UPDATE 1-Polish government says president's Ukraine bill veto may cost 8 billion zlotys

The decision by Polish President Karol Nawrocki to veto a bill on aid to Ukrainian refugees could cost 8 billion zlotys ($2.20 billion) and necessitate an amendment to the budget, the interior ministry said on Tuesday.

The ministry's statement said the decision meant that from October 1 thousands of Ukrainians would lose the right to legal employment, increasing the risk of undeclared work, reducing tax and social contributions, and straining public services. Poland has been one of Ukraine's staunchest backers since Russia invaded in 2022 but some Poles have grown weary of the roughly 1.5 million Ukrainians currently living in Poland and say that the needs of Polish citizens should get priority.

Inspired by U.S. President Donald Trump, Nawrocki had promised during this year's election campaign to put "Poles first" and to limit the rights of foreigners in Poland. On Monday, he outlined plans to limit future access to child benefits and healthcare for Ukrainians. "His decision undermines the stability of the economy, social cohesion, Poland's international obligations and the security of the entire country," the ministry said.

The veto deepened the conflict between Nawrocki and the centrist government of Prime Minister Donald Tusk, and the interior ministry's assessment of the costs came as Warsaw is struggling to rein in its budget deficit. The ministry said the 8 billion zloty cost would also stem from more red tape and the possibility that some Ukrainians would apply for asylum, a more complicated system than the current hosting arrangement.

"This means less money for local investments, fewer funds for schools, hospitals, and social services. Every Polish family will feel this impact," it said. The president's office could not be reached for immediate comment.

According to the digital affairs ministry, the veto also threatens Ukraine's access to Elon Musk's Starlink satellite internet service, which provides critical connectivity for both civilians and the military. ($1 = 3.6405 zlotys)

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