State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Marian Leonardo Lawson Analyst in Foreign Assistance Susan B. Epstein Specialist in Foreign Policy Tamara J. Resler Analyst in Foreign Affairs March 23, 2011 Congressional Research Service 7-5700 www.crs.gov R41228 CRS Report for Congress Prepared for Members and Committees of Congress State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Summary The annual State, Foreign Operations, and Related Programs appropriations bill has been the primary legislative vehicle through which Congress reviews the U.S. international affairs budget and influences executive branch foreign policy making in recent years, as Congress has not regularly considered these issues through a complete authorization process for State Department diplomatic activities since 2003 and for foreign aid programs since 1985. Funding for Foreign Operations and State Department/Broadcasting programs has been steadily rising since FY2002, after a period of decline in the 1980s and 1990s. Ongoing assistance to Iraq and Afghanistan, as well as large new global health programs and rapidly increasing assistance to Pakistan, has kept the international affairs budget at historically high levels in recent years. The change of Administration in 2009 did not disrupt this trend. However, increasing concern about the federal budget deficit and accountability for funds already provided may check this growth in FY2011. On February 1, 2010, President Obama submitted a budget proposal for FY2011 that requested $58.68 billion for the international affairs budget, a 3% increase over the enacted FY2010 funding level, including supplementals. If $1.8 billion in “forward funding” of FY2010 priorities appropriated in FY2009 supplemental legislation is counted toward FY2010 rather than FY2009 totals, as it was by the Administration, and the enacted FY2010 supplemental is factored in, the FY2011 request would represent a slight decrease from FY2010-enacted levels. This report focuses only on the $56.82 billion requested for programs and activities funded through the State-Foreign Operations appropriations bill, which excludes some portions of the International Affairs request and includes funding for certain commissions requested as part of other budget functions. The Administration requested significant increases for Global Health and Child Survival, Development Assistance, technical assistance and debt restructuring through the Treasury Department, Foreign Military Financing, and various multilateral environmental accounts. Programs for which the Administration recommended significantly reduced funding, compared with enacted FY2010 levels, are contributions to international organizations, commissions and foundations, and peacekeeping operations. In the absence of a FY2011 budget resolution, both the House and Senate worked on FY2011 funding legislation using committee-approved discretionary budget allocations. The State-Foreign Operations Subcommittee was allocated $53.9 billion in the House and $54.0 billion in the Senate. The House State-Foreign Operations Appropriations Subcommittee approved a draft FY2011 bill on June 30, which totaled $52.81 billion. On the Senate side, the full Appropriations Committee marked up and approved its FY2011 State-Foreign Operations bill, S. 3676, on July 27, totaling $54.22 billion. This report analyzes the FY2011 request, recent-year funding trends, and congressional action related to FY2011 State-Foreign Operations legislation. The report will be updated to reflect changes in legislative status. Congressional Research Service State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Contents Continuing Resolution ................................................................................................................1 Past Year Developments ..............................................................................................................1 House Legislation .................................................................................................................2 Senate Legislation.................................................................................................................3 State-Foreign Operations Overview.............................................................................................5 Background and Trends.........................................................................................................6 Use of Supplemental and Forward Funding .....................................................................7 FY2011 Budget Request..............................................................................................................9 FY2011 Budget Request: State Department and Related Programs ...................................... 10 Key State Department Issues ......................................................................................... 12 FY2011 Budget Request: Foreign Operations ...................................................................... 13 Top 10 U.S. Foreign Aid Recipient Countries ................................................................ 14 Regional Distribution .................................................................................................... 15 Sector Distribution ........................................................................................................ 16 Key Foreign Operations Issues ...................................................................................... 18 Figures Figure 1. State-Foreign Operations Appropriations, FY2000-FY2011 ..........................................6 Figure 2. FY2011 State-Foreign Operations Request Compared to Various Representations of FY2010 and FY2009 Appropriations ..........................................................8 Figure 3. Composition of the State-Foreign Operations Budget Request, FY2011 ........................9 Figure 4. Graphic Representation of the FY2011 Request for State, Foreign Operations, and Related Programs, by Major Accounts ............................................................................. 10 Figure 5. State Department and Related Programs Appropriations, FY2001-FY2011 ................. 11 Figure 6. Foreign Operations Appropriations, FY2001-FY2011................................................. 14 Figure 7. Regional Distribution of Foreign Aid, FY2009-FY2011 Request ................................ 16 Tables Table 1. Status of State-Foreign Operations Appropriations, FY2011 ...........................................2 Table 2. State-Foreign Operations Appropriations, FY2001-FY2011............................................5 Table 3. State Department and Related Programs Appropriations, FY2001-FY2011................... 11 Table 4. Foreign Operations Appropriations, FY2001-FY2011 .................................................. 14 Table 5. Top 10 Recipients of U.S. Foreign Aid in FY2010, FY2011 Request ............................ 15 Table 6. Selected Sector Funding, FY2009 Request and FY2010 Request.................................. 17 Table C-1. State Department and Related Programs Appropriations, FY2009-FY2011 ............... 23 Table D-1. Foreign Operations Appropriations, FY2009-FY2011 .............................................. 25 Table E-1. International Affairs (150) Budget Account, FY2008-FY2010 .................................. 28 Congressional Research Service State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Appendixes Appendix A. Structure of State-Foreign Operations Appropriations ........................................... 21 Appendix B. Abbreviations ....................................................................................................... 22 Appendix C. State Department and Related Programs Appropriations........................................ 23 Appendix D. Foreign Operations Appropriations ....................................................................... 25 Appendix E. International Affairs (150) Budget Account ........................................................... 28 Contacts Author Contact Information ...................................................................................................... 29 Key Policy Staff........................................................................................................................ 29 Acknowledgments .................................................................................................................... 