Order Code IB86116
CRS Issue Brief for Congress
Received through the CRS Web
United Nations System Funding:
Congressional Issues

Updated January 4, 2005
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
FY2005 Funding for U.N. Assessed Budgets
FY2004 Funding for U.N. Assessed Budgets
Appropriations
Authorizations
FY2003 Funding for U.N. Assessed Budgets
Appropriations
Authorizations
U.N. Voluntary Programs
FY2005
FY2004
FY2003
Issues
U.N. Peacekeeping Operations
FY2005
FY2004
FY2003
LEGISLATION
CONGRESSIONAL HEARINGS, REPORTS, AND DOCUMENTS
FOR ADDITIONAL READING
CRS Reports

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United Nations System Funding: Congressional Issues
SUMMARY
Congressional debate over U.N. funding
$304.45 million for voluntary contributions
focuses on the following questions: (1) What
for the international organizations and pro-
is the appropriate level of U.S. funding for
grams (IO&P) account. In addition, $53
U.N. system operations and programs? (2)
million was requested for voluntary contribu-
What U.S. funding actions are most likely to
tions to IAEA in another account.
produce a positive continuation of U.N. sys-
tem reform efforts?
FY2004. P.L. 108-199, the Consolidated
Appropriations Act for FY2004 included
The U.N. system includes the parent
$1.010 billion for U.S. assessed contributions
U.N. organization, a number of affiliated
to international organizations (CIO); $550.2
agencies, voluntary funds and programs, and
million for assessed contributions to U.N.
peacekeeping operations. Participating states
peacekeeping activities (CIPA)); and $321.65
finance the system with voluntary and as-
for voluntary contributions for the
sessed contributions. For nearly 60 years, the
international organizations and programs
United States has been the single largest finan-
account. In addition, $53 million for volun-
cial contributor to the U.N. system.
tary IAEA programs was appropriated in
another account.
Both Congress and the executive branch
have been pressing U.N. system organizations
FY2003. Appropriations for U.S.
to reform, especially to improve management
assessed contributions for FY2003 for interna-
and budgeting practices. Indeed, Congress
tional organization regular budgets and for
linked payment of U.S. financial arrears to
U.N. assessed peacekeeping operations were
U.N. reforms. In recent years the United
included in P.L.108-7 (H.J.Res. 2), the Con-
Nations have been undertaking many reforms
solidated Appropriations Resolution. The
including a restructuring of its financial
measure included $866 million for regular
assessment system, allowing the United States
budgets; $673.71 million for peacekeeping;
to pay some of its arrears.
and $195.15 million for voluntary contribu-
tions to the international organizations and
FY2005. The Bush Administration
programs account. In addition, $120 million
requested $1.194 billion for U.S. assessed
for UNICEF and $52.9 million for voluntary
contributions for international organizations
IAEA programs were provided in other ac-
(CIO); $650 million for assessed contributions
counts.
for U.N. peacekeeping activities (CIPA); and
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MOST RECENT DEVELOPMENTS
The FY 2005 Consolidated Appropriations Act (P.L. 108-447, H.R. 4818) included
$1.182 billion for assessed contributions to international organizations (CIO) of which $6.0
million may be used to subsidize the cost of a direct loan (of up to $1.2 billion) for
renovation of U.N. headquarters in New York; $490 million for assessed contributions to
U.N. peacekeeping activities (CIPA); and $319.494 for voluntary contributions for the
international organizations and programs (IO&P) account. In addition, $53 million for
voluntary IAEA programs was appropriated 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 2002, U.S. contributions to the U.N. system totaled more than
$3.0 billion. The total included about $533 million in assessed contributions to the U.N.
regular budget and U.N. affiliated agencies; about $750 million in assessed contributions to
U.N. peacekeeping activities; about $50 million for war crimes tribunals; and about $1.7
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
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.
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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 48 members pay the minimum or 0.001%. The U.S. assessment
for 2004 is $362.85 million. Regardless of the size of assessment, each member has one vote
on U.N. budget decisions, although budgets since 1988 have been adopted by consensus.
