Order Code IB86116
CRS Issue Brief for Congress
Received through the CRS Web
U.N. System Funding: Congressional Issues
Updated November 15, 2001
Vita Bite
Foreign Affairs, Defense, and Trade Division
Congressional Research Service ˜ The Library of Congress

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CONTENTS
SUMMARY
MOST RECENT DEVELOPMENTS
BACKGROUND AND ANALYSIS
U.N. System Financing
U.N. Assessed Budgets
Scale of Assessments
U.N. Reform
U.S. Role in U.N. Reform
U.N. Reform Efforts
U.S. Withholding
Arrearages
U.N. Arrears in Recent Legislation
FY2002 Funding for U.N. Assessed Budgets
FY2001 Funding for U.N. Assessed Budgets
FY2000 Funding for U.N. Assessed Budgets
Authorizations
Appropriations
U.N. Voluntary Programs
FY2002
FY2001
FY2000
Issues
U.N. Peacekeeping Operations
FY2002
FY2001
FY2000
LEGISLATION
CONGRESSIONAL HEARINGS, REPORTS, AND DOCUMENTS
FOR ADDITIONAL READING
CRS Reports

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U.N. System Funding: Congressional Issues
SUMMARY
Congressional debate over U.N. funding
lion for voluntary contributions through the
focuses on the following questions: (1) What
international organizations and programs
is the appropriate level of U.S. funding for
account. In addition, $110 million for
U.N. system operations and programs? (2)
UNICEF and $49 million for voluntary IAEA
What U.S. funding actions are most likely to
programs was requested in other accounts.
produce a positive continuation of U.N. sys-
tem reform efforts? (3) How should the Unit-
Appropriations for U.S. assessed contri-
ed States address its accumulated arrearages?
butions for FY2001 for international regular
budgets and for assessed U.N. peacekeeping
The U.N. system includes the parent U.N.
operations were included in P.L.106-553
organization, a number of affiliated agencies,
which enacted H.R. 5548 as included in the
voluntary funds and programs, and
conference report (H.Rept. 106-1005) on H.R.
peacekeeping operations. Participating states
4942. The measure included $870.833 million
finance the system with voluntary and assessed
for regular budgets and $846 million for
contributions. For more than 50 years, the
peacekeeping. In addition, P.L. 106-429 (H.R.
United States has been the single largest finan-
4811) included $186 million for voluntary
cial contributor to the U.N. system.
contributions to the international organizations
and programs account. An additional $110
Both Congress and the executive branch
million for UNICEF, $50 million for the
have been pressing U.N. system organizations
Global Alliance for Vaccines and Immuniza-
to reform, especially to improve management
tions (GAVI), $47 million for voluntary IAEA
and budgeting practices. Indeed, Congress has
programs, and $2.5 million for International
linked payment of U.S. financial arrears to
Fund for Agricultural. Development (IFAD)
U.N. reforms. In recent years the United
were provided in other accounts.
Nations have been undertaking many reforms
including a restructuring of its financial as-
P.L. 106-113, enacted in 1999, autho-
sessment system, allowing the United States to
rized payment of a total $819 million for
begin paying some of its arrears.
arrears to international organizations ($100
million for FY1998, $475 million for FY1999,
The Bush Administration requested
and $244 million for FY2000) and authorized
$878.767 million for FY2002 for U.S.
application of the $107 million to U.S. arrears.
assessed contributions to international
Arrears payments were subject to certifications
organizations (including $266.244 million for
that certain conditions had been met (popularly
the U.N. regular budget) and $844.139 million
known as the Helms-Biden agreement). Thus
for assessed U.N. peacekeeping operations.
far, $575 million in arrears has been paid.
The Administration also requested $186 mil-
Congressional Research Service ˜ The Library of Congress

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MOST RECENT DEVELOPMENTS
On October 5, 2001 the President signed into law P.L. 107-46 (S. 248) allowing the
United States to make the long awaited payment of the second tranche ($475 million) of its
arrears to the United Nations. The legislation raised the percentage for U.S. peacekeeping
assessments from 25 to 28.15 as a condition for release of arrears funds, thereby making
available $582 million for U.S. arrears to the United Nations. The action was seen as part
of an effort to smooth relations with other U.N. member states as the United States seeks
support for an international coalition to fight terrorism in the aftermath of the September
11 terrorist attack .
On September 13, 2001, the Senate passed H.R. 2500, substituting S. 1215 as an
amendment and providing $1.091 billion for FY2002 for the contributions to international
organizations(CIO) account and $773.182 million for contributions to international
peacekeeping activities (CIPA). As passed, the bill included funds for calendar years 2001
and 2002 for the U.N. regular budget. The conference committee report (H.Rept. 107-278)
provided $850 million for CIO but withheld $100 million until the Department of State
certified that the United Nations has not exceeded its budget for the biennium 2000-20001
of $2.536 billion and $844.139 million for CIPA. The House agreed to the conference
report on November 14 and the Senate agreed on November 15.
On September 4, 2001, the Senate Foreign Relations Committee reported S. 1401,
authorizing for the State Department, the full amount requested for the CIO and CIPA
accounts. In addition, S. 1401 authorized $266.2 million to bring U.S. payments to the U.N.
regular budget into alignment with the U.N. financial year.
