economic, 

12 and Humanitarian Aid appointed pursuant to sec13 tion 4(b). 

14 SEC. 4. ESTABLISHMENT OF OFFICE OF THE SPECIAL IN15 SPECTOR GENERAL FOR UKRAINIAN MILI16 TARY, ECONOMIC, AND HUMANITARIAN AID. 

17 (a) IN GENERAL.—There is hereby established the 

18 Office of the Special Inspector General for Ukrainian Mili19 tary, Economic, and Humanitarian Aid to carry out the 

20 purposes set forth in section 2. 

21 (b) APPOINTMENT OF SPECIAL INSPECTOR GEN22 ERAL.—The head of the Office shall be the Special Inspec23 tor General for Ukrainian Military, Economic, and Hu24 manitarian Aid, who shall be appointed by the President. 

25 The first Special Inspector General shall be appointed not 


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1 later than 30 days after the date of the enactment of this 

2 Act. 

3 (c) QUALIFICATIONS.—The appointment of the Spe4 cial Inspector General shall be made solely on the basis 

5 of integrity and demonstrated ability in accounting, audit6 ing, financial analysis, law, management analysis, public 

7 administration, or investigations. 

8 (d) COMPENSATION.—The annual rate of basic pay 

9 of the Special Inspector General shall be the annual rate 

10 of basic pay provided for positions at level IV of the Exec11 utive Schedule under section 5315 of title 5, United States 

12 Code. 

13 (e) PROHIBITION ON POLITICAL ACTIVITIES.—For 

14 purposes of section 7324 of title 5, United States Code, 

15 the Special Inspector General is not an employee who de16 termines policies to be pursued by the United States in 

17 the nationwide administration of Federal law. 

18 (f) REMOVAL.—The Special Inspector General shall 

19 be removable from office in accordance with section 3(b) 

20 of the Inspector General Act of 1978 (5 U.S.C. App.). 

21 SEC. 5. ASSISTANT INSPECTORS GENERAL. 

22 The Special Inspector General, in accordance with 

23 applicable laws and regulations governing the civil service, 

24 shall appoint— 


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1 (1) an Assistant Inspector General for Audit2 ing, who shall supervise the performance of auditing 

3 activities relating to programs and operations sup4 ported by amounts appropriated or otherwise made 

5 available for military, economic, and humanitarian 

6 aid to Ukraine; and 

7 (2) an Assistant Inspector General for Inves8 tigations, who shall supervise the performance of in9 vestigative activities relating to the programs and 

10 operations described in paragraph (1). 

11 SEC. 6. SUPERVISION. 

12 (a) IN GENERAL.—Except as provided in subsection 

13 (b), the Special Inspector General shall report directly to, 

14 and be under the general supervision of, the Secretary of 

15 State and the Secretary of Defense. 

16 (b) INDEPENDENCE TO CONDUCT INVESTIGATIONS

17 AND AUDITS.—No officer of the Department of Defense, 

18 the Department of State, the United States Agency for 

19 International Development, or any other relevant Federal 

20 agency may prevent or prohibit the Special Inspector Gen21 eral from— 

22 (1) initiating, carrying out, or completing any 

23 audit or investigation related to amounts appro24 priated or otherwise made available for the military, 

25 economic, and humanitarian aid to Ukraine; or 


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1 (2) issuing any subpoena during the course of 

2 any such audit or investigation. 

