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The annual Department of State, Foreign Operations, and Related Programs (SFOPS) appropriations legislation funds many of the nondefense international affairs activities of the United States. The State Department portion makes up about one-third of the funding, and the Foreign Operations accounts comprise the remainder. SFOPS is one of 12 annual appropriations acts that fund the federal government each fiscal year.
Congress appropriated SFOPS in the Consolidated Appropriations Act, 2019 (P.L. 116-6), under Division F, "Department of State, Foreign Operations, and Related Programs Appropriations Act, 2019." That act is divided into eight titles. Each title funds a variety of government activities, ranging from the operational and administrative costs of government agencies, to direct grant funds for private nonprofit or multilateral organizations. By title, SFOPS provisions set out activities as follows:
The annual Department of State, Foreign Operations, and Related Programs appropriations legislation (SFOPS) funds many of the nondefense international affairs activities of the government. It is one of 12 appropriations bills that Congress considers annually to fund the discretionary activities of the government.1 Congress structures SFOPS into several titles, which consist of broad spending categories. These titles are subdivided into paragraphs that each address one component account, a funding line item that includes one or several activities of the government. A single component account may cover one agency's entire annual budget, grant funds to an independent organization, or fund multiple activities associated with statutory authorities, among other things.
In the FY2019 Consolidated Appropriations Act (P.L. 116-6), the Department of State, Foreign Operations, and Related Programs Appropriations Act (Division F) is divided into eight titles, each associated with the following activities:
Table 1. FY2019 SFOPS Appropriations, by Title
Title |
Title Name |
Activities |
I |
Department of State and Related Agency |
State Department personnel and administration activities worldwide, public diplomacy and cultural exchange programs, annual dues to international organizations, direct funding to foreign affairs-focused nongovernmental organizations, and various commissions of the government. |
II |
United States Agency for International Development |
USAID personnel and administration activities worldwide. Excludes program implementation, which Title III funds. |
III |
Bilateral Economic Assistance |
U.S. foreign assistance programs for economic development, global health, international disaster assistance, democracy programs, and several development-focused independent agencies. |
IV |
International Security Assistance |
U.S. foreign assistance for international narcotics control and law enforcement (INCLE); nonproliferation, anti-terrorism, and demining (NADR); peacekeeping operations; international military education and training (IMET); and foreign military financing (FMF). |
V |
Multilateral Assistance |
Funding to several multilateral development banks and U.N.-system organizations. |
VI |
Export and Investment Assistance |
Funding for U.S. agencies promoting export and investment abroad. |
VII |
General Provisions |
Cross-cutting guidance on programmatic priorities, use of funds, funding to specific regions and countries, and restrictions on funding. |
VIII |
Overseas Contingency Operations/Global War on Terrorism |
Supplemental funding for SFOPS activities to active conflict zones and areas of national security concern, particularly in Afghanistan and Iraq and efforts to counter Al Qaeda and ISIS globally. |
Source: P.L. 116-6.
FY2019 SFOPS Appropriations: Key Considerations2 Several issues should be taken into account when reviewing this report:
|
Title I funds (1) State Department personnel, operations, and programs; (2) U.S. participation in international organizations, such as the United Nations, and international commissions; (3) U.S. government, nonmilitary international broadcasting; and (4) several U.S. nongovernmental agencies and other U.S. commissions and interparliamentary groups, such as the National Endowment for Democracy.
Administration of Foreign Affairs The Administration of Foreign Affairs account category provides funding for the State Department's personnel, operations, and programs; including diplomatic security andThe Department of State, Foreign Operations, and Related Programs appropriations legislation provides annual funding for almost all of the international affairs programs generally considered as part of the 150 International Affairs Budget Function (the major exception being food assistance). The legislation has also served as a vehicle for Congress to place conditions on the expenditure of those funds, and express its views regarding certain foreign policy issues.
This report briefly discusses the legislation generally and then provides a short description of the various funding accounts as they appear in Division K, "Department of State, Foreign Operations, and Related Programs Appropriations Act, 2018," of the Consolidated Appropriations Act, 2018 (P.L. 115-141).
The Department of State, Foreign Operations, and Related Programs (SFOPS) appropriations bill provides annual appropriations for the vast majority of international affairs programs comprising the 150 International Affairs Budget Function.1 The State Department portion makes up about one-third of the funding, and the Foreign Operations accounts make up the remainder of the funds appropriated.2
Among the areas covered by the SFOPS appropriations legislation, and explained below, are the Department of State and the U.S. Agency for International Development's (USAID's) operating budgets; both assessed and voluntary U.S. contributions to international organizations and peacekeeping operations; U.S. nonmilitary international broadcasting; bilateral and multilateral U.S. foreign economic assistance; assistance to foreign militaries; antinarcotics funding; and funding for the Peace Corps, the Millennium Challenge Corporation, and several other programs through which the United States engages with the world to protect and advance U.S. national interests. Beyond providing funds, the appropriations bills, in recent years, also have been an important vehicle in conditioning the use of these funds and stating congressional views regarding foreign policy issues.
There are, however, several funding areas that are not covered by the SFOPS appropriations legislation that might be considered international affairs activities. These programs would include P.L. 480 Title II and other food assistance, part of the 150 budget function but funded by the Agriculture appropriations bill. While the State Department and USAID sponsor nearly four-fifths of U.S. and foreign participants in educational and cultural exchange programs, other government agencies are responsible for the remaining participants in such programs, including, for example, the short-term exchange of scientists program at the National Cancer Institute. The Department of Defense's Afghanistan Security Forces Fund (ASFF) supports the training and equipping of Afghanistan's police and military forces, its 10 U.S.C. 2282 (formerly known as "Section 1206") authority facilitates the strengthening of foreign military capacities, and its Drug Interdiction and Counter-Drug Activities Program provides counternarcotics support. These and other programs are funded through their own agency appropriations measures.
