State, Foreign Operations Appropriations:
A Guide to Component Accounts

Curt Tarnoff
Specialist in Foreign Affairs
Alex Tiersky
Analyst in Foreign Affairs
December 24, 2013
Congressional Research Service
7-5700
www.crs.gov
R40482


State, Foreign Operations Appropriations: A Guide to Component Accounts

Summary
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). 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 I, “Department of State, Foreign Operations,
and Related Programs Appropriations Act, 2012,” of the Consolidated Appropriations Act, 2012
(P.L. 112-74), which is the basis on which the FY2013 appropriations under the Consolidated and
Further Continuing Appropriations Act, 2013 (Title VII of Division F of P.L. 113-6) are provided,
and, in turn, the basis on which the FY2014 appropriations are provided under the Continuing
Appropriations Act, 2014 (P.L. 113-46).

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Contents
Introduction ...................................................................................................................................... 1
Account Descriptions ....................................................................................................................... 3
Title I—Department of State and Related Agencies ........................................................................ 3
Administration of Foreign Affairs ............................................................................................. 3
Diplomatic and Consular Programs (D&CP) ...................................................................... 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
Repatriation Loan Program ................................................................................................. 4
Payment to the American Institute in Taiwan (AIT) ........................................................... 4
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
Center for Middle Eastern-Western Dialogue Trust Fund ................................................... 6
Eisenhower Exchange Fellowship Program ........................................................................ 7
Israeli-Arab Scholarship Program (IASP) ........................................................................... 7
East-West Center (The Center for Cultural and Technical Interchange Between
East and West) .................................................................................................................. 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
Title II—United States Agency for International Development (USAID) ...................................... 8
Funds Appropriated to the President ......................................................................................... 8
Operating Expenses (OE) .................................................................................................... 8
Capital Investment Fund ..................................................................................................... 8
USAID Office of Inspector General .................................................................................... 8
Title III—Bilateral Economic Assistance ........................................................................................ 9
Funds Appropriated to the President ......................................................................................... 9
Global Health Programs ...................................................................................................... 9
Development Assistance (DA) ............................................................................................ 9
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State, Foreign Operations Appropriations: A Guide to Component Accounts

International Disaster Assistance (IDA) .............................................................................. 9
Transition Initiatives .......................................................................................................... 10
Complex Crises Fund ........................................................................................................ 10
Development Credit Authority (DCA) .............................................................................. 10
Economic Support Fund (ESF) ......................................................................................... 10
Democracy Fund ............................................................................................................... 10
Assistance for Europe, Eurasia, and Central Asia (AEECA) ............................................ 10
Department of State ................................................................................................................. 11
Migration and Refugee Assistance (MRA) ....................................................................... 11
Emergency Refugee and Migration Assistance (ERMA) Fund......................................... 11
Independent Agencies .............................................................................................................. 11
Peace Corps ....................................................................................................................... 11
Millennium Challenge Corporation (MCC) ...................................................................... 11
Inter-American Foundation (IAF) ..................................................................................... 11
African Development Foundation (ADF) ......................................................................... 11
Department of the Treasury ..................................................................................................... 12
International Affairs Technical Assistance ........................................................................ 12
Debt Restructuring ............................................................................................................ 12
Title IV—International Security Assistance .................................................................................. 12
Department of State ................................................................................................................. 12
International Narcotics Control and Law Enforcement (INCLE) ..................................... 12
Nonproliferation, Anti-terrorism, Demining, and Related programs (NADR) ................. 12
Peacekeeping Operations (PKO) ....................................................................................... 12
Funds Appropriated to the President ....................................................................................... 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
World Bank: International Bank for Reconstruction and Development (IBRD) .............. 14
Clean Technology Fund (CTF) .......................................................................................... 14
Strategic Climate Fund (SCF) ........................................................................................... 14
Global Agriculture and Food Security Program (GAFSP) ................................................ 15
Inter-American Development Bank (IADB) ..................................................................... 15
Enterprise for the Americas Multilateral Investment Fund (MIF) .................................... 15
Asian Development Bank (AsDB) .................................................................................... 15
Asian Development Fund (ADF) ...................................................................................... 15
African Development Bank (AfDB) ................................................................................. 15
African Development Fund (AfDF) .................................................................................. 15
International Fund for Agricultural Development (IFAD) ................................................ 16
Title VI—Export and Investment Assistance ................................................................................. 16
Export-Import Bank of the United States .......................................................................... 16
Overseas Private Investment Corporation (OPIC) ............................................................ 16
Trade and Development Agency (TDA) ........................................................................... 16
Title VII—General Provisions ....................................................................................................... 16
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Title VIII—Overseas Contingency Operations/Global War on Terrorism ..................................... 16

