Order Code IB86116
CRS Issue Brief for Congress
Received through the CRS Web
United Nations System Funding:
Congressional Issues
Updated June 16, 2006
Marjorie Ann Browne and Vita Bite
Foreign Affairs, Defense, and Trade Division
Congressional Research Service ˜ The Library of Congress

---

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
FY2007 Funding for U.N. Assessed Budgets
FY2006 Funding for U.N. Assessed Budgets
FY2005 Funding for U.N. Assessed Budgets
U.N. Voluntary Programs
FY2007
FY2006
FY2005
Issues
U.N. Peacekeeping Operations
FY2007
FY2006
FY2005
LEGISLATION
FOR ADDITIONAL READING

---

IB86116
06-16-06
United Nations System Funding: Congressional Issues
SUMMARY
Congressional debate over U.N. funding
making appropriations for Science, the De-
focuses on the following questions: (1) What
partment of State, Justice, and Commerce and
is the appropriate level of U.S. funding for
related agencies included $1.166 billion, of
U.N. system operations and programs? (2)
$1.296 billion requested, for U.S. assessed
What U.S. funding actions are most likely to
contributions to international organizations
produce a positive continuation of U.N. sys-
(CIO), and $1.035 billion, as requested, for
tem reform efforts?
assessed contributions to international peace-
keeping activities (CIPA). P.L.109-102 (H.R.
The U.N. system includes the parent
3057), making appropriations for foreign
U.N. organization, a number of affiliated
operati o n s i n c l u d ed $329,458,000
agencies, voluntary funds and programs, and
($281,908,000 was requested) for U.S. volun-
peacekeeping operations. Participating states
tary contributions to the International organi-
finance the system with voluntary and as-
zations and programs (IO&P) account. In
sessed contributions. For nearly 60 years, the
addition, $50 million, as requested, was ap-
United States has been the single largest finan-
propriated for voluntary contributions to the
cial contributor to the U.N. system.
IAEA in another account. The Bush Adminis-
tration CIO account request had included
Both Congress and the executive branch
$931,362,000 for U.N. system organizations
have been pressing U.N. system organizations
including $438,952,000 for the U.N. regular
to reform, especially to improve management
budget. The Administration also requested
and budgeting practices. Indeed, Congress
$780 million in supplemental FY2005 funding
linked payment of U.S. financial arrears to
for peacekeeping contributions; $680 million
U.N. reforms. In recent years the United
was appropriated in FY2005 supplemental
Nations has undertaken reforms including a
funding for U.N. peacekeeping in P.L. 109-13.
restructuring of its financial assessment
The $281.9 million request for U.S. voluntary
system, allowing the United States to pay
contributions in the international organiza-
some of its arrears.
tions and programs account had included $114
million for UNICEF and $95 million for
FY2007. On February 6, 2006, President
UNDP.
Bush requested $1,268,523,000 for payment
of U.S. assessed contributions to international
FY2005. P.L. 108-447, the Consolidated
organizations of which $922,970,000 was for
Appropriations Act for FY2005, included
assessed U.N. system organizations including
$1.18 billion for U.S. assessed contributions
$422,761,000 for the U.N. regular budget. He
for international organizations (CIO); $490
requested $1,135,327,000 for payment of U.S.
million for assessed contributions for U.N.
assessed contributions to U.N. peacekeeping
peacekeeping activities (CIPA); and
activities and $289 million for U.S. voluntary
$319,494,000 for voluntary contributions for
contributions to international organizations
the international organizations and programs
and agencies. An additional $50 million was
(IO&P) account. In addition, $53 million was
requested for U.S. contribution to voluntary
included for voluntary contributions to IAEA
IAEA programs.
in another account.
FY2006. P.L.109-108 (H.R. 2862),
Congressional Research Service ˜ The Library of Congress