BACKGROUND AND ANALYSIS
The United States has been, and remains, the single largest contributor to the U.N.
system. In recent years, however, Congress has been pressing to reduce U.S. funding for
many U.N. system programs. Congressional debate over U.N. funding is focused on the
following questions: 1) What is the appropriate level of U.S. funding for U.N. system
operations and programs? 2) What U.S. funding actions are most likely to produce a positive
continuation of U.N. system reform efforts? 3) How should the United States address its
accumulated arrearages?
U.N. System Financing
The United Nations (U.N.) system is made up of variously interconnected components
including specialized agencies, voluntary funds and programs, peacekeeping operations, and
the parent United Nations organization itself. The system is financed by contributions from
participant states. The contributions are usually made in two ways: more than half are
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voluntary contributions and the rest are assessed contributions — required “dues” at levels
established by the membership of the organizations involved.
Assessed contributions finance the regular budget of the United Nations, the Specialized
Agencies, and the International Atomic Energy Agency (IAEA). Financial assessments are
one of the legal obligations accepted by a country when it joins one of these organizations.
Thus, the organizations have a regular source of income from their members to enable them
to carry out authorized programs. Most current peacekeeping operations are funded through
special assessed accounts. U.S. assessed contributions are included within the State
Department’s budget. Congress authorizes these funds as part of the “Foreign Relations
Authorization Act” and appropriates the money in the “State, Justice, Commerce, and
Judiciary” appropriations legislation. The regular assessed budgets of U.N. system
organizations as well as regional and other non-U.N. organizations are included in the
contributions to international organizations (CIO) account, while peacekeeping is funded in
the contributions to international peacekeeping activities (CIPA) account.
Voluntary contributions finance special programs and special apparatus created by the
U.N. system, such as the United Nations Development Programs (UNDP), the United Nations
Environment Program (UNEP), and the United Nations Children’s Fund (UNICEF). These
contributions are entirely up to the individual country, and no country is obliged to contribute
to these programs. U.S. voluntary contributions are financed through the foreign assistance
authorization and appropriations legislation.
U.N. Assessed Budgets
Scale of Assessments
The regular budgets of the U.N. and specialized agencies are funded by required
contributions from member states. The United States is required by Article 17 of the U.N.
Charter (a treaty ratified by the United States on August 8, 1945) to contribute to the
expenses of the organization. The scale of assessments — which is based generally on a
country’s capacity to pay — requires the United States to pay the maximum or 22% of the
U.N. regular budget, while 42 members pay the minimum or 0.001%. The U.S. assessment
for 2001 is $266.94 million. Regardless of the size of assessment, each member has one vote
on U.N. budget decisions, although budgets since 1988 have been adopted by consensus.
Specialized agencies, while linked to the United Nations, are autonomous in executive,
legislative, and budgetary powers. Some agencies follow the U.N. scale in making
assessments; other agencies use their own formulas, which often result in lower U.S.
assessments, except in the case of the International Atomic Energy Agency and the Joint
Financing Program of the International Civil Aviation Organizations, in which the United
States pays slightly more than 25%.
If there were no maximum and minimum assessment levels for the U.N. regular budget
and charges were based exclusively on a ratio of a country’s gross national product, the
United States would be assessed about 27% and some very small and poor countries might
be assessed less than 0.001%. In 2001, the top 3 contributors (United States, Japan, and
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Germany) were assessed a total of 51.45% of the U.N. regular budget. The top 10
contributors (paying 77.7% of the total) to the regular U.N. budget according to the scale of
assessments adopted by the General Assembly for 2001 were as follows.
Table 1. Top Ten U.N. Regular Budget Contributors for 2001
Assessments for 2001 in
Member State
Percent of Budget
millions of U.S.$
United States*
22.00
266.94
Japan
19.63
238.17
Germany
9.83
119.21
France*
6.50
78.91
United Kingdom*
5.57
67.56
Italy
5.09
61.81
Canada
2.57
31.22
Spain
2.53
30.75
Brazil
2.23
27.07
Netherlands
1.75
21.21
*Permanent members of the U.N. Security Council
For 2001, the other two permanent members of the Security Council, the Russian Federation
(dropped from the top ten) and China are assessed 1.20%, $14.56 million and 1.54%, $18.70
million, respectively.
U.N. Reform
Because of unpredictable, partial and in some cases, non-payment of assessed
contributions by member countries (especially the United States), the United Nations
functions under cash shortage problems. Many see resolution of the financial crisis as
inextricably linked to U.N. system reform and restructuring. Some argue that serious reform
initiatives can strengthen the confidence of member countries in the ability of the
organizations to use funds effectively. Others, however, warn that without adequate funds,
the system may be in danger of collapse.
U.S. Role in U.N. Reform. The U.S. government has been pressing for U.N. reform
and has linked payment of its arrearage to reforms. On October 18, 1999, U.S. U.N.
Ambassador Holbrooke proposed that the next assessment scale (for years 2001-3) include
reduction of the ceiling on U.N. regular budget contributions from 25 to 22%. He also called
for establishment of an official and permanent scale for U.N. peacekeeping.
Congressional debate about the U.N. system has linked level of U.S. funding for U.N.
activities to U.N. reforms. High-level negotiations between the Administration and
congressional leaders led to agreement on an arrearage payment plan linked to reform
“benchmarks” (popularly known as the Helms-Biden agreement). The 106th Congress enacted
P.L.106-113 including a Helms-Biden agreement conditioning arrears payments on U.N.
“reforms.”
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U.N. Reform Efforts. A report submitted on March 1, 1993, by former U.N. Under
Secretary-General for Administration and Management Richard Thornburgh criticized U.N.
mismanagement and fraud and recommended establishment of a U.N. inspector general office.
