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The State, Foreign Operations, and Related Programs appropriations legislation provides annual
funding for almost all of the international affairs programs generally considered as part of the 150
International Affairs Budget Function (the major exception being food assistance). In recent
years, the legislation has also served as a vehicle for Congress to place conditions on the
expenditure of those funds, and express its views regarding certain foreign policy issues.
This report briefly discusses the legislation generally and then provides a short description of the
various funding accounts as they appear in Division H, “Department of State, Foreign Operations,
and Related Programs Appropriations Act, 2009,” of the Omnibus Appropriations Act, 2009 (P.L.
111-8).

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Introduction ..................................................................................................................................... 1
Account Descriptions ...................................................................................................................... 2
Title I—Department of State and Related Agencies........................................................................ 2
Administration of Foreign Affairs............................................................................................. 3
Diplomatic and Consular Programs (D&CP)...................................................................... 3
Civilian Stabilization Initiatives (CSI)................................................................................ 3
Capital Investment Fund (CIF) ........................................................................................... 3
Office of the Inspector General (OIG) ................................................................................ 3
Educational and Cultural Exchange Programs.................................................................... 4
Representation Allowances................................................................................................. 4
Protection of Foreign Missions and Officials ..................................................................... 4
Embassy Security, Construction, and Maintenance (ESCM).............................................. 4
Emergencies in the Diplomatic and Consular Services ...................................................... 4
Buying Power Maintenance Account.................................................................................. 4
Repatriation Loan Program................................................................................................. 4
Payment to the American Institute in Taiwan (AIT) ........................................................... 5
Foreign Service Retirement and Disability Fund................................................................ 5
International Organizations ....................................................................................................... 5
Contributions to International Organizations (CIO) ........................................................... 5
Contributions for International Peacekeeping (CIPA) ........................................................ 5
International Commissions........................................................................................................ 5
Broadcasting Board of Governors (BBG)................................................................................. 6
International Broadcasting Operations................................................................................ 6
Broadcasting Capital Improvements................................................................................... 6
Related Programs ...................................................................................................................... 6
The Asia Foundation ........................................................................................................... 6
United States Institute of Peace (USIP) .............................................................................. 6
International Center for Middle Eastern-Western Dialogue ............................................... 6
Eisenhower Exchange Fellowship Program ....................................................................... 7
Israeli-Arab Scholarship Program (IASP) .......................................................................... 7
The Center for Cultural and Technical Interchange Between East and West (East-
West Center) .................................................................................................................... 7
National Endowment for Democracy (NED)...................................................................... 7
Other Commissions................................................................................................................... 7
Commission for the Preservation of America’s Heritage Abroad....................................... 7
Commission on International Religious Freedom (CIRF) .................................................. 7
Commission on Security and Cooperation in Europe (CSCE) ........................................... 8
Congressional-Executive Commission on the People’s Republic of China........................ 8
United States-China Economic and Security Review Commission.................................... 8
United States Senate-China, United States Senate-Russia Interparliamentary
Groups.............................................................................................................................. 8
Title II—United States Agency for International Development (USAID) ...................................... 8
U.S. Agency for International Development Operating Expenses (OE)............................. 8
Civilian Stabilization Initiative ........................................................................................... 8
Capital Investment Fund ..................................................................................................... 9
USAID Office of Inspector General ................................................................................... 9
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Title III—Bilateral Economic Assistance........................................................................................ 9
Funds Appropriated to the President ......................................................................................... 9
Global Health and Child Survival (GHCS)......................................................................... 9
Development Assistance (DA Account).............................................................................. 9
International Disaster Assistance (IDA) ........................................................................... 10
Transition Initiatives ......................................................................................................... 10
Development Credit Authority (DCA).............................................................................. 10
Economic Support Fund (ESF) ......................................................................................... 10
Democracy Fund............................................................................................................... 10
International Fund for Ireland ........................................................................................... 10
Assistance for Europe, Eurasia, and Central Asia............................................................. 10