While the appropriation of funds is an authority reserved for Congress by the Constitution, the two-step authorization/appropriations process is established by House and Senate rules; and the authorization of appropriations is intended to provide guidance to appropriators as to a general amount and under what conditions funding might be provided to an agency or program.3 However, in the case of the State Department and foreign assistance programs, it is prescribed by law that legislation authorizing appropriations is required before the appropriations can be made.4 These provisions have been waived in the years for which Congress has not enacted authorizations.5
Within the SFOPS appropriations legislation, account names have changed over the years and new accounts have been added and old ones terminated. In FY2008, for example, the International Disaster and Famine Assistance account became the International Disaster Assistance account. In the FY2009 bill, the Former Soviet Union account was combined with the Eastern Europe and Baltic States account to form a new Assistance to Europe, Eurasia, and Central Asia account. That account was discontinued in the FY2013 appropriations at the request of the Obama Administration, but was reinstated in FY2016. In the FY2006 bill, a new Democracy Fund was established. The overall organization of the legislation may change as well. The FY2009 bill added a new title (Title II) specifically for USAID operations.
In the FY2018 Consolidated Appropriations Act (P.L. 115-141) the Department of State, Foreign Operations, and Related Programs appropriations legislation (Division K) is divided into eight titles:
Title I |
Department of State and Related Agency |
Title II |
United States Agency for International Development |
Title III |
Bilateral Economic Assistance |
Title IV |
International Security Assistance |
Title V |
Multilateral Assistance |
Title VI |
Export and Investment Assistance |
Title VII |
General Provisions |
Title VIII |
Overseas Contingency Operations/Global War on Terrorism |
This report briefly explains the different accounts in the order they are presented in the FY2018 SFOPS appropriations legislation.
Title I provides funds for (1) the personnel, operations, and programs of the Department of State; (2) U.S. participation in international organizations, such as the United Nations, as well as small commissions, such as the International Boundary and Water Commission between the United States and Mexico; (3) U.S. government, nonmilitary international broadcasting; and (4) several U.S. nongovernmental agencies and other U.S. commissions and interparliamentary groups, such as the U.S. Commission on International Religious Freedom.
The Administration of Foreign Affairs account category provides funding for the personnel, operations, and programs of the Department of State as well as the construction and maintenance of its facilities in the United States and around the world.
Diplomatic and Consular Programs is the construction and maintenance of its facilities in the United States and around the world. It is composed of the following component accounts:
Diplomatic Programs (DP)
DP, the principal operating account of the Department of State. The accountState Department, includes four funding categories:
The Capital Investment Fund was established by Congress in 1994 to provide for purchasing information technology and other capital equipmentUntil FY2019, this account (named Diplomatic & Consular Programs in prior years) included some consular fees and surcharges that offset expenditures. Beginning with FY2019 appropriations, the State Department is to use that revenue to fund the administration of consular and border security programs directly under a new Consular and Border Security Programs account (the CBSP account). That account does not require annual appropriations and thus does not appear in the FY2019 act.10
Capital Investment Fund (CIF)
CIF funds information technology (IT) and other capital equipment procurement to ensure efficient management, coordination, and utilization of IT resources.6
This account funds the State Department's Office of Inspector General, which conducts independent audits, inspections, evaluations, and investigations of the programs and offices of the Department of StateState Department and the Broadcasting Board of Governors (BBG).
With funds appropriated to this account, the State Department managesThis account funds the State Department's management of U.S. educational, professional, and cultural exchanges, such as the Fulbright Scholar Program, the International Visitor Leadership Program, and the Congress-Bundestag Youth Exchange.
Funding for the Representation Expenses account reimburses Foreign Service personnel for protocol-related entertainment costs that involve expanding relations with foreign officials, providing for the proper representation of the United States and its interests abroad, or contributing to the achievement of embassy objectives.
The Representation Expenses account reimburses Foreign Service Officers for entertainment of government officials to advance diplomacy.13
This account provides funding forfunds reimbursable expenses to municipal, state, and federal law enforcement agencies throughout the United States as a result offor "extraordinary" services provided for the protection of foreign missions and officials.
Embassy Security, Construction, and MaintenanceESCM funds provide for the general management and supportmaintenance of U.S. State Department facilities bothembassies and other facilities in the United States and abroad. This includes ongoing renovations to the State Department headquarters in Washington, DC. This account also funds Worldwide Security Upgrades (WSU), which provide the Department of State's share of the costs involved with the planning, design, construction, and maintenance of embassies and facilities around the world.
This account addresses unexpected events, such as the evacuation of U.S. diplomats and their families or, in some circumstances, private U.S. citizens or third-country nationals as a result of natural disasters, epidemics, terrorist attacks, or civil unrest. It also funds some nonemergency activities of senior Administration officials, such as G-20 Summits or the Organization for American States (OAS) General Assembly (Basic Authorities Act, §4). This account also funds rewards for informants about international terrorism (the "Rewards for Justice" program), narcotics-related activities, transnational organized crime, and war crimes (Basic Authorities Act, §36). For example, information obtained through Rewards for Justice led to the capture and conviction of one of the planners of the 1993 World Trade Center bombing in New York.
Repatriation Loans Program Account
The Repatriation Loans Program Account subsidizes small loansThis account also pays for rewards for information related to international terrorism, narcotics-related activities, transnational organized crime, and war crimes. It also funds select activities of senior Administration officials pertaining to the conduct of foreign affairs, including participation in conferences such as G-20 Summits or OAS General Assemblies.
The Repatriation Loans Program allows the U.S. government to provide funds, on a loan basis, to destitute U.S. citizens abroad who are unable to fund their return to the United States.
The American Institute in Taiwan (AIT) is a nonprofit, private corporation tasked, in accordance with the Taiwan Relations Act (P.L. 96-8), with conducting or carrying outAIT is a nonprofit, private corporation established for "[p]rograms, transactions, and other relations conducted or carried out by the President or any agency of the United States Government with respect to Taiwan.," 7in accordance with the Taiwan Relations Act (P.L. 96-8). It provides consular services for Americans and the people of Taiwan. The account supports a contract providing for salaries, benefits, and other expenses associated with maintaining AIT.
The International Center, or the International Chancery Center (ICC), is a 47-acre diplomatic enclave owned by the U.S. government and is located in Washington, DC. This account comprises fees collectedFees from other executive agencies and proceeds from past leases that are used in turn to carry outfund ICC development, maintenance, security, and repairs.
The fund is a mandatory expense thatpayment covers the U.S. government's portion of maintainingcontribution to the Foreign Service Retirement and Disability System and the Foreign Service Pension System for USAID and the Department of State.
Through the following two accounts in the International Organizations category, the United States meets its assessed obligations (dues) to the many international organizations and peacekeeping efforts that the United States supports.
