Order Code IB86116
CRS Issue Brief for Congress
Received through the CRS Web
U.N. System Funding:
Congressional Issues
Updated May 27, 2003
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
FY2004 Funding for U.N. Assessed Budgets
FY2003 Funding for U.N. Assessed Budgets
Appropriations
Authorizations
FY2002 Funding for U.N. Assessed Budgets
Appropriations
U.N. Voluntary Programs
FY2004
FY2003
FY2002
Issues
U.N. Peacekeeping Operations
FY2004
FY2003
FY2002
Legislation in the 107th Congress
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
voluntary contributions for the international
focuses on the following questions: (1) What
organizations and programs account. In addi-
is the appropriate level of U.S. funding for
tion, $50 million for voluntary IAEA pro-
U.N. system operations and programs? (2)
grams was requested in another account.
What U.S. funding actions are most likely to
produce a positive continuation of U.N. sys-
FY2003. Appropriations for U.S.
tem reform efforts? (3) How should the Unit-
assessed contributions for FY2003 for interna-
ed States address its accumulated arrearages?
tional organization regular budgets and for
U.N. assessed peacekeeping operations were
The U.N. system includes the parent
included in P.L.108-7 (H.J.Res. 2), the Con-
U.N. organization, a number of affiliated
solidated Appropriations Resolution. The
agencies, voluntary funds and programs, and
measure included $866 million for regular
peacekeeping operations. Participating states
budgets; $673.71 million for peacekeeping;
finance the system with voluntary and as-
and $195.15 million for voluntary contribu-
sessed contributions. For more than 50 years,
tions to the international organizations and
the United States has been the single largest
programs account. In addition, $120 million
financial contributor to the U.N. system.
for UNICEF and $52.9 million for voluntary
IAEA programs were provided in other ac-
Both Congress and the executive branch
counts.
have been pressing U.N. system organizations
to reform, especially to improve management
Arrears. P.L. 106-113, enacted in 1999,
and budgeting practices. Indeed, Congress
authorized payment of a total $819 million for
linked payment of U.S. financial arrears to
arrears to international organizations ($100
U.N. reforms. In recent years the United
million for FY1998, $475 million for FY1999,
Nations have been undertaking many reforms
and $244 million for FY2000) and authorized
including a restructuring of its financial
application of $107 million to U.S. arrears.
assessment system, allowing the United States
Arrears payments were subject to certifica-
to pay some of its arrears.
tions that certain conditions had been met
(popularly known as the Helms-Biden agree-
FY2004. The Bush Administration re-
ment). $712 million has been credited toward
quested $1.029 billion for FY2004 for U.S.
U.S. arrears to the United Nations and U.N.
assessed contributions to international
peacekeeping operations. The other $214
organizations (CIO) (including $340.7 million
million appropriated arrears funds are to be
for the U.N. regular budget), and $550.2
paid to other international organizations in-
million for assessed contributions to U.N.
cluding U.N. system agencies such as the
peacekeeping activities (CIPA)). The Admin-
Food and Agriculture Organization (FAO).
istration also requested $314.6 million for
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MOST RECENT DEVELOPMENTS
On April 24, 2003, the Senate Foreign Relations Committee reported S. 925 (S.Rept.
108-39) authorizing appropriations for FY2004 for the Department of State, including
assessed contributions to international organizations (CIO) and U.N. peacekeeping activities
(CIPA). The committee recommended funding at the levels requested by the President —
$1.010 billion for CIO and $550.2 million for CIPA. The House International Relations
Committee reported H.R. 1950 (H.Rept. 108-105, part 1) on May 16. The measure
authorizes appropriations for assessed and voluntary contributions to international
organizations. The House International Relations Committee reported H.R. 1950 (H.Rept.
108-105, part 1) on May 16, 2003. The committee recommended $1.010 billion for FY 2004
and $1.041 billion for FY2005 for the CIO account and $550.2 million for FY2004 and such
sums as may be necessary for FY2005 for the CIPA account. H.R. 1950 as reported
recommended $342.555 million for FY2004 and $345 million for FY2005 for voluntary
contributions to the international organizations and programs (IO&P) account.
