Yes of course it does, at least largely, but it's a good point to make, people often ignore that.
Like using a £1bn example....
I doubt the US are handing over £1bn in cash, so Ukraine can go buy arms from China and fund the Chinese economy etc, or spend it on building a new theme park. Some of it may be to buy weapons from other allies who will permit use in Russia though, but that's probably good value for the US too, they get to attack Russia indirectly, but just this way they get the deniability.
What is probably happening is they're giving them £1bn of kit, which is probably old kit due for replacing, which is no longer worth £1bn, might be worth half, and they were going to be spending money on replacing it anyway. It's like throwing away the scraps on your plate as you're full, and acting like you're Jesus.
How people get annoyed at the funding is a bit similar to how everyone got mad when the cost of HS2 went up. It wasn't money just lost to the ether, it was basically more money to pay for more work, which was effectively going to employ more people (largely in paperwork), and for a longer timeframe. The difference in money actually "lost" was probably the difference between 2% of 50bn and 2% of 100bn, only 1bn really probably lost as profits to contractors (which get taxed). The rest probably gets taxed 100 times and just rolls around the system.
Not that the extra work was necessary mind, I'm not saying it was, but was only required because of stupid red tape and pandering to nimbys.
Same applies to spending money on social housing, it's just investing in jobs, and investing in property at the same time, providing they get the rent, and all of it is getting taxed a 100 times over.