Specialized agencies, while linked to the United Nations, are autonomous in executive,
legislative, and budgetary powers. Some agencies follow the U.N. scale in making
assessments; other agencies use their own formulas, which often result in lower U.S.
assessments.
If there were no maximum and minimum assessment levels for the U.N. regular budget
and charges were based exclusively on a ratio of a country’s gross national product, the
United States would be assessed about 30% and some very small and poor countries might
be assessed less than 0.001%. In 2004, the top 3 contributors (United States, Japan, and
Germany) were assessed a total of 50.13% of the U.N. regular budget. The top 10
contributors (paying 76.44% of the total) to the regular U.N. budget according to the scale
of assessments adopted by the General Assembly for 2004 were as follows.
Table 1. Top Ten U.N. Regular Budget Contributors for 2004
Assessments for 2004
Member State
Percent of Budget
in millions of U.S.$
United States*
22.00
362.85
Japan
19.47
321.09
Germany
8.66
142.87
United Kingdom*
6.13
101.05
France*
6.03
99.45
Italy
4.89
80.57
Canada
2.81
46.40
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Assessments for 2004
Member State
Percent of Budget
in millions of U.S.$
Spain
2.52
41.56
China*
2.05
33.86
Mexico
1.88
31.06
*Permanent members of the U.N. Security Council
For 2004, the other permanent member of the Security Council, the Russian Federation, was
assessed at 1.10%, $18.14 million.
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 timely payment of adequate funds, the system may not
function effectively.
U.S. Role in U.N. Reform. The U.S. government has pressed for U.N. reform and
linked payment of arrears 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. Nine annual reports on the
activities of the office through June 30, 2003, have been submitted to the General Assembly,
and the Office has undertaken an increasing number of monitoring, auditing, and
investigative activities.
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
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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 $2.891 billion. The budget for 2004-2005 is
$3.16 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
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.
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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, 2003), still owed assessed contributions of $762.1 million
($267.9 million for the U.N. regular budget, $12.0 million for International Tribunals, and
$ 482.2 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.
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.
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).
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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.N. system agencies).
FY2005 Funding for U.N. Assessed Budgets
P.L. 108-447, the Consolidated Appropriations Act, FY2005 included $1.182 billion
for U.S. assessed contributions to international organizations (CIO) account of which up to
$6.0 million may be used for the cost of a direct loan of up to $1.2 billion to the United
Nations for renovating U.N. headquarters in New York; and $490 million for assessed
contribution to U.N. peacekeeping activities (CIPA) account. The Secretary of State was to
provide the Appropriations Committees with a copy of the most recent U.N. biennium budget
and to notify the Committees of any United Nations action to increase funding for any U.N.
program without identifying an offsetting decrease elsewhere in the U.N. budget causing the
United Nations to exceed its adopted biennium budget for the 2004-2005 of $3.16 billion.
The measure included a rescission of 0.54% for any discretionary account in the Act.
The measure directed that $1.5 million of the money appropriated for the U.S. Institute
for Peace be used for the expenses of a Task Force on the United Nations. The Institute is
to create the task force consisting of no more than a total 12 experts drawn from the
American Enterprise Institute, Brookings Institution, Council on Foreign Relations, Center
for Strategic and International Studies, Hoover Institution, and the Heritage Foundation. The
task force is to study U.N. efforts to meet the goals of its Charter and submit its report within
180 days of enactment.
The conference committee expressed concern that the U.N. Oil for Food Program was
marred by allegations of corruption and that it abetted a tyrannical regime and undermined
the international community’s good will. It directed the Department of State to bring all
necessary resources to bear on investigation of the Oil for Food Program and provide all
requested documents to the U.S. Congress and to provide any requested assistance to the
U.N. Secretary-General’s Independent Inquiry Committee.
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On September 15, 2004, the Senate Committee on Appropriations reported (S.Rept.
108-344) on S. 2809 funding the Departments of Commerce, Justice and State for FY2005.