31 Congressional Research Service State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Continuing Resolution In March 2011, Secretary of State Hillary Clinton testified before House and Senate foreign policy committees. In her testimony she asserted, as she said Secretary of Defense Robert Gates, Joint Chiefs of Staff Chairman Admiral Mullen, and General Petraeus also have, that proposed FY2011 budget cuts for State-Foreign Operations funding “would be devastating to our national security.” At issue is whether the State-Foreign Operations budget is considered to be securityrelated spending and excluded from severe funding cuts ( a position generally supported by Democrats) or non-security-related spending considered fair game for budget cuts (a position generally supported by the Republicans). (For account-by account current and proposed funding levels, see Appendix C and Appendix D.) Congress has passed a series of continuing resolutions (CRs) to fund government programs. The first, from September 30, 2010, through December 21, 2010, was P.L. 111-242, as amended. Another CR was approved by the House and Senate on December 21 to fund government programs through March 4, 2011 (H.R. 3082; P.L. 111-322).The most recent continuing resolution, Additional Continuing Appropriations Amendments, 2011 (H.J.Res. 48/P.L. 112-6), was signed on March 18, 2011. It continues State-Foreign Operations funding at the previous CR level (P.L. 111-322) through April 8, 2011. The CRs continue funding most State Department and Foreign Operations programs at the FY2010-enacted level, with some exceptions. State Department Diplomatic and Consular Affairs programs are funded at an annual rate of $8.6 billion, consistent with FY2010 levels without the FY2010 supplemental. The Foreign Military Finance account is funded under the CR at a rate of $5.16 billion, an increase over the FY2010 level. Of this amount, at least $2.78 billion is for grants to Israel, $1.30 billion is for grants for Egypt, and $300.0 million is for aid to Jordan. In addition, the Pakistan Counterinsurgency Capability Fund is funded under the CR at a rate of $700 million. The legislation also extends the authorization of several programs, such as the passport fee retention program, that would otherwise expire at the end of FY2010. Past Year Developments On February 14, 2011, President Obama submitted his FY2012 budget request to Congress. Secretary of State Clinton testified before the House and Senate foreign policy committees in early March. Congress continues to work on funding for FY2011 as it begins work on the FY2012 budget. On February 1, 2010, the Obama Administration had submitted its FY2011 budget request to Congress, together with a request for supplemental FY2010 funding for foreign operations activities. Later that month, Secretary of State Hillary Clinton testified before the House Foreign Affairs Committee and Senate Foreign Relations Committee, and before each chamber’s StateForeign Operations Appropriations Subcommittee. Hearings on aspects of the international affairs budget request were held throughout March and April. On April 22, 2010, the Senate Budget Committee passed a budget resolution recommending $4 billion less than the Administration requested for the International Affairs account, prompting Congressional Research Service 1 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations strong objections by foreign aid advocates, including a letter signed by all living former Secretaries of State urging Congress to fully fund the Administration’s request.1 On July 15 and July 20, 2010, respectively, the Senate and House approved FY2011 discretionary funding allocations for each appropriations subcommittee, enabling work on appropriations legislation to move forward in the absence of a budget resolution. For State and Foreign Operations, the House allocation is $53.9 billion and the Senate allocation is $54.0 billion. On July 29, 2010, the President signed into law (P.L. 111-212) the FY2010 supplemental, which provides about $6.1 billion to the Department of State and Foreign Operations funding, largely for State Department operations and foreign aid to Afghanistan, Pakistan, Iraq, and Haiti. Table 1. Status of State-Foreign Operations Appropriations, FY2011 Subcomittee Markup House Senate Full Committee House 6/30 Senate Floor House Senate Conference Agreement Conf. Rept. Passed House Senate Public Law Signed 7/27 House Legislation On June 30, the House State-Foreign Operations Appropriations Subcommittee marked up and approved, by voice vote, a draft FY2011 funding bill. The as yet unnumbered measure would provide $52.81 billion, $4 billion less than the Obama Administration request and $2.3 billion less than the enacted FY2010 funding level. While funding tables from the draft have been made available, the text has not. Funding levels by account can be found in Appendix C and Appendix D. A press release2 from the subcommittee following the bill’s passage highlighted, among others, that the bill— • Does not allocate the $3.9 billion requested by the Administration for Afghanistan, in keeping with Chairwoman Lowey’s June 28 statement that the subcommittee would not appropriate funds to Afghanistan until recent reports of aid being diverted out of the country by corrupt officials have been adequately investigated. 3 The subcommittee has requested that GAO audit all U.S. assistance to Afghanistan for FY2008-FY2010, and included funds in the bill for a Special Inspector General for Afghan Reconstruction to establish a task force on corruption. • For Pakistan, recommends $2.51 billion in assistance. • For Iraq, includes $351 million to support the transition of security forces training from military to civilian management. • Fully funds commitments to Israel, Egypt, and Jordan. 1 The letter is accessible at http://www.usglc.org/USGLCdocs/ Secretaries%20of%20State%20Letter%20to%20Congress%20April%202010.pdf. 2 Available at http://appropriations.house.gov/images/stories/pdf/sfo/Lowey_Opening_Statement.6.30.10.pdf. 3 See Matthew Rosenberg, “Corruption Suspected in Airlift of Billions in Cash from Kabul,” The Wall Street Journal, June 25, 2010. Congressional Research Service 2 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations • Recommends $735 million, or $20 million more than requested, for family planning services, but does not change any provisions of law restricting funds to organizations that provide abortions or advocate for abortion rights. • Provides $825 million for the Global Fund to Fight AIDS, Tuberculosis and Malaria, which is $125 million above the Administration request. • Includes $1 billion for food security and agricultural development, or 38% less than the Administration request. • Recommends $1.34 billion for bilateral and multilateral activities to protect the environment and address global climate change. • Recommends $925 million for basic education programs, with an emphasis on providing alternatives to madrassas, which is almost 10% more than requested. • Matches the Administrations request of $446.2 million for the Peace Corps, which is a 12% increase over the FY2010 funding. Senate Legislation On July 27, the Senate Appropriations Committee marked up and approved a FY2011 StateForeign Operations funding bill, S. 3676.4 The legislation would appropriate $54.22 billion, which is $1.40 billion less than the House subcommittee draft and $2.61 billion below the Administration’s request. Of the total provided for State operations, 18.7% is for Afghanistan, Pakistan, and Iraq. Of the total provided for foreign operations, 15.3% is for those three countries. Funding levels by account can be found in Appendix C and Appendix D. The bill5— • For Afghanistan, provides $2.6 billion in assistance, more than $1.2 billion below the requested amount, and $660 million for State Department operations. • For Pakistan, provides $2.48 billion in assistance, which is $546 million below the Administration’s request, as well as $92.6 million for State Department operations. • For Iraq, provides $1.6 billion for State Department operations and $529 million for assistance, or $183 million less than requested. • Provides the amounts requested for Israel, Egypt, Jordan, and Lebanon. • For Colombia, provides $447 million, or $17.9 million less than requested. • Notes lack of authorization for State to retained consular fees, and increases appropriations above the request, while also suggesting the use of unobligated funds, to meet funding requests for Diplomatic & Consular Programs, Embassy Construction & Maintenance, and Worldwide Security Protection accounts that the Administration proposed to meet through fee retention. • For State’s Civilian Stabilization Initiative (CSI), recommends $50.0 million, which is more than a 50%, or $70 million, reduction from FY2010 levels. It calls 4 The committee report, S.Rept. 111-237, is available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname= 111_cong_reports&docid=f:sr237.111.pdf. 5 Selected highlights largely from the bill report S.Rept. 111-237 and from the Committee website. Congressional Research Service 3 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations for a reduced number of Active and Standby personnel and questions State’s ability to deploy the proposed number of personnel. It provides no CSI funds for USAID. • Proposes to maintain current funding levels for the Asia Foundation and $100,000 more than FY2010 level for the East-West Center. • Proposes to increase National Endowment for Democracy (NED) funding from $118.0 million to $125.0 million, which is $20 million above the Administration request. Some funds are to be provided for NED programs in Egypt, North Korea, Cuba, Pakistan, and the Democratic Republic of the Congo by transferring democracy funds from the Economic Support Fund account to NED. • Provides $110 million for the Democracy Fund, which was not included in the Administration’s budget. Many democracy assistance programs were requested by the Administration under the Economic Support Fund account, however, for which the committee recommended $655 million less than was requested. • Provides $14.4 million within the Diplomatic and Consular Programs account to establish up to 10 new American Centers to improve public diplomacy efforts. • Recommends continuing the FY2010 level ($1.105 billion) for the Millennium Challenge Corporation, which is $147.7 million below the President’s request of $1.280 billion. • Provides $800 million for the Global Fund to Fight AIDS, Tuberculosis and Malaria, which is $100 