On February 3, 2003, President Bush submitted his FY2004 budget request including
$1.01 billion for the contributions to international organizations (CIO) account of which
$745.8 million is for assessed contributions to U.N. system organizations (of which $340.7
million for the U.N. regular budget); $550.2 million for assessed contributions to U.N.
peacekeeping activities (CIPA); and $314.6 million for voluntary contributions to the
international organizations and programs (IO&P) account. An additional $50 million was
requested for IAEA voluntary contributions in another account.
BACKGROUND AND ANALYSIS
The United States has been, and remains, the single largest contributor to the U.N.
system. For calendar year 2001, U.S. contributions to the U.N. system totaled about $3.5
billion. The total included: $612 million in assessed contributions to the U.N. regular budget
and U.N. affiliated agencies; $712 million in assessed contributions to U.N. peacekeeping
activities; and $2.2 billion in voluntary contributions to U.N.-affiliated organizations and
programs. 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), the United Nations Children’s Fund (UNICEF), and
the U.N. Population Fund (UNFPA). 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 appropriation
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 46 members pay the minimum or 0.001%. The U.S. assessment
for 2003 is $341.48 million. Regardless of the size of assessment, each member has one vote
on U.N. budget decisions, although budgets since 1988 have been adopted by consensus.
Specialized agencies, while linked to the United Nations, are autonomous in executive,
legislative, and budgetary powers. Some agencies follow the U.N. scale in making
assessments; other agencies use their own formulas, which often result in lower U.S.
assessments.
If there were no maximum and minimum assessment levels for the U.N. regular budget
and charges were based exclusively on a ratio of a country’s gross national product, the
United States would be assessed about 30% and some very small and poor countries might
be assessed less than 0.001%. In 2003, the top 3 contributors (United States, Japan, and
Germany) were assessed a total of 51.3% of the U.N. regular budget. The top 10 contributors
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(paying 77.7% of the total) to the regular U.N. budget according to the scale of assessments
adopted by the General Assembly for 2003 were as follows.
Table 1. Top Ten U.N. Regular Budget Contributors for 2003
Assessments for 2003 in
Member State
Percent of Budget
millions of U.S.$
United States*
22.00
341.48
Japan
19.52
302.92
Germany
9.77
151.53
France*
6.47
100.36
United Kingdom*
5.54
85.93
Italy
5.06
78.61
Canada
2.56
39.70
Spain
2.52
39.10
Brazil
2.39
37.10
Rep. of Korea
1.85
28.73
*Permanent members of the U.N. Security Council
For 2003, the other two permanent members of the Security Council, the Russian Federation
(dropped from the top ten) and China are assessed 1.20%, $18.63 million and 1.53%, $23.78
million, respectively.
U.N. Reform
Because of unpredictable, partial and in some cases, non-payment of assessed
contributions by member countries, 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 pressed for U.N. reform and
linked payment of its arrearage to reforms. High-level negotiations between the Clinton
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.
U.N. Reform Efforts. In 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. Eight annual reports on the
activities of the office through June 30, 2002, have been submitted to the General Assembly,
and the Office has undertaken an increasing number of monitoring, auditing, and
investigative activities.
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In 1997, U.N. Secretary-General Kofi Annan announced 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.
Second track proposals focused on U.N. core missions, and on improving management
and efficiency. They included: creating a new management and leadership structure by
establishing a Deputy Secretary-General, a Senior Management Group, and a Strategic
Planning Unit; overhauling human resources policies and practices including changing the
management culture, eliminating 1000 jobs and reducing administrative costs; and promoting
sustainable development as a central U.N. priority. The proposals also called for 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 proposals also called for 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 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. In 2001,
Secretary-General Annan (whose first term expired at the end of 2001) was elected to another
five-year term. In September 2002, Secretary-General Annan submitted a report calling for
additional reforms.
The former U.N. Under Secretary-General for Administration and Management, Joseph
Connor (an American, formerly with Price Waterhouse) took substantial measures to
improve the functioning and efficiency of the U.N. bureaucracy. He was succeeded in
January 2003 by another American, Catherine Bertini. 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) was smaller than that for 1996-97 ($2.608
billion), and the 1994-95 budget ($2.632 billion). The budget for the 2000-2001 biennium
was $2.562 billion and that for 2002-2003 is $2.625 billion. The proposed budget for 2004-
2005 is $2.9 billion.