The Committee recommendation of $1.020 billion for U.S. assessed contributions to
international organizations (CIO) is $173.38 million below the amount requested by the
Administration; and the $574 million recommended for assessed contributions to U.N.
peacekeeping activities (CIPA) is $76 million below the amount requested by the
Administration. The Committee recommended allocation of $70.0 million for the IAEA,
$12.7 million for ICAO, $1.35 million for IMO, and $1.1 million for WIPO. The Committee
also recommended $6.0 million to subsidize the cost of $1.2 billion loan to the United
Nations to finance the renovation of its headquarters. The Committee also recommended that
the Department of State urge the United Nations to make available to congressional
committees investigating the Oil-for-Food program all relevant documents, and ensure that
the Volcker Inquiry is conducted rigorously.
H.R. 4754 as passed by the House (397 to 18) on July 8, 2004 appropriated $1.19421
billion for U.S. assessed contributions to international organizations (CIO) and $650 million
for U.S. assessed contributions to U.N. peacekeeping activities (CIPA). During House floor
consideration of the bill, a number of amendments were offered to cut CIO funding. On July
7, Representative Paul’s amendment to prohibit funds for UNESCO failed by a vote of 135
to 333, and his amendment to prohibit U.S. contributions to the United Nations or U.N.
affiliated agencies failed by a vote of 83 to 335. The next day, Representative Smith’s
(Michigan) amendment to reduce CIO funding by $20 million to express concern about the
alleged corruption in the U.N. Oil-for-Food program failed by vote of 129 to 291.
On July 1, 2004, the House Committee on Appropriations reported H.R. 4754 as an
original measure. The Committee recommended full funding for CIO and CIPA. The
Committee expressed its support for the U.S. policy of zero nominal growth budgets for
international organizations and noted that if the United Nations proposed exceeding its $3.16
billion biennial budget, the Committee should be notified before consideration and adoption
of such a proposal. While recommending full payment of U.S. assessed U.N. budget dues,
the Committee expressed concern about allegations of corruption in the U.N. Oil-for-Food
Program; U.N. need to do more about the crises in Sudan; and charges of sexual abuse of
minors related to U.N. peacekeeping operations. The Committee included $6 million for
costs of a direct loan to the United Nations for costs of renovation U.N. headquarters in New
York to subsidize up to $1.2 billion total loan principal.
The Bush Administration requested $1.19421 billion for U.S. assessed contributions to
international organizations (CIO) of which $819.0 million was for assessed U.N. system
organizations including $362.2 million for the U.N. regular budget and $6.0 million for the
U.N. Capital Master Plan, a loan subsidy relating to the renovation of the U.N. headquarters
complex in New York. In addition $650 million was requested for assessed contributions
to U.N. peacekeeping activities (CIPA).
FY2004 Funding for U.N. Assessed Budgets
Appropriations. P.L. 108-199 (H.R. 2673), the Consolidated Appropriations Act for
FY2004, included $1.010,463 billion for assessed contributions for the international
organizations (CIO) account, and $550.2 million for assessed contributions for the
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contributions to U.N. peacekeeping activities (CIPA) account. The measure included a
requirement that non-defense spending be cut by 0.59% across the board.
On September 5, 2003, the Senate Appropriations Committee reported (S.Rept. 108-
144) on S. 1585 making appropriations for the Departments of Commerce, Justice, and State
including assessed contributions for international organizations and U.N. peacekeeping
operations. The Committee recommended $921.888 million for assessed contributions to
international organizations and $482.649 million for U.N. peacekeeping activities. The
Committee deleted $71.429 million requested funding for U.S. return to UNESCO, noting
that the Committee did not consider UNESCO reformed. The Committee report directed that
the Inspector General of the Department of State conduct an annual audit of UNESCO to
determine the status of reform; the qualifications of UNESCO’s staff; its procedures for
hiring and promoting personnel, a detailed breakdown of expenditures; and how U.S.
membership would advance the goals of the organization and U.S. priorities.