Department of State..................................................................................................................11
International Narcotics Control and Law Enforcement (INCLE)......................................11
Andean Counterdrug Initiative (ACI) ................................................................................11
Nonproliferation, Anti-terrorism, Demining, and Related programs (NADR) ..................11
Migration and Refugee Assistance (MRA)........................................................................11
Emergency Refugee and Migration Assistance (ERMA) Fund .........................................11
Independent Agencies ............................................................................................................. 12
Peace Corps....................................................................................................................... 12
Millennium Challenge Corporation (MCC)...................................................................... 12
Inter-American Foundation (IAF)..................................................................................... 12
African Development Foundation (ADF) ......................................................................... 12
Department of the Treasury..................................................................................................... 12
International Affairs Technical Assistance........................................................................ 12
Debt Restructuring ............................................................................................................ 12
Title IV—International Security Assistance.................................................................................. 13
Funds Appropriated to the President ....................................................................................... 13
Peacekeeping Operations (PKO) ...................................................................................... 13
International Military Education and Training (IMET) .................................................... 13
Foreign Military Financing (FMF) Program..................................................................... 13
Title V—Multilateral Economic Assistance .................................................................................. 13
Funds Appropriated to the President ....................................................................................... 13
International Organizations and Programs (IO&P)........................................................... 13
International Financial Institutions.......................................................................................... 13
Global Environment Facility (GEF) ................................................................................. 14
World Bank: International Development Association (IDA) ............................................ 14
Enterprise for the Americas Multilateral Investment Fund (MIF) .................................... 14
Asian Development Fund (ADF)...................................................................................... 14
African Development Fund (AfDF).................................................................................. 14
International Fund for Agricultural Development (IFAD)................................................ 15
Title VI—Export and Investment Assistance ................................................................................ 15
Export-Import Bank .......................................................................................................... 15
Overseas Private Investment Corporation (OPIC)............................................................ 15
Trade and Development Agency (TDA) ........................................................................... 15
Title VII—General Provisions....................................................................................................... 15

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Author Contact Information .......................................................................................................... 15

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The Department of State, Foreign Operations, and Related Programs (State, Foreign Operations)
appropriations bill provides annual appropriations for the vast majority of international affairs
programs generally considered as part of the 150 International Affairs Budget Function.1 The
State Department portion makes up about one-third of the funding, and the Foreign Operations
portion—often called the “foreign aid” bill—makes up the remainder of the funds appropriated.2
Among the areas covered by the State, Foreign Operations appropriations legislation, and
explained below, are the Department of State and the U.S. Agency for International
Development’s (USAID) operating accounts, both assessed and voluntary U.S. contributions to
international organizations and peacekeeping operations, U.S. non-military international
broadcasting, bilateral and multilateral U.S. foreign economic assistance, assistance to foreign
militaries, anti-narcotics funding, and funding for the Peace Corps, the Millennium Challenge
Corporation, and the many other programs operated primarily by the Department of State and
USAID through which the United States engages with the world to protect and advance U.S.
national interests. Beyond providing funds, the appropriations bills, in recent years, also have
been an important vehicle in conditioning the use of these funds and stating congressional views
regarding foreign policy issues.
There are, however, several funding areas that are not covered by the State, Foreign Operations
appropriations legislation that might be considered international affairs activities. These programs
would include P.L. 480 and other food assistance, included in the 150 account but funded by the
Agriculture appropriations bill. While the State Department and USAID sponsor nearly four-fifths
of U.S. and foreign participants in educational and cultural exchange programs, other government
agencies are responsible for the remaining participants in such programs, including, for example,
the short-term exchange of scientists program at the National Cancer Institute. The Department of
Defense’s Commander’s Emergency Response Program (CERP) supports reconstruction needs in
Iraq and Afghanistan and its “Section 1206” authority supports the strengthening of foreign
military capacities. These other-agency programs are funded through their own agency
appropriations measures.
While the appropriation of funds is an authority reserved for the Congress by the Constitution, the
two-step authorization/appropriations process is established by House and Senate rules; and the
authorization of appropriations is intended to provide guidance to appropriators as to a general
amount and under what conditions funding might be provided to an agency or program.3
However, in the case of the State Department and foreign assistance programs, it is prescribed by

1 International Affairs is one category of the various components of the federal budget designated by the Office of
Management and Budget (OMB). Each category represents a major objective and operation of the Federal Government.
Each function and sub-function is assigned a three digit code. International affairs is 150. Subfunction 151
encompasses International development and humanitarian assistance.