3 SEC. 7. DUTIES. 

4 (a) OVERSIGHT OF MILITARY, ECONOMIC, AND HU5 MANITARIAN AID TO UKRAINE PROVIDED AFTER FEB6 RUARY 24, 2022.—The Special Inspector General shall 

7 conduct, supervise, and coordinate audits and investiga8 tions of the treatment, handling, and expenditure of 

9 amounts appropriated or otherwise made available for 

10 military, economic, and humanitarian aid to Ukraine, and 

11 of the programs, operations, and contracts carried out uti12 lizing such funds, including— 

13 (1) the oversight and accounting of the obliga14 tion and expenditure of such funds; 

15 (2) the monitoring and review of reconstruction 

16 activities funded by such funds; 

17 (3) the monitoring and review of contracts 

18 funded by such funds; 

19 (4) the monitoring and review of the transfer of 

20 such funds and associated information between and 

21 among departments, agencies, and entities of the 

22 United States and private and nongovernmental en23 tities; 


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1 (5) the maintenance of records regarding the 

2 use of such funds to facilitate future audits and in3 vestigations of the use of such funds; 

4 (6) the monitoring and review of the effective5 ness of United States coordination with the Govern6 ment of Ukraine, major recipients of Ukrainian refu7 gees, partners in the region, and other donor coun8 tries; 

9 (7) the investigation of overpayments (such as 

10 duplicate payments or duplicate billing) and any po11 tential unethical or illegal actions of Federal employ12 ees, contractors, or affiliated entities; and 

13 (8) the referral of reports compiled as a result 

14 of such investigations, as necessary, to the Depart15 ment of Justice to ensure further investigations, 

16 prosecutions, recovery of funds, or other remedies. 

17 (b) OTHER DUTIES RELATED TO OVERSIGHT.—The 

18 Special Inspector General shall establish, maintain, and 

19 oversee such systems, procedures, and controls as the Spe20 cial Inspector General considers appropriate to discharge 

21 the duties described in subsection (a). 

22 (c) CONSULTATION.—The Special Inspector General 

23 shall consult with the appropriate congressional commit24 tees before engaging in auditing activities outside of 

25 Ukraine. 


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1 (d) DUTIES AND RESPONSIBILITIES UNDER INSPEC2 TOR GENERAL ACT OF 1978.—In addition to the duties 

3 specified in subsections (a) and (b), the Special Inspector 

4 General shall have the duties and responsibilities of in5 spectors general under the Inspector General Act of 1978 

6 (5 U.S.C. App.). 

7 (e) COORDINATION OF EFFORTS.—In carrying out 

8 the duties, responsibilities, and authorities of the Special 

9 Inspector General under this Act, the Special Inspector 

10 General shall coordinate with, and receive cooperation 

11 from— 

12 (1) the Inspector General of the Department of 

13 Defense; 

14 (2) the Inspector General of the Department of 

15 State; 

16 (3) the Inspector General of the United States 

17 Agency for International Development; and 

18 (4) the Inspector General of any other relevant 

19 Federal agency. 

20 SEC. 8. POWERS AND AUTHORITIES. 

21 (a) AUTHORITIES UNDER INSPECTOR GENERAL ACT

22 OF 1978.— 

23 (1) IN GENERAL.—Except as provided in para24 graph (2), in carrying out the duties specified in sec25 tion 7, the Special Inspector General shall have the 


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1 authorities provided under section 6 of the Inspector 

2 General Act of 1978, including the authorities under 

3 subsection (e) of such section. 

4 (2) LIMITATION.—The Special Inspector Gen5 eral is not authorized to audit or investigate the in6 telligence community (as defined in section 3 of the 

7 National Security Act of 1947 (50 U.S.C. 3003)). 

8 (b) AUDIT STANDARDS.—The Special Inspector Gen9 eral shall carry out the duties specified in section 7(a) in 

10 accordance with section 4(b)(1) of the Inspector General 

11 Act of 1978. 

12 (c) EXPEDITED HIRING AUTHORITY.— 

13 (1) IN GENERAL.—Subject to paragraph (2), 

14 the Special Inspector General may exercise any au15 thority provided to the head of a temporary organi16 zation under section 3161 of title 5, United States 

17 Code, without regard to whether the Office qualifies 

18 as a temporary organization under subsection (a) of 

19 that section. 