million above the Administration request. • For bilateral and multilateral climate change programs funded through USAID, State and Treasury, provides $1.45 billion, which is $130 million above the FY2010 level but slightly below the request. • Provides $1.3 billion, or $344 million less than requested, for food security and agriculture development programs under the Feed the Future initiative. • Recommends $700 million for family planning programs. The bill also contains language that reverses the Mexico City policy that bans U.S. foreign assistance to any country or organization that performs or promotes abortion. The language allows aid for countries or organizations unless the President certifies those recipients would use U.S. aid for promoting or performing abortions. Congressional Research Service 4 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations State-Foreign Operations Overview Forward Funding The State-Foreign Operations appropriations bill funds most programs and activities within There is disagreement among appropriators and the Administration about how to treat certain funds the international affairs budget account, provided under the FY2009 supplemental (P.L. 111-32) known as Function 150, including foreign to address in advance a portion of the FY2010 economic and military assistance, international affairs request. Unless otherwise noted, the contributions to international organizations numbers in this report reflect funding enacted in each and multilateral financial institutions, State fiscal year, so this “forward funding” is accounted for in FY2009 totals. Throughout this report, footnotes will Department and U.S. Agency for International indicate when these funds are relevant to the analysis and Development (USAID) operations, public how the comparative analysis would change if these funds diplomacy, and international broadcasting were attributed to FY2010. Affected accounts include programs. However, the bill does not align Diplomatic & Consular Programs; Embassy Security, perfectly with the international affairs budget. Construction & Maintenance; Global Health & Child Survival; International Narcotics Control & Law Food aid, which is appropriated through the Enforcement; and Foreign Military Financing. Agriculture appropriations bill, and the International Trade Commission and Foreign Claims Settlement Commission, both funded through the Commerce-Science-Justice appropriation, are international affairs (Function 150) programs not funded through the StateForeign Operations appropriations bill. Furthermore, a number of international commissions that are not part of the Function 150, such as the International Boundary and Water Commission, are funded through the State-Foreign Operations bill. A chart illustrating the organizational structure of the State-Foreign Operations appropriations bill is provided in Appendix A. This report focuses only on accounts funded through the State-Foreign Operations appropriations bill, but provides appropriations figures for the entire international affairs (Function 150) budget in Appendix E. Table 2 and Figure 1 show State-Foreign Operations appropriations for the past decade in both current and constant dollars. Table 2. State-Foreign Operations Appropriations, FY2001-FY2011 (in billions of current and 2011 constant dollars) FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 Est. FY11 Req. Current $ 23.22 24.25 31.72 48.34 34.23 34.25 37.28 40.47 50.50 55.11 56.82 Constant 2011 $ 29.40 30.22 38.51 57.04 38.95 37.64 39.89 41.77 52.07 55.88 56.82 Source: Summary and Highlights, International Affairs Function 150, FY2011 and CRS calculations. Notes: Figures include all enacted appropriations, regular and supplemental. The $1.8 billion for State/and Foreign Operations that was considered forward funding for FY2010 in P.L. 111-32, the Supplemental Appropriations Act, 2009, is included in the FY2009 total. Congressional Research Service 5 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Figure 1. State-Foreign Operations Appropriations, FY2000-FY2011 60 US$, in billions 50 40 30 20 10 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY FY 09 10 e FY st. 11 re q. 0 current US$ constant 2010 US$ Source: Summary and Highlights, International Affairs Function 150, FY2011, and CRS calculations. Background and Trends U.S. national security, commercial, and humanitarian interests are the rationale for most international affairs activities. During the cold war, foreign aid and diplomatic programs had a primarily anti-communist focus, while concurrently pursuing other U.S. policy interests, such as promoting economic development, advancing U.S. trade, expanding access to basic education and health care, promoting human rights, and protecting the environment. In the 1990s, with the cold war ended, distinct policy objectives—including stopping nuclear weapons proliferation, curbing the production and trafficking of illegal drugs, expanding peace efforts in the Middle East, achieving regional stability, protecting religious freedom, and countering trafficking in persons— replaced the cold war-shaped foreign policy objectives. A defining change in focus came following the September 11, 2001, terrorist attacks in the United States. Since then, U.S. foreign aid and diplomatic programs have emphasized national security objectives, frequently cast in terms of contributing to efforts to counter terrorism. In 2002, President Bush released a National Security Strategy that for the first time established global development as the third pillar of U.S. national security, along with defense and diplomacy. Development was again underscored in the Administration’s re-statement of the National Security Strategy released on March 16, 2006. Also in 2002, foreign assistance budget justifications began to highlight the war on terrorism as the top foreign aid priority, emphasizing U.S. assistance to 28 “front-line” states—countries that cooperated with the United States in the war on terrorism or faced terrorist threats themselves.6 6 According to the State Department, these “front-line” states in 2002 included Afghanistan, Algeria, Armenia, Azerbaijan, Bangladesh, Colombia, Djibouti, Egypt, Ethiopia, Georgia, Hungary, India, Indonesia, Jordan, Kazakhstan, Kenya, Oman, Pakistan, Philippines, Poland, Russia, Saudi Arabia, Tajikistan, Tunisia, Turkey, Turkmenistan, (continued...) Congressional Research Service 6 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Large reconstruction programs in Afghanistan and Iraq exemplified the emphasis on using foreign aid to combat terrorism. State Department efforts focused extensively on diplomatic security and finding more effective ways of presenting American views and culture through public diplomacy, particularly in Muslim communities. The Obama Administration has carried forward many Bush foreign aid initiatives, including USAID’s Development Leadership Initiative (DLI), the Millennium Challenge Corporation, and robust assistance to Iraq, Afghanistan, and Pakistan. The Obama Administration has also largely sustained Bush Administration investments in global health and HIV/AIDS treatment, though its Global Health Initiative shifts the emphasis away from a focus on discrete diseases and toward comprehensive health systems. In the FY2011 request, the Administration further defines its international priorities, with an emphasis on building State Department and USAID capacity, supporting multilateral food security and global climate change initiatives, and shifting responsibility for assistance programs in Iraq and elsewhere from military to civilian authorities. Use of Supplemental and Forward Funding Year-to-year comparison of funding levels has become increasingly complicated due to the use of supplemental appropriations. Supplemental resources for State and Foreign Operations programs, once used primarily to respond to unanticipated emergencies or natural disasters, became a significant and continuous source of funds for ongoing international activities during the Bush Administration, especially for programs related to reconstruction efforts and corresponding to ongoing military operations in Iraq and Afghanistan. Some criticized this practice, which kept significant funds separate from the annual budget cycle and made future-year planning difficult. The Obama Administration requested $6.16 billion in supplemental funds for FY2010 to meet needs in Afghanistan, Pakistan, Iraq, and Haiti. Congress approved $6.18 billion in FY2010 supplemental funds for these and other priorities on July 27.7 Year-to-year comparison has also been complicated by recent use of forward funding mechanisms, whereby appropriations legislation may provide funding for multiple fiscal years. One FY2008 supplemental,8 for example, included $3.68 billion within a section titled “Bridge Fund Supplemental Appropriations for Fiscal Year 2009,” essentially providing a FY2009 supplement before the FY2009 base appropriation was enacted. These funds were clearly designated as FY2009 funds, to be obligated between October 2008 and September 2009. Less clear, however, is the appropriate designation for $1.8 billion9 included in an FY2009 supplemental appropriations measure10 that House and Senate appropriators considered forward funding of priorities identified in the FY2010 request, but which were not clearly designated as (...continued) Uzbekistan, and Yemen. 7 P.L. 111-212. 8 P.L. 110-252. 