Accounts under the International Commissions category of the legislation are the exception—they are part of the 300
Natural Resources Budget Function.
2 Until the 110th Congress, the State Department and Foreign Operations portions of the bill were developed in different
Appropriations subcommittees and considered as separate bills.
3 CRS Report RS20371, Overview of the Authorization-Appropriations Process, by Bill Heniff Jr.
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law that legislation authorizing appropriations is required before the appropriations can be made.4
These provisions have been waived in the years that Congress has not enacted authorizations.5
Within the appropriations legislation, account names have changed over the years and new
accounts have been added. In FY2008, for example, the International Disaster and Famine
Assistance account became the International Disaster Assistance account. In the FY2009 bill, the
Former Soviet Union account was combined with the Eastern Europe and Baltic States account to
form a new Europe, Eurasia, and Central Asia account. In the FY2006 bill, a new Democracy
Fund was established. The overall organization of the legislation may change as well. The
FY2009 bill added a new title (Title II), specifically for USAID operations.
In the FY2009 Omnibus Appropriations Act (P.L. 111-8), the State Department, Foreign
Operations, and Related Programs appropriations legislation (Division H) is divided into seven
titles:
Title I
Department of State and Related Agencies
Title II
United States Agency for International Development
Title III
Bilateral Economic Assistance
Title IV
International Security Assistance
Title V
Multilateral Assistance
Title VI
Export and Investment Assistance
Title VII
General Provisions

This report briefly explains the different accounts in the order they are presented in the FY2009
State, Foreign Operations appropriations legislation.
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Title I provides funds for (1) the personnel, operations, and programs of the Department of State;
(2) U.S. participation in international organizations, such as the United Nations as well as small
commissions such as the International Boundary and Water Commission between the United
States and Mexico; (3) U.S. government, non-military-international broadcasting; and (4) several

4 See sec. 15 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2680) and sec. 10 of the Foreign
Military Sales Act amendments, 1971 (22 U.S.C. 2412).
5 For example, see sec. 7023 of the FY2009 Omnibus Appropriations Act, Division H (P.L. 111-8). Most foreign
operations program appropriations have not been authorized since 1985.
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U.S. non-governmental agencies whose purposes also help promote U.S. interests abroad, and
other U.S. commissions and interparliamentary groups more directly related to U.S. foreign
policy initiatives such as the U.S. Commission on International Religious Freedom.
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The Administration of Foreign Affairs account category provides for the personnel, operations,
and programs of the Department of State as well as the construction and maintenance of its
facilities around the world.
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Diplomatic and Consular Programs is the operating account of the Department of State. It
includes salaries for all its employees; funding for the operations of the Office of the Secretary,
the deputy secretaries, and the under secretaries; funding for the operations of the various
regional, functional, and administrative bureaus and their programs associated with the conduct of
foreign policy; “non-bricks-and-mortar” security including funds for a guard force, armored
vehicles, security training, and electronic and other technical security systems;
telecommunications; medical care; transportation and travel; and training.
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CSI seeks to improve and maintain an U.S. civilian capability to assist fragile and failed states
that are coming out of crisis and conflict situations to stabilize and rebuild the country and its
society. While the George W. Bush Administration requested funding for the Civilian
Stabilization Initiatives to be fully under the Department of State, Congress divided funding of
CSI through both the State Department and USAID. Working in the State Department, the
Coordinator for Reconstruction and Stabilization (S/CRS), is to coordinate the U.S. government
interagency response. Along with the funds identified for USAID to provide for the USAID’s
component to the Civilian Stabilization Initiative, S/CRS is to recruit, organize, train, equip, and
deploy if necessary a three-layer Civilian Response Corp—the Active Response Corps, and the
Standby Response Corps from 17 federal agencies and the Department of Defense, and the larger
Civilian Reserve Corps from the private sector.
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The Capital Investment Fund was created in 1994 to provide for purchasing information
technology and other capital equipment to ensure efficient management, coordination, and
communications.
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This account funds the State Department’s Office of the Inspector General, which conducts
independent audits, inspections, and investigations of the programs and offices of Department of
State and the Broadcasting Board of Governors (BBG).