Title V of SFOPS appropriates voluntary contributions to multilateral organizations.The Contributions to International Organizations account under the Department of State funds U.S. -assessed contributions to the budget of the United Nations, certain U.N. system organizations, inter-American organizations, war crimes tribunals, and other intergovernmental organizations.
The Contributions for International Peacekeeping Activities account funds U.S. -assessed contributions to U.N. peacekeeping operations worldwide. It also provides assessed contributions to, as well as assessed contributions to certain ad hoc courts, such as the International Criminal Tribunal for the Former Yugoslavia and the International Residual Mechanism for Criminal Tribunals.
Accounts under the International Commissions category provide funding for the U.S. portion of the salaries and programs ofU.S. obligations under law or treaty to the following bilateral and multilateral commissions:
The sole listing under the "Related Agency" category, the Broadcasting Board of Governors (BBG) is the U.S. civilian international media agency. It comprises the Voice of America (VOA),BBG is the U.S. civilian international media agency. BBG was established as the successor to the U.S. Information Agency in the International Broadcasting Act of 1994 (Title III of P.L. 103-236). BBG renamed itself the United States Agency for Global Media in 2018, but recent appropriations have maintained the BBG title. It comprises the Voice of America (VOA) and Radio and TV Martí (under the Office of Cuba Broadcasting [OCB]). BBG also funds grantee organizations Radio Free Europe/Radio Liberty (RFE/RL), Radio Free Asia (RFA), and Alhurra TV and Radio Sawa (under the Middle East Broadcasting Networks [MBN]), and Radio and TV Martí (under the Office of Cuba Broadcasting [OCB]). The broadcasting category is divided into the following two accounts:
The OperationsThis account funds the operations of the BBG and all U.S. government, nonmilitary international broadcasts, including salaries and benefits for new hires, programmatic expansion priorities including and other operating expenses. Programmatic expansion priorities in FY2019 include new Russian and Korean language programs, an increased focus on Venezuela, and a digital media program in the Middle East and North Africa to counter extremist narratives and more comprehensive coverage of Central America, and other operating expenses.
The Capital Improvements account supports improvements and maintenance of BBG's global transmission network and digital multimedia infrastructure and capital projects managed by Voice of America, the Office of Cuba Broadcasting, and the International Broadcasting Bureau Office of Security.
Under this category, funds are provided to several nongovernmental organizations that have objectives that align with United States foreign policy. Most of these organizations are nonprofit organizations and receive funding from both U.S. government appropriations and private donations.
Related Programs
This category includes funding to entities created by the U.S. government that today are nongovernmental but pursue objectives aligned with U.S. foreign policy. Several of these organizations fund themselves with income from trust funds created by Congress, so appropriations authorize use of that income and do not require appropriation of funds. Others receive funding exclusively from the U.S. government, or from both the U.S. government and other donors.
The Asia Foundation is a nonprofit organization based in San Francisco that seeks to strengthen democratic institutions in Asia, counter violent extremism, promote economic opportunities for Asian and U.S. businesses, and improve U.S.-Asian relations.
In addition to annual appropriations, it receives support from foreign governments, nonprofits, corporations, competitive grants, and individual charitable contributions.The U.S. Institute of Peace works to increase the United States' capacity to prevent, mitigate, and help resolve international conflict without violence. It offersCongress established USIP in 1984 to offer training, analysis, and additional resources to governments, organizations, and individuals seeking to build peace.
The FY2004 Consolidated Appropriations Act (P.L. 108-199) created a trust fund to support the operations of the (United States Institute of Peace Act, Title XVII of P.L. 98-525). It is prohibited from receiving non-U.S. government funding.
Center for Middle Eastern-Western Dialogue Trust Fund
The International Center for Middle Eastern-Western Dialogue (the Hollings Center). The Hollings Center, based in Istanbul, promotes dialogue between the United States and nations with significant Muslim populations to generate new thinking on key international issues and expand people-to-people contacts.
The Eisenhower Exchange Program brings professionals who are rising leaders in their countries to the United States and sends their U.S. counterparts abroad with custom-designed programs for each participant. It provides learning and networking opportunities for all participants in preparation. Financed by a dedicated trust fund, it provides programs tailored to each participant and career development opportunities to prepare participants for increasingly senior positions in government, business, and nongovernmental institutions.
TheFinanced by a dedicated trust fund, the IASP funds scholarships for Israeli Arabs to attend institutions of higher education in the United States.
The East-West Center, based in Hawaii, promotes better relations and understanding among the people and nations of the Asia-Pacific region and the United States through cooperative study, training, and research. In addition to annual appropriations, it receives support from foreign governments, nonprofits, corporations, competitive federal grants, and individual charitable contributions.
NED is a private, independent, nonprofit organization that is dedicated to fostering the growth of a wide range of democratic institutions abroad, including political parties, trade unions, free markets, and business organizations.
The commissions and groups in the Other Commissions category of the SFOPS appropriations are organizations that are established by an act of Congress to advance certain U.S. objectives in the international arena. In the federal budget submission to Congress, these organizations are listed under the Legislative Branch Boards and Commissions (with the exception of the Commission for the Preservation of America's Heritage Abroad, which is listed under Other Independent Agencies); however, Congress funds them through SFOPS appropriations.
Congress has established a number of organizations to advance selected U.S. objectives in the international arena. Most of these organizations are listed under the Legislative Branch Boards and Commissions in the President's budget request to Congress. Though all except the Commission for the Preservation of America's Heritage Abroad are legislative branch bodies, Congress funds them through SFOPS appropriations given their international affairs focus.The 21-member commission seeks to identify and report on Established in the National Endowment for Democracy Act of 1983 (Title V of P.L. 98-164), NED supports a variety of organizations but maintains four "core institutes," each affiliated with a U.S. domestic organization. The National Democratic Institute (NDI) and the International Republican Institute (IRI) are nonpartisan entities that promote election-related capacity building. The Center for International Private Enterprise, affiliated with the U.S. Chamber of Commerce, supports the private sector by strengthening democratic institutions, and the Solidarity Center, associated with the AFL-CIO, supports labor rights in workplaces abroad. NED also receives funding from the Democracy Fund in Title III of SFOPS.