20 (2) LIMITATIONS.—With respect to the exercise 

21 of authority under subsection (b) of section 3161 of 

22 title 5, United States Code, as authorized under 

23 paragraph (1)— 


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1 (A) the Special Inspector General may not 

2 make any appointment under that subsection 

3 on or after the later of— 

4 (i) the date that is 180 days after the 

5 date of enactment of this Act; or 

6 (ii) the date that is 180 days after the 

7 date on which the Special Inspector Gen8 eral is confirmed by the Senate; 

9 (B) paragraph (2) of that subsection (re10 lating to periods of appointments) shall not 

11 apply; and 

12 (C) no period of an appointment made 

13 under that subsection may extend after the date 

14 on which the Office terminates under section 

15 13. 

16 (3) REEMPLOYMENT OF ANNUITANTS.— 

17 (A) IN GENERAL.—Subject to subpara18 graph (B), if an annuitant receiving an annuity 

19 from the Civil Service Retirement and Dis20 ability Fund becomes employed in a position in 

21 the Office— 

22 (i) the annuity of that annuitant shall 

23 continue; and 

24 (ii) such reemployed annuitant shall 

25 not be considered to be an employee for 


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1 the purposes of chapter 83 or 84 of title 

2 5, United States Code. 

3 (B) LIMITATIONS.—Subparagraph (A) 

4 shall apply to— 

5 (i) not more than 25 employees of the 

6 Office at any particular time, as des7 ignated by the Special Inspector General; 

8 and 

9 (ii) pay periods beginning after the 

10 date of enactment of this Act. 

11 SEC. 9. PERSONNEL, FACILITIES, AND OTHER RESOURCES. 

12 (a) PERSONNEL.—The Special Inspector General 

13 may select, appoint, and employ such officers and employ14 ees as may be necessary for carrying out the duties of the 

15 Special Inspector General, subject to the provisions of— 

16 (1) chapter 33 of title 5, United States Code, 

17 governing appointments in the competitive service; 

18 and 

19 (2) chapter 51 and subchapter III of chapter 

20 53 of such title, relating to classification and Gen21 eral Schedule pay rates. 

22 (b) EMPLOYMENT OF EXPERTS AND CONSULT23 ANTS.—The Special Inspector General may obtain the 

24 services of experts and consultants in accordance with sec25 tion 3109 of title 5, United States Code, at daily rates 


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1 not to exceed the equivalent rate prescribed for grade GS– 

2 15 of the General Schedule under section 5332 of such 

3 title. 

4 (c) CONTRACTING AUTHORITY.—To the extent and 

5 in such amounts as may be provided in advance by appro6 priations Acts, the Special Inspector General may— 

7 (1) enter into contracts and other arrangements 

8 for audits, studies, analyses, and other services with 

9 public agencies and with private persons; and 

10 (2) make such payments as may be necessary 

11 to carry out the duties of the Special Inspector Gen12 eral. 

13 (d) RESOURCES.—The Secretary of State or the Sec14 retary of Defense, as appropriate, shall provide the Special 

15 Inspector General with— 

16 (1) appropriate and adequate office space at ap17 propriate locations of the Department of State or 

18 the Department of Defense, as appropriate, in 

19 Ukraine or in European partner countries; 

20 (2) such equipment, office supplies, and com21 munications facilities and services as may be nec22 essary for the operation of such offices; and 

23 (3) necessary maintenance services for such of24 fices and the equipment and facilities located in such 

25 offices. 


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1 (e) ASSISTANCE FROM FEDERAL AGENCIES.— 

2 (1) IN GENERAL.—Upon request of the Special 

3 Inspector General for information or assistance from 

4 any department, agency, or other entity of the Fed5 eral Government, the head of such entity shall, to 

6 the extent practicable and not in contravention of 

7 any existing law, furnish such information or assist8 ance to the Special Inspector General or an author9 ized designee. 