This suggestion was taken up by Congress, which withheld 10% of U.S. contributions to the
U.N. regular budget (in FY1994 appropriations, P.L. 103-121) until the Secretary of State
certified that the United Nations had appointed an independent inspector general. On July 29,
1994, the General Assembly established an Office of Internal Oversight Services headed by
an Under-Secretary General appointed by the U.N. Secretary-General with the approval of
the General Assembly. Six annual reports on the activities of the office through June 30,
2000, have been submitted to the General Assembly, and the Office has undertaken an
increasing number of monitoring, auditing, and investigative activities.
On March 17, 1997, U.N. Secretary-General Kofi Annan announced the first part of
a two-track reform program. The first track included immediate managerial changes within
the Secretary-General’s authority to affect, while the second track included reform measures
requiring consultation and/or approval by U.N. member governments. Among the first track
initiatives were: reducing the budget, staffing levels, and documentation; creating a code of
conduct for U.N. staff; reorienting the Department of Public Information; consolidating
administrative, financial, personnel, procurement and other services; consolidating economic
and social departments; streamlining technical support; and improving integration of
development activities at the country level.
On July 16, 1997, Secretary-General Annan announced his second track reform
proposals. The 95-page report emphasized focusing on U.N. core missions, and on improving
management and efficiency. The proposals included: creating a new management and
leadership structure by establishing a Deputy Secretary-General, a Senior Management
Group, and a Strategic Planning Unit, assuring financial solvency through creation of a
Revolving Credit Fund; overhauling human resources policies and practices including
changing the management culture, eliminating 1000 jobs and reducing administrative costs;
promoting sustainable development as a central U.N. priority; improving peacekeeping and
strengthening post-conflict peace-building capacity; bolstering international efforts to combat
crime, drugs and terrorism by consolidating activities in Vienna; establishing a Department
for Disarmament and Arms Regulation; enhancing humanitarian activities by replacing the
Department of Humanitarian Affairs; and revamping public information functions. The
proposal called on members states to consider the following: refocusing the work of the
General Assembly on priority issues and reducing the length of sessions; establishing a
ministerial-level commission to review the U.N. Charter and specialized agency constitutions;
and designating the General Assembly session in the year 2000 as “a Millennium Assembly”
to focus on preparing the United Nations for the 21st century.
The U.N. General Assembly in 1997 debated various U.N. reform proposals and on
November 12 and December 19 affirmed many policy formulation and management changes
proposed by Secretary-General Annan including establishing a Deputy Secretary-General
post. Louise Frechette of Canada was named to the Deputy post.
Secretary-General Annan (whose term expires at the end of 2001) has indicated his
willingness to serve a second term. Many member countries (reportedly including the United
States) support another term for him.
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The current U.N. Under Secretary-General for Administration and Management, Joseph
Connor (an American, formerly with Price Waterhouse) is taking substantial measures to
improve the functioning and efficiency of the U.N. bureaucracy. U.N. Secretariat staff has
been cut from about 12,000 in 1985 to less than 9,000 today. The 1998-99 U.N. budget
($2.532 billion or a little less than $1.3 billion per year) is smaller than that for 1996-97
($2.608 billion), and the 1994-95 budget ($2.632 billion). The budget for the 2000-2001
biennium, is $2.536 billion.
U.S. Withholding
Since 1980, Congress prohibited contribution of the U.S. proportionate share for a
number of U.N. programs and activities of which Congress did not approve including for the
Special Unit on Palestinian Rights, for projects benefitting the Palestine Liberation
Organization (PLO), the South West Africa People’s Organization (SWAPO), construction
of a conference center in Addis Ababa, Ethiopia, for the Second Decade to Combat Racism
and Racial Discrimination, and for implementation of General Assembly Resolution 3379
(XXX) (racism equals Zionism). In addition, the Administration withheld the U.S.
proportionate share of funds for the Preparatory Commission for the Law of the Sea and
funds relating to taxes paid by U.S. citizens employed by the United Nations.
The United States has also withheld funds until certifications are made that certain
actions (sought by Congress) have been taken by the United Nations. Such withholdings have
included the Kassebaum-Solomon Amendment (sec. 143 of P.L. 99-93, and subsequently
amended) which withheld 20% of U.S. assessed dues to the United Nations and its specialized
agencies unless those agencies granted voting rights on budgetary matters proportionate to
budget contributions by each member country. The 106th Congress in authorizations
legislation (H.R. 3427 as referenced in P.L. 106-113) required withholding pending
certification about the U.N. Office of Internal Oversight Services as well as withholding
pending certification about the maintenance of a U.N. budget cap.
Arrearages
Under Article 19 of the U.N. Charter, countries with arrears totaling more than the
member’s assessments for the two preceding years lose their vote in the U.N. General
Assembly. As of April 12, 2001, 23 countries were in that status. In December 1999, the
United States paid $100 million in arrears to the United Nations. This payment avoided loss
of U.S. vote in the U.N. General Assembly in the year 2000. Further payment of U.S. arrears
required changes in U.S. assessment rates (as required by the “Helms-Biden agreement”) to
which the U.N. membership had to agree. In December 2000 the U.N. General Assembly
agreed to a restructuring of both the regular and peacekeeping assessment structures.