Other Commissions
. It also works to obtain, in cooperation with the Department of State, assurances from the governments of the region that the properties will be protected and preserved. The commission also encourages, sponsors, assists, and otherwise facilitates private and foreign government site restoration, preservation, and memorialization projects.
In consultation with the State Department 16
Established in 1998, the commission seeks to promote international religious freedom. It in consultation with the State Department. Composed of both presidential and congressional appointees, it advises and makes policy recommendations to the President, the Secretary of State, and Congress through ad hoc publications and an annual report.
The CSCE is an independent U.S. government commission that, established in 1975, seeks to advance AmericanU.S. interests by monitoring and promoting human rights, military security, and economic cooperation in the 57-country Organization on Security and Cooperation in Europe (OSCE).
The commissionCECC monitors human rights and the development of rule of law in China. Members of Congress lead the CECC jointly with executive branch officials.
The commissionThis commission, appointed by congressional leadership, monitors, investigates, and submits to Congress an annual report and recommendations on the national security implications of the bilateral trade and economic relationship between the United States and the People's Republic of China.
Western Hemisphere Drug Policy Commission
Established in 2017, this commission is required to submit a report evaluating and proposing alternatives for U.S. foreign policy regarding the supply and abuse of illicit drugs in the Western Hemisphere. Unlike the other commissions, it is scheduled to disband after the report's completion.
This title provides operational funds for USAID, an independent agency (under the foreign policy guidance of the Department of State) directly responsible for implementing most bilateral development assistance and disaster relief programs, many of which are funded in Title III.
The Operating ExpenseOE account funds the operational costs of USAIDUSAID's overseas and domestic operational expenses, including salaries and benefits, overseas and Washington, DC, operationsmission activities, staff training, physical security, and information technology maintenance and upgrades.
A program begun in FY2003, the Capital Investment FundCIF supports USAIDthe modernization of USAID's information technology systems and the construction of facilities overseas. Unlike the State Department's Capital Investment Fund, USAID's CIF also funds the construction of facilities overseas in lieu of a separate component account to that end.
This account supports operational costs of USAID's Office of the Inspector General office, which conducts audits and investigations of USAID programs, as well as of the Millennium Challenge Corporation, the Inter-American Foundation, the United States African Development Foundation, and the Overseas Private Investment Corporation.
Under this title, funds are appropriated in support of U.S. government departments and independent agencies conducting humanitarian, development, and other programs meeting U.S. foreign policy objectives throughout the world.
Funds in this category of appropriations are provided chiefly through USAID or in close association with the Department of State.
Global Health ProgramsGlobal Health Programs (GHP)
GHP is made up of two accounts supporting multiple health activities conducted by USAID and the Department of State:
Managed by USAID, appropriations in this account fund programs focused on combating infectious diseases such as immunization and oral rehydration; HIV/AIDS; malaria; tuberculosis;HIV/AIDS, malaria, and tuberculosis. Programs also focus on immunization, oral rehydration, maternal and child health;, vulnerable children;, and family planning and reproductive health.
Managed by the Office of the Global AIDS Coordinator (OGAC) in the Department of State, this account is the largest source of funding for the President's Emergency Plan for AIDS Relief (PEPFAR). Programs fundedFunds from this account are transferred to programs implemented by USAID, the Department of Defense, the Centers for Disease Control and Prevention, and the Peace Corps, among others. A specified amount from the Global Health-State account supports the U.S. contribution to the multilateral Global Fund to Fight AIDS, Tuberculosis, and Malaria.
Managed by USAID, the Development Assistance account funds programs focused on agriculture, private sector development, microcredit, water and sanitation, education, environment, and democracy and governance, among other sectors.
Through the FAA's general authorities, DA also funds environment, democracy and governance, water and sanitation, and human rights programs, among others. In sub-Saharan Africa specifically, DA funds particular priorities for that region described in FAA Chapter 10, including agricultural production and natural resources, health, voluntary family planning services, education, and income-generating activities (§496).
Managed by the USAID Office of Foreign Disaster Assistance, the17 this account provides relief and rehabilitation to nations struck by natural and manmade disasters and emergencies (FAA, §491[b]). In recent years, the account has been used increasingly to provide emergency food assistance to supplement commodity food aid provided through the P.L. 480 Title II account in the agriculture appropriation.
The Transition Initiatives account supports the activities of USAID's Office of Transition Initiatives (OTI), a program19 an entity launched in 1994 to bridge the gap between disaster and development aidstabilization and sustainable development. It supports flexible, short-term assistance projects in political transition countries that are moving from war to peace, civil conflict to national reconciliation, or where political instability has not yet erupted into violence and where conflict mitigation might prevent the outbreak of such violence.
The fund allows USAID to respondsupports USAID responses to emerging or unforeseen crises with projects aimed at addressing the root causes of conflict or instability. It is meant to replace funding formerly provided through the Department of Defense Section 1207 authority.
Managed by USAID, the Development Credit Authority specifies an amount of funds that may be transferred from other accounts to subsidize U.S. loan guarantees that assume a portion of the risk taken by private banks financing housing shelter projects, water and sanitation systems, and microcredit and small enterprise development programs, among others. The provision also directly appropriates administrative costs to run the credit program.
The Economic Support Fund uses economic assistance to advance U.S. political and strategic goals in countries of special importance to U.S. foreign policy. Key recipients in recent years include Afghanistan, Pakistan, Iraq, South Sudan, Egypt, Colombia, and Jordan. Funding decisions are made by the State Department; programs are implemented largely by USAID.
The fund supports democratization programs run by the State Department's Bureau of Democracy, Human Rights and Labor (DRL), and USAID's Office of Democracy and Governance.
