Order Code RL30926
CRS Report for Congress
Received through the CRS Web
State Department and Related Agencies
FY2002 Appropriations
Updated November 2, 2001
Susan B. Epstein
Specialist in Foreign Policy and Trade
Foreign Affairs, Defense, and Trade Division
Congressional Research Service ˜ The Library of Congress

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State Department and Related Agencies
FY2002 Appropriations
Summary
On April 9, 2001, the President submitted his FY2002 budget request which
included nearly $8 billion for the Department of State and the Broadcasting Board of
Governors. This represents an increase of $925 million (or 13.1%) from the FY2001
enacted level which Congress passed and the President signed into law (P.L. 106-553)
on October 27,2000.
On June 27, 2001 the House Commerce, Justice, State (CJS) Subcommittee
passed by voice vote its FY2002 appropriations. The full House Appropriations
Committee reported out the CJS legislation (H.Rept. 107-139) on July 10, 2001, and
set State Department funding at $7.7 billion for FY2002 ($7.88 billion including the
mandatory retirement funding). After transferring $15 million out of two of State’s
accounts – $8 million from Diplomatic and Consular Programs and $7 million from
the Capital Investment Fund – and moving the funds into the Small Business
Administration, the House passed the bill (H.R. 2500) on July 18th.
On July 19th the Senate Appropriations Committee marked up the CJS
appropriations (S. 1215) and filed its report (S.Rept 107-42). The Senate version
would provide $7.5 billion for the State Department in FY2002 ($7.7 billion including
mandatory retirement funding). The Senate passed its version of H.R. 2500, as
amended, on September 13, 2001. The CJS bill is currently being conferenced.
In response to the September 11th attacks, Congress passed the Emergency
Supplemental Appropriations Act totaling $40 billion. Of that total, the State
Department received $390,000 for Diplomatic and Consular Programs. $7.5 million
for its Capital Investment Fund, and $41 million for Emergencies in the Diplomatic
and Consular Service account. These funds will be used for overseas personnel
evacuations, information and reward money for apprehending terrorists, and
improvement of emergency communications technology at U.S. and overseas
facilities.
In the absence of a signed CJS appropriation, the following continuing
resolutions have kept the State Department running into the new fiscal year:
H.J.Res.65 (P.L. 107-44) which expired October 16th, H.J.Res. 68 (P.L. 107-48)
which expired October 23rd, H.J.Res. 69 (P.L. 107-53) which expired October 31st,
and H.J.Res. 70 (P.L. 107-58) which expires November 16th, 2001.

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Contents
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
State Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Administration of Foreign Affairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
International Organizations and Conferences . . . . . . . . . . . . . . . . . . . . . . . 4
International Commissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Related State Department Appropriations . . . . . . . . . . . . . . . . . . . . . . . . . 5
Broadcasting Board of Governors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
List of Tables
State Department, USIA, and Related Agencies Appropriations . . . . . . . . . . . . . 7

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State Department and Related Agencies
FY2001 Appropriations
Background
Budgets for the Department of State and the Broadcasting Board of Governors
(BBG), as well as U.S. contributions to United Nations (U.N.), International
Organizations, and Peacekeeping, are within the Commerce, Justice, State and
Related Agency (CJS) appropriations. Intertwined with the annual appropriations
process is the biannual Foreign Relations Authorization that, by law, Congress must
pass prior to the State Department’s expenditure of its appropriations.
Secretary of State Colin Powell testified on the FY2002 State Department
appropriations request before House and Senate Committees in February and March
2001. The Administration’s budget request for the Department of State was released
March 12, 2001, although the Administration officially sent the FY2002 budget
request to Congress on April 9, 2001.
The Administration’s FY2002 State Department and International Broadcasting
budget request totals nearly $8 billion, more than 13% above the FY2001 enacted
funding level (P.L. 106-553). Increased hiring, improving information technology,
and overseas security funding are the three key issues in the State Department portion
of the FY2002 CJS appropriations debate. (For more details on security issues, see
CRS Report 98-771, Embassy Security: Background, Funding, and FY2001 Budget.)
In the wake of the September 11th attack, Congress passed the emergency
Supplemental Appropriations Act (P.L. 107-38) which provides State with $390,000
for Diplomatic and Consular Programs, $7.5 million for its Capital Investment Fund,
and $41 million for Emergencies in the Diplomatic and Consular Service account.
These funds will be used for overseas personnel evacuations, information and reward
money for apprehending terrorists, and improvement of emergency communications
technology at U.S. and overseas facilities.
As of early November, the CJS bill is at the conference stage of the
appropriations process. Conferees for the Senate include: Hollings, Inouye, Mikulski,
Leahy, Kohl, Murray, Reed, Byrd, Gregg, Stevens, Domenici, McConnell, Hutchison,
Campbell, and Cochran. Conferees for the house include: Wolf, Rogers (KY), Kolbe,
Taylor (NC), Regula, Latham, Miller (FL), Vitter, Young (FL), Serrano, Mollohan,
Roybal-Allard, Cramer, Kennedy (RI), and Obey.
An update of this report will include the final actions of the conferees.

