Order Code IB86116
CRS Issue Brief for Congress
Received through the CRS Web
United Nations System Funding:
Congressional Issues
Updated November 30, 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
Task Force on the United Nations
U.N. Reform Efforts
U.S. Withholding
Arrearages
The Helms-Biden Agreement and Payment of U.N. Arrears
FY2006 Funding for U.N. Assessed Budgets
FY2005 Funding for U.N. Assessed Budgets
FY2004 Funding for U.N. Assessed Budgets
Appropriations
U.N. Voluntary Programs
FY2006
FY2005
FY2004
Issues
U.N. Peacekeeping Operations
FY2006
FY2005
FY2004
LEGISLATION
FOR ADDITIONAL READING

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United Nations System Funding: Congressional Issues
SUMMARY
Congressional debate over U.N. funding
requested $1.2965 billion for U.S. assessed
focuses on the following questions: (1) What
contributions to international organizations
is the appropriate level of U.S. funding for
(CIO) of which $931.362 million is for U.N.
U.N. system operations and programs? (2)
system organizations including $438,952
What U.S. funding actions are most likely to
million for the U.N. regular budget. The
produce a positive continuation of U.N. sys-
Administration also requested $1.0355 billion
tem reform efforts?
for U.S. assessed contributions to U.N. peace-
keeping activities (CIPA), as well as $780
The U.N. system includes the parent
million in supplemental FY2005 funding for
U.N. organization, a number of affiliated
that account ($680 million was appropriated in
agencies, voluntary funds and programs, and
FY2005 supplemental funding for U.N. peace-
peacekeeping operations. Participating states
keeping in P.L. 109-13) In addition, $281.908
finance the system with voluntary and as-
million was requested for U.N. voluntary
sessed contributions. For nearly 60 years, the
contributions to organizations in the interna-
United States has been the single largest finan-
tional organizations and programs (IO&P)
cial contributor to the U.N. system.
account including $114 million for UNICEF
and $95 million for UNDP. Fifty million
Both Congress and the executive branch
dollars for voluntary contributions to IAEA
have been pressing U.N. system organizations
programs was requested in another account.
to reform, especially to improve management
and budgeting practices. Indeed, Congress
FY2005. P.L. 108-447, the Consolidated
linked payment of U.S. financial arrears to
Appropriations Act for FY2005, included
U.N. reforms. In recent years the United
$1.182 million for U.S. assessed contributions
Nations has undertaken reforms including a
for international organizations (CIO); $490
restructuring of its financial assessment
million for assessed contributions for U.N.
system, allowing the United States to pay
peacekeeping activities (CIPA); and $319.494
some of its arrears.
million for voluntary contributions for the
international organizations and programs
FY2006. P.L.109-108 (H.R. 2862),
(IO&P) account. In addition, $53 million was
making appropriations for Science, the De-
included for voluntary contributions to IAEA
partment of State, Justice, and Commerce and
in another account.
related agencies included $1.166 billion for
U.S. assessed contributions to international
FY2004. P.L. 108-199, the Consolidated
organizations (CIO), and $ 1.035 billion for
Appropriations Act for FY2004 included
assessed contributions to international peace-
$1.010 billion for U.S. assessed contributions
keeping activities (CIPA). P.L.109-102 (H.R.
to international organizations (CIO); $550.2
3057), making appropriations for foreign
million for assessed contributions to U.N.
operations included $329.458 million for U.S.
peacekeeping activities (CIPA); and $321.65
voluntary contributions to the International
for voluntary contributions for the interna-
organizations and programs (IO&P) account.
tional organizations and programs account. In
In addition $50 million was appropriated for
addition, $53 million for voluntary IAEA
voluntary contributions to the IAEA in an-
programs was appropriated in another ac-
other account. The Bush Administration
count.