10 (2) REPORTING OF REFUSED ASSISTANCE.— 

11 Whenever information or assistance requested by the 

12 Special Inspector General is, in the judgment of the 

13 Special Inspector General, unreasonably refused or 

14 not provided, the Special Inspector General shall im15 mediately report the circumstances to— 

16 (A) the Secretary of State or the Secretary 

17 of Defense, as appropriate; and 

18 (B) the appropriate congressional commit19 tees. 

20 SEC. 10. REPORTS. 

21 (a) QUARTERLY REPORTS.—Not later than 30 days 

22 after the end of each quarter of each fiscal year, the Spe23 cial Inspector General shall submit to the appropriate con24 gressional committees, the Secretary of State, and the 

25 Secretary of Defense a report that— 


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1 (1) summarizes, for the applicable quarter, and 

2 to the extent possible, for the period from the end 

3 of such quarter to the date on which the report is 

4 submitted, the activities during such period of the 

5 Special Inspector General and the activities under 

6 programs and operations funded with amounts ap7 propriated or otherwise made available for military, 

8 economic, and humanitarian aid to Ukraine; and 

9 (2) includes, for applicable quarter, a detailed 

10 statement of all obligations, expenditures, and reve11 nues associated with military, economic, and human12 itarian activities in Ukraine, including— 

13 (A) obligations and expenditures of appro14 priated funds; 

15 (B) a project-by-project and program-by16 program accounting of the costs incurred to 

17 date for military, economic, and humanitarian 

18 aid to Ukraine, including an estimate of the 

19 costs to be incurred by the Department of De20 fense, the Department of State, the United 

21 States Agency for International Development, 

22 and other relevant Federal agencies to complete 

23 each project and each program; 

24 (C) revenues attributable to, or consisting 

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1 national organizations to programs and projects 

2 funded by any Federal department or agency 

3 and any obligations or expenditures of such rev4 enues; 

5 (D) revenues attributable to, or consisting 

6 of, foreign assets seized or frozen that con7 tribute to programs and projects funded by any 

8 Federal department or agency and any obliga9 tions or expenditures of such revenues; 

10 (E) operating expenses of entities receiving 

11 amounts appropriated or otherwise made avail12 able for military, economic, and humanitarian 

13 aid to Ukraine; and 

14 (F) for any contract, grant, agreement, or 

15 other funding mechanism described in sub16 section (b)— 

17 (i) the dollar amount of the contract, 

18 grant, agreement, or other funding mecha19 nism; 

20 (ii) a brief discussion of the scope of 

21 the contract, grant, agreement, or other 

22 funding mechanism; 

23 (iii) a discussion of how the Federal 

24 department or agency involved in the con25 tract, grant, agreement, or other funding 


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1 mechanism identified, and solicited offers 

2 from, potential individuals or entities to 

3 perform the contract, grant, agreement, or 

4 other funding mechanism, including a list 

5 of the potential individuals or entities that 

6 were issued solicitations for the offers; and 

7 (iv) the justification and approval doc8 uments on which the determination to use 

9 procedures other than procedures that pro10 vide for full and open competition was 

11 based. 

12 (b) COVERED CONTRACTS, GRANTS, AGREEMENTS, 

13 AND FUNDING MECHANISMS.—A contract, grant, agree14 ment, or other funding mechanism described in this sub15 section is any major contract, grant, agreement, or other 

16 funding mechanism that is entered into by any Federal 

17 department or agency that involves the use of amounts 

18 appropriated or otherwise made available for the military, 

19 economic, or humanitarian aid to Ukraine with any public 

20 or private sector entity— 

21 (1) to build or rebuild the physical infrastruc22 ture of Ukraine; 

23 (2) to establish or reestablish a political or soci24 etal institution of Ukraine; 


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1 (3) to provide products or services to the people 

2 of Ukraine; or 

3 (4) to provide security assistance to Ukraine. 