---

IB86116
06-16-06
MOST RECENT DEVELOPMENTS
On February 6, 2006, the President requested $1,268,523,000 for payment of U.S.
assessed contributions to international organizations (CIO account) of which $922,970,000
was for assessed U.N. system organizations including $422,761,000 for the U.N. regular
budget. In addition, $1,135,327,000 was requested for U.S. assessed contributions to U.N.
peacekeeping activities (CIPA account), and $289 million for U.S. voluntary contributions
to the international organizations and programs (IO&P account). An additional $50 million
was requested for a U.S. contribution to voluntary IAEA programs. On February 16, 2006,
the President requested, in a FY2006 supplemental, $69.8 million for the CIPA account. The
House and Senate approved the conference report on H.R. 4939, which provided $129.8
million for this account, and sent it to the President on June 15, 2006. The House, on June
9, 2006, passed H.R. 5522, the Foreign Operations Appropriations Act, providing
$327,570,000 to the IO&P account.
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 nearly $4
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
CRS-1

---

IB86116
06-16-06
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
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 was $439,612,000. 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 2006, 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 2006 were as follows.
CRS-2

---

IB86116
06-16-06
Table 1. Top Ten U.N. Regular Budget Contributors for 2006
Assessments for 2006
Member State
Percent of Budget
in millions of U.S.$
United States*
22.00
423.465
Japan
19.47
374.728
Germany
8.66
166.730
United Kingdom*
6.13
117.935
France*
6.03
116.068
Italy
4.89
94.028
Canada
2.81
54.145
Spain
2.52
48.506
China*
2.05
39.517
Mexico
1.88
36.245
*Permanent members of the U.N. Security Council
For 2006, the other permanent member of the Security Council, the Russian Federation, was
assessed at 1.10%, $21,173,000.
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 efficiently and 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 passed 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
CRS-3

---

IB86116
06-16-06
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
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.
CRS-4

---

IB86116
06-16-06
In 1997, U.N. Secretary-General Kofi Annan announced a two-track reform program.
The first track included immediate managerial changes within the Secretary-General’s
authority to affect, while the second track included reform measures requiring consultation
and/or approval by U.N. member governments. Among the first track initiatives were:
reducing the budget, staffing levels, and documentation; creating a code of conduct for U.N.
staff; reorienting the Department of Public Information; consolidating administrative,
financial, personnel, procurement and other services; consolidating economic and social
departments; streamlining technical support; and improving integration of development
activities at the country level.
Second track proposals focused on U.N. core missions, and on improving management
and efficiency. They included creating a new management and leadership structure by
establishing a Deputy Secretary-General, a Senior Management Group, and a Strategic
Planning Unit; overhauling human resources policies and practices including changing the
management culture, eliminating 1000 jobs and reducing administrative costs; and promoting
sustainable development as a central U.N. priority. The proposals also called for improving
peacekeeping and strengthening post-conflict peace-building capacity; bolstering
international efforts to combat crime, drugs and terrorism by consolidating activities in
Vienna; establishing a Department for Disarmament and Arms Regulation; enhancing
humanitarian activities by replacing the Department of Humanitarian Affairs; and revamping
public information functions. The proposals also called for the following: refocusing the
work of the General Assembly on priority issues and reducing the length of sessions;
establishing a ministerial-level commission to review the U.N. Charter and specialized
agency constitutions; and designating the General Assembly session in the year 2000 as “a
Millennium Assembly” to focus on preparing the United Nations for the 21st century.
The U.N. General Assembly in 1997 affirmed many policy formulation and
management changes proposed by Secretary-General Annan including establishing a Deputy
Secretary-General post. Louise Frechette of Canada was named to the Deputy post. In
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 60th
session of the U.N. General Assembly.
CRS-5

---

IB86116
06-16-06
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 about 9,000 today. The U.N. regular budget for the 2000-2001
biennium was $2.562 billion (or a little less than $1.3 billion per year); that for 2002-2003
was $2.891 billion; and for 2004-2005 was $3.608 billion. On December 23, 2005, the U.N.
General Assembly, without a vote, adopted a 2006-2007 U.N. regular budget of $3.79
billion. It included a provision that “as an exceptional measure” limited the Secretary-
General’s outlay of funds to $950 million for the first year, with the remaining funds made
available upon his later request as reforms are put into place. The agreement on the budget
was a hard-fought compromise. The U.S. Ambassador to the United Nations, John Bolton,
had proposed an interim 3-4 month budget to allow for additional assessments and reforms
to be undertaken before a full two-year budget was adopted.
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 CY2006, the United States may also be withholding for
U.N. peacekeeping (difference between U.N. assessment of about 26.5% and U.S. statutory
limit of 25%). On December 13, 2005, Senator Biden introduced S. 2095 which would raise
the U.S. peacekeeping cap to 27.1% for calendar years 2005 and 2006.
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 March 24, 2006, 15 countries were in that status. By May 9, 2006, that
number had been reduced to nine countries, all of which had been permitted by the U.N.
General Assembly to vote during its 60th session.
According to the United Nations, despite U.S. arrears payments, the United States (as
of December 31, 2005), owed assessed contributions of $1,110,924,811 ($251,851,905 for
CRS-6