Congressional Research Service ˜ The Library of Congress

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MOST RECENT DEVELOPMENTS
P.L. 109-102 (H.R. 3057, signed into law on November 14, 2005), included for FY2006
$329.458 million for U.S. voluntary contributions to the international organizations and
programs (IO & P) account. P.L. 109-108 ( H.R. 2862, signed into law on November 22,
2005) providing funding for Science, the Departments of States, Justice, and Commerce for
FY2006 included $1.166 billion for assessed contributions to international organizations
(CIO), and $1.035 billion for assessed contributions to international peacekeeping activities
(CIPA).
BACKGROUND AND ANALYSIS
The United States has been, and remains, the single largest contributor to the U.N.
system. For calendar year 2003, U.S. contributions to the U.N. system totaled more than $3
billion. The total included about $762 million in assessed contributions to the U.N. regular
budget and U.N. affiliated agencies; about $ 1.1 billion in assessed contributions to U.N.
peacekeeping activities; about $72 million for war crimes tribunals; and voluntary
contributions (both cash and in kind) to U.N.-affiliated organizations and programs (mainly
for humanitarian and development 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 “Science, Departments of State,
Justice, Commerce, and related agencies” 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
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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 48 members pay the minimum or 0.001%. The U.S. assessment
for 2005 is $439.612 million. Regardless of the size of assessment, each member has one
vote on U.N. budget decisions, although budgets since 1988 have been adopted by
consensus.
Specialized agencies, while linked to the United Nations, are autonomous in executive,
legislative, and budgetary powers. Some agencies follow the U.N. scale in making
assessments; other agencies use their own formulas, which often result in lower U.S.
assessments.
If there were no maximum and minimum assessment levels for the U.N. regular budget
and charges were based exclusively on a ratio of a country’s gross national product, the
United States would be assessed about 30% and some very small and poor countries might
be assessed less than 0.001%. In 2005, the top three contributors (United States, Japan, and
Germany) were assessed a total of 50.13% of the U.N. regular budget. The top 10
contributors (paying 76.44% of the total) to the regular U.N. budget according to the scale
of assessments adopted by the General Assembly for 2005 were as follows.
Table 1. Top Ten U.N. Regular Budget Contributors for 2005
Assessments for 2005
Member State
Percent of Budget
in millions of U.S.$
United States*
22.00
439.612
Japan
19.47
389.016
Germany
8.66
173.087
United Kingdom*
6.13
122.432
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Assessments for 2005
Member State
Percent of Budget
in millions of U.S.$
France*
6.03
120.494
Italy
4.89
97.614
Canada
2.81
56.210
Spain
2.52
50.356
China*
2.05
41.024
Mexico
1.88
37.627
*Permanent members of the U.N. Security Council
For 2005, the other permanent member of the Security Council, the Russian Federation, was
assessed at 1.10%, $21.981 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 past 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.
More recently, on June 17, 2005, the House by vote of 221 to 184 passes H.R. 2745,
the Henry J. Hyde United Nations Reform Act of 2005. The wide-ranging and complex
measure requires numerous State Department certifications and reports. The measure would
withhold 50% of U.S. assessed dues to the U.N. regular budget beginning with calendar year
2007 (financed from U.S. FY2008 funds), if 32 of 40 changes are not in place including 15
mandatory reforms. Among the changes sought by the legislation are: changing funding for
18 U.N. programs to be totally voluntary; creation of an Independent Oversight Board;
establishment of a U.N. Office of Ethics; barring membership on human rights bodies to
countries under U.N. investigation for human rights abuses; reduction in funding for General
Assembly affairs and conference services as well as for public information; and reform in
U.N. peacekeeping and establishment of a Peacebuilding Commission. No new or expanded
peacekeeping operations would be allowed until the Secretary of State had certified that U.N.
peacekeeping reforms had been achieved.
During floor debate on H.R. 2745 a number of additional provisions were adopted
including limiting U.S. contributions to the U.N. Relief and Works Agency (UNRWA);
calling for zero nominal growth in the assessed budgets of the United Nations and its
specialized agencies; the Independent Oversight Board is to evaluate the final report of the
Independent Inquiry Committee on the Oil for Food Program; the U.S. Office of
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Management and Budget is to provide congress a report on all U.S. contributions to the
United Nations; and calls for lifting of the prohibition on gratis military personnel. The Bush
Administration has expressed reservations about the House legislation because of its
withholding provisions and because it infringes on the President’s authority to carry out
foreign affairs. H.R. 2745, as passed by the House, was included in H.R. 2601, Foreign
Relations Authorization for FY2006 and 2007 as passed by the House on July 20.