9 The Administration cites $1.8 billion as the forward-funded level in the CBJ, while House appropriators reportedly count $2.4 billion intended as forward funding. The discrepancy apparently relates to the treatment of the Pakistan Counterinsurgency Contingency Fund and a portion of Foreign Military Financing funds to Mexico. Until the House produces legislation for FY2011, clarifying their approach to accounting for these funds, “forward funding” in this report will refer only to the $1.8 billion detailed in the CBJ. 10 P.L. 111-32. Congressional Research Service 7 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations FY2010 funds in the enacting legislation and accompanying report.11 In the FY2011 Congressional Budget Justification (CBJ), the Administration included these funds in FY2010 account totals in many instances, while the Congressional Budget Office is treating them as FY2009 appropriations, as does this report. The inclusion of supplemental funds and the accounting used for forward funds can significantly affect year-to-year comparisons of appropriations levels. For example, the FY2011 request is slightly less than the FY2010 total if the FY2010 supplemental and forward funding are included in the FY2010 column, but represents a 16% increase if the supplemental funds are excluded and the forward funding is counted in FY2009 rather than FY2010. Figure 2 compares the FY2011 State-Foreign Operations budget request with various representations of FY2010 and FY2009 appropriations. Figure 2. FY2011 State-Foreign Operations Request Compared to Various Representations of FY2010 and FY2009 Appropriations (in billions of current dollars) 0 10 20 30 40 50 60 FY2011 Req. 56.81 FY2010 w/FF & Supp. 56.94 FY2010 w/Supp 55.11 FY2010 w/FF 70 50.76 48.93 FY2010 Base 50.66 FY2009 w/FF & Supp. 48.83 FY2009 w/ Supp. 36.78 FY2009 Base Base Forward Fund Enacted Supp. Source: State Department data; CRS calculations. Note: FF = forward funding. These figures reflect the composition of the State-Foreign Operations appropriations bill, not the 150 budget account. FY2009 supplemental funding legislation includes P.L. 110-252, P.L. 111-5, and P.L. 111-32. 11 Reports accompanying the House-passed and Senate committee-approved FY2010 State-Foreign Operations appropriations bills (H.Rept. 111-187 and S.Rept. 111-44, respectively) indicate what each subcommittee considered forward funding for FY2010. The legislative language was rolled into an omnibus bill; the statement accompanying the omnibus legislation (H.Rept. 111-366) did not include the forward-funding language, but did note that the reports were to be used as guidance. Congressional Research Service 8 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations FY2011 Budget Request On February 1, 2010, the Obama Administration sent its FY2011 international affairs (Function 150 account) budget request to Congress, corresponding to a total of $56.81 billion requested for the Department of State, foreign operations, and related programs. This represents a 3% increase from enacted FY2010 funding, 12 and 4.5% of the total discretionary budget authority requested by the Administration for FY2011. Figure 3 provides a breakout of the request by assistance type. Figure 3. Composition of the State-Foreign Operations Budget Request, FY2011 State Admin. 22% Other MCC 1% 2% Multilateral Aid 6% Military Aid 12% International Orgs. 7% International Broadcasting 1% USAID Admin. 3% Bilateral Economic Aid 46% Source: Fiscal Year 2011 Budget of the United States Government and CRS calculations. Figure 4 shows the major accounts in the bill in proportion to the whole request, and indicates for each account whether the requested funding level represents an increase or decrease over the FY2010-enacted appropriation level. Just five accounts—Diplomatic and Consular Programs, Economic Support Fund, Global Health and Child Survival, Foreign Military Financing, and Development Assistance—make up more than 60% of the total funding requested. While the request for several of these accounts is less than the enacted FY2010 level, such apparent decreases are the result of significant FY2010 supplemental appropriations being enacted after the FY2011 request was submitted, and do not necessarily reflect an intention to reduce spending in those accounts. For example, the Economic Support Fund request was 23% above the enacted FY2010 level at the time it was submitted, but is 12% below the current enacted level, after Congress approved $2.5 billion in supplemental funds for that account. For a full listing of funds requested for State, Foreign Operations and Related Agency accounts, see Appendix C and Appendix D. 12 If the $1.8 billion in “forward funds” are included in the FY2010 total, rather than FY2009, the FY2011 request represents a 12% increase over the FY2010-enacted level, or a 4% decrease from the enacted plus requested supplemental level. Congressional Research Service 9 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Figure 4. Graphic Representation of the FY2011 Request for State, Foreign Operations, and Related Programs, by Major Accounts Source: FY2011 State-Foreign Operations Congressional Budget Justification; CRS calculations. Notes: Accounts for which the amount requested was less than 0.5% of the total request are represented in aggregate as “other.” WB = World Bank; AEECA = Assistance to Europe, Eurasia, and Central Asia. * No funds have been enacted for the Pakistan Counterinsurgency Fund or the Global Food Security Fund in FY2010, making a comparison to FY2010 not applicable. If FY2009 supplemental funds for the Pakistan Counterinsurgency Fund are considered forward funding for FY2010, the increase from FY2010-enacted to FY2011-requested would be 58%. FY2011 Budget Request: State Department and Related Programs13 The Administration’s FY2011 budget request for the Department of State, international broadcasting, and related programs is $17.41 billion, a 1.2% decrease from the FY2010-enacted level of $17.62 billion, including the mandatory Foreign Service Retirement Fund14 and $1.52 13 Ken Nakamura wrote this section, but has since retired from CRS. Tamara Resler will be following the updates of the Department of State and Related Agency appropriations and can be reached at 7-7367. 14 If forward funding of $374.38 million for Diplomatic and Consular Programs and $90.9 million for Embassy Security, Construction & Maintenance, provided in the Supplemental Appropriations Act of 2009 (P.L. 111-32), are included in the FY2010 total, the FY2011 increase would be 5%. Congressional Research Service 10 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations billion in supplemental funds. Related programs funded in the State portion of the bill include the Broadcasting Board of Governors (BBG), contributions to International Organizations (CIO), including the United Nations (U.N.), U.N. Peacekeeping (CIPA), and funding for several International Commissions and the U.S. Institute for Peace. Also included are funding for The Asia Foundation, the National Endowment for Democracy, and several other independent nonprofit educational and exchange organizations which help advance U.S. interests. (For a description of all the accounts within the State Department segment of the bill, see CRS Report R40482, State, Foreign Operations Appropriations: A Guide to Component Accounts, by Curt Tarnoff and Tamara J. Resler.) Table 3 and Figure 5 show appropriations for the State Department and related programs over the past decade in both current and constant dollars. Table 3. State Department and Related Programs Appropriations, FY2001-FY2011 (discretionary budget authority in billions of current and 2011 constant dollars) FY10 est. FY11 Req. FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 Current $ 6.91 7.71 8.05 9.29 10.78 11.12 10.90 13.57 16.18 17.62 17.41 Constant 2011 $ 8.75 9.61 9.77 10.96 12.27 12.22 11.66 14.00 16.66 17.87 17.41 Source: The Department of State Congressional Budget Justifications, FY2001-FY2011, and CRS calculations. Notes: Figures include all enacted appropriations, regular and supplemental. The $465.3 million for State/Related Programs accounts that was forward funding for FY2010 priorities in P.L. 111-32, the Supplemental Appropriations Act, 2009, is included in the FY2009 total rather than the FY2010 estimate. Current $ FY 09 FY 10 es t. FY 11 re q. 8 FY 0 7 FY 0 6 FY 0 5 FY 0 4 FY 0 3 2 FY 0 FY 0 1 20 18 16 14 12 10 8 6 4 2 0 FY 0 US $, in billions Figure 5. State Department and Related Programs Appropriations, FY2001-FY2011 Constant 2010 $ Source: The Department of State Congressional Budget Justifications, FY2001-FY2011, and CRS calculations. Congressional Research Service 11 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Key State Department Issues In reviewing the FY2011 State Department budget request, the following issues stand out as being Administration priorities or representing significant changes from existing policy or funding levels. Support Missions in Iraq and Other Front-Line States The FY2011 request includes significant funding to support U.S. missions in Iraq, Afghanistan, and Pakistan, where additional logistics support, security, and information technology are needed to keep up with increasing staff levels and program responsibilities. The Administration requested $1.79 billion to support the U.S. mission in Iraq, for the abovementioned purposes as well as support for Provincial Reconstruction Teams transitioning from military to State management,15 exchange programs, and the Special Inspector General for Iraq Reconstruction. The