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State Department
The State Department’s mission is to advance and protect the worldwide
interests of the United States and its citizens through the staffing of overseas missions,
the conduct of U.S. foreign policy, the issuance of passports and visas, and other
responsibilities. Currently, the State Department coordinates with the activities of 50
U.S. government agencies and organizations in operating 257 posts in over 180
countries around the world. The Department’s staff size has increased, largely
because of the integration of ACDA and USIA into State. Highlights follow.
Administration of Foreign Affairs
! Diplomatic and Consular Programs (D&CP) – The D&CP account
funds overseas operations (e.g., motor vehicles, local guards,
telecommunications, medical), activities associated with conducting
foreign policy, passport and visa applications, regional bureaus,
under secretaries, and post assignment travel. Beginning in FY2000,
the State Department’s Diplomatic and Consular Program account
included State’s salaries and expenses, as well as the technology and
information functions of the former USIA, and the functions of the
former ACDA. The FY2001 enacted level is $3.167 billion with $409
million for worldwide security upgrades. The Bush Administration
requested for D&CP’s FY2002 level a 17% increase–to $3,705.1
million–largely for both Foreign and Civil Service personnel. In
addition, the Administration advocated hiring floats–staff that could
fill in while others are attending training classes. The House
Appropriations Committee set funding for this account at $3,653.7
million, including $487.7 million for worldwide security upgrades,
for FY2002. The House transferred $8 million from D&CP and into
the Small Business Administration, setting the final D&CP total at
$3,645.7 million. The Senate Appropriations Committee reported
out a level of $3,498.4 million, including $409.4 million for
worldwide security upgrades, the same as the current level. The
Senate full Committee noted that an additional $50 million of
unobligated funds would be added to its worldwide security funding.
The Senate Committee did not recommend full funding, as requested,
for hiring 186 Diplomatic Security agents, suggesting that it would
create a disproportionate number of rookie versus seasoned agents,
resulting in a loss of effectiveness.
! Embassy Security, Construction and Maintenance – This account
supports the maintenance, rehabilitation, and replacement of overseas
facilities to provide appropriate, safe, secure and functional facilities
for U.S. diplomatic missions abroad. Congress originally had
enacted $640 million for this account for FY1999. However,
following the embassy bombings in Africa in August 1998, Congress
agreed to more than $1 billion for the Security and Maintenance
account when passing an emergency supplemental with a new
subaccount referred to as Worldwide Security Upgrades. The

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enacted FY2001appropriation includes $416 million for ongoing
Security and Maintenance and $661.2 million for Worldwide
Security Upgrades. The FY2002 request is $475 million for ongoing
maintenance and $816 million for Worldwide Security Upgrades.
This 23.4% increase would be for both ongoing expenses of security
programs in place already, as well as increasing security in certain
locations, according to State Department officials. The House
approved of $470 million for ongoing maintenance and construction
and agreed with $816 million for embassy security. The Senate
Appropriations Committee recommended $405 million for embassy
construction and maintenance activities and $661.6 million for
worldwide security upgrades in embassies. The Committee noted that
State’s Office of Building Operations was able to identify savings by
eliminating some pending construction projects and unobligated
funds.
! Educational and Cultural Exchanges – This account funds programs
authorized by the Mutual Educational and Cultural Exchange Act of
1961, such as the Fulbright Academic Exchange Program, as well as
leadership programs for foreign leaders and professionals.
Government exchange programs have come under close scrutiny in
recent years for being excessive in number and duplicative. By a July
1997 executive order, the Office of U.S. Government International
Exchange and Training Coordination was created. For FY2001,
Congress passed $231.6 million ($6 million more than requested) for
the international exchanges account, including $114 million for the
Fulbright Program. The Administration requested $242 million for
the Education and Cultural Exchange account in FY2002. The
House bill would provide $237 million ($5 million less than
requested) for educational and cultural exchange programs in
FY2002. The Senate Appropriations Committee recommended the
full amount requested–$242 million.
! The Capital Investment Fund (CIF) – CIF was established by the
Foreign Relations Authorization Act of FY1994/95 (P.L. 103-236)
to provide for purchasing information technology and capital
equipment which would ensure the efficient management,
coordination, operation, and utilization of State’s resources. In
FY1998 Congress approved a 250% increase in this fund, from $24.6
million in FY1997 to $86 million in FY1998. The Administration
sought $118.3 million (an increase of 38%) in FY1999 for CIF.
Congress exceeded the request, agreeing to $158.6 million for this
account, which included funds from the emergency supplemental
appropriation for Y2K compliance. For FY2000, Congress agreed
to $79.7 million and for FY2001appropriated $96.8
million–essentially the Administration’s request for CIF. Secretary
of State Colin Powell has testified before both House and Senate
foreign affairs committees that the State Department is in dire need
of improvements in its information systems. The FY2002 request of
$210 million (117% above the previous year) would put full Internet