U.S. Withholding
Beginning in 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
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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.
In addition, beginning in 1993, the United States recognized a lower peacekeeping
assessment level than applied by the United Nations, and since October 1, 1995, was limited
by U.S. law (sec. 404 of P.L.103-236) to a 25% peacekeeping assessment level. Section 402
of P.L.107-228 (signed into law on September 30, 2002) raised the 25% cap on U.S.
peacekeeping assessments allowing payment of U.S. current peacekeeping assessments in
full. The only current U.S. withholding for the U.N. regular budget is for programs
benefitting the PLO.
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 February 14, 2003, 19 countries were in that status.
According to the United Nations, despite recent U.S. arrears payments, the United
States (as of December 31, 2002), still owed assessed contributions of $738 million (190
million for the U.N. regular budget, $12 million for International Tribunals, and $535 million
for peacekeeping). The U.S. government, however, because of U.S. statutory and policy
withholdings, estimated that U.S. outstanding contributions are lower than the U.N. figures.
Of the total $738 million, the United States expects to pay about $73 million ($24 million
for the U.N. regular budget and $49 million for peacekeeping) from FY2003 appropriations.
The other $665 million is considered by the United States as “contested arrears” or not
payable for U.S. statutory or policy reasons ($166 million for the regular budget, $487
million for peacekeeping, and $12 million for the tribunals).
U.N. Arrears in Recent Legislation
P.L. 106-113 incorporated the Helms-Biden agreement and authorized appropriations
for payment of U.S. arrears to international organizations provided certain conditions were
met and 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 applied 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.
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Release of FY1999 appropriated arrearage funds required additional certification that
the assessment ceiling for the U.N. regular budget had been reduced to 22% and to 25% for
U.N. peacekeeping.
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, and falling somewhat lower in subsequent years.
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. The new peacekeeping scale, however, while a substantial reduction, did not meet
the Helms-Biden requirement of 25%. On October 5, 2001, the President signed into law P.L.
107-46 (S. 248) which 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
(FY1999 appropriations of $475 million, plus $107 million credit to the United Nations
against U.S. 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
continued to build up arrears in its assessed peacekeeping payments. P.L. 107-228 (H.R.
1646), the Foreign Relations Authorization for FY2003, changed the allowable level for U.S.
peacekeeping assessments as follows: for calendar year 2001, 28.15%; for calendar year
2002, 27.9%; for calendar year 2003, 27.4%; and for calendar year 2004, 27.4%. The 25%
cap would be restored thereafter.
Payment of the third installment of U.S. arrears from FY2000 appropriations required
certification that the United Nations and designated U.N. specialized agencies (FAO, ILO,
and WHO) had reduced the maximum assessment levels to 20% (waivable to 22%, in effect)
and had instituted a number of other administrative reforms.
P.L. 107-228 also amended the Helms-Biden agreement to allow the third and last
installment of arrears to be paid to each international organization upon certification of the
conditions established for that agency or immediately if no conditions applied. Certification
was made on October 21, 2002, and the final $244 million was paid ($30 million for U.N.
peacekeeping arrears and the other $214 million to other international organizations
including U.S. system agencies).
FY2004 Funding for U.N. Assessed Budgets
On April 24, 2003, the Senate Committee on Foreign Relations reported S. 925
authorizing appropriations for FY2004 for the Department of State, including assessed
contributions to international organizations (CIO) and U.N. peacekeeping activities (CIPA).
The committee recommended funding at the level requested by the President $1.010 billion
for the CIO account — $745.8 million for assessed contributions to U.N. system
organizations (of which $340.7 million was for the U.N. regular budget) and $550.2 million
for assessed contributions to U.N. peacekeeping operations (CIPA). The committee, noting
recent adverse fluctuations in foreign currency exchange rates, authorized appropriations of
such sums as may be necessary to offset such fluctuations. The committee supported U.S.