Administration is requesting $754 million to support 1,500 civilian staff from various agencies in Afghanistan, and $102 million for operational support of public diplomacy activities in Pakistan. Growth in Foreign Service Capacity The Administration is requesting $9.55 billion for Diplomatic & Consular Programs (D&CP) in FY2011, which would maintain the high funding level reached in FY2010 through a $1.33 billion supplemental appropriation for the account.16 D&CP funds most State Department salaries and expenses, and growth in FY2010 and the FY2011 request reflects the Administration’s strategic plan to increase Foreign Service capacity by 25% over FY2008 levels by FY2014. Secretary of State Clinton has described the strategy as a means to reduce the State Department’s reliance on contractors, which she believes will improve accountability and save money in the long term. The FY2011 request would fund 599 new positions, including 410 foreign service officers and 189 civil service personnel, and expand and improve training in critical languages. Retention of Consular Fees The State Department seeks authority in the FY2011 request to retain all passport and consular fees, some of which are currently retained by the Treasury. The Administration views this as a mechanism to cover the full cost of consular services more efficiently. Congress, however, has expressed concern about this new funding mechanism, which would operate outside of the regular appropriations process and could no longer be used to off-set expenditures in the budgeting process. If the request is granted, State anticipates an additional $2.59 billion in available fees, a 45% increase over the FY2010 estimate. 15 The Department will be realigning infrastructure in FY2011 by closing 11of the 16 current PRTs . Four of the five remaining PRTs are co-located with the military with much of the support costs assumed by the military. As the military withdrawals during the transition, the State Department will assume greater responsibility for these costs, which include utilities, storage, housing, furniture, IT infrastructure and equipment, building leases, and general support costs. 16 The Supplemental Appropriations Act of 2009, P.L. 111-32, forward funded $374.38 million for Diplomatic and Consular Programs for FY2010. Congressional Research Service 12 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Proposed Reductions in Funding The Administration has proposed reductions in funding for voluntary contributions to international organizations and foundations, among others. The request for international organizations is $1.6 billion, a 5% decrease from FY2010, reflecting reduced or eliminated contributions to several U.N. organizations, including the U.N. High Commission on Refugees, U.N. Development Fund for Women, U.N. Development Program, U.N. Children’s Fund (UNICEF), and the U.N. Population Fund (UNFPA). Contributions to several foundations supported by the bill would be reduced from FY2010 levels as well. The Asia Foundation request is 17% lower than the FY2010 level, at $15.7 million; the East-West Center faces a 50% reduction, to $11.4 million; and the National Endowment for Democracy would see an 11% cut, to $105 million. FY2011 Budget Request: Foreign Operations The Foreign Operations budget comprises the majority of U.S. foreign assistance programs, both bilateral and multilateral. (See Appendix D for Foreign Operations accounts and funding levels.) The annual State-Foreign Operations Appropriations bill funds most U.S. bilateral development assistance programs, with the main exception being food assistance appropriated through the Agriculture Appropriations bill (for which $1.89 billion was appropriated in FY2010 and the same amount requested for FY2011). These funds are managed primarily by USAID and the State Department, together with several smaller independent foreign assistance agencies such as the Millennium Challenge Corporation, the Peace Corps, and the Inter-American and African Development Foundations. The legislation also supports U.S. contributions to major multilateral financial institutions, such as the World Bank and U.N. entities, and includes funds for the Export-Import Bank and Overseas Private Investment Corporation, whose activities are regarded more as trade promotion than foreign aid. On occasion, the bill replenishes U.S. financial commitments to international financial institutions, such as the World Bank and the International Monetary Fund.17 The foreign operations budget request for FY2011 totals $39.40 billion, representing a 5% increase from the enacted FY2010 level of $37.49 billion, excluding forward funding from the Supplemental Appropriations Act of 2009.18 Table 4 and Figure 6 provide funding levels for foreign operations over the past decade, including enacted supplemental appropriations, in both current and constant dollars. If the FY2011 request is enacted, foreign operations funding will have increased by 142% in current dollars, and by 91% in constant dollars, from FY2001 to FY2011. 17 For a description of all the accounts within the Foreign Operations section of the bill, see CRS Report R40482, State, Foreign Operations Appropriations: A Guide to Component Accounts, by Curt Tarnoff and Tamara J. Resler. 18 If the Appropriations Act, 2009, is included in the FY2010 estimate rather than the FY2009 total, the increase is 15%. Congressional Research Service 13 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Table 4. Foreign Operations Appropriations, FY2001-FY2011 (discretionary budget authority in billions of current and 2011 constant dollars) FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 est. FY11 req. Current $ 16.31 16.54 23.67 39.05 23.45 23.13 26.38 26.89 34.32 37.49 39.40 Constant 2011 $ 20.65 20.61 28.74 46.08 26.69 25.42 28.23 27.75 35.48 38.01 39.4 Source: The Foreign Operations Congressional Budget Justifications, FY2001-FY2011, and CRS calculations. Notes: Figures include all enacted appropriations, regular and supplemental. The $1.37 billion for Foreign Operations accounts that the Administration considers forward funding for FY2010 in P.L. 111-32, the Supplemental Appropriations Act, 2009, is included in the FY2009 total. Current $ FY 09 FY 10 es t. FY 11 re q. FY 08 FY 07 FY 06 FY 05 FY 04 FY 03 FY 02 50 45 40 35 30 25 20 15 10 5 0 FY 01 US$, in billions Figure 6. Foreign Operations Appropriations, FY2001-FY2011 Constant 2009 $ Source: The Foreign Operations Congressional Budget Justification, FY2001-FY2011, and CRS calculations. Top 10 U.S. Foreign Aid Recipient Countries Prior to the wars in Afghanistan and Iraq, Israel and Egypt typically received the largest amounts of U.S. foreign aid every year since the Camp David Peace Accords in 1978.19 The reconstruction efforts in Iraq and Afghanistan moved those countries into the top five, though assistance to Iraq has declined significantly in the past couple of years, with the completion of many reconstruction activities. Meanwhile, a combination of security assistance and economic aid designed to limit the appeal of Islamic extremist organizations has moved Pakistan up the list in recent years. 19 For more information on historic aid trends, see CRS Report R40213, Foreign Aid: An Introduction to U.S. Programs and Policy, by Curt Tarnoff and Marian Leonardo Lawson. Congressional Research Service 14 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Table 5.Top 10 Recipients of U.S. Foreign Aid in FY2010, FY2011 Request (in millions of current dollars) FY2010 Est. Country Afghanistan FY2011 Request Estimated Allocation $4,102.1 Country Afghanistan Requested Allocation $3,923.7 Israel 2,775.0 Pakistan 3,053.6 Pakistan 1,806.9 Israel 3,000.0 Haiti 1,778.8 Egypt 1,558.0 Egypt 1,555.7 Iraq 729.3 Iraq 1.116.8 Kenya 714.0 Jordan 843.0 Jordan 682.7 Mexico 757.7 Nigeria 647.7 Kenya 687.7 South Africa 586.1 Nigeria 614.7 Ethiopia 583.5 Note: FY2010 figures are preliminary estimates from the State Department/F Bureau. They include forward funding for FY2010, in the GHCS and FMF accounts, that was provided through FY2009 supplemental appropriations legislation. They also include supplemental funding from P.L. 111-212. In the FY2011 request, Afghanistan tops the list at nearly $4 billion, followed by Pakistan at $3 billion. Israel and Egypt would continue to receive significant funds, primarily for Foreign Military Financing, at $3 billion and $1.56 billion, respectively. Jordan would also continue to rank high on the list, with $682.7 million requested. Iraq would be the fifth-largest recipient of aid in FY2011, under the Administration request. Assistance to the other top recipients—Kenya, Nigeria, Ethiopia, and South Africa—is targeted primarily at HIV/AIDS and other health programs. Haiti, which is a top recipient in FY2010 as a result of supplemental funds for postearthquake relief and reconstruction, would not be a lead recipient in FY2011 under the Administration’s proposal. Regional Distribution As shown in Figure 7, under the FY2011 proposal, Africa and South Central Asia would receive the most U.S. foreign assistance, with about $7.6 billion requested for each. The aid to Africa primarily supports HIV/AIDS and other health-related programs while nearly $7 billion of the $7.6 billion in aid to South Central Asia is requested for Afghanistan and Pakistan. Almost as high is aid to the Near East region, which continues to be dominated by assistance to Israel, Iraq, Egypt, and Jordan. The sharp increase in Western Hemisphere totals in FY2010 can largely