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With funds appropriated to this account, the State Department manages U.S. educational
exchanges, such as the Fulbright and Humphrey Fellowships, and citizen exchanges, such as the
International Visitors Leadership Program, and the Sports United and Youth Exchange programs
that focus on middle and high school students. Cultural exchange programs include sending the
Neo Classic Blues Duo to Ghana and Togo to perform and discuss blues melodies from the 1920s
and 1930s and sending the Harlem Gospel Choir to perform in Lebanon.
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Funding for the Representation Allowances account provides partial reimbursement to
Ambassadors, Principal Officers, and some Foreign Service for costs associated with maintaining
vital contacts in the host country where they are assigned.
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The U.S. Diplomatic Security Service permanently or intermittently protects international
organizations and foreign missions and officials in New York City and elsewhere in the United
States.
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The Embassy Security, Construction and Maintenance account is divided in two parts: (1) On-
going Operations, which funds the general maintenance and support of U.S. State Department
facilities both in the United States and abroad, and (2) Worldwide Security (WWS) Upgrades,
which funds the construction and security upgrades of embassy and facilities around the world.
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The Emergencies account addresses unexpected events, such as the evacuation of U.S. diplomats
and their families from an embassy, medical evacuations, and travel expenses related to natural
disasters. This account also pays for rewards for information related to international terrorism,
narcotics-related activities, and war crimes tribunals.
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The Buying Power Maintenance account helps the Department of State manage exchange rate
losses in the cost of its overseas operations.
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The Repatriation Loan Program allows the U.S. government to provide funds, on a loan basis, to
U.S. citizens abroad who become destitute and are unable to fund their return to the United
States.
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The American Institute in Taiwan acts as an unofficial U.S. consulate. The account supports a
contract providing for salaries, benefits, and other expenses associated with maintaining the
Institute.
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The Fund is a mandatory expense that covers the U.S. government’s portion of maintaining the
retirement program for the Foreign Service and Foreign Service Nationals/Locally Hired
Employees. Contributions to this fund are made by both the employee and the hiring agency.
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Through the two accounts in the International Organizations category, the United States meets its
assessed obligations to the many international organizations and peacekeeping efforts that the
United States supports.
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The International Organizations account under the Department of State funds the assessed U.S.
contributions to the United Nations (U.N.) and U.N. system organizations, Inter-American
organizations, and various regional organizations to which the United States belongs through U.S.
law, treaty, or convention. U.S. contributions to organizations funded through the CIO account
generally provide about 25% of each organization’s budget.
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The International Peacekeeping account funds assessments on the United States for the 16 current
U.N. Peacekeeping operations around the world and two ongoing War Crimes Tribunals
regarding Yugoslavia and Rwanda. U.S. contributions generally provide about 27% of the various
organizations’ budgets.
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Accounts under the International Commissions category were established by treaties and
agreements that the President ratified with the advice and consent of the Senate. The accounts
provide funding for the U.S. portion of the salaries and programs of the following bilateral and
multilateral commissions:
• International Boundary and Water Commission between the United States and
Mexico,
• International Fisheries Commissions,
• Border Environment Cooperation Commission,
• International Joint Commission (between the U.S. and Canada), and
• International Boundary Commission (between the U.S. and Canada).
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The nine-member Broadcasting Board of Governors supervises and funds all non-military, U.S.
government international broadcasting. Operating in 60 languages, these broadcasts include Voice
of America (VOA), Broadcasting to Cuba (Radio and TV Marti), Radio Free Europe/Radio
Liberty (RFE/RL), Radio Free Asia (RFA), and the Middle East Broadcasting Network (MBN),
which includes Alhurra, Alhurra-Iraq, Alhurra-Europe, and Radio Sawa. The broadcasting
category is generally divided into the following two accounts:
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The Operations account funds the operations of the BBG and all U.S. government, non-military
international broadcasts, including salaries and benefits of management, administrative staff,
broadcasters, and reporters; contracts with surrogate broadcasters such as Radio Free Asia;
provision of office and broadcasting studio facilities; transitioning to new communications
methods such as greater use of the Internet; and other operating expenses.
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The Capital Improvements account supports maintenance of the BBG from broadcast station
repair to the building of new antennas.