The Senate Appropriations Committee also deleted $11.779 million from requested
funding for the U.N. regular budget because the Committee did not want to provide funding
for the U.N. Human Rights Commission which in its view had too long been dominated by
known human rights violators. In addition, of the funds made available for U.S. contribution
to the U.N. regular budget, $10 million is to be for reimbursement of the city of New York
for unanticipated costs in providing protection to foreign officials associated with the United
nations in the aftermath of September 11, 2001. The Committee also expressed its views on
war crimes tribunals. It directed the International Criminal Tribunal for Rwanda (ICTR) to
complete its work by 2004 and the International Criminal Tribunal for the former Yugoslavia
(ICTY) to complete its work by 2006. The Committee also expressed its support for the
Special Court for Sierra Leone and directed the United Nations Mission in Sierra Leone
(UNAMSIL) to provide the necessary support for the Court.
On July 23, 2003, the House passed H.R. 2799 (400-21) making appropriations for the
Department of Commerce, Justice, and State for FY2004, including $1.010 billion for
assessed contribution to international organizations (CIO) and $550.2 million for assessed
contributions to U.N. peacekeeping activities (CIPA). In its report (H.Rept. 108-221) on this
measure, the Committee on Appropriations included the full amount requested by the
President for U.S. return to UNESCO. The Committee noted that it expects the Department
of State to work aggressively to ensure that UNESCO employs more Americans, especially
at senior levels, and if the 2004-2005 UNESCO budget is increased that the increase should
focus on management and administrative reforms identified by the General Accounting
Office. The Committee also urged the Department of State to consider the appointment of
a single representative with the rank of ambassador to represent the United States at
UNESCO and at the Organization for Economic Cooperation and Development in Paris,
France.
During floor debate on H.R. 2799, an amendment offered by Representative Paul to
strike funding for UNESCO was defeated by a vote of 145 to 279.
For FY2004 President Bush requested $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.
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Authorizations. On July 16, the House passed H.R.1950 (382-42) authorizing
appropriations for assessed and voluntary contributions to international organizations. As
passed the measure authorizes $1.010 billion for FY2004 and $1.041 billion for FY2005 for
the CIO account; $550.2 million for FY2004 and such sums as may be necessary for FY2005
for the CIPA account. It also recommended such sums as may be necessary to offset adverse
currency fluctuations. The House endorsed raising the cap on U.S. assessed peacekeeping
contributions to 27.1% for assessments during calendar years 2005 and 2006. The measure
as passed also includes the U.S. International Leadership Act of 2003 to strengthen U.S.
multilateral diplomacy and directed the President to seek to reform the criteria for leadership
in international organizations and multilateral institutions to exclude from leadership
positions in such organizations, countries which sponsor international terrorism or are under
U.N. Security Council sanctions. The legislation also called for submission of a plan by the
President within 180 days of enactment relating to making U.S. contributions to certain
international organizations at the beginning of the calendar year.
As passed H.R. 1950 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.” H.R. 1950 updated the 1946 law governing the U.S.
National Commission for UNESCO.
During House consideration, an amendment to prohibit funding for U.S. contributions
to the United Nations or any affiliated agency was defeated by a vote of 74 to 350, and an
amendment to reduce the U.S. assessment to the largest assessed contribution of any other
permanent member of the U.N. Security Council was defeated by vote of 187 to 237.
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.
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.
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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
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.)
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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.