DCA is a USAID-administered mechanism to subsidize loan guarantees in support of housing projects, water and sanitation systems, and microcredit and small enterprise development, among other programs. In addition to appropriations for the administrative costs of running DCA, Congress authorizes transfers from other component accounts to DCA for loan guarantees. For FY2019, only DA, GHP, and Assistance for Europe, Eurasia, and Central Asia are authorized to transfer funds to DCA. In 2018, Congress passed the Better Utilization of Investments Leading to Development (BUILD) Act (Division F of P.L. 115-254), which requires the merger of DCA into a new United States International Development Finance Corporation. FY2019 appropriations for DCA also provide for the costs associated with this transfer. 20 The Economic Support Fund, authorized under Part II, Chapter 4 of the FAA (§531), uses economic assistance to advance U.S. political and strategic goals in countries of special importance to U.S. foreign policy. Once used primarily in support of the Middle East peace process (in FY1997, for example, 87% of ESF went to Israel, Egypt, the West Bank and Jordan), the use of ESF funds has expanded in recent years to support a broader range of countries of importance to the U.S. counterterrorism strategy. ESF supports development projects that may be indistinguishable from those supported by other accounts, but is also used for occasional direct budget support aid and sovereign loan guarantees. The State Department makes ESF programming decisions; USAID, in large part, implements the programs. This account supports democracy promotion programs overseen by the State Department's Bureau of Democracy, Human Rights and Labor (DRL). While in past years a portion of this funding was designated for USAID's Office of Democracy, Conflict, and Humanitarian Assistance, appropriations since FY2017 have gone exclusively to DRL, though transfers to USAID may occur. Authorities for this account are found throughout the FAA, but specific reference to the Democracy Fund was added in 2002 (§116, P.L. 107-228). This account provides economic assistance to once-Communist states of the former Soviet Union and Eastern Europe, and is the successor to two earlier accounts that channeled aid to the region after the Cold War.21 AEECA was discontinued at the Obama Administration's request between FY2013 and FY2015, during which time these activities were funded through the ESF, GHP, and INCLE accounts, and reinstated in FY2016. Authorities under this account are found in the FAA (§498-499) and the Support for Eastern European Democracy (SEED) Act of 1989 (P.L. 101-179). The Migration and Refugee Assistance account, administered by the State Department's Bureau of Population, Refugees, and Migration (PRM), supports refugee assistance and protection activities worldwide. The MRA account supports U.S. contributions to U.N. entities such as the U.N. High Commissioner for Refugees (UNHCR) and the International Organization for Migration (IOM), as well as organizations such as the International Committee for the Red Cross. It funds resettlement of refugees to other countries as well as processing and initial placement of refugees to the United States.22 The Migration and Refugee Assistance Act of 1962, as amended, sets out these authorities (P.L. 87-510). ERMA is a humanitarian contingency fund for rapid deployment in unanticipated urgent refugee and migrant emergencies. Appropriations typically replenish this account up to a congressionally authorized level, and the executive branch must notify Congress when funds are used. Several agencies operate independently and report directly to the Executive Office of the President, unlike USAID, which operates under guidance from the Secretary of State. This account provides economic assistance to Eastern Europe and former states of the Soviet Union, and is the successor to two earlier accounts that channeled aid to the region after the Cold War.8 Previously funded through Defense appropriations (as authorized in the National Defense Authorization Act of 2006, Section 1207, P.L. 109-163), today USAID administers it under the general authorities of the FAA. Unlike IDA, it may not be used to respond to disasters, and unlike Transition Initiatives, this account is not associated with its own operational component; rather, it is a flexible funding source available to the USAID Administrator.
Development Credit Authority (DCA)
AEECA was discontinued at the Obama Administration's request between FY2013 and FY2015, during which time these activities were funded through the ESF, GHP, and INCLE accounts, and reinstated in FY2016.
The Migration and Refugee Assistance program supports refugee relief activities worldwide and, in some cases, helps resettle refugees. Most MRA funds are channeled to international organizations such as the U.N. High Commissioner for Refugees.
ERMA holds contingency funds that can be drawn upon quickly in times of refugee emergencies. Appropriations replenish resources to this account.
The Peace Corps, established in 1961, sends U.S. volunteers to developing countries to provide technical aid and to promote mutual understanding on a people-to-people basis between the United States and citizens of foreign nations (Peace Corps Act of 1961, P.L. 87-293).
Established in 2004, the MCC supports24
The MCC provides large-scale, five-year development projects, called "compacts," designed and implemented by recipient countries, which are selected on the basis of their commitments to good governance; investment in health, education, and the environment; and support for economic freedom.
The IAF grants to foreign governments. Known as "compacts" and underpinned by bilateral agreements, these grants are intended to promote economic growth and to eliminate extreme poverty in countries chosen and determined to be eligible, in part, based on their demonstrated commitment to just and democratic governance; investment in health, education, and the environment; and support for economic freedom. Congress established and authorized the MCC in the Millennium Challenge Act of 2003 (Title VI of P.L. 108-199).
Inter-American Foundation (IAF)
The IAF is a nonprofit corporation that finances small-scale enterprise and grassroots community self-help activities aimed at assisting poor people in Latin Americathe social and economic development of poor people in Latin America, as originally set out in the Foreign Assistance Act of 1969 (P.L. 91-179) establishing it as an independent entity.
The USADF is a nonprofit corporation that finances small-scale enterprise and grassroots community self-help activities aimed at assisting poor people in Africathe social and economic development of poor people in Africa. Modeled after the IAF, the African Development Foundation Act established it in 1980 (Title V of P.L. 96-533).
This technical assistance program supportsprogram deploys financial advisors to countries seeking help in implementing economic reforms, focusingprovide technical assistance to developing or transitional countries in support of economic reforms, with a focus on banking and financial institutions, economicfinancial crimes, government debt, revenue policy, and budget and financial accountability (FAA §129, added in 1998 by P.L. 105-277).
The INCLE accountINCLE funds international counternarcotics activities; anticrime programs, including fighting humanprograms combatting human and wildlife trafficking; and rule of law activities, including support for judicial reform.
This account funds a variety of State Department-managed activities aimed at countering proliferation of weapons of mass destruction (FAA, §581-586), supporting antiterrorism training and related activities (FAA, §571-575), and promoting demining operations in developing nations (FAA, §301). It also funds voluntary contributions to certain nonproliferation-focused international organizations (FAA, §301). Programs also finance certain defense articles related to nonproliferation, demining, and antiterrorism to friendly governments (Arms Export Control Act, §23, P.L. 90-629), and disarmament in the former Soviet Union (FREEDOM Support Act, §504, P.L. 102-511).
Unlike the Title I Contributions to Peacekeeping Activities (CIPA) account, which provides assessed funds for U.N. peacekeeping forcesoperations, the PKO account provides voluntary support for multilateral efforts in conflict resolution, includingsuch as the training of African peacekeepers and funding operations of the Multinational Force and Observers Missionmission in the Sinai. The State Department controls the funds and sets the policy; DOD implements the activities.