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Under this category, funds are provided to several non-governmental organizations that have
objectives that are similar to views and positions advocated by the United States in its foreign
policy. These non-governmental organizations provide educational programs, exchanges, and
grants to organizations in foreign countries promoting democracy, rule of law, economic
development, open markets, literacy, women’s rights, and many similar objectives. Most of these
organizations are nonprofit organizations and receive funding from both the U.S. government,
through appropriated funds, and through private donations.
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The Foundation seeks to strengthen democratic processes and institutions in Asia, open markets,
and improve U.S.-Asian relations.
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The U.S. Institute of Peace mission is to promote international peace through educational
programs, conferences, and workshops, professional training, applied research, and dialogue
facilitation in the United States and abroad.
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The Center convenes policy discussion meetings, and develops programs of cooperative study for
those working on issues related to the growth of civil society and democratic institutions, and the
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peaceful resolution of differences among the countries of the Middle East and between the
countries of the Middle East and Western nations.
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The Exchange Program brings professionals who are rising leaders in their countries to the United
States and sends their U.S. counterparts abroad with a custom-designed program for each
participant to make contacts and learn about the other’s country and work environment.
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The IASP funds scholarships for Israeli Arabs to attend institutions of higher education in the
United States.
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The East-West Center promotes understanding and cooperation among the governments and
peoples of the Asia/Pacific region and the United States.
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NED is a private, non-profit organization established to support democratic institutions in over 90
countries.
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The Commissions and groups in the Other Commissions category of the State, Foreign
Operations legislation, are organizations that are established by an Act of Congress to advance
certain U.S. objectives in the international arena. In the Federal Budget submission to the
Congress, these organizations are listed under the legislative Branch Boards and Commissions,
but are funded through the State, Foreign Operations legislation. The funding meets the
operational and programmatic requirements of these organizations.
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The Commission seeks to purchase, restore, or preserve endangered cultural sites in Eastern and
Central Europe important to the heritage of U.S. citizens, and seeks help from other governments
in this effort.
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In consultation with the State Department, the Commission seeks to promote international
religious freedom.
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The Commission oversees the work of the Organization on Security and Cooperation in Europe
(OSCE), particularly in the area of humanitarian affairs.
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The Commission monitors China’s compliance with international human rights agreements and
standards.
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The Commission monitors, investigates, and submits to Congress an annual report and
recommendations on the national security implications of the bilateral trade and economic
relationship between the United States and the People’s Republic of China.
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This account supports the participation of U.S. Senators in the United States Senate-China
Interparliamentary Group and the United States Senate-Russia Interparliamentary Group.
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This title provides operational funds for USAID, an independent agency directly responsible for
most bilateral development assistance and disaster relief programs, many of which are funded in
Title III.
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The Operating Expense account funds the operational costs of USAID including salaries and
benefits, overseas and Washington operations, human capital initiatives, security, and information
technology maintenance and upgrades.
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The Civilian Stabilization Initiative, a portion of which is also funded under the Department of
State Title I, here supports the hiring and training of USAID personnel and prepositioning of
equipment for the standby response corps, the rapid “surge” element of any deployment to
address emergency stabilization needs.
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A program begun in FY2003, the Capital Investment Fund supports USAID construction of
facilities overseas, with an emphasis on improving security and enhancing information
technology.
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This account supports operational costs of USAID’s Inspector General office, which conducts
audits and investigations of USAID programs.
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Under this title, funds are appropriated in support of U.S. government departments and
independent agencies conducting humanitarian, development, and other programs meeting U.S.
foreign policy objectives throughout the world.
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Funds in this category of appropriations are provided chiefly through USAID or in close
association with the Department of State.
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The Global Health and Child Survival account supports multiple health programs conducted by
USAID and the Department of State through funding of two major elements:
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Managed by USAID, appropriations in the CSH sub-account fund programs focused on
combating infectious diseases such as HIV/AIDS; malaria; tuberculosis; maternal and child
health; vulnerable children; and family planning and reproductive health.
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Managed by the Office of the Global AIDS Coordinator (OGAC) in the Department of State, the
Global HIV/AIDS Initiative sub-account is the largest source of funding for the President’s
Emergency Plan for AIDS Relief (PEPFAR). The account also supports part of the U.S.
contribution to the multilateral organization, the Global Fund to Fight AIDS, Tuberculosis and
Malaria.