A U.N. reform measure has also been introduced in the Senate, S. 1383. The Senate
measure would allow the President to withhold 50% of U.S. contributions to the United
Nations if the President determined that the United Nations was not making sufficient
progress on reforms.
Task Force on the United Nations. Appropriations legislation (P.L. 108-447) for
FY2005 included a provision directing 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 was directed to create a task force consisting of no more than a total of 12 experts
to study U.N. efforts to meet the goals of its Charter and recommend an actionable agenda
for the United States on the United Nations. The Task Force was co-chaired by former
Speaker of the House of Representatives, Newt Gingrich, and former Senate majority leader,
George Mitchell. It released its report on June 15, 2005. Among its recommendations, the
Task Force suggested: creation of an Independent Oversight Board and a Chief Operating
Officer; allowing the U.N. Secretary-General to replace top officials; sunset provisions for
all programs and activities; disclosure standards for top officials; more independence for the
Department of Peacekeeping; and improve the capacity to stop genocide and mass killing.
The Bush Administration has also expressed support for U.N. reforms. It has called for
measures to improve internal oversight and accountability, to identify cost savings, and to
allocate resources to high priority programs and offices. It has expressed support for creation
of a Peacebuilding Commission, for replacement of the commission on Human Rights with
a smaller action-oriented Human Rights Council, and support for a Democracy Fund
(originally proposed by President Bush in September 2004). The U.S. government has
expressed its openness to Security Council reform and expansion, but not at the expense of
effectiveness.
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. Ten annual reports on the
activities of the office through June 30, 2004, 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
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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
December 2000, the U.N. General Assembly authorized implementation of results based
budgeting for the 2003-2003 biennium budget. In 2001, Secretary-General Annan (whose
first term expired at the end of 2001) was elected to another five-year term. Urging the
United Nations to align its activities to doing what matters in the 21st century, in September
2002, Secretary-General Annan submitted a report calling for additional reforms.
On December 2, 2004, a group appointed by the Secretary-General, called the High-
level Panel on Threats, Challenges, and Change, issued its report titled, A More Secure
World: Our Shared Responsibility. The report acknowledges failures and shortcomings in
the organization and offers many recommendations for significant changes including
enlarging the Security Council, creating a Peacebuilding Commission, and strengthening the
role of the Secretary-General. Many of these recommendations would require
implementation by U.N. member states. Drawing on some of the proposals in the High-level
Panel’s report, the Secretary-General on March 21, 2005, issued his own report, In Larger
Freedom: Towards Development, Security and Human Rights for All. The Secretary-
General hoped that these reform proposals would form the basis for discussion and perhaps
final decision at a U.N. summit in September 2005. The 2005 U.N. Summit (September 14-
16) without a vote agreed to an outcome document which included some reform measures,
but the details of such measures were mainly left for continued discussions during the current
session of the U.N. General Assembly.
In May 2005, the Secretary-General appointed Christopher Burnham to be U.N. Under
Secretary-General for Management. (Burnham had previously been at the U.S. Department
of State in a similar capacity). This U.N. position has been held by Americans in recent years
(Catherine Bertini, preceded by Joseph Connor). 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).
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The budget for the 2000-2001 biennium was $2.562 billion and that for 2002-2003 was
$2.891 billion. The budget for 2004-2005 is $3.608 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 relating
to the Palestinians. In addition, since no waiver of the 25% cap on U.S. contributions for
U.N. peacekeeping was enacted for FY2006, the United States will also be withholding for
U.N. peacekeeping (difference between U.N. assessment of about 26.5% and U.S. statutory
limit of 25%).
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, 2005, 23 countries were in that status.
