Order Code RL31370
CRS Report for Congress
Received through the CRS Web
State Department and Related Agencies:
FY2003 Appropriations
April 12, 2002
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 February 4, 2002 the Bush Administration sent its FY2003 budget request
to Congress. The State Department request totaled about $7.6 billion, while the
international broadcasting request totaled $491 million. Secretary of State Colin
Powell testified before various House and Senate Committees in February and March,
2002 stating that last year’s priorities of increased security, increased hiring, and
improved technology at State remain the same for the next fiscal year budget.
In late March, the Administration requested an additional $322.1 million for
State and $7.4 million for international broadcasting within a supplemental request.
The resulting total FY2003 request for the Department of State and international
broadcasting amounts to more than $8.4 billion, 6.9 % greater than the FY2002 total
enacted funding of $7.9 billion (including the post 9/11 emergency supplemental).
One concern regarding the supplemental has to do with the Bush request for
$100 million for the Department of Defense (DoD) to “support foreign nations in
furtherance of the global war on terrorism” and $30 million for DoD to support
indigenous forces engaged in activities in furtherance of United States national
security aims.” Some are concerned that these funds would give DoD authority to
conduct foreign policy without getting prior authority from Congress or conferring
with the Department of State.

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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 and Related Agencies Appropriations . . . . . . . . . . . . . . . . . . . 7

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State Department and Related Agencies
FY2003 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 U.N. 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.
The FY2002 enacted budget for the State Department and the BBG (P.L. 107-
77) totals $7.9 billion, more than 12% above the FY2001 enacted funding level (P.L.
106-553). Increased hiring, improving information technology, and overseas security
funding were the three key issues in the State Department portion of the FY2002 CJS
appropriations debate.

In addition, 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 are being used for overseas personnel evacuations,
information and reward money for apprehending terrorists, and improvement of
emergency communications technology at U.S. and overseas facilities. International
broadcasting received supplemental funds totaling $12.25 million for expanding VOA
and RFE/RL broadcasts in Arabic and the many languages in and around Afghanistan.
The Administration’s FY2003 budget request for the Department of State and
the BBG was released February 4, 2002 totaling $8,058.3 million. About 6 weeks
later the Administration sent a supplemental request to Congress including $322.1
million for State and $7.4 million for international broadcasting. The FY2003 State
Department funding request, including the supplemental request, amounts to $7.9
billion or 6.9% more than the FY2002 enacted level of $7.4 billion including the
FY2002 emergency supplemental. The international broadcasting FY2003 request
of $524 million, including the supplemental request, represents a 6.7% increase over
the FY2002 enacted level including that supplemental.
Secretary of State Colin Powell testified before congressional committees
throughout February and March. Three areas of emphasis, according to the
Secretary, continue to be hiring, information technology, and security.

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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 more than 250 posts in over
180 countries around the world. The Department’s staff size has increased, largely
because of the integration of Arms Control and Disarmament Agency (ACDA) and
the U.S. Information Agency (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.
Congress enacted $3,630 million for the diplomatic and consular programs
account for FY2002, including $487.7 million for worldwide security upgrades. The
funding supports the hiring of 360 new employees in FY2002, plus186 diplomatic
security employees (including 86 special agents), and allows the Department to collect
and deposit Machine Readable Visa (MRV) fees as offsetting collections to the
D&CP account for FY2002 and FY2003. In addition, Congress approved emergency
supplemental DC&P funding of $390,000 for possible evacuation needs related to
terrorist attacks.
For FY2003, the Bush Administration is requesting $3,968.3 million (including
$51.1 million within the supplemental request) for D&CP’s FY2003 level, a 9.3%
increase from total available funds in FY2002 for this account. The increase would
help implement and pay ongoing costs for the increased hiring and security which
Congress provided in the FY2002 appropriation. Secretary of State Colin Powell
testified that he would like to continue expanding hiring by an additional 399
positions, as well as focus heavily on worldwide security measures in FY2003.
Additionally, the supplemental request of $51.1 million would provide: $20.3 million
for State Department operations in Kabul, Afghanistan and Dushanbe, Tajikistan; $8.3
million for emergency response to chemical and biological terrorism; $15 million for
restoring the Department’s worldwide mail operations which were contaminated by
anthrax; and $7.5 million to expand public diplomacy efforts to counter anti-American
attitudes and further a positive dialogue with Muslim and Arab audiences.
Embassy Security, Construction and Maintenance (ESCM) – 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