According to the United Nations (as of December 31, 2000), the United States owes
assessed contributions of $1.32 billion ($164.6 million for the U.N. regular budget, $12
million for International Tribunals, and $1.143 billion for peacekeeping). In addition, about
$260 million is outstanding in U.S. assessed payments to U.N. affiliated agencies (such as the
Food and Agriculture Organization). The U.S. government, however (because of U.S.
statutory and policy withholdings to the U.N. regular budget and applying a lower U.S.
peacekeeping assessment), estimates that U.S. outstanding contributions are lower than the
U.N. figures.
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U.N. Arrears in Recent Legislation
P.L. 106-113 authorized payment of a total $819 million and allowed an additional $107
million to be applied to U.S. arrears. The measure incorporated the Helms-Biden agreement
and authorized appropriations for payment of U.S. arrears to international organizations
provided certain conditions are met and so certified by the Secretary of State. The agreement
authorized payment of $819 million ($100 million of FY1998 funds, $475 million of FY1999
funds, and $244 million of FY2000 funds), and authorized $107 million owed by the United
Nations to the United States for peacekeeping to be forgiven provided the United Nations
applies it to reduce U.S. arrears.
P.L. 106-113 required that State Department certification for release of FY1998 funds
include stipulations that neither the United Nations nor any U.N. affiliated agency has
required the United States to violate the Constitution or cede sovereignty, taxed U.S.
nationals, created a standing army, charged the United States interest on arrears, borrowed
externally, or exercised authority or control over any U.S. national park, wildlife preserve,
monument or property. In December 1999 the certification was made and $100 million was
paid to the United Nations.
Release of FY1999 appropriated funds required certification that the United Nations has
established a “contested arrears account” for all U.S. arrearages not included for payment in
this authorization, and agree that the amount in this account will not be used to apply the
provisions of Article 19 of the U.N. Charter to the United States. In addition, for payment
of FY1999 appropriated funds, there must be a reduction in the assessment ceiling from 25%
to 22% for the U.N. regular budget, and a reduction to 25% for U.N. peacekeeping.
Payment of funds authorized for FY2000 requires that the maximum assessment rate for
the U.N. regular budget and designated U.N. specialized agencies (FAO, ILO, and WHO) be
reduced to 20%; that designated U.N. specialized agencies establish and have regular reports
by independent inspectors general similar to the U.N. Office of Internal Oversight Services;
the United Nations, FAO, ILO, and WHO must adopt program evaluation procedures which
will result in regular evaluation of the continued relevance and effectiveness of all programs,
and the termination of those which are no longer needed (sunset provisions); the United
Nations, FAO, ILO, and WHO must establish clearer budget procedures and maintain budgets
which do not exceed agreed levels; FAO, ILO, and WHO maximum assessment level is
lowered to 22%; the United States or the five largest contributors to the United Nations each
must have a seat on the U.N. Advisory Committee on Administrative and Budgetary
Questions, and the U.S. General Accounting Office is to have access to U.N. financial data.
The Helms-Biden package included waiver authority for two provisions. The Secretary
of State after notification and consultation with the appropriate congressional committees may
waive the requirement (1) for establishment of a contested arrears account for those arrears
in dispute, and (2) for achievement of the 20% ceiling for regular budget assessments for the
United Nations and designated specialized agencies. Secretary of State Albright submitted
both waivers in January 2001.
FY2000 appropriations legislation (also in P.L. 106-113) included $244 million for
international organization arrears and allowed $107 million owed by the United Nations to
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the United States for peacekeeping to be applied to U.S. arrears. Payment of the $244 million
was prohibited until designated U.N. specialized agencies (FAO, ILO, and WHO) have
reduced to 22% the assessed contribution for any single member country, and the
organizations have achieved zero nominal growth in the budget for 2000-2001 from the 1998-
1999 biennium budget.
In December 2000 the U.N. General Assembly agreed on a financial restructuring of
both the regular and peacekeeping assessment structures. As a result the U.S. share of the
regular budget was reduced from 25% to 22% and for peacekeeping from about 30.4% to
28.14%, initially, falling to 27.28% by the end of the year and falling to close to 25% in
subsequent years. The deal was solidified after U.S. businessman, Ted Turner (founder of the
CNN television network) offered to make a one-time payment of about $34 million (3% of
the total U.N. regular budget) to make up the regular budget shortfall resulting from reducing
the U.S. assessment from 25 to 22% in the 2001 U.N. budget. Many countries had already
budgeted their 2001 U.N. assessments and could not pick up the difference in 2001, and so
this voluntary contribution will mitigate the financial burden on other U.N. member countries
in 2001. Turner is to make the payment to the U.S. government which in turn will pay the
amount to the United Nations. The United Nations, in turn, will credit the payment
proportionally against the assessed contributions of the other member countries. The
General Assembly also decided to review the assessment agreement at the end of the year
2003 and depending on the status of contributions and arrears to consider appropriate
measures to remedy the situation, including adjustments in the ceiling.
The changed assessment scale met the requirement of the Helms-Biden agreement for
reduction of the regular budget scale to 22%, in order to release the second tranche of arrears
payment (FY1999 appropriations of $475 million, plus $107 million credit to the United
Nations against U.S. arrears). The new peacekeeping scale, however, while a substantial
reduction, did not meet the Helms-Biden requirement of 25%. P.L. 107-46 (S. 248) amends
the Helms-Biden provision by rasing the percentage to 28.15%, thus allowing certification
of and payment of the second tranche of arrears.
However, because of another existing statutory prohibition on U.S. payment of more
than 25% of U.N. assessed peacekeeping costs (sec. 404, P.L. 103-236), the United States
will continue to build up arrears in its peacekeeping assessments. This prohibition affects
current U.S. payments for U.N. peacekeeping. H.R. 1646 as passed by the House raises the
allowable level for U.S. current assessed peacekeeping costs to 28.15% for FY2002 and
FY2003.