Through IMET, the United States provides training and education to selected foreign military and civilian personnel on U.S. military practices and standards, including democratic values like civilian control of the military. Participants take courses at military education facilities in the United States or receive instruction from U.S. training teams abroad. The State Department controls the funds and has policy authority; over the program (FAA, §541-549), which the Department of Defense implements this program.
The Foreign Military Financing Program supports U.S. overseas arms transfers on a loan and grant basis. Funding generally may be used by recipient countries only to purchase U.S. weapons, equipment and training, though a portion of FMF to Israel may be used to support purchases from Israeli defense firms. grant basis. The State Department controls the funds and has policy authority; the (Arms Export Control Act, §23). The Department of Defense implements this program.
This account provides voluntary donations through the Department of State toState Department-administered U.S. donations that support the programs of international agencies involved in a range of development, humanitarian, and scientific activities, including the U.N. Development Program (UNDP), U.N. Environment Program (UNEP), U.N. Children's Fund (UNICEF), and U.N. Population Fund (UNFPA). This is distinct from the CIO account under Title I, which funds assessed contributions (dues) to international organizations.
Under this category, funds are provided through the Department of the Treasury to a wide range of multilateral financial institutions, which offer loans—both "soft" (i.e., concessional) and "hard" (i.e., near-market rate)—and some grants to developing countries and private sector entities in those countries. Not all international financial institutions require or receive U.S. contributions from year to year.9
In the case of concessional lending or grant-making institutions, U.S. appropriations contribute to periodically through annual installments toward periodically-agreed donor replenishments as capital is drawn down. Nonconcessional bank institutions rarelytypically require new financial commitments. In FY2018 only in order to increase the institution's capitalization, as in the ongoing capital increase for the African Development Bank (see below).29 In FY2019, funds were appropriated for the following entities.
Cosponsored by the UNDP, UNEP, and the World Bank, the GEF, administered by the World Bank, makes grants to help developing countries deal with global environmental problems.
As the World Bank's "soft loan" window, IDA lends at concessional rates to low-income countries.
The AsDF is the "soft loan"grants-only window of the Asian Development Bank (AsDB), which finances economic development programs in lower-income countries in Asia and the Pacific. AsDF ceased issuing concessional loans in 2017. AsDB now finances and issues all concessional loans directly through its capital reserves.Asia and the Pacific.
The AfDB lends at near-market rates to public and private entities, with special emphasis on agriculture, infrastructure, and industrial development. To support a general capital increase, legislative provisions include both paid-in capital and callable capital subscriptions.10
The AfDF lends on concessional terms to low-income sub-Saharan African countries. It resides within the African Development BankPart of the African Development Bank, the AfDF provides concessional loans and grants to low-income African countries.
IFAD is a multilateral financial institution helping developing countries increase agricultural productivity and income, improve nutritional levels, and integrate into larger markets.
The Export-Import Bank issues31
Ex-Im Bank issues direct loans, loan guarantees, and export credit insurance to support U.S. exports of goods and services. It aims to support U.S. jobs by providing such financing and insurance when the private sector is unwilling or unable to do so alone and/or to counter financing offered by foreign countries through their export credit agencies. Ex-Im Bank program and administrative expenses are financed by collections such as loan interest, risk premia, and other fees, for which congressional appropriations establish a ceiling. Congress also provides an appropriation for the agency's Office of Inspector General. Ex-Im Bank's enabling legislation is the Export-Import Bank Act of 1945 (P.L. 79-173).
Overseas Private Investment Corporation (OPIC)32 and insurance to commercial banks that make trade credits available to American exporters. The bank also extends direct loans to U.S. businesses, especially those whose counterparts abroad receive foreign government-subsidized trade credits. An appropriation is provided for the agency's inspector general. An appropriation ceiling is also specified for a subsidy to support the agency's programs and administrative expenses, but most, if not all, of these costs are annually covered by bank receipts.
OPIC offers political risk insurance, guarantees, and investment financing to encourage U.S. firms to invest in developing countries. Although the agency is self-sustaining, the appropriation sets ceilings on administrative expenses to carry out the insurance programs and denotes a level of support for credit financing.
The TDA finances feasibility studies and other project-planning services for major development activities in developing countries, to support economic development and to promote U.S. exports.
TDA funds project preparation services such as feasibility studies and other activities to link U.S. businesses to export opportunities in emerging markets for infrastructure and other development projects (FAA, §611). For example, TDA funds reverse trade missions which bring foreign decision-makers to the United States.Under the General Provisions title are, under the authority of the FAA (§231-240). Although the agency funds itself in full with loan receipts, appropriations set ceilings on administrative expenses to carry out the insurance programs and denotes a level of support for credit financing. The BUILD Act authorizes a new U.S. International Development Finance Corporation (IDFC), which is to absorb OPIC along with portions of USAID (See DCA section) and assume their responsibilities. It also adds new authorities to this entity. The aforementioned section of the FAA is to be repealed after the IDFC is operational, thereby terminating OPIC.33
Trade and Development Agency (TDA)34
mandatesrequirements for specific accounts in other titles of the legislation.11 This title specifies also allocations for various aid sectors, including education, democracy promotion, water and sanitation, and food security, as well as cross-cutting issues such as gender equality. In addition, Title VII provides more detail about aid to certain countries and regions.
Since FY2012, executive branch budget requests have distinguished between "core" or "enduring" international affairs funding and funding to support "overseas contingency operations" (OCO). The OCO designation was described initially in budget documents as reflecting "the extraordinary costs of Department [of State] and U.S. Agency for International Development (USAID) operations and programs in Afghanistan, Iraq, and Pakistan," its use quickly expanded to include a broader range of activities and countries. OCO funds are not counted toward spending caps established by the Budget Control Act, 2011, as amended (P.L. 112-25), and as a result have been used as a means of maintaining international affairs funding levels while complying with BCA budget restraints.35 While the Trump Administration has proposed the elimination of OCO funding under SFOPS for FY2019 and FY2020, Congress has continued to use the designation in SFOPS legislation. OCO funding supports accounts that received core funding in Titles I-V of the legislation, but is identified separately in Title VIII.
Appendix A.