be attributed to nearly $1.4 billion in supplemental funds for Haiti. Assistance to Europe and Eurasia, and to East Asia and Pacific, remains relatively low and consistent, reflecting the economic gains in these regions as well as strategic priorities. Congressional Research Service 15 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Figure 7. Regional Distribution of Foreign Aid, FY2009-FY2011 Request billions of current US$ 9 8 7 6 5 4 3 2 1 0 Africa EAP FY2009 Actual EE NE FY2010 Est. SCA WH FY2011 Req. Source: Foreign Operations Congressional Budget Justification, FY2011, P.L. 111-212. Note: FY2010 figures represent the Administrations request. EAP = East Asia and Pacific; EE = Europe and Eurasia; NE = Near East; SCA = South and Central Asia; WH = Western Hemisphere. Sector Distribution Over the years, Congress has expressed interest in various discrete aid sectors, such as education, trade, maternal and child health, and biodiversity, that are funded across multiple accounts and/or agencies. Administrations have begun presenting their respective budget requests with a section showing what portion of the request would address some of these “key interest areas.” Unlike the account funding tables in the budget request, however, the key interest area breakout does not show prior year allocations, limiting year-to-year comparison to requested funds rather than actual funding. This provides an indication of the Administration’s interests and priorities, but not necessarily those of congressional appropriators. Table 6 compares the FY2010 and FY2011 budget requests for key interest areas identified by the Administration. In keeping with the Administration’s major initiatives, the FY2011 request for several non-HIV/AIDS health activities increased significantly over the FY2010 request, as did the request for global climate change, food security, and microfinance programs. The Administration also emphasized two new focus areas, adding neglected tropical diseases and nutrition to the key interests list. Meanwhile, pandemic flu appears to be a lower Administration priority than last year, along with basic education, biodiversity, and Trans-Saharan Counter Terrorism (an initiative from the Obama Administration’s first budget request). Congressional Research Service 16 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Table 6. Selected Sector Funding, FY2009 Request and FY2010 Request (millions of current dollars) Sector Avian/Pandemic Influenza FY2010 Req. FY2011 Req. % Change $125 $75 -40% $1,001 $844 -16% $184 $114 -38% $217 ($203, included within the Global Climate Change request in FY2011) -6% $593 $716 +21% $1,363 $1,644 +21% Global Climate Change $579 $1,391 +140% Higher Education $188 $249 +32% $5,609 $5,850 +4% Malaria $585 $680 +16% Maternal and Child Health $954 $983 +3% Microenterprise and Microfinance $168 $230 +37% Neglected Tropical Diseases — $155 N/A Nutrition — $231 N/A $128 $225 +76% $32 $33 +3% $316 $323 +2% Trafficking in Persons $32 $36 +13% Trans-Sahara CounterTerrorism $80 $61 -24% Tuberculosis $191 $251 +31% Water $176 $256 +45% Basic Education Biodiversity Clean Energy Family Planning/Reproductive Health Food Security HIV/AIDS Other Public Health Threats Polio Trade Capacity Building Source: U.S. Department of State Foreign Operations Congressional Budget Justification, FY2010 and FY2011, and CRS calculations. Note: Totals for Water, Basic Education, Maternal and Child Health, and Food Security do not include related funding through the P.L. 480/Food for Peace program, which is funded through Agriculture appropriations. Congressional Research Service 17 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Key Foreign Operations Issues In reviewing the FY2011 Foreign Operations budget request, the following issues stand out as being Administration priorities or representing significant changes from existing policy or funding levels. USAID Capacity Building USAID continues to expand its Foreign Service staff through the Development Leadership Initiative (DLI), established in 2008 to double the number of Foreign Service officers at USAID in order to more effectively implement assistance programs that have expanded significantly in recent years. As with personnel increases at State, the Administration views this plan as an investment that will lead to reduced reliance on contractors and greater accountability and cost savings over time. The Administration is requesting $1.48 billion for USAID Operating Expenses for FY2011, a 6% increase over the enacted FY2010 level. Of that amount, $354.8 million is designated for recruiting and hiring 200 new Foreign Service Officers at USAID, as well as supporting the annualized recurring costs of DLI positions filled since FY2008. Military/Civilian Transition The Department of Defense (DOD) greatly expanded its foreign aid activities in the wake of the Iraq and Afghanistan invasions, when high levels of security and economic aid flowed into those countries even while instability and relatively low personnel capacity limited the role of civilian aid agencies. As conditions on the ground have stabilized and both State and USAID have begun building their capacity, both the Secretary of State and Secretary of Defense have expressed support for stronger civilian control of these activities. The FY2011 foreign operations request addresses this issue by including the following funding for activities that were previously funded through the Defense Appropriations bill: • The Complex Crisis Fund, for which $100 million was requested for FY2011, would replace funding for reconstruction, security, and stabilization activities previously provided through DOD’s Section 1207 authority. • The Pakistan Counterinsurgency Capability Fund, for which $1.2 billion is requested for FY2011, moves ongoing activities to improve the capabilities of Pakistan’s security forces from DOD control to the purview of the Secretary of State. • For Iraq, $314.6 million has been included in the International Narcotics Control and Law Enforcement (INCLE) account request for FY2011 (along with $650 million provided for this purpose in FY2010 supplemental funds) to enable State to take control of Iraqi police training programs now funded through the DOD. Secretary of State Clinton has claimed that this shift from military to civilian control will allow the defense budget for Iraq to decrease by $16 billion.20 20 Secretary Clinton’s testimony before the Senate Foreign Relations Committee, Hearing on “Foreign Policy Priorities in the FY2011 International Affairs Budget,” February 24, 2010. Congressional Research Service 18 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Front-Line States As demonstrated in Table 5, proposed funding for FY2011 would largely continue the FY2010 flow of assistance to countries of strategic interest in the fight against terrorism. The request included $12.22 billion, or 34% of the total bilateral aid request, for “front-line” states.21 For Afghanistan, $3.92 billion is requested for FY2011, primarily to increase U.S. civilian resources to balance the recent troop surge. For Pakistan, $3.05 billion is requested for FY2011, primarily to build the capacity of the government of Pakistan and support infrastructure and economic development projects that provide tangible benefits to communities and reduce the appeal of extremism. For Iraq, $729 million is requested for FY2011, on top of $650 million provided in FY2010 supplemental funds, to support the aforementioned civilian takeover of security training programs. Global Health The Administration has requested $8.5 billion in the Global Health and Child Survival account for Global Health Initiative (GHI) activities in FY2011. The request represents an 8.8% increase over the FY2010-enacted level, or 8.1% if $50 million the Administration considers forward funding from the FY2009 supplemental is counted toward the FY2010 total. The six-year, $63 billion GHI is intended to be a comprehensive approach to global health problems that builds on the previous Administration’s focus on global HIV/AIDS, tuberculosis and malaria, but prioritizes building strong and sustainable health systems through an emphasis on maternal and pediatric programs, as well as strategic coordination. Some advocates for HIV/AIDS programs have expressed concern about the shift in focus, noting that funding requested for HIV/AIDS programs in FY2011, while slightly above the FY2010 level, is less than amounts authorized by Congress and, some argue, inadequate to sustain U.S. global commitments. However, Ambassador Eric Goosby, the U.S. Global AIDS Coordinator, has stated that GHI maternal health programs will include significant activities addressing HIV/AIDS, which is the leading cause of death worldwide for women of child bearing age.22 Food Security Food security, first addressed as a key issue in the FY2010 budget request, continues to be a priority for the Obama Administration, which requested $1.64 billion for related programs in the FY2011 budget. This amount does not include P.L. 480 food assistance funds, provided through the Agriculture appropriation. The Administration’s new Global Hunger and Food Security Initiative is intended to address root causes of food insecurity and proposes to target funding to countries with widespread hunger, an agriculture-based economy, and comprehensive strategies for food security already in place. The request also emphasizes the benefits of working multilaterally and in partnership with other stakeholders to leverage resources. The request includes $408.4 million for the new multi-donor Global Food Security Trust Fund, managed by the World Bank, which will support large-scale transportation and irrigation infrastructure, commercial financing, and research. 