H.R. 1646 as passed by the House also placed additional conditions on release of the
third and final installment of U.S. arrears ($244 million): the Secretary of State must certify
that the United States had regained a seat on the U.N. Commission on Human Rights and
made a determination on U.N. voting practices; and the General Accounting Office (GAO)
had to submit to Congress a detailed accounting of U.S. contributions to U.N. peacekeeping
operations from 1990 through 2001.
FY2002 Funding for U.N. Assessed Budgets
The Bush Administration requested $878.767 million for U.S. assessed contributions to
international organizations, of which $619.517 million was for assessed U.N. system
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organizations including $266.244 million for the U.N. regular budget. In addition, $844.139
million was requested for assessed peacekeeping operations.
H.R. 2500 as passed (408-19) by the House on July 18, 2001, appropriated $850 million
for FY 2002 U.S. assessed contributions to international organizations of which $100 million
is to be available only after a certification by the Secretary of State that the United Nations
has not exceeded its budget for the biennium 2000-2001 of $2.535 billion. The measure also
included $ 844.139 million for assessed contributions to U.N. peacekeeping operations. An
amendment sponsored by Representative Ron Paul to prohibit any U.S. contribution to the
United Nations to any affiliated agency as well as an amendment to prohibit U.S.
contributions for U.N. peacekeeping operations were defeated on July 18, 2001, by a vote
of 62 to 364 and 71 to 359 respectively. An amendment sponsored by Representative Bartlett
to prohibit funds to implement any recommendation adopted at the U.N. Conference on Illicit
Trade in Small Arms and Light Weapons was withdrawn.
The Senate Appropriations Committee reported (S.Rept. 107-42) S. 1215 on July 20,
recommending $1.091 billion for FY2002 for U.S. assessed contributions to international
organizations and $773.182 million for peacekeeping activities. The committee sought to
synchronize the U.S. and U.N. budget years by including funding for both calendar year 2001
and calendar year 2002 for the U.N. regular budget. On September 13, 2001, the Senate
passed S. 1215, as a substitute, in H.R. 2500.
H.R. 1646 as passed by the House authorized $944.067 million for U.S. assessed
contributions to international organizations, and $844.139 million for assessed peacekeeping
activities. Of the amounts authorized $59.8 million for each of FY2002 and FY2003 is to
cover U.S. return to UNESCO and $5.5 million for FY2002 is for payment to the UNESCO
Working Capital Fund. On September 4, 2001, the Senate Foreign Relations Committee
reported S. 1401, authorizing the full amount requested for the CIO and CIPA accounts and
an additional $266.2 million for calendar year 2002 payments to the U.N. regular budget.
FY2001 Funding for U.N. Assessed Budgets
P.L. 106-553, signed into law on December 21, 2000, enacted H.R. 5548 as contained
in the conference report, H.Rept 106-1005. The measure included appropriations for U.S.
assessed contributions for FY2001 for international organization regular budgets a total
$870.833 million and $ 846 million for assessed U.N. peacekeeping operations.
The Administration had requested for FY2001, $946.06 million for U.S. assessed
contributions to international organizations of which $299.608 million was for the U.N.
regular budget. The Administration also requested $738.66 million for assessed
peacekeeping. In addition, $107 million was requested in FY2000 supplementary
appropriations for assessed U.N. peacekeeping operations in East Timor and Kosovo. H.R.
3908 as passed by the House on March 30, deleted all requested supplemental funds for
assessed U.N. peacekeeping operations.
On June 26, 2000, the House passed H.R. 4690 ( Departments of Commerce, Justice,
and State, the Judiciary and related agencies appropriations Act for FY2001, including
assessed contributions for international organizations and U.N. peacekeeping operations) by
a vote of 214 to 195. The House agreed to the funding levels recommended (H.Rept. 106-
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680) by the House Appropriations Committee: $880.505 million for regular budget assessed
contributions and $498.1 million for assessed peacekeeping, $65.555 and $240.56 million
respectively, less than requested by the Administration. $100 million of the regular budget
contributions may only be paid upon certification by the Secretary of State that the United
Nations has not exceeded its 2000-2001 biennium budget of $2.5357 billion.
The Senate Appropriations Committee recommended (S.Rept. 106-404), in its version
of H.R. 4690, $879.144 million for regular assessed budget contributions to international
organizations and an additional $64.8 million for the U.S. share of a new NATO
headquarters. The Committee recommended $500 million for assessed peacekeeping for
FY2001 contributions. The Committee also recommended recission of $212.744 million of
FY2000 funds for assessed peacekeeping contributions. In addition, the measure included
$102 million for payment of contested arrears provided that 1) certification required for
payment of FY2000 appropriated arrears was made; 2) the Secretary of State has submitted
to Congress a report setting forth the terms of final settlement on all disputed arrears; and 3)
legislation is enacted approving the report submitted under 2) above.