---

IB86116
06-16-06
the U.N. regular budget; $12,022,205 for International Tribunals; $3,916,440 for the Capital
Master Plan; and $843,134,251 for peacekeeping). The U.S. government, however,
maintains that U.S. arrears are not that high because of U.S. statutory and policy
withholdings.
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
States for peacekeeping to be forgiven provided the United Nations applied it to reduce U.S.
arrears.
Among the U.S. conditions was reduction of U.S. regular budget assessments to 22%
(from 25%) and reduction of U.S. peacekeeping assessments to 25% (from about 30%). 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 in subsequent years to about 26.5% currently.
FY2007 Funding for U.N. Assessed Budgets

On February 6, 2006, the President requested $1,268,523,000 for payment of U.S.
assessed contributions to international organizations (CIO account) of which $922,970,000
was for assessed U.N. system organizations including $422,761,000 for the U.N. regular
budget. In addition, $1,135,327,000 was requested for U.S. assessed contributions to U.N.
peacekeeping activities (CIPA account).
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 had requested $1.296 billion for U.S. assessed contributions to
international organizations (CIO) of which $931,362,000 was for assessed U.N. system
organizations including $438,952,000 for the U.N. regular budget. In addition, $1.035
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.
CRS-7

---

IB86116
06-16-06
H.R. 3057 as passed by the Senate on July 20, 2005, 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 million.
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 $1.296
billion for U.S. assessed contributions to international organizations (CIO), and $1.035
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
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 (H.Rept. 108-118) 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
CRS-8

---

IB86116
06-16-06
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) was $173,380,000 below the amount requested by the
Administration; and the $574 million recommended for assessed contributions to U.N.
peacekeeping activities (CIPA) was $76 million below the amount requested by the
Administration. The Committee recommended allocation of $70 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 million to subsidize the cost of a $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 $1.194
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, 2004, 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 had requested $1.194 billion for U.S. assessed contributions
to international organizations (CIO) of which $819 million was for assessed U.N. system
organizations including $362.2 million for the U.N. regular budget and $6 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).

CRS-9

---

IB86116
06-16-06
Table 2. U.S. Contributions to Recent U.N. System Assessed Regular
Budgets
(in millions of $)
FY2004
FY2005
FY2006
FY2007
Actual
Actual
Estimate
Request
United Nations
340.472
362.193
438.952
422.761
U.N. Capital Master Plan
—
6.00
10.595
22.101
U.N. — War Crimes Tribunals
32.656
35.039
31.620
33.201
Food and Agriculture Organization
72.457
89.716
83.981
89.332
International Atomic Energy Agency
68.462
79.829
77.447
83.192
International Civil Aviation Agency
12.629
12.650
14.894
15.180
International Labor Organization
68.055
63.107
59.866
63.338
International Maritime Organization
1.366
1. 479
1.435
1.565
International Telecommunications
Union
7. 976
7.655
7.370
7.656
United Nations Educational,
Scientific and Cultural Organization
84.138
76.754
68.191
69.599
Universal Postal Union
1.697
1.770
1.629
1.690
World Health Organization
93.615
96.110
96.111
101.421
World Intellectual Property
Organization
1.058
1.137
1.0761
1.121
World Meteorological Organization
9.963
12.143
10.399
10.804
Total
794.542
845.598
903.566
922.970
U.N. Voluntary Programs
FY2007. The appropriate level of funding for U.N. voluntary programs continues to
be a congressional concern. For FY2007 the Administration requested $289 million for U.S.
voluntary contributions to programs in the international organizations and programs (IO&P)
account. In addition, $50 million was requested in another account for IAEA voluntary
programs. On June 9, 2006, the House passed H.R. 5522, the Foreign Operations
Appropriations Act, providing $327,570,000 for the IO&P account.
FY2006. P.L. 109-102 (H.R. 3057, signed into law on November 14, 2005), included
$329,458,000 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 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.
CRS-10