21 See footnote 6 for a list of “front-line” states. Testimony of Ambassador Eric Goosby, United States Global AIDS Coordinator, before the House Appropriations Subcommittee on State-Foreign Operations, March 23, 2010. 22 Congressional Research Service 19 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Climate Change The Administration has requested $1.39 billion in FY2011 to support activities relating to climate change, with an emphasis on adaptation, deployment of clean energy technologies, and reduction of greenhouse gas emissions through sustainable landscapes. A significant portion of this climate change funding would be channeled through international financial institutions. The $400 million requested for contribution to the International Clean Technology Fund represents a 33% increase over the FY2010-enacted level. The request also includes $235 million for the International Strategic Climate Fund, a 213.3% increase over the estimated FY2010 contribution. Secretary of the Treasury Timothy Geithner has explained this emphasis on multilateral funding, both for climate change and food security, as a fiscally responsible approach intended to leverage commitments from other donors and increase the impact of U.S. funds.23 23 Remarks of Treasury Secretary Timothy Geithner, testifying before the House Appropriations Subcommittee on State-Foreign Operations, March 25, 2010. Congressional Research Service 20 Appendix A. Structure of State-Foreign Operations Appropriations Source: CRS. CRS-21 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Appendix B. Abbreviations Funding Accounts ACI Andean Counterdrug Initiative AEECA Assistance for Europe, Eurasia, and Central Asia CSH Child Survival and Health DA Development Assistance DF Democracy Fund ERMA Emergency Refugee and Migration Assistance ESF Economic Support Fund FMF Foreign Military Financing GHAI Global HIV/AIDS Initiative IDFA International Disaster and Famine Assistance IMET International Military Education and Training INCLE International Narcotics Control and Law Enforcement MCC Millennium Challenge Corporation MRA Migration and Refugee Assistance NADR Non-proliferation, Anti-Terrorism, Demining, and Related Programs PEPFAR President’s Emergency Plan For AIDS Relief PKO Peacekeeping Operations PL 480 Food aid PMI President’s Malaria Initiative TI Transition Initiatives Other: DFA Director of Foreign Assistance AFR Africa EAP East Asia and Pacific EE Europe and Eurasia LAC Latin America and Caribbean NE Near East SCA South and Central Asia USAID U.S. Agency for International Development Congressional Research Service 22 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Appendix C. State Department and Related Programs Appropriations Table C-1. State Department and Related Programs Appropriations, FY2009-FY2011 (in millions of current dollars) FY2009 Totala FY2010 Enacted (H.R. 3288/div F; P.L. 111-117) FY2010 Supp. Enacted (H.R. 4899; P.L. 111212) Total, Enacted FY2010 regular & supp FY2011 Request Change from FY2010 Total to FY2011 Request FY2011 House CR Senate Amdmt #149b Title I. State Department Administration of Foreign Affairs, Subtotal 11,090 11,183.4 1,415.8 12,599.2 12,536.4 -0.00% 10,903.7 11,541.1 Diplomatic & Consular Program 7,153.1 8,227.0 1,326.0 9,553.0 9,545.2 -0.0% 8,383.5 8,936.0 323.0 139.0 139.0 144.1 +3.7% 59.6 97.0 2,669.4 1,724.1 1,803.1 1,681.5 -6.7% 1,620.7 1,515.0 Civilian Stabilization Initiative 45.0 120.0 120.0 184.0 +53.3% 40.0 33.0 Office of Inspector General 121.2 102.0 105.6 120.2 +13.8% 94.0 100.0 Ed. & Cultural Exchange Programs 538.0 635.0 635.0 633.2 -0.3% 501.3 625.0 Special Inspector General for Afghanistan Reconstruction — — 7.2 — N/A ― 24.0 Representation Allowances 0% 7.7 7.0 26.3 28.0 Capital Investment Fund Embassy Security, Construction & Maintenance 79.0 3.6 7.2c 8.2 8.2 8.2 8.2 Protection of Foreign Missions & Officials 22.8 28.0 28.0 27.2 Emergency-Diplomatic & Consular Services 29.0 10.0 10.0 11.0 +10.0% 9.4 10.0 Buying Power and Maintenance 5.0 8.5 8.5 — N/A -19.0 -15.0 Repatriation Loans -2.9% 1.4 1.5 1.5 1.5 0% 1.4 1.0 Payment American Institute Taiwan 16.8 21.2 21.2 21.4 +0.9% 19.9 21.15 Foreign Service Retirement (mandatory) 157.1 158.9 158.9 158.9 0% 158.9 158.9 International Organizations, Subtotal 3,992.9 3,807.5 3,904.0 3,777.7 -3.2% 3,414.9 3,640.0 Contributions to Int’l Orgs 1,604.4 1,682.5 1,682.5 1,595.4 -5.2% 1,516.4 1,545.0 Contributions to International Peacekeeping 2,388.5 2,125.0 96.5 2,221.5 2,182.3 -1.8% 1,898.5 2,095.0 International Commissionsd 337.0 142.9 0.0 142.9 130.3 -8.8% 125.2 120.3 Int’l Boundary;/U.S.-Mexico 295.5 76.3 76.3 74.3 -2.8% ― 69.8 Congressional Research Service 96.5 23 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations FY2009 Totala FY2010 Enacted (H.R. 3288/div F; P.L. 111-117) FY2010 Supp. Enacted (H.R. 4899; P.L. 111212) Total, Enacted FY2010 regular & supp FY2011 Request Change from FY2010 Total to FY2011 Request FY2011 House CR Senate Amdmt #149b American Sections 11.6 12.6 12.6 12.4 -1.6% ― ― International Fisheries 29.9 54.0 54.0 43.6 -19.1% ― 50.5 International Broadcasting, Subtotal 715.5 746.4 3.0 749.4 768.7 +2.6% 696.7 740.8 Broadcasting Operations 704.2 733.8 3.0 736.8 755.1 +2.5% 689.8 733.9 Cuba Broadcasting [34.8] [30.5] [30.5] Capital Improvements 11.3 12.6 12.6 13.6 +7.9% 6.9 6.9 184.6 211.0 211.0 180.4 -14.5% 170.0 198.2 Asia Foundation 16.0 19.0 19.0 15.7 -17.4% 14.7 17.9 U.S. Institute of Peace Related Appropriations, Subtotal 0.0 31.0 49.2 49.2 46.6 -5.3% [42.7] 39.5 Center for Middle East-West Dialogue-Trust & Program 0.9 0.9 0.9 0.8 -11.1% 0.8 0.9 Eisenhower Exchange Programs 0.5 0.5 0.5 0.5 0% 0.5 0.5 Israeli Arab Scholarship Program 0.2 0.4 0.4 0.4 0% 0.4 0.4 East-West Center 21.0 23.0 23.0 11.4 -50.4% 0.0 21.0 National Endowment for Democracy 115.0 118.0 118.0 105.0 -11% 110.9 118.0 Other Commissions 13.2 13.0 13.0 13.2 +1.5% 12.5 12.5 Preservation of America’s Heritage 0.6 0.6 0.6 0.6 0% 0.6 0.6 Int’l Religious Freedom 4.0 4.3 4.3 4.4 +2% 4.3 4.1 Security and Cooperation In Europe 2.6 2.6 2.6 2.7 +4% 2.6 2.6 Cong.-Exec. on People’s Republic of China 2.0 2.0 2.0 2.0 0% 2.0 1.9 U.S.-China Economic and Security Review 4.0 3.5 3.5 3.5 0% 3.0 3.3 16,333.2 16,104.2 17,619.5 17,406.7 -1.2% 15,323.0 16,252.9 State/Broadcasting/Relate d Programs, TOTAL 0.0 1,515.3 Sources: U.S. Department of State budget documents, House and Senate Appropriations Committees, and CRS calculations. a. Includes funds from P.L. 111-8, P.L. 110-252, P.L. 111-5, and P.L. 111-32. b. Figures include rescissions. c. H.R. 4899 appropriates $7.2 million for SIGAR while simultaneously rescinding $7.2 million appropriated for the State Inspector General in P.L. 111-32 which was authorized to be transferred to SIGAR. d. These activities are funded through the State-Foreign Operations bill, but are not part of Function 150 of the budget. Congressional Research Service 24 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Appendix D. Foreign Operations Appropriations Table D-1. Foreign Operations Appropriations, FY2009-FY2011 (millions of current dollars) FY2009 Totala FY2010 Enacted (H.R. 3288/div F; P.L. 111-117) FY2010 Supp. Enacted (H.R. 4899; P.L. 111-212) Total, Enacted FY2010 regular & supp Title II. USAID Admin., Subtotal 1,258.0 1,650.3 7.9 USAID Operating Expenses 1,059.2 FY2011 Request Change FY2010 Total to FY2011 Request FY2011 House CR 1,658.2 1,695.5 +2.2% 1,440.1 1,605.0 1,388.8 1,388.8 1,476.0 +6.3 1,267.9 1,385.5 30.0 30.0 30.0 — N/A 7.7 10.0 USAID Capital Investment Fund 122.3 185.0 185.0 173.0 -6.5% 120.8 165.0 USAID Inspector General 46.5 46.5 7.9 54.4 46.5 -14.5% 43.7 45.0 21,456.4 21,861.2 3,167.1 25,028.3 24,576.4 -1.8% 18,045.8 21,489.0 7,339.0 7,779.0 45.0c 7824.0 8,513.0 +8.8% 6,995.5 7,880.0 GHCS (State Dept.) [5,159.0] [5,359.0] [5,359.0] [5,500.0] +2.6% [4,845.7] [5,355.0] GHCS (USAID) [2,180.0] [2,420.0] [2,420.0] [3,013.0] +24.5% [2,149.8] [2,525.0] 2,000.0 2,520.0 2,520.0 2,980.9 +18.3% 1,772.8 2,500.0 820.0 845.0 1,305.0 860.7 -34.0% 429.7 879.0 50.0 55.0 55.0 48.0 -12.7% 44.6 55.0 Complex Crises Fund 0.0 50.0 50.0 100.0 +100% 0 45.0 Development Credit Authority – Admin 8.0 8.6 8.6 8.3 -3.5% 8 8 Development Credit Authority Subsidy [54.0] [25.0] [25.0] [35.0] +40% [25.0] [30.0] 7,116.9 6,344.0 8,834.0 7,812.0 -11.6% 5,706.6 6,250.0 922.0 741.6 741.6 716.4 -3.4% 685.4 697.1 Fund for Ireland 15.0 17.0 17.0 — N/A 0 0 Democracy Fund 116.0 120.0 120.0 — N/A 112.8 115.0 1,674.5 1,693.0 1,858.0 1,605.4 -13.6% 1,023.2 1,685.0 40.0 45.0 45.0 45.0 0% 44.6 45.0 1,270.0 1,558.0 1,558.0 1,778.7 +14.2% 1,172.4 1,348.0 Civilian Stabilization Initiative Title III. Bilateral Economic Assistance, Subtotal Global Health and Child Survival, State + USAID Development Assistance International Disaster & Famine Assistance Transition Initiatives Economic Support Fund Assistance for Europe; Eurasia & Central Asia (AEECA) Migration & Refugee Assistance Emergency Refugee and Migration Independent Agencies, Subtotal Congressional Research Service 460.0 2,490.0 165.0 Senate Amdmt #149b 25 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations FY2009 Totala FY2010 Enacted (H.R. 3288/div F; P.L. 111-117) Inter-American Foundation 22.5 23.0 23.0 22.8 -0.9% 20.8 23.0 African Development Foundation 32.5 30.0 30.0 30.0 0% 29.8 30.0 