According to the United Nations, despite recent U.S. arrears payments, the United States
(as of December 31, 2004), still owed assessed contributions of $ 975.0 million ($240.5
million for the U.N. regular budget, $12.0 million for International Tribunals, and $722.5
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.
The Helms-Biden Agreement and Payment of U.N. Arrears
P.L. 106-113 incorporated the Helms-Biden agreement and authorized appropriations
for payment of some 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
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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).
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%. P.L. 108-
447 raised the cap to 27.1% for calendar year 2005.
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).
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FY2006 Funding for U.N. Assessed Budgets
P.L. 109-108 (H.R. 2862, signed into law on November 22, 1005) providing funding
for Science, the Departments of States, Justice, and Commerce for FY2006 included $1.166
billion for assessed contributions to international organizations (CIO), and $1.035 billion for
assessed contributions to international peacekeeping activities (CIPA). The Secretary of
State, at the time of the President’s budget submission to Congress, is to transmit to the
Appropriations Committees the most recent biennial U.N. budget; notify the same
committees of any U.N. action to increase funding for any U.N. program without identifying
offsetting decrease elsewhere in the U.N. budget and cause the U.N. budget for the 2006-
2007 biennium to exceed the revised U.N. budget level for the 2004-2005 biennium.
The Administration requested $1.2965 billion for U.S. assessed contributions to
international organizations (CIO) of which $931.362 million was for assessed U.N. system
organizations including $438.952 million for the U.N. regular budget. In addition, $1.0355
billion was requested for assessed contributions to U.N. peacekeeping activities (CIPA).
Another $780 million was requested for U.N. peacekeeping operations in supplemental
FY2005 appropriations.
H.R. 3057 as passed by the Senate on July 20 included $1.166 billion for U.S. assessed
contributions to CIO (more than $130 million below the Administration’s request), and
$1.035 billion for assessed peacekeeping activities. The Senate also agreed to an amendment
expressing the sense of the Senate that the use of funds for any loan to the United Nations
for the renovation of its headquarters in New York not exceed $600,000. The Senate
Committee on Appropriations requested a number of State Department reports during its
considerations of the legislation: on assessment rates and other information on the 15 U.N.
member countries with the greatest gross domestic products, an evaluation of U.S.
participation in non-treaty obligated international organizations, and on changes in the World
Tourism Organizations since U.S. withdrawal and potential benefits of U.S. participation.
H.R. 2862 as passed by the House (417-7) on June 16, 2005 appropriated $1.166 billion
for U.S. assessed contributions to CIO. This was more than $130 million below the
Administration request. In addition, by a voice vote, the House agreed to an amendment
offered by Representative Garrett which increased funding for state and law enforcement
grants by $22 million. The amount was taken by reducing U.S. contributions to the United
Nations by that amount. An amendment offered by Representative Paul prohibiting any U.S.
contribution to the United nations or any affiliated agency was defeated by a vote of 65 to
357.
S. 600, authorizing appropriations for foreign relations for FY2006 and FY2007, as
reported (S.Rept. 109-35) by the Senate Foreign Relations Committee, authorized $1.2965
billion for U.S. assessed contributions to international organizations (CIO), and $1.0355
billion for U.S. assessed contributions to U.N. peacekeeping activities (CIPA) account.
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
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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.
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
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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
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.
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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.