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CRS-4
capability on every desktop at State and improve communications
technology overall for State Department personnel. The House
Appropriations Committee agreed with the Administration request,
however, a floor amendment transferred $7 million from this account
and into the Small Business Administration. The Senate
Appropriations Committee agreed with the $210 million requested
by the Administration for CIF.
International Organizations and Conferences
In recent years, U..S. contributions to U.N. international organizations and
peacekeeping activities have been complicated by a number of issues, such as
withholding funds in the past because of international family planning policies. This
year, these appropriations could be affected by 1) the recent loss of the U.S. seat on
the U.N. Commission on Human Rights, 2) the lack of a formal nomination of a U.S.
Ambassador to the United Nations, and 3) the nonpayment by the United States of
$582 million in arrearages to the U.N.
! Contributions to International Organizations (CIO) – CIO provides
funds for U.S. membership in numerous international organizations
and for multilateral foreign policy activities that transcend bilateral
issues, such as human rights. Maintaining a membership in
international organizations, the Administration argues, benefits the
United States by advancing U.S. interests and principles while
sharing the costs with other countries. Payments to the United
Nations (U.N.) and its affiliated agencies, the Inter-American
Organizations, as well as other regional and international
organizations are included in this account. Congress enacted $869
million for CIO in FY2001. The FY2002 request would increase this
funding to $878.8 million. The House agreed to less than requested
for this account, setting the funding at $850 million for FY2002. The
Senate Appropriations Committee recommended $212.6 million
more–$1,091.3 million–for CIO. The Committee suggests that funds
be available to synchronize the U.S. budget with the U.N. budget.
(For more detail, see CRS Issue Brief IB86116, U.N. System
Funding: Congressional Issues, by Vita Bite.)
! Contributions to International Peacekeeping Activities (CIPA) —
The United States supports multilateral peacekeeping efforts around
the world through payment of its share of the U.N. assessed
peacekeeping budget. Congress approved $844 million for this
account for FY2001. The Bush Administration request would
continue this funding level for FY2002; the House agreed. The
Senate Appropriations Committee recommended $773.2 million,
expressing a skepticism that the Revolutionary United Front (RUF)
in Sierra Leone is serious about attaining peace. (For more detail,
see CRS Issue Brief IB90103, United Nations Peacekeeping: Issues
for Congress, by Marjorie Ann Browne.)