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agreed to more than $1 billion (within a supplemental funding bill) for the Security
and Maintenance account by establishing a new subaccount referred to as Worldwide
Security Upgrades. The final FY2002 appropriation for ESCM is $1,274 million,
including $458 million for regular ESCM and $816 million for worldwide security
upgrades.
The President’s FY2003 request for ESCM totals $1,505.5 million, including
$200.5 million within the supplemental request. The original FY2003 request for
ESCM represents a modest increase in ongoing operations and compound security
over FY2002, but a decline in worldwide security funding. State Department officials
note that the emergency supplemental from FY2002 is still in the pipeline for the
worldwide security account. The more than $200 million in the FY2003 supplemental
request will meet the costs of new embassy construction in Dushanbe, Tajikistan ($80
million) and rehabilitation of the current compound in Kabul, Afghanistan ($120.516
million). The total request for ESCM represents an 18.2% increase over the FY2002
level.
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 came under close scrutiny in past
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 the FY2002 budget, Congress passed $237 million, including $118
million for the Fulbright programs.
The Bush Administration is requesting $257.1 million (including $10 million in
the supplemental request) for exchanges in FY2003–an 8.5% increase over the
current enacted level. The supplemental is for activities that would address:
religious intolerance; increase youth, cultural and sports exchanges with the Muslim
world; improve media coverage of the U.S. and encourage independent journalism
through exchanges of journalists and media professionals; and launch the U.S.-Afghan
Women’s Council.
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.
After the September 11th attack, Congress recognized the urgency of immediate
improvements in communication technology and passed the emergency supplemental
(P.L. 107-38) which included $41 million for CIF for improving emergency
communications capabilities overseas and in the Washington office. In addition to this
supplemental, Congress passed $203 million for CIF’s regular FY2002 appropriation.
An additional $102.7 million for information technology investments are within the
DC&P account, and the conference report stated that an additional $63 million from
expedited passport fees is to go toward CIF in FY2002.

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For FY2003 the Administration originally requested $177 million for CIF, but
added $2.5 million within the supplemental request. The total represents a decline of
26.4% from the FY2002 enacted level. The Administration cited a more than
doubling of this account from FY2001 to FY2002, and believes that the request for
FY2003 is in line with what they are able to use effectively at this time.
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 the
withholding of funds related to international family planning policies. In 2001, some
controversial issues included: 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.
Shortly after the September 11th terrorist attack and at a time when the U.S.
government was seeking U.N. support in its coalition to fight terrorism, Congress
passed, and the President signed, legislation (S. 248/P.L. 107-46) which allowed the
United States to make its second tranche ($475 million) of arrearage payments to the
U.N. (For more detail, see CRS Issue Brief IB86116, U.N. System Funding:
Congressional Issues, by Vita Bite.)
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 U.N. and its affiliated agencies, the Inter-American
Organizations, as well as other regional and international organizations are included
in this account. The FY2002 enacted level is $850.0 million.
The Bush Administration is requesting $898.4 million (a 5.7% increase over
FY2002 enacted) for CIO’s FY2003 budget. The level would provide for full funding
of U.S. regular contributions to the 43 international organizations, as well as the U.S.
share of U.N. building renovations. In addition, within the supplemental request, the
President is seeking $7 million for meeting the U.S. share of costs of the U.N. Special
Representative’s operation in Afghanistan.
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 FY2002. The President’s FY2003 request for CIPA is
$769 million, a nearly 9% decline from the FY2002 enacted level. (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 final FY2002 enacted level equals $60.5
million. The Administration’s FY2003 request amounts to a 13.2% increase over
FY2002 – $68.5 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 $9.3 million for FY2002. The FY2003 request would
raise the funding slightly to $9.4 million.
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. The final FY2002 enacted
level for NED is $33.5 million. The FY2003 request would raise NED’s funding level
to $36 million–a 7.5% increase over FY2002.
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 in 1991.
In FY2002, Congress provided $14 million for the East-West Center, but no funds for
the North-South Center. The FY2003 request would raise the East-West Center
funding level to $14.3 million.

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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
1994 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 the reorganization debate in 1999, 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 $440.4 million for international
broadcasting, including $22.1 million for Cuba Broadcasting. The BBG’s total funds
that year also included $20.3 million 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 final enacted FY2002 appropriation
totals $479 million, including $25.9 million for Capital Improvements and $24.9
million for Cuba Broadcasting. In addition to the annual FY2002 appropriation, and
in response to the September 11th attack, Congress passed the emergency
supplemental (P.L. 107-38) which provides the BBG with $12.25 million to support
VOA broadcasts in Arabic, Farsi, Pashto, Dari, and Urdu, and RFE/RL broadcasts in
Arabic, Farsi, Tajik, Turkmen, Uzbek, Kazakh, Krygyz, and Azeri in the coming year.
For FY2003, the Administration first requested a total of $507 million for
international broadcasting, including $442.1 million for broadcasting operations,
$13.7 million for capital improvements, $25.4 million for Cuba broadcasting, and
$25.8 million for Radio Free Asia. The supplemental request would add $7.4 million
to international broadcasting funds for FY2003 for increased programming and
transmission costs of Radio Free Afghanistan, as well as the RFE/RL Dari and Pashto
language services.
1 Title III of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995, P.L. 103-
236.