Table 2. U.S. Contributions to Current U.N. Assessed Regular
Budgets
(in millions of $)
FY2003
FY2004
FY2005
FY2006
Actual
Actual
Estimate
Request
United Nations
279.377
340.472
362.193
438.952
U.N. Capital Master Plan
5.550
—
6.00
10.595
U.N. — War Crimes Tribunals
25.811
32.656
35.039
36.793
Food and Agriculture Organization
72.457
72.457
93.685
91.76
International Atomic Energy Agency
57. 984
68.462
82.650
83.788
International Civil Aviation Agency
12.464
12.629
13.649
14.894
International Labor Organization
56.661
68.055
65.229
63.648
International Maritime Organization
1.202
1.366
1. 473
1.527
International Telecommunications
Union
6.983
7. 976
8.380
7.913
United Nations Educational,
Scientific and Cultural Organization
—
84.138
80.857
71.468
Universal Postal Union
1.563
1.697
1.854
1.728
World Health Organization
93.615
93.615
96.191
96.111
World Intellectual Property
Organization
0.898
1.058
1.173
1.131
World Meteorological Organization
9.223
9.963
11.900
11.054
Total
623.788
794.542
860.273
931.362
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U.N. Voluntary Programs
FY2006. The appropriate level of funding for U.N. voluntary programs continues to
be a congressional concern. P.L. 109-102 (H.R. 3057, signed into law on November 14,
2005), included for FY2006 $329.458 million for U.S. voluntary contributions to the
international organizations and programs (IO & P) account. The conference report (H. Rept.
109-265) recommended that $127 million be for UNICEF and $110 million for UNDP; $50
million was recommended form another account for IAEA voluntary programs.
H.R. 3057 as passed by the Senate on July 20, included a total of $330.0 million for
FY2006 for U.S. voluntary contributions to programs in the international organizations and
programs (IO & P) account as had been recommended by the Senate Committee on
Appropriations in its report, S.Rept. 109-96. The Committee also recommended that of the
amounts appropriated in the account, $128 million be for UNICEF, and $110 million for
UNDP. The Committee recommended $10 million for the proposed U.N. Democracy Fund
in another account, and recommended that $10 million for the World Food Program come
from funds for USAID’s Bureau for Democracy, Conflict, and Humanitarian Assistance.
H.R. 3057, as passed by the House on June 28, included $328.958 million for voluntary
contributions for FY2006 for the IO& P account as had been recommended by the House
Committee on Appropriations in its report, H.Rept. 109-152. The Committee also
recommended that of the amounts appropriated in the account, not less than $110 million be
for UNDP, not less than $127 million for UNICEF, $5 million for UNIFEM (of which $3.5
million for the Fund and $1.5 million for the Trust Fund in Support of Actions to Eliminate
Violence Against Women), and noted the importance of UNEP’s work in the Palestinian
territories.
S. 600, as reported by the Senate Foreign Relations Committee (S.Rept. 109-35),
authorized $281.908 million for voluntary contributions for the international organizations
and programs (IO&P).
The Administration requested $281.908 million for voluntary contributions for the
international organizations and programs (IO&P) account including $114 million for
UNICEF and $95 million for UNDP. $50 million for IAEA voluntary programs was
requested in another account.
FY2005. 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.
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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.
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.
Issues. An extremely contentious issue has been funding for the U. N. Population
Fund (UNFPA). (For detailed discussion, see CRS Issue Brief IB96026, Population
Assistance and Family Planning Programs: Issues for Congress, by Larry Nowels.)
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.
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
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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.
Table 3. U.S. Voluntary Contributions to U.N. Programs Financed
Through the Foreign Assistance Act
(International Organizations and Programs)
(in millions of $)
FY2003
FY2004
FY2005
FY2006

Actual
Actual
Estimate
Request
U.N. Development Program (UNDP)
100.000
101.398
108.128
95.000
U.N. Children’s Fund (UNICEF)a
119.220
119.292
124.000
114.000
U.N. Development Fund for Women
1.000
0.994
1.984
0.950
(UNIFEM)
UNIFEM Trust Fund
—
—
0.992
—
International Contributions for Scientific,
1.750
1.889
0.837
1.000
Educational, & Cultural Activities
WMO Voluntary Coop. Program
2.000
1.988
1.984
1.900
U.N. Environment Program (UNEP)
10.500
10.935
10.912
9.524
Montreal Protocol Multilateral Fund
23.000
20.876
21.328
21.500
International. Conservation Programsb
6.225
6.362
6.349
5.914
(CITES, ITTO, IUCN, Ramsar, CCD)
U.N. Voluntary Fund Torture Victims
5.000
5.468
6.944
4.750
Climate Stabilization Fund (IPCC,
6.000
5.567
5.952
5.320
UNFCC)
ICAO Aviation Security Fund
0.300
0.994
0.992
0.950
U.N. Voluntary Fund for Advisory
1.500
1.491
1. 488
1.425
Services & Technical Cooperation
IAEA Voluntary Programsc
52.900
52.687
52.576
50.000
Center for Human Settlements
0.250
0.746
0.149
—
IMO Maritime Security Programs
—
—
0. 099
0.400
Reserve — To Be Allocated
—
—
24.800
—
U.N. International Democracy Fund
—
—
—
10.000
(UNIDF)
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FY2003
FY2004
FY2005
FY2006

Actual
Actual
Estimate
Request
U.N. Office for Coordination of
—
—
—
0.600
Humanitarian Affairs (UN OCHA)
Total
329.645
355.540
369.514
323.233
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.