FY2000 Funding for U.N. Assessed Budgets
Authorizations. P.L. 106-113 authorized $940 million for payment of current U.S.
assessments in international organizations of which $48.977 million was for NATO. The
measure withheld $80 million pending certification by the Secretary of State that during the
preceding calendar year the U.N. budget had not exceeded $2.533 billion for the 1998-99
biennium; 20% of the funds made available for the U.S. assessed contribution to the United
Nations were payable only upon certifications relating to the U.N. Office of Internal Oversight
Services; funding for global conferences was prohibited along with funding for other
framework treaty based organizations. The measure also provided for foreign currency
exchange rate fluctuations, and expressed the position that the United States should continue
to insist that the United Nations and its agencies credit or refund budget surpluses to
members. P.L. 106-113 authorized $500 million for FY2000 contributions to assessed
peacekeeping operations, and authorized a total $926 million for international organizations
arrears provided specific conditions were met.
Appropriations. P.L. 106-113 appropriated $885.203 million for current U.S.
assessed contributions to international organizations, $500 million for assessed international
peacekeeping activities, and $244 million for arrearage payments contingent on a reduction
in the assessment ceiling for the United Nations and designated specialized agencies to 22%.
P.L. 106-113 also allowed $107 million owed by the United Nations to the United States for
peacekeeping to be applied to reduce U.S. arrears (without fiscal year limitations).
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Table 2. U.S. Contributions to Current U.N. Assessed Regular
Budgets
(in millions of $)
FY1999
FY2000
FY2001
FY2002
Actual
Actual
Estimate
Request
United Nations
297.077
302.578
299.651
266.244
U.N.–War Crimes Tribunals
25.000
22.420
23.032
32.000
Cambodia War Crimes Commission
–-
–-
3.000
3.000
Iraq War Crimes Commission
–-
–-
4.000
4.000
Food and Agriculture Organization
80.973
81.038
82.388
72.741
International Atomic Energy Agency
49.259
48.929
48.617
49.112
International Civil Aviation Agency
13.036
11.980
12.171
12.011
International Labor Organization
60.726
54.722
55.750
54.873
International Maritime Organization
1.304
1.195
1.152
1.168
International Telecommunications
Union
7.281
6.141
5.962
5.871
Universal Postal Union
1.441
1.296
1.240
1.312
World Health Organization
108.372
108.372
108.109
108.109
World Intellectual Property
Organization
1.305
1.054
0.815
0.817
World Meteorological Organization
11.019
9.981
9.422
8.259
Total
652.241
649.706
655.309
619.517
U.N. Voluntary Programs
FY2002. The appropriate level of funding for U.N. voluntary programs continues to
be a congressional concern. For FY2002 the Bush Administration requested $186 million for
U.S. voluntary contributions to the international organizations and programs account of
which 87.1 million would be for UNDP and $25 million for the U.N. Population Fund
(UNFPA). In addition, $110 million for UNICEF was requested in the Child Survival
account and $49 million for voluntary IAEA programs in the Nonproliferation, Anti-
Terrorism and Demining account.
H.R. 2506 as passed (381 to 46) by the House on July 24, 2001, appropriated $196
million for the voluntary contributions to international organizations and programs account
of which not more than $25 million for FY2002 may be for UNFPA. In addition $120 million
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for UNICEF, $49 million for voluntary contributions for IAEA, and $20 million for IFAD are
provided from other accounts. The House agreed to an amendment offered by Representative
Ose prohibiting use of appropriated funds for a U.S. contribution to the U.N. International
Narcotics Control Board.
H.R. 1646 as passed by the House authorized $186 million for U.S. voluntary
contributions to international organizations for FY2002 and such sums as may be necessary
for FY2003. Of the authorized amounts $5.0 million for each of FY2002 and FY2003 is for
U.S. cash contribution to the World Food Program (WFP); and $5.0 million for the U.N.
Voluntary Fund for Victims of Torture. Restrictions are placed on UNDP programs in
Burma. In addition, $120 million is authorized for FY2002 for UNICEF.
FY2001. P.L. 106-429 (H.R. 4811) included $186 million for voluntary contributions
to the international organizations and programs account. An additional $110 million for
UNICEF, $50 million for GAVI, $47 million for voluntary IAEA programs, and $2.5 million
for IFAD are provided in other accounts. The conference committee recommended (H.Rept.
106-997) that of the $186 million $90 million be provided to UNDP, $25 million to UNFPA,
$5 million for the World Food Program, and $5 million for the U.N. Voluntary Fund for
Victims of Torture.
For FY2001 the Clinton Administration requested $354 million for voluntary
contributions to the international organizations and programs account of which $110 million
is for UNICEF, $90 million for UNDP, and $25 million for UNFPA
On July 13, 2000 the House passed (239 to 185) H.R. 4811 ( FY2001 foreign assistance
appropriations) including voluntary contributions to U.N. programs. As passed the measure
provided $183 million for the voluntary international organizations and programs account of
which $5 million was to be provided for the World Food Program (WFP). In addition, $110
million for UNICEF and $50 million for GAVI was included in the Child Survival account.
On July 18 the Senate passed H.R. 4811 substituting the language in S. 2522 in lieu. The
Senate version provided $288 million for the international organizations and programs
account of which not less than $5 million would be for WFP and not less than $25 million for
UNFPA. Voluntary IAEA programs are funded in both House and Senate versions in a
separate nonproliferation account.
FY2000. P.L. 106-113 provided $183 million for FY2000 for U.S. voluntary
contributions to the international organizations and programs account. Not less than $5
million was provided for WFP, and $25 million for UNFPA subject to certain conditions.