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Managed by USAID, the Development Assistance account funds programs in agriculture, private
sector development, microcredit, water and sanitation, education, environment, democracy and
governance, among others.
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Managed by the USAID Office of Foreign Disaster Assistance, the account aids nations struck by
natural and manmade disasters and emergencies. It was previously referred to as the International
Disaster and Famine Assistance account (IDFA).
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The Transition Initiatives account supports the activities of USAID’s Office of Transition
Initiatives (OTI), a program launched in 1994 to bridge the gap between disaster and
development aid. It supports flexible, short-term assistance projects in transition countries that are
moving from war to peace, civil conflict to national reconciliation, or where political instability
has not yet erupted into violence and where conflict mitigation might prevent the outbreak of
such violence.
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Managed by USAID, the Development Credit Authority provides for the administrative costs of
several USAID credit programs, including loan guarantees that allow private banks to finance
housing shelter projects, water and sanitation systems, and microcredit and small enterprise
development programs.
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The Economic Support Fund uses economic assistance to advance U.S. strategic goals in
countries of special importance to U.S. foreign policy. Funding decisions are made by the State
Department; programs are managed by both USAID and the State Department.
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The Fund supports democratization programs run by the State Department’s Bureau of
Democracy, Human Rights and Labor (DRL), and USAID’s Office of Democracy and
Governance.
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This activity supports the Anglo-Irish Accord and efforts to spur economic and commercial
development in Northern Ireland.
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This new account combines two formerly separate accounts into one. The two accounts were:
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This account is commonly known as the SEED Act account (Support for East European
Democracy), its authorizing legislation (P.L. 101-179). Since 1989, USAID, under the guidance
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of the State Department, channeled most U.S. economic assistance to Eastern Europe through this
regional program.
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This account is commonly known as the FREEDOM Support Act account (Freedom for Russia
and Emerging Eurasian Democracies and Open Markets Support Act), its authorizing legislation
(P.L. 102-511). Through this regional program, launched in 1992, USAID and multiple other
agencies, under the guidance of the State Department, extended economic aid to the 12 countries
of the former Soviet Union.
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The INCLE account funds international counternarcotics activities; anti-crime programs,
including trafficking in women and children; and rule of law activities, including support for
judicial reform. The INCLE account includes funds to support the U.S.-Mexico Mérida Initiative
to enhance bilateral and regional cooperation to combat drug trafficking and organized crime.
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The Andean Counterdrug Initiative, created in FY2000 as the Plan Colombia account, supports a
multi-year counternarcotics effort in the Andean region, providing assistance for both drug
interdiction and alternative development.
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This account funds a variety of State Department-managed activities aimed at countering
weapons proliferation and terrorism and promoting demining operations in developing nations.
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The Migration and Refugee Assistance program supports refugee relief activities worldwide and,
in some cases, helps resettle refugees.
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ERMA holds funds that can be drawn upon quickly in times of refugee emergencies.
Appropriations replenish resources to this account.
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The Peace Corps sends U.S. volunteers to developing countries to provide technical aid and to
promote mutual understanding on a people-to-people basis.
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Established in 2004, the MCC supports large-scale, multi-year development projects designed
and implemented by recipient countries, which are selected on the basis of their commitments to
good governance, investment in health and education, and support for economic freedom.
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The IAF, an independent agency, finances small-scale enterprise and grassroots self-help
activities aimed at helping poor people in Latin America.
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The ADF, an independent agency, finances small-scale enterprise and grassroots self-help
activities aimed at helping poor people in Africa.
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This technical assistance program supports financial advisors to countries seeking help in
implementing economic reforms and improving financial management of government resources.
In addition, funds have been used to address terrorist financing activities.
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This account provides funds to reduce, and in some cases forgive, debts owed to the U.S. by poor
countries, especially those in Africa and the small economies in Latin America and the Caribbean.
In recent years, funds have supported the U.S. commitment to the Heavily Indebted Poor Country
(HIPC) Initiative.
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Unlike the Title I Contributions to Peacekeeping Activities (CIPA) account, which provides
assessed funds for peacekeeping forces, the PKO account provides voluntary support for
multilateral efforts in conflict resolution, including the training of African peacekeepers and
funding operations of the Multinational and Observers Mission in the Sinai.