b. Only CITES is a U.N. program.
c. Requested and Appropriated under Non-Proliferation, Antiterrorism, Demining and Related Programs
account.
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, by Marjorie Ann Browne.)
FY2006. P.L. 198-108 included $1.0355 billion for FY2006 U.S. assessed
peacekeeping activities. The Administration had requested $1.0355 billion for FY2006 for
U.S. assessed contributions to U.N. peacekeeping activities (CIPA).
FY2005. P.L. 108-447 included $490 million for FY2005 U.S. assessed contributions
to U.N. peacekeeping activities. Another $780 million was requested for U.N. peacekeeping
in supplemental FY2005 appropriations. P.L. 109-13 included $680 million. The
Administration had 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.
LEGISLATION
P.L. 109-13 (H.R. 1268)
Making emergency supplemental appropriations for FY2005. Introduced as an original
bill on March 11, 2005. Reported (H.Rept. 109-16) by the House Appropriations Committee
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on March 11. Agreed to in House (388-43) on March 16. Reported (S.Rept. 109-52) by the
Senate Committee on Appropriations on April 6, 2005. Agreed to in Senate on April 21.
Conference report (H.Rept. 109-72) filed on May 3, House agreed to conference report on
May 5, and the Senate on May 10. Signed into law on May 11, 2005.
P.L. 109-102 (H.R. 3057)
Making appropriations for foreign operations, and related programs for FY2006.
Reported as an original bill on June 24, H.Rept. 109-152. Passed the House on June 28 by
vote of 393-32. Reported by Senate Committee on Appropriations on June 30 with an
amendment in the nature of a substitute, S.Rept. 109-96. Passed in Senate by vote of 98-1
on July 20. Conference report (H. Rept. 109-265) filed on November 2, House agreed to
conference report on November 4 by vote of 358 to 39; and the Senate agreed (91to 0) to the
report on November 10. Signed into law on November 14, 2005.
P.L. 109-108 (H.R. 2862)
Making appropriations for Science, the Departments of State, Justice, and Commerce
for FY2006. Reported (H.Rept. 109-118) in the House as an original measure on Jun 10.
House agreed (417-7) to the measure on June 16. Conference report (H. Rept. 109-272) filed
on November 7. The House agreed (397 to 19) to the conference report on November 9, and
the Senate agreed (94 to 5) on November 16. Signed into law on November 22, 2005.
H.R. 2601 (Christopher Smith)
To authorize appropriations for the Department of State for FY2006 and 2007.
Introduced on May 24, and on June 9, the House Committee on International Relations voted
44-0 to favorably report the measure, H.Rept. 109-168. On July 20, passed House, 351-78.
H.R. 2745, as passed by the House was added to this measure on July 19.
H.R. 2745 (Hyde)
To reform the United Nations. Introduced on June 7, 2005. House Committee on
International Relations voted 25 to 22 to favorably report to the House on June 8. House
agreed (221-184) to the measure, as amended, on June 17.
S. 600 (Lugar)
To authorize appropriations for foreign relations for FY2006 and FY2007. Introduced
as an original bill on March 10, 2005. Reported (S.Rept. 109-35) by the Senate Committee
on Foreign Relations on March 10. Senate began consideration on April 5, 2005.
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.
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