Table 2. U.S. Contributions to Current U.N. Assessed Regular
Budgets
(in millions of $)
FY2002
FY2003
FY2004
FY2005
Actual
Actual
Estimate
Request
United Nations
266.149
279.377
340.816
362.193
U.N. Capital Master Plan
—
5.550
—
6.00
U.N. — War Crimes Tribunals
23.767
25.811
30.027
30.855
Iraq War Crimes Commission
—
——
——
——
Food and Agriculture
Organization
72.741
72.457
72.457
83.315
International Atomic Energy
Agency
47.475
57. 984
62.720
69.595
International Civil Aviation
Agency
12.011
12.464
12.608
12.650
International Labor Organization
55.308
56.661
62.735
64.857
International Maritime
Organization
1.093
1.202
1.344
1.304
International Telecommunications
Union
5.801
6.983
7.385
7.079
United Nations Educational,
Scientific and Cultural
Organization
—
—
81.999
71.909
Universal Postal Union
1.303
1.563
1.624
1.559
World Health Organization
108.109
93.615
93.615
96.191
World Intellectual Property
Organization
0.822
0.898
1.053
1.016
World Meteorological
Organization
8.324
9.223
10.341
10.483
Total
602.904
623.788
778.724
819.006
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U.N. Voluntary Programs
FY2005. The appropriate level of funding for U.N. voluntary programs continues to
be a congressional concern. P.L. 108-447 included $319.494 million for voluntary
contributions to the international organizations and programs account (IO&P) as well as $53
million for voluntary contributions to IAEA appropriated in another account.
H.R. 4818 as passed by the House (365 to 41) on July 15, 2004, included $323.45
million for U.S. voluntary contributions to the international organizations and programs
(IO&P) account. $53 million for a voluntary contribution to the IAEA was included in
another account. During House floor debate on H.R. 4818, Representative Buyer introduced
an amendment that prohibited use of any funds appropriated by this measure to be used by
any U.S. government official to request the United Nations to assess the validity of elections
in the United States. The amendment was agreed to by a vote of 243 to 161.
On July 13, 2004, the House Appropriations Committee reported (H.Rept. 108-599)
H.R. 4818 as an original measure. The Committee recommended $323.45 million for
voluntary contributions to the international organizations and programs (IO&P) account, $19
million more than requested by the Administration. The Committee recommended not less
than $107 million for UNDP; not less than $7 million for the U.N. Voluntary Fund for
Victims of Torture; not less than $125 million for UNICEF; and $3 million for UNIFEM (of
which $1 million would be for a first time contribution to the Trust Fund in Support of
Actions to Eliminate Violence Against Women).
The Administration requested $304.45 million for voluntary contributions for the
international organizations and programs account. In addition, $53 million was requested
for voluntary contributions to IAEA in another account.
FY2004. P.L. 108-199 (H.R. 2673), the consolidated Appropriation s Act for FY2004,
included $321.65 million for voluntary contributions to the international organizations and
programs (IO&P) account including $120 million for UNICEF and $102 million for UNDP.
$53 million for voluntary contributions to IAEA was appropriated in another account.
On July 23, 2003, by a vote of 370 to50, the House passed H.R. 2800 making
appropriations for foreign operations including $194.550 million for voluntary contributions
to the IO&P account. H.R. 2800 includes $120 million for UNICEF and $52.9 million for
voluntary IAEA programs in other accounts. During House consideration, an amendment by
Representative Nadler to withhold funds for the United Nations Relief and Works Agency
(UNRWA) failed when a point of order was sustained against it.
H.R. 1950 (Foreign Relations Authorizations), as passed by the House on July 16,
authorizes $342.555 million (reduced by $25 million) for FY2004 and $345 million
(reduced by $25 million) for FY2005 for voluntary contributions to the international
organizations and programs (IO&P) account. This includes $6 million for FY2004 and $7
million for FY2005 for the U.N. Voluntary Fund for Victims of Torture. As reported by the
House International Relations Committee (H.Rept. 108-105, part 1), H.R. 1950 authorized
$50 million for UNFPA. During floor debate the House voted 216-211 to delete the UNFPA
provision.
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On May 29 the Senate Foreign Relations Committee reported S. 1161 (S.Rept. 108-56)
(foreign assistance authorization for FY2004) recommending funding of $314.5 million for
voluntary contributions to the international organizations and programs account (IO&P) and
$50 million for voluntary contributions for IAEA in another account.
President Bush requested $314.6 million for FY2004 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.
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.
