It’s both.
Of the $61 billion allocated to Ukraine almost $23 billion goes to the US industrial military complex to manufacture weapons for the US army. That frees up capacity for the US to donate old weapons to Ukraine from existing stockpiles.
There is also $14 billion allocated for the US military to purchase new weapons from the manufactures and send them directly to Ukraine.
Another $9 billion goes to Zelenskiy’s government in the form of ‘forgivable loans’. This money is meant to help pay salaries, pensions and other expenses.
The rest covers the running costs for the US military (their surveillance assistance, the training on the weapons, logistics etc etc)