State, Foreign Operations Authorizing Legislation and U.S. Code References
Table A-1. List of Statutory Acts for SFOPS Accounts, by Date of Enactment
Act Name Public Law Citation Export-Import Bank Act of 1945 P.L. 79-173 12 U.S.C. 635 et seq. State Department Basic Authorities Act of 1956 P.L. 84-885 22 U.S.C. 2651a et seq. Foreign Assistance Act of 1961 P.L. 87-195 22 U.S.C. 2151 et seq. Mutual Education and Cultural Exchange Act of 1961 P.L. 87-256 22 U.S.C. 2451 et seq. Peace Corps Act of 1961 P.L. 87-293 22 U.S.C. 2501 et seq. Migration and Refugee Assistance Act of 1962 P.L. 87-510 22 U.S.C. 2601 et seq. Arms Export Control Act of 1968 P.L. 90-629 22 U.S.C. 2751 et seq. Inter-American Foundation Act of 1969 Part IV of P.L. 91-175 22 U.S.C. 290f et seq. Taiwan Relations Act of 1979 22 U.S.C. 3301 et seq. Foreign Service Act of 1980 22 U.S.C. 3901 et seq. African Development Foundation Act of 1980 Title V of P.L. 96-533 22 U.S.C. 290h et seq. National Endowment for Democracy Act of 1983 Title V of P.L. 98-164 22 U.S.C. 4411 et seq. United States Institute of Peace Act of 1984 Title XVII of P.L. 98-525 22 U.S.C. 4601 et seq. Support for Eastern European Democracy Act of 1989 22 U.S.C. 5401 et seq. Freedom for Russia and Emerging Eurasian Democracies and Open Markets Support (FREEDOM Support) Act of 1992 22 U.S.C. 5801 et seq. United States International Broadcasting Act of 1994 Title III of P.L. 103-236 22 U.S.C. 6201 et seq. International Religious Freedom Act of 1998 22 U.S.C. 6401 et seq. Secure Embassy Construction and Counterterrorism Act of 1999 Title VI of P.L. 106-113 22 U.S.C. 4865 et seq. Millennium Challenge Act of 2003 Title VI of P.L. 108-199 22 U.S.C. 7701 et seq. Better Utilization of Investments Leading to Development (BUILD) Act of 2018 Division F of P.L. 115-254 22 U.S.C. 9601 et seq. Source: Office of the Law Revision Counsel, U.S. House of Representatives. Author Contact Information Acknowledgments This report was originally written by Curt Tarnoff, who retired from CRS in April 2018, and has since been updated by Nick Brown and Cory Gill. The Office of Management and Budget (OMB) assigns three-digit codes to the various functions of the government. International affairs, designated "the 150 Account," also contains several subfunctions. For example, subfunction 151 encompasses international development and humanitarian assistance. International Commissions accounts are the only SFOPS appropriations outside the 150 Account—they are part of the 300 Natural Resources Budget Function. For a general overview of the appropriations process, see CRS Report R42388, The Congressional Appropriations Process: An Introduction, coordinated by James V. Saturno. The President's Budget, accessible at https://www.govinfo.gov/app/collection/budget/2019, describes many of these accounts in some detail. However, some of the account restructuring proposed in that budget narrative was not adopted in FY2019 appropriations, resulting in important differences between this report's structure, which follows enacted accounts, and the President's Budget. Congress may make these changes at its own initiative or at the President's request. Recent changes have affected the Assistance to Europe, Eurasia, and Central Asia; International Disaster Assistance; and Global Health Programs accounts, among others. The Democracy Fund account was established in FY2006. On food aid, see CRS In Focus IF10194, U.S. International Food Aid Programs, by Randy Schnepf, and CRS Report R45422, U.S. International Food Assistance: An Overview, by Alyssa R. Casey. Many of these activities are managed by the Department of Health and Human Services, in particular the Centers for Disease Control and Prevention. See below, for example, the Consular and Border Security Programs under Title I; contributions to international financial institutions under Title V; and the Export-Import Bank and Overseas Private Investment Corporation under Title VI. For example, see §7022 of the FY2019 Consolidated Appropriations Act, Division F (P.L. 116-6). In addition to comprehensive authorizations, Congress may grant new authorities in standalone legislation. For example, Congress amended the FAA in 2003 to articulate a U.S. response to the HIV/AIDS, malaria, and tuberculosis epidemics (P.L. 108-25). Conversely, while Congress has funded innovation programs of the U.S. Global Development Lab at USAID through appropriations, Congress has not added it in statute. USAID thus based the Global Development Lab's authority on the FAA's broader authority to promote economic development. The CBSP account was established pursuant to Section 7081 of the Consolidated Appropriations Act, 2017 (P.L. 115-31). This law amended the statutes authorizing the State Department to collect the following consular fees and surcharges: the Machine Readable Visa Fee, the Passport Security Surcharge, the Immigrant Visa Security Surcharge, the Diversity Visa Lottery Fee, the Affidavit of Support Fee, and the Western Hemisphere Travel Initiative Surcharge.
U.S. CodeReference
Footnotes
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" and extended by the Obama Administration in 2014 to include efforts to combat the Islamic State.12 Congress has adopted this approach, appropriating OCO funding for an even broader range of countries and activities. OCO funding supports accounts that received core funding in Titles I-V of the legislation, but is identified separately in Title VIII. OCO funds are not counted toward spending caps established by the Budget Control Act, 2011, as amended (P.L. 112-25).