$110 million was provided for UNICEF in the child survival account and voluntary IAEA
programs were funded in the nonproliferation, antiterrorism , and demining account. The
Administration had requested $293 million for the international organizations and programs
account, including $101 million for UNICEF, $80 million for UNDP, and $25 million for
UNFPA. An additional $43 million was requested for IAEA voluntary programs in another
account. H.R. 2415 as passed by the House on July 21 included specific earmarks for
particular programs at levels recommended by the House International Relations Committee
in reporting H.R. 1211 (H.Rept. 106-122). The committee provided $293 million for U.S.
voluntary contributions to international organizations and programs including $5 million for
the World Food Program, $5 million for the U.N. Fund for Victims of Torture, $5 million for
the International Program on the Elimination of Child Labor, and $240,000 for the OAS
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Special Rapporteur for Freedom of Expression in the Western Hemisphere. $25 million was
provided for UNFPA subject to certain conditions and withholding and restrictions were
placed on UNDP funding in Burma.
Issues. An extremely contentious issue has been funding for UNFPA. From
FY1986-FY1992 UNFPA received no U.S. funds because of its presence in China, where
coercive population practices have been reported. President Clinton reversed the Reagan and
Bush policy of not providing any U.S. funds to UNFPA by requesting $50 million for
FY1994. P.L. 103-87 appropriated no more than $40 million for UNFPA in FY1994. For
FY1998 the Administration requested $30 million for UNFPA and $25 million was
appropriated. P.L. 105-277 prohibited U.S. funds for UNFPA during FY1999. Up to $25
million was appropriated for UNFPA during FY2000, and again for FY2001. $25 million has
been requested for FY2002. (For more detailed discussion, see CRS Issue Brief IB96026,
Population Assistance and Family Planning Programs: Issues for Congress.)
U.S. officials cite several reasons for restrained funding recommendations for what they
consider to be, for the most part, popular and productive agencies. First, as in the assessed
agencies, Administrations have expressed commitments to fiscal restraint in international
organizations — to zero growth budgets or budget cuts — arguing that with countries cutting
domestic spending, U.N. agencies cannot expect to remain untouched. Second, many believe
that there are limits to the United Nations’ institutional capacity to deal with world problems.
Members of Congress have been increasingly critical of funding for multilateral programs
which are not always seen as serving primary U.S. interests. Recent congressional activity
includes close scrutiny and critical review of international organization programs and a
refocusing toward those which are deemed clearly to promote U.S. national interests such as
the International Atomic Energy Agency.
Table 3. U.S. Voluntary Contributions to U.N. Programs Financed
Through the Foreign Assistance Act
(International Organizations and Programs)a
(in millions of $)
FY1999
FY2000
FY2001
FY2002

Actual
Actual
Estimate
Request
UN Development Program (UNDP)
100.000
80.000
87.091
87.100
UN Children’s Fund (UNICEF)b
105.000
110.000
110.000
110.000
World Food Program (WFP)
5.000
5.000
5.000
5.400
UN Development Fund for Women (UNIFEM)
1.000
1.000
1.000
1.000
International Contributions for Scientific,
2.250
2.200
1.750
1.750
Educational, & Cultural Activities
WMO Voluntary. Coop. Program
2.000
2.000
2.000
2.000
UN Environment. Program (UNEP)
13.000
10.000
10.000
10.750
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FY1999
FY2000
FY2001
FY2002

Actual
Actual
Estimate
Request
Montreal Protocol Multilateral Fund
34.450
28.000
26.000
25.000
International. Conservation Programsc (CITES,
6.000
5.150
5.450
5.700
ITTO, IUCN, Ramsar)
UN Voluntary Fund Torture Victims
1.500
5.000
5.000
5.000
International Fund for Agricultural. Developmentd
2.500
2.500
–-
–-
(IFAD)
UN Afghan. Emergency Trust Fund
0.500
0.500
–-
–-
Climate Stabilization Fund (IPCC, UNFCC)
6.500
6.500
6.500
6.500
ICAO Aviation Security Fund
0.300
0.300
0.300
0.300
UN Population Fund (UNFPA)
–
25.000
25.000
25.000
UN Voluntary Fund for Advisory Services. &
1.500
1.500
1.500
1.500
Technical Cooperation.
IAEA Voluntary Programse
40.000
43.000
47.000
49.000
World Trade Organization
–-
–-
1.000
1.000
Total
$321.500
$327.650
$334.591
$337.000
a Does not include U.S. contributions to U.N. High Commissioner for Refugee (UNHCR) Programs and to
U.N. Relief and Works Agency for Palestine Refugees in the Near East (UNWRA), financed through
the Migration and Refugee Assistance Account; World Food Program commodities donations; WHO
Special Programs; U.N. Volunteers; and U.N. International Drug Control Program.
b Appropriated under Child Survival Program
c Only CITES is a U.N. program.
d IFAD funding for FY2001 was appropriated, and in FY2002 is requested under International Financial
Institutions
eAppropriated under Non-Proliferation, Antiterrorism, Demining and Related Programs account.
The United States exercises considerable influence among voluntary agencies and many
countries follow the U.S. lead in making voluntary contributions. If the United States
contributes less than in earlier years, other donors may follow suit. This would magnify the
reductions to U.N. voluntary programs considerably. A related concern is the cumulative
effect of U.S. contribution cuts on voluntary agencies. U.S. cutbacks to one agency also
affect programs in other agencies because many projects are joint, cooperative efforts by a
number of U.N. agencies. Moreover, the financial crisis in the central U.N. organ and the
specialized agencies also has ripple effects on programs throughout the voluntary system.