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International Commissions
The International Commissions account includes the U.S.-Mexico Boundary and
Water Commission, the International Fisheries Commissions, the International
Boundary Commission, the International Joint Commission, and the Border
Environment Cooperation Commission. The FY2001 enacted level for International
Commissions totaled $56.1 million. The FY2002 request would raise this funding by
12.7% to $63.2 million. The House set funding at $60.3 million for International
Commissions in FY2002. The Senate Appropriations Committee recommended a total
of $59.3 million.
Related State Department Appropriations
! The Asia Foundation – The Asia Foundation is a private, nonprofit
organization that supports efforts to strengthen democratic processes
and institutions in Asia, open markets, and improve U.S.-Asian
cooperation. The Foundation receives both government and private
sector contributions. Government funds for the Asia Foundation are
appropriated to, and pass through, the State Department. Congress
funded The Asia Foundation at $9.2 million for FY2001. The
FY2002 request would continue this funding level. The House
agreed, but the Senate Appropriations Committee recommended
reducing the funding to $8 million for FY2002.
! National Endowment for Democracy (NED) – The National
Endowment for Democracy, a private nonprofit organization
established during the Reagan Administration, supports programs to
strengthen democratic institutions in more than 90 countries around
the world. NED proponents assert that many of its accomplishments
are possible because it is not a government agency. NED’s critics
claim that it duplicates U.S. government democracy programs and
either could be eliminated or could operate entirely with private
funding. NED’s FY2001 enacted appropriation was a continuation
of the previous year’s level of $31 million. The Bush Administration
would continue this level for NED in FY2002. The House bill would
raise NED’s funding for FY2002 to $33.5 million, while the Senate
Appropriations Committee recommended $31 million.
! East-West and North-South Centers – The Center for Cultural and
Technical Interchange between East and West (East-West Center),
located in Honolulu, Hawaii, was established in 1960 by Congress to
promote understanding and cooperation among the governments and
peoples of the Asia/Pacific region and the United States. The Center
for Cultural and Technical interchange between North and South
(North-South Center) is a national educational institution in Miami,
FL, closely affiliated with the University of Miami. It promotes
better relations, commerce, and understanding among the nations of
North America, South America and the Caribbean. The North-South
Center began receiving a direct subsidy from the federal government

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CRS-6
in 1991. Congress provided $13.5 million for the East-West Center,
but no funds for the North-South Center for FY2001. (The North-
South Center is to receive $1.4 million from the Education and
Cultural Exchanges account in FY2001.) The Bush Administration
request for FY2002 would continue funding the East-West Center at
$13.5 million, with no funding to the North-South Center. The
House agreed to $9.4 million–a lower funding level than requested
for the East-West Center in FY2002. The Senate full Committee, on
the other hand, recommended increasing NED’s FY2002 funding to
$14 million.
Broadcasting Board of Governors
The United States International Broadcasting Act of 19941 reorganized within
USIA all U.S. government international broadcasting, including Voice of America
(VOA), Broadcasting to Cuba, Radio Free Europe/Radio Liberty (RFE/RL), Radio
Free Asia (RFA), and the newly-approved Radio Free Iraq and Radio Free Iran. The
Act established the Broadcasting Board of Governors (BBG) to oversee all U.S.
government broadcasting; abolished the Board for International Broadcasting (BIB),
the administering body of RFE/RL; and recommended that RFE/RL be privatized by
December 31, 1999. This recommendation was repealed by P.L. 106-113.
During reorganization debate, the 105th Congress agreed that credibility of U.S.
international broadcasting was crucial to its effectiveness as a public diplomacy tool.
Therefore, Congress agreed not to merge broadcasting functions into the State
Department, but to maintain the Broadcasting Board of Governors (BBG) as an
independent agency as of October 1, 1999.
For FY2001, Congress enacted a total of $450.4 million for international
broadcasting, including $22.1 million for Cuba Broadcasting. The BBG’s total funds
also include funding for a Broadcasting Capital Improvements account (formerly
USIA’s Radio Construction account) which funds the building or renovating of radio
stations, upgrading and refurbishing station capabilities, updating technology, and
replacing old transmitters. The FY2001 enacted level for Capital Improvements is
$20.4 million. The Administration request for the total international broadcasting
funding for FY2002 totals $470 million, including $16.9 million for Capital
Improvements and $24.9 million for Broadcasting to Cuba..
The House passed a total of $479 million for international broadcasting in
FY2002–$453 million for international broadcasting operations and $25.9 million for
Broadcasting Capital Improvements. In addition the House approved $24.9 million
for Cuba Broadcasting and $25.2 million for Radio Free Asia. The Senate Committee
recommended a total of $456.5 million, including $16.9 million for Capital
Improvements and $24.9 million for Cuba Broadcasting.
1 Title III of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995, P.L. 103-
236.