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return to UNESCO and expressed support for an increase in the UNESCO budget. It also
endorsed synchronization of U.S. payments with the U.N. budget year; raised the cap on U.S.
share of U.N. peacekeeping expenses to 27.4% for assessments made after calendar year
2004; and requested a report within 90 days of enactment from the Secretary of State on
implementing the suggestions made in the Brahimi report on strengthening U.N.
peacekeeping operations. The Foreign Relations Committee also called on the United States
to seek to prevent state sponsors of terrorism and countries under U.N. sanctions from
gaining membership position on the U.N. Security Council or the U.N. Commission on
Human Rights.
The House International Relations Committee reported H.R. 1950 (H.Rept. 108-105,
part 1) on May 16, 2003. The committee recommended $1.010 billion for FY2004 and
$1.041 billion for FY2005 for the CIO account and $550.2 million for FY2004 and such
sums as may be necessary for FY 2005 for the CIPA account. It also recommended such
sums as may be necessary to offset adverse currency fluctuations. The Committee also
endorsed raising the cap on U.S. assessed peacekeeping contributions to 27.1% for
assessments during calendar years 2005 and 2006. The measure as reported also included
the U.S. International Leadership Act of 2003 to strengthen U.S. multilateral diplomacy.
The committee also expressed the view that in returning to UNESCO the United States
should take steps to ensure the following: increased U.S. employment at UNESCO
especially at senior levels; creation of a Deputy Director for Management position to be filled
by an American; increases in UNESCO budget level beyond zero nominal growth for 2004-
2005 focus primarily on adoption of management and administrative reforms; and that the
U.S. contribution for the last quarter of calendar year 2003 be spent on key education and
science priorities directly of benefit to U.S. interests. Each member of UNESCO is required
to establish a “National Commission.” The committee recommended updating the 1946 law
governing the U.S. national Commission for UNESCO.
On February 3, 2003, President Bush submitted his FY2004 budget request including
$1.010 billion for the CIO account, of which $745.8 million is for assessed contributions to
U.N. system organization (of which $340.7 million is for the U.N. regular budget), and
$550.2 million is for assessed contributions to the CIPA account.
FY2003 Funding for U.N. Assessed Budgets
Appropriations. P.L.108-7 (H.J.Res. 2), the Consolidated Appropriations Resolution,
FY2003, included $866 million for U.S. assessed contributions to international organizations
(CIO) account; $673.71 million for assessed contributions to the international peacekeeping
activities (CIPA) account; and $195.15 for voluntary contributions to the international
organizations and programs (IO&P) account. An additional $120 million for UNICEF, and
$52.9 million for contributions to voluntary IAEA programs were provided in other accounts.
The conference committee noted (H.Rept. 108-10) that it expected the Department of State
to report by March 1, 2003, that the United Nations had taken no action to exceed its
approved 2002-2003 budget of $2.63 billion; by April 30, 2003, describing all programmatic
or administrative reductions adopted in the current U.N. biennial budget; and by September
30, 2003, on the effects on U.S. multilateral diplomacy goals and the financial operations of
U.N. system organizations to which U.S. assessed payments for a given calendar year are
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deferred until the subsequent fiscal year. The conference committee recognized the
important work of the IAEA and included full funding for that agency.
President Bush had requested $891.378 million for FY2003 for U.S. assessed
contributions to international organizations (including $279.327 million for the U.N. regular
budget) and $725.981 million for assessed U.N. peacekeeping operations.
Authorizations. P.L.107-228 (H.R. 1646) as signed into law on September 30, 2002,
authorized $891.378 million for FY2003 contributions for the CIO account and $725.981
million for CIPA. It prohibited funding from U.S. contributions to the U.N. regular budget
for the 2002-2003 biennium to be available for any framework treaty-based organization,
including the Framework Convention on Global Climate Change, the International Seabed
Authority, and the International Criminal Court. Sec. 401 of the measure amended several
conditions which must be certified in order to make available the third and final U.S. arrears
payment ($244 million) to various international organizations. Sec. 402 of P.L.107-228
also amended the limitation on the U.S. share of assessed U.N. peacekeeping operations for
calendar years 2001-2004. The U.S. cap of 25% would be restored after 2004.