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Through IMET, the United States provides military training to selected foreign military and
civilian personnel. The State Department and the Department of Defense share policy authority,
and the Department of Defense implements this program.
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The Foreign Military Financing Program supports U.S. overseas arms transfers on a grant basis.
The State Department and the Department of Defense share policy authority, and the Department
of Defense implements this program.
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Under this category, funds are provided through the Department of State to international
organizations, including the United Nations.
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This account provides voluntary donations to support the programs of international agencies
involved in a range of development, humanitarian, and scientific activities, including the U.N.
Development Program (UNDP), U.N. Environment Program (UNEP), U.N. Children’s Fund
(UNICEF), and U.N. Population Fund (UNFPA).
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Under this category, funds are provided through the Department of the Treasury to a wide range
of multilateral financial institutions, which offer loans—both “soft” (i.e., concessional) and
“hard” (i.e., near-market rate)—and some grants to developing countries and private sector
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entities in those countries. Not all international financial institutions require or receive U.S.
contributions from year to year. 6
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Cosponsored by the UNDP, UNEP, and the World Bank, the GEF makes grants to help
developing countries deal with global environmental problems.
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As the World Bank’s “soft loan” window, IDA lends at concessional rates to low-income
countries. The International Bank for Reconstruction and Development (IBRD) is the World Bank
window that provides loans on near-market terms to promote economic development primarily in
middle-income countries, based largely on bond sales. Another World Bank window, the
International Finance Corporation (IFC), makes loans and equity investments to promote growth
of productive private enterprise in developing nations.
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The MIF is a multi-donor trust fund providing technical and financial assistance to help countries
in Latin America and the Caribbean reform their investment policies in order to attract foreign
investment. It resides within the Inter-American Development Bank, which promotes economic
and social development in Latin America and the Caribbean by providing near-market rate loans
through its ordinary capital account and concessional loans to the poorest nations through its
Fund for Special Operations (FSO). The Inter-American Investment Corporation (IIC), makes
loans and equity investments to promote the growth of private enterprise.
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The ADF is the “soft loan” window of the Asian Development Bank (ADB), which finances
economic development programs in Asia and the Pacific.
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The African Development Fund (AfDF) lends on concessional terms to low-income sub-Saharan
African countries. It resides within the African Development Bank (AfDB), which lends at near-
market rates, with special emphasis on agriculture, infrastructure and industrial development.

6 Among those that sometimes receive funding but for which there was no request or appropriation in FY2009 are:
World Bank Multilateral Investment Guaranty Agency (MIGA). MIGA encourages private investment in developing
countries by offering insurance against noncommercial risks such as expropriation.
European Bank for Reconstruction and Development (EBRD). The EBRD lends at near-market rates to help East
European and former Soviet states adopt market economies. Private sector and privatizing public sector firms receive
substantial amounts of EBRD lending.
North American Development Bank (NADBank). The NADBank is governed by the United States and Mexico as part
of the North American Free Trade Agreement (NAFTA). It began lending in 1996 to finance environmental
infrastructure projects along the U.S./Mexico border, as well as community adjustment and investment activities in
both nations.
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IFAD is a multilateral financial institution helping developing countries increase agricultural
productivity and income, improve nutritional levels, and integrate into larger markets.
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The Export-Import Bank issues loan guarantees and insurance to commercial banks that make
trade credits available to American exporters. The Bank also extends direct loans to U.S.
businesses, especially those whose counterparts abroad receive foreign government-subsidized
trade credits.
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OPIC offers political risk insurance, guarantees, and investment financing to encourage U.S.
firms to invest in developing countries.
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The TDA finances feasibility studies and other project-planning services for major development
activities in developing countries, to support economic development and to promote U.S. exports.
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Under the General Provisions title are limitations and prohibitions on assistance, notification and
reporting requirements, and more detailed funding mandates for specific accounts in other titles
of the legislation.

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Curt Tarnoff
Kennon H. Nakamura
Specialist in Foreign Affairs
Analyst in Foreign Affairs
ctarnoff@crs.loc.gov, 7-7656
knakamura@crs.loc.gov, 7-9514

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