US Reviewing Proposal to Transfer $1 Billion in Frozen Myanmar Funds for Non-Lethal Aid to Resistance Forces

A US Assistant Secretary of State confirmed on approximately May 13-14, 2026 that the United States government is actively reviewing a proposal to transfer $1 billion in frozen Myanmar funds — held at the Federal Reserve Bank of New York — for non-lethal aid to Myanmar's revolutionary forces, according to Moemaka CDM Domestic News. The $1 billion in frozen funds represents central bank reserves and state assets that the US Treasury froze following the February 2021 coup to prevent the junta from accessing hard currency. Similar to the precedent set with Afghan frozen funds ($3.5 billion distributed for humanitarian purposes) and Russian frozen assets, the proposal would redirect the funds toward resistance or humanitarian use rather than allowing them to remain frozen indefinitely or be released to the junta. The scale of the proposed transfer — $1 billion — would represent a transformative level of support for the NUG and resistance forces, which currently fund operations through diaspora donations, limited international grants, and taxation in liberated territories. Non-lethal aid could include medical supplies, communications equipment, food for displaced populations, and logistical support for resistance-administered governance structures. The review comes amid intensifying SAC offensives across Myanmar — including the Kani Township displacement emergency (30,900+), Mindat/Kanpetlet airstrikes, and the Pauk-Saw-Kyaukhtu Magway offensive — that have created acute humanitarian needs. No timeline for a decision was given; the review remains subject to inter-agency deliberation and legal approval.