Section 404 of P.L.107-228 expressed the sense of Congress that the U.S. government
should begin a process of synchronizing payment of its assessments to the United Nations
and other international organizations so that the United States can resume paying its dues at
the beginning of each calendar year. Section 405 amended the U.N. participation Act
relating to annual reports on U.S. financial contributions to international organizations and
in support of peacekeeping operations. Section 405 required the Secretary of State to submit
a report within 120 days of enactment on the use of secret ballots within the Unites Nations
as specialized agencies and section 409 required a report within 180 days of enactment
describing proposals to increase employment of U.S. citizens in senior posts at U.N. system
organizations. Section 407 expressed the sense of Congress that the President having
announced (in his speech at the United Nations on September 12, 2002) U.S. return to
UNESCO should submit a report describing the merits of such return and detailing projected
costs of U.S. membership in UNESCO. Section 408 called on the United States to make
every reasonable effort to secure a U.S. seat on the U.N. Commission on Human Rights and
the International Narcotics Control Board, and to prevent Human Rights Commission
membership from countries with poor human rights records. (In April 2002, the United
States was elected to the Human Rights Commission for the 2003-2005 period.)
Section 1305 of P.L. 107-228 expressed the congressional finding that the IAEA is a
critical and effective international organization, endorsed a U.S. assessment level of 25%,
and urged the Secretary of State to negotiate an increase in the IAEA regular budget
beginning with the 2004 budget. It authorized a $10 million increase in U.S. voluntary
contributions to IAEA (to $60 million) in FY2003.
H.R. 1646 as passed by the House authorized $944.067 million for the CIO account, and
$844.139 million for CIPA. Of the amounts authorized $59.8 million for each of FY2002
and FY2003 was to cover U.S. return to UNESCO and $5.5 million for FY2002 is for
payment to the UNESCO Working Capital Fund. On May 1, 2002, the Senate passed H.R.
1646 amended by substituting the text of S. 1803 as passed by the Senate on December 20,
2001. Section 307 of the Senate-passed version of H.R. 1646 authorized the appropriation
of $60 million for the International Atomic Energy Agency (IAEA) in FY2002 and $75
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million for FY2003. The provision expressed the sense of Congress that the Secretary of
State should negotiate an increase in the regular budget of the IAEA, and stated that it had
not been the intent of Congress in enacting the Helms-Biden U.N. reform legislation to
reduce U.S. contributions to all U.N. related organizations to 22%. Rather the legislation
asserted that contributions for important and effective agencies such as the IAEA should be
maintained “at levels commensurate with the criticality of its mission.”
On September 4, 2001, the Senate Foreign Relations Committee reported S. 1401,
authorizing the full amount requested for the CIO and CIPA accounts for the State
Department. 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.
FY2002 Funding for U.N. Assessed Budgets
Appropriations. P.L. 107-77 (H.R. 2500), signed into law on November 28, 2001,
provided $850 million for the contributions to international organizations (CIO) account but
withheld $100 million until the Department of State certified that the United Nations has not
exceeded its budget of $2.536 billion for the biennium 2000-2001. In addition, the measure
provided $844.139 million for the contributions to international peacekeeping activities
(CIPA) account. The House agreed to the conference report (H.Rept. 107-278) on November
14 and the Senate on November 15.
The conference report (H.Rept. 107-593) on H.R. 4775 making supplemental FY2002
appropriations for FY2002 included an additional $7 million for the contributions to
international organizations to remain available until September 30, 2003 for an emergency
contribution anticipated to support a U.N. mission in Afghanistan.
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
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 FY2002 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)on 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
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and calendar year 2002 for the U.N. regular budget. On September 13, 2001, the Senate
passed S. 1215, as a substitute, in lieu of H.R. 2500.