Congressional supporters of multilateral voluntary agencies fear that budget reductions
will significantly affect these organizations’ ability to continue their development work. These
proponents point out that many U.N. voluntary agencies serve U.S. interests. They contend
that many of these agencies are considered efficient and effective and, in some cases, may
provide better development programs than occurs through bilateral channels. Table 3
summarizes recent U.S. funding actions for some U.N. voluntary programs.
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U.N. Peacekeeping Operations
Issues relating to U.S. support for U.N. peacekeeping operations including financing of
such activities have been the source of particular congressional concern. In 1994 Congress
enacted legislation (Section 404 of P.L. 103-236) which limited U.S. assessed peacekeeping
contributions to 25% of total U.N. peacekeeping assessments. (For detailed discussion, see
CRS Issue Brief IB90103, United Nations Peacekeeping: Issues for Congress.)
FY2002. The Bush Administration requested $844.139 million for FY2002 for U.S.
assessed contributions to U.N. peacekeeping operations and H.R. 1646 as passed by the
House authorized appropriation of this amount.
FY2001. P.L. 106-553 included $846 million for assessed peacekeeping contributions
for FY2001. The Administration requested $738 million. In addition, the Administration
requested $107 million in FY2000 supplemental appropriations for U.N. peacekeeping
operations in Kosovo and East Timor.
FY2000. P.L. 106-113 appropriated $500 million for FY2000 U.S. assessed
contributions for U.N. peacekeeping operations of which $20 million was to remain available
until September 30, 2001. The Administration requested $485 million (increasing its original
$235 million request by $250 million) for FY2000 U.S. assessed contributions for U.N.
peacekeeping operations. S.886 as passed by the Senate included $235 million for U.S.
assessed contributions to U.N. peacekeeping operations for each of FY2000 and FY2001.
(An amendment sponsored by Senator Sarbanes raised the level from $215 million
recommended by the Senate Foreign Relations Committee.) The Senate Appropriations
Committee recommended (S.Rept. 106-76 on S.1217) $280.925 million for FY2000 of which
$137 million was for arrears. No funds were provided for some operations such as
Macedonia, Western Sahara, and Haiti, while funding was reduced for some activities
including the U.N. war crimes tribunals. $3.5 million was provided as a down payment for a
new mission in East Timor.
LEGISLATION
P.L. 107-46 (S. 248)
Amends the FY2000-2001 Foreign Relations Authorization Act to adjust a condition for
payment of arrears to the United Nations. Introduced on February 6, passed Senate (99-0)
on February 7, 2001. Passed House by voice vote on September 24. Signed into law on
October 5, 2001.
H.R. 1646 (Hyde)
Foreign Relations Authorizations, FY2002-2003. Passed House 352 to 73 on May 16,
2001.
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H.R. 2500 (Wolf)
The Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies,
Appropriations, FY2002. Reported (H.Rept. 107-139) as an original bill on July 13, 2001.
Passed House (408-19), amended, on July 18; passed Senate, as substituted by S. 1215, on
September 13. Conference report (H.Rept. 107-278) filed on November 13th. House agreed
(411-15) to conference report on November 14.
H.R. 2506 (Kolbe)
Foreign Operations Appropriations, FY2002. Reported (H.Rept. 107-142) on July 17.
Passed House (381-46), amended, on July 24. Reported (S.Rept. 107-58) on September 4.
Passed Senate (96-2), amended, on October 24.
S. 1401 (Biden)
Foreign Relations Authorizations, FY2002-2003. Reported (S.Rept. 107-60) by the
Senate Committee on Foreign Relations on September 4, 2001.
S. 1215 (Hollings)
Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies
Appropriations, FY2002. Reported (S.Rept. 107-42) as an original measure on July 20,
2001.
CONGRESSIONAL HEARINGS, REPORTS, AND DOCUMENTS
U.S. Congress. Senate. Committee on Foreign Relations. Subcommittee on International
Operations. The Secretary’s Certification of a U.N. Reform Budget of $2.533 Billion.
Hearing, 105th Congress, 2nd session. May 20, 1998. U.S. GPO, 1998. 18 p.
FOR ADDITIONAL READING
U.S. Department of State. United States Contributions to International Organizations.
Report to the Congress for Fiscal Year 1991. Washington, U.S. Govt. Print. Off., 1993.
181 p.
——United States Participation in the United Nations. Report by the President to Congress
for the Year 1999. Washington, U.S. Govt. Print. Off., 2000. 177 p.
U.S. General Accounting Office. United Nations: Financial Issues and U.S. Arrears.
GAO/NSIAD-98-201BR. June 1998. Washington, 1998. 61 p.
——United Nations: Reform Initiatives Have Strengthened Operations, but Overall
Objectives Have Not Yet Been Achieved. GAO/NSIAD-00-150. May 2000.
Washington, 2000. 84 p.
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——United Nations: Status of U.S. Contributions and Arrears. GAO/NSIAD-99-187. July
1999. Washington, 1999. 29 p.
Volcker, Paul, and Shijuro Ogata, et al., Financing an Effective United Nations. New
York, Ford Foundation, 1993. 34 p.
CRS Reports
CRS Report 96-960. U.N. Regular Budget: Current Size, U.S. Withholding, and
Congressional Concerns, by Vita Bite.
CRS Report 97-711. U.N. Funding, Payment of Arrears and Linkage to Reform:
Legislation in the 105th Congress, by Vita Bite, Marjorie Ann Browne, and Lois
McHugh.
CRS Report RL30985. UNESCO Membership: Issues for Congress, by Lois McHugh.
CRS Report RS20262. U.N. Arrears: Legislation in the 106th Congress, by Vita Bite.
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