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CRS-7
State Department, USIA, and Related Agencies Appropriations
(millions of dollars)
FY2002 vs
FY1998
FY1999
FY2000
FY2001
FY2002
FY2001
House
Senate
Enacted
Enacted
Enacted
Enacted*
Request
%change
State Department
Diplomatic & Consular Program
1,730.0
1,661.6
2,823.8
3,167.2
3,705.1
17.0%
3,645.7
3,498.4
Salaries and expenses
363.5
354.2
-.-
-.-
-.-
-.-
-.-
-.-
Worldwide Security Upgrades
(254.0)
(409.1)
(487.7)
(19.2%)
-.-
(409.4)
Information Programs (USIA S&E)
[427.1]
453.8
-.-
-.-
-.-
-.-
-.-
-.-
Technology Fund (USIA)
[5.1]
11.6
-.-
-.-
-.-
-.-
-.-
-.-
Ed & cultural exchange prog. (USIA)
197.7
200.5
204.2
231.1
242.0
4.5%
237.0
242.0
Office of Inspector General
27.5
28.5
27.4
28.4
29.3
3.2%
29.3
28.4
Representation allowances
4.2
4.4
5.8
6.5
9.0
38.5%
6.5
9.0
Protec.-missions & officials
7.9
8.1
8.1
15.4
10.0
-35.1%
9.4
10.0
Embassy security/constr/maintenance
397.9
1,081.1
739.4
1,077.6
1,291.0
19.8%
1,286.0
1,067.0
Worldwide security upgrades
-.-
(785.7)
(313.6)
(661.2)
(816.0)
(23.4%)
(816.0)
(661.6)
Emergency-diplo. & consular services
5.5
17.5
5.5
5.5
15.5
181.8%
10.0
5.5
Repatriation loans
1.2
1.2
1.2
1.2
1.2
0.0
1.2
1.2
Payment American Inst. Taiwan
14.0
14.8
15.3
16.3
17.0
4.4%
17.0
17.0
Foreign Service Retirement Fund
129.9
132.5
128.5
131.2
135.6
3.4%
135.6
135.6
Capitol Investment Fund
86.0
158.6
79.7
96.8
210.0
116.9%
203.0
210.0
Total, Administration of Foreign Affairs
2,773.7
4,914.1
4,038.9
4,777.2
5,665.7
18.6%
5,580.7
5,224.1
International Organ. & Conf.
Contributions to international organizations
955.5
933.6
880.5
868.9
878.8
1.1%
850.0
1,091.3
Contributions to international peacekeeping
256.0
219.4
498.1
844.2
844.1
0.0
844.1
773.2
U.N. Arrearage payments
475.0
351.0
-.-
-.-
-.-
-.-
-.-
Total International Organ. & Conf.
1,211.5
1,628.0
1,729.6
1,713.1
1,722.9
0.6%
1,694.1
1,864.5

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FY2002 vs
FY1998
FY1999
FY2000
FY2001
FY2002
FY2001
House
Senate
Enacted
Enacted
Enacted
Enacted*
Request
%change
Total International Commissions
44.0
45.8
48.7
56.1
63.2
12.7%
60.3
59.3
The Asia Foundation
8.0
8.3
-.-
-.-
-.-
-.-
-.-
-.-
Total pre-merger State Department
4,037.3
6,596.2
-.-
-.-
-.-
-.-
-.-
-.-
Related Appropriations
-.-
The Asia Foundation
8.2
9.2
9.3
1.1%
9.3
8.0
National Endowment for Democracy
30.0
31.0
30.9
30.9
31.0
0.3%
33.5
31.0
East-West Center
12.0
12.5
12.5
13.5
13.5
0.0
9.4
14.0
North-South Center
1.5
1.8
1.8
-.-
-.-
-.-
-.-
-.-
Eisenhower Exchange
0.6
0.5
0.5
0.5
0.5
0.0
0.5
0.5
Israeli Arab Scholarship
0.4
0.4
0.3
0.3
0.3
0.0
0.4
0.4
Total Related Appropriations
44.5
46.2
54.2
54.4
54.6
0.4%
53.1
53.9
Total post-merger State Department
–.–
–.–
5,871.4
6,600.8
7,506.4
13.7%
7,388.2
7,201.8
International Broadcasting
Capital Improvements
40.0
13.2
11.3
20.3
16.9
-16.7%
25.9
16.9
Broadcasting Operations
391.5
362.4
388.4
398.1
428.2
7.6%
453.1
414.7
Broadcasting to Cuba
(22.1)
22.1
22.1
22.1
24.9
12.7%
-.-
24.9
Radio Free Asia
(25.0)
-.-
-.-
-.-
-.-
-.-
-.-
-.-
Total International Broadcasting
431.5
397.7
420.2
440.5
470.0
6.7%
479.0
456.5
Total USIA
1,105.9
1,108.7
-.-
-.-
-.-
-.-
-.-
-.-
Total ACDA
41.5
41.5
-.-
-.-
-.-
-.-
-.-
-.-
TOTAL State & Broadcasting
5,184.7
7,040.1
6,291.6
7,041.3
7,976.4
13.3%
7,867.2
7,658.3
*Includes the Government-wide rescission of 0.22% for FY2001.

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