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State Department and Related Agencies Appropriations
(millions of dollars)
FY2003/
FY2000
FY2001
FY2002
FY2003
FY2002
Enacted
Enacted
Enacteda
Requestb
% change
House
Senate
Conf Rept
State Department
Diplomatic & Consular Program
2,823.8
3,167.2
3,630.4
3,968.3
9.3%
Salaries and expenses
-.-
-.-
-.-
-.-
-.-
Worldwide Security Upgrades
(254.0)
(409.1)
(487.7)
(553.0)
13.4%
Ed & cultural exchange prog. (USIA)
204.2
231.1
237.0
257.1
8.5%
Office of Inspector General
27.4
28.4
29.0
30.8
6.2%
Representation allowances
5.8
6.5
6.5
9.0
38.5%
Protec.-missions & officials
8.1
15.4
9.4
11.0
17.0%
Embassy security/constr/maintenance
739.4
1,077.6
1,274.0
1,505.5
18.2%
Worldwide security upgrades
(313.6)
(661.2)
(816.0)
(608.6)
(-0.8%)
Emergency-diplo. & consular services
5.5
5.5
27.3
23.0
-15.8%
Repatriation loans
1.2
1.2
1.2
1.2
0.0%
Payment American Inst. Taiwan
15.3
16.3
17.0
18.8
10.6%
Foreign Service Retirement Fund
128.5
131.2
135.6
138.2
1.9%
Capitol Investment Fund
79.7
96.8
244.0
179.5
-26.4%
Total, Administration of Foreign Affairs
4,038.9
4,777.2
5,611.4
6,142.4
9.5%
International Organ. & Conf.
Contributions to international organizations
880.5
868.9
850.0
898.4
5.7%
Contributions to international peacekeeping
498.1
844.2
844.1
769.0
-8.9%
U.N. Arrearage payments
351.0
-.-
-.-
-.-
-.-
Total International Organ. & Conf.
1,729.6
1,713.1
1,694.1
1,667.4
-1.6%
Total International Commissions
48.7
56.1
60.5
68.5
13.2%
Related Appropriations

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FY2003/
FY2000
FY2001
FY2002
FY2003
FY2002
Enacted
Enacted
Enacteda
Requestb
% change
House
Senate
Conf Rept
The Asia Foundation
8.2
9.2
9.3
9.4
1.1%
National Endowment for Democracy
30.9
30.9
33.5
36.0
7.5%
East-West Center
12.5
13.5
14.0
14.3
2.1%
North-South Center
1.8
-.-
-.-
-.-
-.-
Eisenhower Exchange
0.5
0.5
0.5
0.5
0.0%
Israeli Arab Scholarship
0.3
0.3
0.4
0.4
0.0%
Total Related Appropriations
54.2
54.4
57.7
60.6
5.0%
Total State Department
5,871.4
6,600.8
7,423.7
7,938.9
6.9%
International Broadcasting
Capital Improvements
11.3
20.3
25.9
13.7
-47.1%
Broadcasting Operations
388.4
398.1
440.5
485.2
10.1%
Broadcasting to Cuba
22.1
22.1
24.9
25.4
2.0%
Radio Free Asia
-.-
-.-
-.-
(27.1)
-.-
Total International Broadcasting
420.2
440.5
491.3
524.3
6.7%
TOTAL State & Broadcasting
6,291.6
7,041.3
7,915.0
8,463.2
6.9%
Note: Numbers in parentheses denote funds included in the overall account level.
a FY2002 enacted appropriations include FY2002 emergency supplemental funds (P.L. 107-38): $390,000 in D&CP for evacuation and security-related matters in response to the
September 11th attacks; $20,750,000 in the Emergency Diplomatic and Consular Services account to provide rewards for information to help apprehend terrorists; $41 million
in the Capital Investment Fund to improve emergency communications capabilities in D.C., as well as worldwide; and $12.25 million for international broadcasting to the Middle
East and Afghanistan.
b The FY2003 request includes the supplemental request which was sent to Congress March 21, 2002: $51.05 million for D&CP, $2.5 million for CIF, $10.0 million for Ed and
Cultural Exch, $200.516 million for ESCM, $8.0 million for Emergencies in Diplomatic and Consular Service, $7 million for U.S. Contributions to International Organizations,
$43.0 million for Contributions for international Peacekeeping, and $7.4 million for international broadcasting. This table does NOT include $114.0 million for State
Department’s International Narcotics Control and Law Enforcement which is in the Foreign Operations Appropriations.

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