Table 2. U.S. Contributions to Current U.N. Assessed Regular
Budgets
(in millions of $)
FY2001
FY2002
FY2003
FY2004
Actual
Actual
Estimate
Request
United Nations
299.651
266.149
279.327
340.700
U.N. Capital Master Plan
— -
— -
9.140
— -
U.N. — War Crimes Tribunals
20.104
23.767
27.213
30.027
Iraq War Crimes Commission
— -
— -
4.000
2.000
Food and Agriculture Organization
82.388
72.741
72.457
72.457
International Atomic Energy Agency
44.755
47.475
57.172
54.282
International Civil Aviation Agency
12.171
12.011
12.464
12.608
International Labor Organization
55.796
55.308
56.725
50.425
International Maritime Organization
1.152
1.093
1.246
1.189
International Telecommunications Union
5.962
5.801
6.923
6.558
United Nations Educational, Scientific
and Cultural Organization
— -
— -
— -
71.429
Universal Postal Union
1.240
1.303
1.358
1.316
World Health Organization
108.109
108.109
93.615
93.615
World Intellectual Property Organization
0.816
0.822
0.897
0.880
World Meteorological Organization
9.421
8.324
9.232
8.318
Total
641.565
602.904
631.769
745.804
U.N. Voluntary Programs
FY2004. The appropriate level of funding for U.N. voluntary programs continues to
be a congressional concern. H.R. 1950 as reported by the House International Relations
Committee (H.Rept. 108-105, part 1) recommended $342.555 million for FY2004 and $345
million for FY2005 for voluntary contributions to the international organizations and
programs (IO&P) account. This included $6 million for FY2004 and $7 million for FY2005
for the U.N. Voluntary Fund for Victims of Torture and $50 million for each year of FY2004
and FY2005 for the U.N. Populations Fund (UNFPA).
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On February 3, 2003, President Bush submitted his FY2004 budget request including
$314.6 million for voluntary contributions to the (IO&P) account. An additional $50 million
was requested for IAEA voluntary contributions in another account.
FY2003. On September 19, 2002, the House Appropriations Committee reported H.R.
5410 (H.Rept. 107-663), the Foreign Operations appropriations legislation for FY2003. The
Committee recommended $190.4 million for the international organizations and programs
account of which not less than $100 million was recommended for UNDP, not less than $5
million for the U.N. Voluntary Fund for Victims of Torture, and $25 million for UNFPA.
In addition $120 million for UNICEF and $50 million for voluntary contributions to IAEA
were recommended in other accounts.
On July 24, 2002, the Senate Appropriations Committee reported (S.Rept. 107-219)
S. 2779, the FY2003 Foreign Operations appropriations legislation, including $230.486 for
the international organizations and programs account of which $50 million is for UNFPA.
An additional $120 million is included in the Child Survival account for UNICEF.
The Administration requested $310.4 million for voluntary contributions through the
international organizations and programs account. In addition, $50 million for voluntary
IAEA programs and $15 million for the International Fund for Agricultural Development
(IFAD) was requested in other accounts.
FY2002. P.L. 107-115 (signed into law on January 10, 2002) appropriated $208.5
million for U.S. voluntary contributions to the international organizations and programs
account of which not more than $34 million is for the United Nations Population Fund
(UNFPA) and not less than $6 million is to be for the World Food Program (WFP). In
addition $120 million for the UNICEF, $53 million for the Global Alliance for Vaccines and
Immunizations (GAVI), $20 million for the International Fund for Agricultural Development
(IFAD), and a voluntary contribution for IAEA were provided in other accounts.
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 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 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.
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Voluntary Fund for Victims of Torture. Restrictions are placed on UNDP programs in
Burma. In addition, $120 million is authorized for FY2002 for UNICEF.
Issues. An extremely contentious issue has been funding for the U. N. Population
Fund (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 earlier policy of not providing any U.S. funds to UNFPA. P.L. 105-277
prohibited U.S. funds for UNFPA during FY1999. $25 million was appropriated for UNFPA
during FY2000, and again for FY2001. $34 million was appropriated for FY2002. In
January 2002, the Bush Administration placed a hold on UNFPA funds pending a review of
its program in China. On September 30 , 2002, President Bush directed that the $34 million
FY2002 funds appropriated for UNFPA be transferred to the Child Survival and Health
Program Fund. No funds were requested for UNFPA for FY2003, although there was a
“reserve” of $25 million which might have been made available for UNFPA. Congress
appropriated not more than $34 million for FY2003 for UNFPA. (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.