4 (c) PUBLIC AVAILABILITY.—The Special Inspector 

5 General shall publish each report submitted pursuant to 

6 subsection (a) on a publicly available internet website in 

7 English, Ukrainian, and Russian. 

8 (d) FORM.—Each report required under subsection 

9 (a) shall be submitted in unclassified form, but may in10 clude a classified annex if the Special Inspector General 

11 determines that a classified annex is necessary. 

12 (e) SUBMISSION OF COMMENTS TO CONGRESS.— 

13 During the 30-day period beginning on the date a report 

14 is received pursuant to subsection (a), the Secretary of 

15 State and the Secretary of Defense may submit comments 

16 to the appropriate congressional committees, in unclassi17 fied form, regarding any matters covered by the report 

18 that the Secretary of State or the Secretary of Defense 

19 considers appropriate. Such comments may include a clas20 sified annex if the Secretary of State or the Secretary of 

21 Defense considers such annex to be necessary. 

22 (f) RULE OF CONSTRUCTION.—Nothing in this sec23 tion may be construed to authorize the public disclosure 

24 of information that is— 


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1 (1) specifically prohibited from disclosure by 

2 any other provision of law; 

3 (2) specifically required by Executive order to 

4 be protected from disclosure in the interest of de5 fense or national security or in the conduct of for6 eign affairs; or 

7 (3) a part of an ongoing criminal investigation. 

8 SEC. 11. TRANSPARENCY. 

9 (a) REPORT.—Except as provided in subsection (c), 

10 not later than 60 days after receiving a report pursuant 

11 to section 10(a), the Secretary of State and the Secretary 

12 of Defense shall jointly make copies of the report available 

13 to the public upon request and at a reasonable cost. 

14 (b) COMMENTS.—Except as provided in subsection 

15 (c), not later than 60 days after submitting comments 

16 pursuant to section 10(e), the Secretary of State and the 

17 Secretary of Defense shall jointly make copies of such 

18 comments available to the public upon request and at a 

19 reasonable cost. 

20 (c) WAIVER.— 

21 (1) AUTHORITY.—The President may waive the 

22 requirement under subsection (a) or (b) with respect 

23 to availability to the public of any element in a re24 port submitted pursuant to section 10(a) or any 

25 comments submitted pursuant to section 10(e) if the 


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1 President determines that such waiver is justified 

2 for national security reasons. 

3 (2) NOTICE OF WAIVER.—The President shall 

4 publish a notice of each waiver made under para5 graph (1) in the Federal Register not later than the 

6 date of the submission to the appropriate congres7 sional committees of a report required under section 

8 10(a) or any comments submitted pursuant to sec9 tion 10(e). Each such report and comments shall 

10 specify whether a waiver was made pursuant to 

11 paragraph (1) and which elements in the report or 

12 the comments were affected by such waiver. 

13 SEC. 12. AUTHORIZATION OF APPROPRIATIONS. 

14 (a) IN GENERAL.—There is authorized to be appro15 priated $20,000,000 for fiscal year 2024 to carry out this 

16 Act. 

17 (b) RESCISSION.—Of the amount appropriated under 

18 the heading ‘‘ASSISTANCE FOR EUROPE, EURASIA, AND

19 CENTRAL ASIA’’ in title III of the Department of State, 

20 Foreign Operations, and Related Programs Appropria21 tions Act, 2023 (division K of Public Law 117–328), 

22 $20,000,000 is rescinded. 

23 SEC. 13. TERMINATION. 

24 (a) IN GENERAL.—The Office shall terminate on the 

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1 propriated or otherwise made available for the reconstruc2 tion of Ukraine that are unexpended are less than 

3 $250,000,000. 

4 (b) FINAL REPORT.—Before the termination date re5 ferred to in subsection (a), the Special Inspector General 

6 shall prepare and submit to the appropriate congressional 

7 committees a final forensic audit report on programs and 

8 operations funded with amounts appropriated or otherwise 

9 made available for the military, economic, and humani10 tarian aid to Ukraine. 

Æ 


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