Peace Corps 340.0 400.0 400.0 446.2 +11.6% 330.8 395.0 Millennium Challenge Corporation 875.0 1,105.0 1,105.0 1,279.7 +15.8 791.0 900.0 Department of Treasury, Subtotal 85.0 85.0 92.1 108.0 +27.1% 30.3 81.9 Treasury Department Technical Assistance 25.0 25.0 32.1 38.0 +15.5% 20.2 25.9 Debt Restructuring 60.0 60.0 60.0 70.0 +16.7% 10.1 56.0 10,062.7 6,985.5 1,281.7 8,267.2 9,962.9 +20.5% 9,127.8 8,775.8 International Narcotics Control & Law Enforcement 1,876.5 1,597.0 1,181.7 2,778.7 2,136.0 -23.1% 1,589.8 1,557.8 Andean Counterdrug Program [315.0] — — — N/A 0 0 631.5 754.0 754.0 757.6 +0.4% 740.0 740.0 93.0 108.0 108.0 110.0 +1.9% 108.0 108.0 Foreign Military Financing 6,231.5 4,195.0 4,295.0 5,473.3 +27.4% 5,385.0 5,365.0 Peacekeeping Operations 530.2 331.5 331.5 286.0 -13.7% 305.0 305.0 Pakistan Counterinsurgency Fund 700.0 — — 1,200.0 N/A 1,000.0 700.0 1,845.5 2,437.7 2,649.7 3,307.8 +24.8% 1,461.9 2,572.0 80.0 86.5 86.5 175.0 +102.3% 32.0 125.5 International Clean Technology Fund — 300.0 300.0 400.0 +33.3% 0 250.0 Strategic Climate Fund — 75.0 75.0 235.0 +213.3% 0 85.0 1,115.0 1,262.5 1,262.5 1,285.0 +1.8% 942.3 1,235.0 25.0 25.0 25.0 25.0 0% 20.1 25.0 0.0 4.7 4.7 21.0 +346.8% 4.7 21.0 105.0 105.0 105.0 115.3 +9.8% 0 0 106.6 N/A ― 107.0 Title IV. Military/Security Assistance, Subtotal Nonproliferation, AntiTerrorism, Demining International Military Education & Training Title V. Multilateral Assistance, Subtotal World Bank: Global Environment Facility World Bank: Int’l. Development Association IADB: Enterprise for Americas MIF IADB: Inter-American Investment Corporation Asian Development Fund Asian Development Bank Congressional Research Service FY2010 Supp. Enacted (H.R. 4899; P.L. 111-212) 7.1 100.0 212.0 Total, Enacted FY2010 regular & supp FY2011 Request Change FY2010 Total to FY2011 Request FY2011 House CR Senate Amdmt #149b 26 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations FY2009 Totala FY2010 Enacted (H.R. 3288/div F; P.L. 111-117) African Development Fund 150.0 155.0 155.0 155.9 +0.6% 135.0 125.0 International Fund for Agricultural Development 18.0 30.0 30.0 30.0 0% 17.9 29.5 — — — 408.4 N/A 0 200.0 352.5 394.0 394.0 350.6 -11.0% 309.9 369.0 N/A ― ― Global Food Security Fund International Organizations & Programs FY2010 Supp. Enacted (H.R. 4899; P.L. 111-212) 212.0 Haiti Response/Debt Reliefd Total, Enacted FY2010 regular & supp FY2011 Request Change FY2010 Total to FY2011 Request FY2011 House CR 212.0 Senate Amdmt #149b Title VI. Export Aid, Subtotal -299.2 -113.9 -113.9 -142.7 -25.3% -285.0 -291.7 Export-Import Bank (net)e -177.0 2.4 2.4 -9.5 -495.8% -147.0 -157.0 -173.0 -171.5 -171.5 -189.4 -10.4% -188.0 -186.0 Trade & Development Agency 50.8 55.2 55.2 56.2 +1.8% 50.0 51.3 Foreign Operations, Total 34,323.4 32,820.8 4,668.7 37,489.5 39,399.9 +5.1% 29,762.6 34,150.1 State/Broadcasting/Related Programs, Total 16,333.2 16,104.2 1,515.3 17,619.5 17,406.7 -1.2% 15,323.0 16,252.9 — 16.6 55,109.0 56,823.2 +3.1% 45,085.6 50,403.0 Overseas Private Investment Corporation (net)f General Provisions State-Foreign Operations, Total 50,656.6 48,925.0 6,184.0 Source: U.S. Department of State budget documents, House and Senate Appropriations Committees, and CRS calculations. a. Includes funds from P.L. 111-8, P.L. 110-252, P.L. 111-5, and P.L. 111-32 b. Figures include rescissions. c. The agency managing the supplemental GHCS funds was not specified in the legislation. d. These funds are requested for contributions to the Inter-American Development Bank, the International Development Association, and the International Fund for Agricultural Development to cancel debts owed by Haiti and for disaster response activities following the January 12 earthquake. These contributions are part of a multi-donor debt cancellation deal to which the U.S. has agreed. e. Appropriated funds are for expenses of the Inspector General. Administration expenses and loan program funds are covered by Bank receipts. f. These figures represent anticipated OPIC receipts, minus amounts requested for administrative expenses and credit funding. Congressional Research Service 27 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Appendix E. International Affairs (150) Budget Account Table E-1. International Affairs (150) Budget Account, FY2008-FY2010 (in millions of current dollars) FY2010 Base Enacted (P.L. 111-117)b FY2010 Supp. Enacted (H.R. 4899; P.L. 111-212) 50,319.6 48,782.1 6,184.0 Foreign Claim Settlement Commission 1.8 Int’l Trade Commission FY2009 Totala StateForeign Operations, excluding commissionsd FY2010 Enacted, Total FY2011 Request Change from FY2010 Enacted to FY2011 Request FY2011 House CR FY2011 Senate Amdmt #149c 54,966.1 56,692.9 +3.1% 44,960.4 50,282.7 2.1 2.1 2.2 +4.7% 2.2 2.2 75.0 81.9 81.9 87.0 +6.2% 82..0 82.0 2,420.9 1,899.5 1,899.5 1,899.5 0% 1,103 1,900.0 52,817.3 50,765.6 56,949.6 58,681.6 +3.0% 46,147.6 52,266.9 CommerceJusticeScience Agriculture P.L. 480 and McGovernDole Total International Affairs (150) 6,184.0 Source: U.S. Department of State budget documents, House and Senate Appropriations Committees, and CRS calculations. a. Includes funds from P.L. 111-8, P.L. 110-252, P.L. 111-5, and P.L. 111-32. b. P.L. 111-32, the Supplemental Appropriations Act, 2009, included $1.8 billion that the Administration considers forward funding for FY2010. Those funds are included in the FY 2009 column of this table. If the funds are included in the FY2010 total, rather than FY2009, the FY2011 request represents a 12% increase over the FY2010-enacted level. c. Figures include rescissions. d. While funding for international commissions are appropriated in State-Foreign Operations bill, they are not part of the International Affairs Function 150 Account. Congressional Research Service 28 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Author Contact Information Marian Leonardo Lawson Analyst in Foreign Assistance mlawson@crs.loc.gov, 7-4475 Tamara J. Resler Analyst in Foreign Affairs tresler@crs.loc.gov, 7-7367 Susan B. Epstein Specialist in Foreign Policy sepstein@crs.loc.gov, 7-6678 Key Policy Staff Area of Expertise Name Phone E-mail General: Foreign Operations Policy Issues/Budget Susan Epstein 7-6678 sepstein@crs.loc.gov Marian Lawson 7-4475 mlawson@crs.loc.gov Curt Tarnoff 7-7656 ctarnoff@crs.loc.gov General: State Dept & Foreign Service Issues/Budget Tamara Resler 7-7367 tresler@crs.loc.gov Afghanistan Assistance Rhoda Margesson 7-0425 rmargesson@crs.loc.gov Curt Tarnoff 7-7656 ctarnoff@crs.loc.gov Africa Assistance Ted Dagne 7-7646 tdagne@crs.loc.gov Agency for International Development Susan Epstein 7-6678 sepstein@crs.loc.gov Marian Lawson 7-4475 mlawson@crs.loc.gov Curt Tarnoff 7-7656 ctarnoff@crs.loc.gov Asia Assistance Thomas Lum 7-7616 tlum@crs.loc.gov Broadcasting, International Tamara Resler 7-7367 tresler@crs.loc.gov Central Asia Assistance Jim Nichol 7-2289 jnichol@crs.loc.gov Civilian Stabilization/Civilian Response Corps Nina Serafino 7-7667 nserafino@crs.loc.gov Debt Relief Marty Weiss 7-5407 mweiss@crs.loc.gov Development Assistance (bilateral) Susan Epstein 7-6678 sepstein@crs.loc.gov Curt Tarnoff 7-7656 ctarnoff@crs.loc.gov Marian Lawson 7-4475 mlawson@crs.loc.gov Congressional Research Service 29 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Area of Expertise Name Phone E-mail Disaster/Humanitarian Aid/Refugees Rhoda Margesson 7-0425 rmargesson@crs.loc.gov DOD and Foreign Assistance Nina Serafino 7-7667 nserafino@crs.loc.gov Export-Import Bank James Jackson 7-7751 jjackson@crs.loc.gov Family Planning Programs Luisa Blanchfield 7-0856 lblanchfield@crs.loc.gov Health Programs, including HIV/AIDS, Malaria, Tuberculosis, Child and Maternal Tiaji Salaam 7-7677 tsalaam@crs.loc.gov Alexandra Kendall 7-7314 Akendall@crs.loc.gov Human Rights Tamara Resler 7-7367 tresler@crs.loc.gov International Affairs Budget Susan Epstein 7-6678 sepstein@crs.loc.gov International Crime & Narcotics Liana Wyler 7-6177 lwyler@crs.loc.gov International Organizations/UN Funding Tamara Resler 7-7367 tresler@crs.loc.gov Marjorie Browne 7-7695 mbrowne@crs.loc.gov Iraq Reconstruction Curt Tarnoff 7-7656 ctarnoff@crs.loc.gov Latin America Assistance Mark Sullivan 7-7689 msullivan@crs.loc.gov Microenterprise Curt Tarnoff 7-7656 ctarnoff@crs.loc.gov Middle East Assistance Jeremy Sharp 7-8687 jsharp@crs.loc.gov Military Assistance Richard Grimmett 7-7675 rgrimmett@crs.loc.gov Millennium Challenge Corporation Curt Tarnoff 7-7656 ctarnoff@crs.loc.gov Multilateral Development Banks Jonathan Sanford 7-7682 jsanford@crs.loc.gov Marty Weiss 7-5407 mweiss@crs.loc.gov Overseas Private Investment Corporation James Jackson 7-7751 jjackson@crs.loc.gov Peace Corps Curt Tarnoff 7-7656 ctarnoff@crs.loc.gov Peacekeeping Marjorie Browne 7-7695 mbrowne@crs.loc.gov Nina Serafino 7-7667 nserafino@crs.loc.gov Tamara Resler 7-7367 tresler@crs.loc.gov Matthew Weed 7-4589 mweed@crs.loc.gov Public Diplomacy Congressional Research Service 30 State, Foreign Operations, and Related Programs: FY2011 Budget and Appropriations Area of Expertise Name Phone E-mail Refugee Aid Rhoda Margesson 7-0452 rmargesson@crs.loc.gov Russia/East Europe Assistance Curt Tarnoff 7-7656 ctarnoff@crs.loc.gov Terrorism John Rollins 7-5529 jrollins@crs.loc.gov U.N. Population Fund (UNFPA) Luisa Blanchfield 7-0856 lblanchfield@crs.loc.gov U.S. Institute of Peace Tamara Resler 7-7367 tresler@crs.loc.gov U.N. Voluntary Contributions Marjorie Browne 7-7695 mbrowne@crs.loc.gov Acknowledgments Ken Nakamura, who retired from CRS, co-authored this report. Congressional Research Service 31