---

IB86116
06-16-06
H.R. 3057, as passed by the House on June 28, included $328,958,000 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 $281,908,000 for voluntary contributions for the international organizations and
programs (IO&P) account.
The Administration requested $281,908,000 for voluntary contributions for the
international organizations and programs (IO&P) account including $114 million for
UNICEF and $95 million for UNDP. Fifty million dollars 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.
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.
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
CRS-11

---

IB86116
06-16-06
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
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 $)
FY2004
FY2005
FY2006
FY2007

Actual
Actual
Estimate
Request
U.N. Development Program (UNDP)
101.398
108.128
108.900
94.500
U.N. Children’s Fund (UNICEF)
119.292
124.000
125.730
123.000
U.N. Development Fund for Women (UNIFEM)
0.994
1.984
3.218
0.950
UNIFEM Trust Fund
—
0.992
1.485
——
International Contributions for Scientific,
1.889
0.837
0.990
1.000
Educational, & Cultural Activities
WMO Voluntary Coop. Program
1.988
1.984
1.881
1.900
U.N. Environment Program (UNEP)
10.935
10.912
10.159
9.524
Montreal Protocol Multilateral Fund
20.876
21.328
21.285
19.000
International. Conservation Programs*(CITES,
6.362
6.349
5.890
5.906
ITTO, IUCN, Ramsar, CCD)
U.N. Voluntary Fund Torture Victims
5.468
6.944
6.517
4.750
CRS-12

---

IB86116
06-16-06
FY2004
FY2005
FY2006
FY2007

Actual
Actual
Estimate
Request
Climate Stabilization Fund (IPCC, UNFCC)
5.567
5.952
5.940
5.320
ICAO Aviation Security Fund
0.994
0.992
0.941
0.950
U.N. Voluntary Fund for Advisory Services &
1.491
1. 488
1.485
1.425
Technical Cooperation
IAEA Voluntary Programs**
52.687
52. 576
49.500
50.000
Center for Human Settlements
0.746
0.149
0.149
0.400
IMO Maritime Security Programs
—
0. 099
0.396
0.400
Reserve — To Be Allocated
—
——
22.275
——
U.N. International Democracy Fund*** (UNIDF)
—
[10.000] [7.920]
10.000
U.N. Office for Coordination of Humanitarian
—
—
0.805
1.000
Affairs (UN OCHA)
Total
355.540
344.714
367.546
330.025
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.
* Only CITES is a U.N. program.
** Requested and Appropriated under Non-Proliferation, Antiterrorism, Demining and Related Programs
account.
*** Funded from other accounts in FY2005 and FY2006.
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. On December 13, 2005, Senator Biden introduced S. 2095,
to raise the U.S. peacekeeping cap to 27.1% for calendar years 2005 and 2006. (For detailed
discussion, see CRS Issue Brief IB90103, United Nations Peacekeeping: Issues for
Congress, by Marjorie Ann Browne.)
FY2007. The Administration on February 6, 2006, requested $1,135,327,000 for U.S.
assessed contributions to U.N. peacekeeping activities (CIPA account). On February 16,
2006, President Bush, in a FY2006 supplemental, requested an additional $69.8 million for
CIPA, including funds for U.N. peacekeeping in the Sudan. On June 15, 2006, H.R. 4939
(FY2006 supplemental), providing $129.8 million for CIPA, was sent to the President.
CRS-13

---

IB86116
06-16-06
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.
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
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, 2005, 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 June 10,
2005. 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. On June
9, 2005, 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, 2005.
CRS-14

---

IB86116
06-16-06
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.
S. 2095 (Biden)
To raise the assessment cap on U.S. contributions to U.N. peacekeeping activities to
27.1% for calendar years 2005 and 2006. Introduced on December 13, 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 Year 2004, at [http://www.state.gov/p/io/
rls/rpt/c15906.htm]
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-15

---