Author Contact Information
Key Policy Staff
Area of Expertise |
Name |
Phone |
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State Department Appropriations |
Cory Gill |
[phone number scrubbed] |
[email address scrubbed] |
Foreign Operations Appropriations |
Marian Leonardo Lawson |
[phone number scrubbed] |
[email address scrubbed] |
Foreign Operations Appropriations |
[author name scrubbed] |
[phone number scrubbed] |
[email address scrubbed] |
Multilateral Assistance |
Rebecca Nelson |
[phone number scrubbed] |
[email address scrubbed] |
1. |
International affairs is one category of the various components of the federal budget designated by the Office of Management and Budget (OMB). Each category represents a major objective and operation of the federal government. Each function and subfunction is assigned a three-digit code. International affairs is 150. Subfunction 151 encompasses international development and humanitarian assistance; subfunction 152 consists of security assistance programs, etc. Accounts under the International Commissions category of the legislation are the exception—they are part of the 300 Natural Resources Budget Function. |
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2. |
Until the 110th Congress, the State Department and Foreign Operations portions of the bill were developed in different Appropriations subcommittees and considered as separate bills. |
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CRS Report RS20371, Overview of the Authorization-Appropriations Process, by [author name scrubbed] |
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See §15 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2680) and §10 of the Foreign Military Sales Act amendments, 1971 (22 U.S.C. 2412). |
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For example, see §7022 of the FY2018 Consolidated Appropriations Act, Division K P.L. 115-31 (P.L. 115-141) Most foreign operations program appropriations have not been authorized since 1987. For related discussion, see CRS Report R40089, Foreign Assistance Act of 1961: Authorizations and Corresponding Appropriations, by [author name scrubbed] and [author name scrubbed]. |
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See §135 of P.L. 103-236, as amended (22 U.S.C. 2684a). |
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See 22 U.S.C. ch. 48 |
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See §135 of the Foreign Relations Authorization Act, FY1994-1995 (P.L. 103-236; 22 U.S.C. 2684a), as amended. 12.
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For example, Congress originally established the Fulbright program under the Fulbright Act of 1946, P.L. 79-584. Congress expanded the program in the Information and Educational Exchange Act of 1948, and the Fulbright-Hays Act superseded both of these acts in 1961. 13.
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Congress appropriates representation expenses for other agencies, such as Peace Corps and USAID, but includes it as a subcomponent of their accounts. 14.
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The Border Environment Cooperation Commission merged with the North American Development Bank in 2017. It received appropriations under its prior name in FY2019, but the President's FY2020 request did not include it. 15.
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For further information, see CRS Report R43521, U.S. International Broadcasting: Background and Issues for Reform, by Matthew C. Weed. 16.
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The International Religious Freedom Act of 1998 (P.L. 105-292) authorizes the Commission on International Religious Freedom and related programs. 17.
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USAID, in a July 2018 Congressional Notification, announced its intent to merge the Offices of Foreign Disaster Assistance and Food for Peace into the Bureau for Humanitarian Assistance. 18.
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CRS calculations based on FY2014-FY2017 data from Foreign Aid Explorer, accessed January 29, 2019. 19.
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USAID, in a July 2018 Congressional Notification, announced its intent to merge the Office of Transition Initiatives into a new Bureau for Conflict Prevention and Stabilization. 20.
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For further discussion, see CRS Report R45461, BUILD Act: Frequently Asked Questions About the New U.S. International Development Finance Corporation, by Shayerah Ilias Akhtar and Marian L. Lawson. |
The accounts were commonly known as the SEED Act account (Support for East European Democracy), after its authorizing legislation (P.L. 101-179), and the FREEDOM Support Act account (Freedom for Russia and Emerging Eurasian Democracies and Open Markets Support Act), after its authorizing legislation (P.L. 102-511). |
9. | Among those that sometimes receive funding but for which there was either no appropriation in FY2018 are the following: Congress funds refugee expenses after initial settlement in the United States under the Department of Health and Human Services' Refugee and Entrant Assistance account. For further information on the Peace Corps, see CRS Report RS21168, The Peace Corps: Current Issues, by Marian L. Lawson. For further information on the Millennium Challenge Corporation, see CRS Report RL32427, Millennium Challenge Corporation, by Curt Tarnoff. CRS calculations based on FY2014-FY2017 data from Foreign Aid Explorer, accessed January 29, 2019. CRS calculations based on FY2014-FY2017 data from Foreign Aid Explorer, accessed January 29, 2019. For an overview of these institutions, see CRS Report R41170, Multilateral Development Banks: Overview and Issues for Congress, by Rebecca M. Nelson. Among those that sometimes receive funding but for which there was no appropriation in FY2019 are the following: Inter-American Development Bank (IDB The International Finance Corporation (IFC). IFC, another World Bank window, makes loans and equity investments to promote growth of productive private enterprise in developing nations. World Bank Multilateral Investment Guaranty Agency (MIGA). MIGA encourages private investment in developing countries by offering insurance against noncommercial risks such as expropriation. European Bank for Reconstruction and Development (EBRD). The EBRD lends at near-market rates to help East European and former Soviet states adopt market economies. Private sector and privatizing public sector firms receive substantial amounts of EBRD lending. Inter-American Investment Corporation (IIC). The IIC is an IADB facility that makes loans and equity investments to promote the growth of small and medium-sized private enterprise in Latin America and the Caribbean. Enterprise for the Americas Multilateral Investment Fund (MIF). The MIF, a Clean Technology Fund (CTF). This multilateral fund, for which the World Bank is trustee, seeks to reduce the growth of greenhouse gas emissions in developing countries by financing the extra costs of commercially available cleaner technologies over dirtier, conventional alternatives. Strategic Climate Fund (SCF). Another Asian Development Bank (AsDB). The Asian Development Bank provides loans on near-market terms to promote economic development. When Congress appropriates funds to AsDB, it is for a general capital increase to expand lending. AsDF appropriations, by contrast, contribute to AsDB grant-making. North American Development Bank (NADBank). The NADBank is governed by the United States and Mexico as part of the North American Free Trade Agreement (NAFTA). It began lending in 1996 to finance environmental infrastructure projects along the U.S./Mexico border, as well as community adjustment and investment activities in both nations. Global Agriculture and Food Security Program (GAFSP). The GAFSP was established with leading developed and developing countries (the G-20) to increase investments in agriculture and food security in poor countries. The United States chairs the Steering Committee of this fund. |
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A 2010 agreement to increase the IBRD's capitalization similarly resulted in five corresponding appropriation installments from 2012 to 2016. A similar IBRD agreement in 2018 has resulted in an appropriations request for FY2020 in the President's Budget. |
U.S. financial commitments to the general capital increases include "paid-in" capital (money paid directly to the multilateral development bank) and "callable capital" (money that is a guarantee, but only paid in the event of a default). Callable capital is denoted in legislation as a "Limitation on Callable Capital Subscriptions." |
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For further discussion, see CRS Report |
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For further discussion, see CRS Report R45461, BUILD Act: Frequently Asked Questions About the New U.S. International Development Finance Corporation, by Shayerah Ilias Akhtar and Marian L. Lawson. For further discussion, see CRS In Focus IF10673, U.S. Trade and Development Agency (TDA), by Shayerah Ilias Akhtar. |