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Table 3. U.S. Voluntary Contributions to U.N. Programs Financed
Through the Foreign Assistance Act
(International Organizations and Programs)a
(in millions of $)
FY2001
FY2002
FY2003
FY2004

Actual
Actual
Estimate
Request
UN Development Program (UNDP)
87.091
97.100
100.000
100.000
UN Children’s Fund (UNICEF)b
109.758
120.000
120.000
120.000
World Food Program (WFP)
5.000
6.000
— -
6.000
UN Development Fund for Women
1.000
1.000
1.000
1.000
(UNIFEM)
International Contributions for Scientific,
1.750
1.750
1.750
.500
Educational, & Cultural Activities
WMO Voluntary. Coop. Program
2.000
2.000
2.000
2.000
UN Environment. Program (UNEP)
10.000
10.750
10.025
10.025
Montreal Protocol Multilateral Fund
26.000
25.000
23.000
21.00
International. Conservation Programsc
5.450
7.700
6.225
6.225
(CITES, ITTO, IUCN, Ramsar, CCD)
UN Voluntary Fund Torture Victims
5.000
5.000
5.000
5.00
Climate Stabilization Fund (IPCC,
6.500
7.400
5.600
5.600
UNFCC)
ICAO Aviation Security Fund
0.300
0.300
0.300
1.000
UN Voluntary Fund for Advisory
1.500
1.500
1.500
1.500
Services. & Technical Cooperation.
IAEA Voluntary Programsd
50.458
49.00
50.000
50.000
UN Guards in Iraq
— -
— -
— -
.700
U.N. Population Fund (UNFPA)e
21.5
— -
— -
— -
Reserved — To Be Allocated
— -
— -
25.00
25.000
Total
$333.591
$335.500
351.400
355.550
a. Does not include U.S. contributions to U.N. High Commissioner for Refugee (UNHCR) Programs ($255
million in FY2002) and to U.N. Relief and Works Agency for Palestine Refugees in the Near East
(UNWRA) ($119 million in FY2002), 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. Requested and Appropriated under Non-Proliferation, Antiterrorism, Demining and Related Programs
account.
e. Congress appropriated $34 million for FY2002, but the State Department determined that UNFPA was
ineligible for the U.S. contribution. $34 million was appropriated for FY2003 provided that eligibility
can be certified.
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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
may 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.
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 after October 1, 1995, to 25% of total U.N. peacekeeping assessments. P.L.
107-228 amended this provision for calendar years 2001-2004, allowing U.S. assessments
of 28.15% in 2001, 27.9% in 2001 and 27.4% in 2003 and 2004. (For detailed discussion,
see CRS Issue Brief IB90103, United Nations Peacekeeping: Issues for Congress.)
FY2004. The Bush Administration requested $550.2 million for the CIPA account for
FY2004.
FY2003. P.L.108-7 (Consolidated Appropriations Resolution) included $673.71
million for U.S. assessed contributions to U.N. peacekeeping activities. The Bush
Administration requested $725.981 million for FY2003 for this account.
FY2002. The Bush Administration requested $844.139 million for FY2002 for U.S.
assessed contributions to U.N. peacekeeping operations, and P.L.107-77 appropriated this
amount.
LEGISLATION
P.L. 108-7 (H.J.Res. 2)
Consolidated Appropriations Resolution, FY2003. Conference report (H.Rept. 108-10)
filed on February 13, 2003. The same day House agreed to the conference report by a vote
of 338 to 83 and the Senate by a vote of 76 to 20. Signed into law on February 20, 2003.
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H.R. 1950 (Hyde)
Foreign relations authorizations for FY2004 and 2005. Reported (H.Rept. 108-105, part
1) on May 16, 2003.
S. 925 (Lugar)
Foreign relations authorizations for FY2004. Reported (S.Rept. 108-39) on April 24,
2003.
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
——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: Reform Initiatives Have Strengthened
Operations, but Overall Objectives Have Not Yet Been Achieved. GAO/NSIAD-00-
150. May 2000. Washington, 2000. 84 p.
——United Nations: Status of U.S. Contributions and Arrears. GAO/NSIAD-99-187. July
1999. Washington, 1999. 29 p.
CRS Reports
CRS Report RL30985. UNESCO Membership: Issues for Congress, by Vita Bite and Lois
McHugh.
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