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. 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, but it was determined to be ineligible
to receive U.S. funds. Congress appropriated not more than $34 million for FY2004 for
UNFPA. For FY2005 the Administration requested $25 million in “reserve” which might
be used for UNFPA if it is deemed eligible. (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)
(in millions of $)
FY2002
FY2003
FY2004
FY2005

Actual
Actual
Estimate
Request
U.N. Development Program (UNDP)
97.100
100.000
101.398
90.000
U.N. Children’s Fund (UNICEF)a
120.000
119.220
119.292
120.000
World Food Program (WFP)
6.000
—
—
6.000
U.N. Development Fund for Women
1.000
1.000
0.994
1.000
(UNIFEM)
International Contributions for
Scientific, Educational, & Cultural
1.750
1.750
1.889
0.500
Activities
WMO Voluntary Coop. Program
2.000
2.000
1.988
2.000
U.N. Environment Program (UNEP)
10.750
10.500
10.935
10.025
Montreal Protocol Multilateral Fund
25.000
23.000
20.876
21.500
International. Conservation
Programsb (CITES, ITTO, IUCN,
7.700
6.225
6.362
6.225
Ramsar, CCD)
U.N. Voluntary Fund Torture
5.000
5.000
5.468
5.000
Victims
Climate Stabilization Fund (IPCC,
7.400
6.000
5.567
5.600
UNFCC)
ICAO Aviation Security Fund
0.300
0.300
0.994
1.000
U.N. Voluntary Fund for Advisory
1.500
1.500
1.491
1.500
Services & Technical Cooperation
IAEA Voluntary Programsc
49.00
52.900
52.687
53.000
Center for Human Settlements
—
0.250
0.746
—
IMO Maritime Security Programs
0.100
U.N. Population Fund (UNFPA)d
—
—
—
—
Reserve — To Be Allocated
—
—
24.853
25.000
Total
$334.500
329.645
355.540
348.45
Note: 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.
a. Appropriated under Child Survival Program in FY2002 and FY2003.
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b. Only CITES is a U.N. program.
c. Requested and Appropriated under Non-Proliferation, Antiterrorism, Demining and Related Programs
account.
d. Congress appropriated $34 million for FY2002 and $25 million for FY2003 but the State Department
determined that UNFPA was ineligible for the U.S. contribution. For FY2004 and FY2005 the funds in
the “reserve” presumably would be available for UNFPA if deemed eligible for U.S. contributions.
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 2002 and 27.4% in 2003 and 2004. P.L. 108-447 raised the cap
to 27.1% for calendar year 2005. (For detailed discussion, see CRS Issue Brief IB90103,
United Nations Peacekeeping: Issues for Congress.)
FY2005. P.L. 108-447 included $490 million for FY 2005 U.S. assessed contributions
to U.N. peacekeeping activities. The Administration requested $650 million for FY2005 for
U.S. assessed contributions to U.N. peacekeeping operations.
FY2004. P.L. 108-199 (H.R. 2673) included $550.2 million for FY2004 U.S. assessed
contributions to U.N. peacekeeping activities, the amount requested by the Bush
Administration.
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.
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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.
P.L. 108-199 (H.R. 2673)
Consolidated Appropriations Act for FY2004. Conference report (H.Rept. 108-401)
filed on November 25, 2003. House agreed by a vote of 242 to 176 to the conference report
on December 8, 2003. Senate agreed by vote of 65 to 28 on January 22, 2004. Signed into
law on January 23.
P.L. 108-447 (H.R. 4818)
Consolidated Appropriations Act for FY2005. Conference report (H. Rept 108-792)
filed on November 20, 2004. On November 20, the House agreed to the conference report
by a vote of 344 to 51 and the Senate by a vote of 65 to 30. Singed into law on December 8.
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 Participation in the United Nations. Report by the
Secretary of State to Congress for the Year2002. Washington, U.S. Govt. Print. Off.,
2003. 237 p.
U.S. General Accounting Office. United Nations: Reforms Progressing, but Comprehensive
Assessments Needed to Measure Impact. GAO-04-339. February 2004. Washington,
2004. 59 p.
CRS Reports
CRS Report RL30985. UNESCO Membership: Issues for Congress, by Vita Bite and Lois
McHugh.
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