Contacts
Author Contact Information........................................................................................................... 17
Key Policy Staff ............................................................................................................................. 17

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Introduction
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’s) operating budgets; 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 budget function 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 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 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
law that legislation authorizing appropriations is required before the appropriations can be made.4

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 subfunction is assigned a three-digit code. International affairs is 150. Subfunction 151 encompasses
international development and humanitarian assistance; subfunction 152 consists of security assistance programs, etc.
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.
4 See §15 of the State Department Basic Authorities Act of 1956 (22 U.S.C. 2680) and §10 of the Foreign Military
(continued...)
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These provisions have been waived in the years for which 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. That account was discontinued in the
FY2013 appropriations at the request of the Administration. 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.
The basis on which the FY2014 State, Foreign Operations appropriations are currently provided
under the Continuing Appropriations Act, 2014 (P.L. 113-46, H.R. 2775) is the Consolidated and
Further Continuing Appropriations Act, 2013 (Title VII of Division F of P.L. 113-6), which, in
turn, carried over most, but not all, of the requirements, authorities, conditions, limitations, and
other provisions of the FY2012 Consolidated Appropriations Act (P.L. 112-74). In addition, until
January 15, 2014, the FY2014 Continuing Appropriations carries over the account funding levels
of the previous FY2013 Act as changed by budget sequestration pursuant to the Budget Control
Act of 2011 (P.L. 112-25) as amended by the American Taxpayer Relief Act (P.L. 112-240). For
FY2013 post-sequester levels, see the Appendix in CRS Report R43043, State, Foreign
Operations, and Related Programs: FY2014 Budget and Appropriations
, by Susan B. Epstein,
Alex Tiersky, and Marian L. Lawson.
In the FY2012 Consolidated Appropriations Act (P.L. 112-74), the State Department, Foreign
Operations, and Related Programs appropriations legislation (Division I) is divided into eight
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
Title VIII
Overseas Contingency Operations/Global War on Terrorism

This report briefly explains the different accounts in the order they are presented in the FY2012
State, Foreign Operations appropriations legislation.

(...continued)
Sales Act amendments, 1971 (22 U.S.C. 2412).
5 For example, see §7022 of the FY2012 Consolidated Appropriations Act, Division I (P.L. 112-74). Most foreign
operations program appropriations have not been authorized since 1987. For related discussion, see CRS Report
R40089, Foreign Assistance Act of 1961: Authorizations and Corresponding Appropriations, by Dianne E. Rennack
and Susan G. Chesser.
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Account Descriptions
Title I—Department of State and Related Agencies
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
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.
Administration of Foreign Affairs
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.
Diplomatic and Consular Programs (D&CP)
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. Funding is included
here for Conflict Stabilization Operations, formerly the Civilian Stabilization Initiative, which
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.
Capital Investment Fund (CIF)
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.
Office of the Inspector General (OIG)
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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Educational and Cultural Exchange Programs
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 a
variety of U.S. musical, theatrical, and other performing arts groups, as well to exhibitions, to
showcase American arts in performances and workshops around the world.
Representation Allowances
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.
Protection of Foreign Missions and Officials
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.
Embassy Security, Construction, and Maintenance (ESCM)
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.
Emergencies in the Diplomatic and Consular Services
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.
Repatriation Loan Program
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.
Payment to the American Institute in Taiwan (AIT)
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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Foreign Service Retirement and Disability Fund
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.
International Organizations
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.
Contributions to International Organizations (CIO)
The Contributions to 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 intergovernmental organizations to which the United States
belongs through U.S. law, treaty, or convention. U.S. contributions to the over 45 organizations
funded through the CIO account provide a portion of each organization’s budget. The percentage
of the U.S. contribution relative to that of all other countries differs; for example, as of FY2013,
U.S. contributions represent 22% of the assessed U.N. Regular Budget dues, but 59% for the
Organization of American States.
Contributions for International Peacekeeping (CIPA)
The International Peacekeeping account funds assessments on the United States for the 15 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 entities’
budgets.
International Commissions
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 Joint Commission (between the U.S. and Canada),
• International Boundary Commission (between the U.S. and Canada),
• Border Environment Cooperation Commission, and
• International Fisheries Commissions.
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Broadcasting Board of Governors (BBG)
The nine-member Broadcasting Board of Governors supervises and funds all non-military, U.S.
government international broadcasting. Operating in 59 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:
International Broadcasting Operations
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.
Broadcasting Capital Improvements
The Capital Improvements account supports maintenance of the BBG from broadcast station
repair to the building of new antennas.
Related Programs
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.
The Asia Foundation
The Foundation seeks to strengthen democratic processes and institutions in Asia, open markets,
and improve U.S.-Asian relations.
United States Institute of Peace (USIP)
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.
Center for Middle Eastern-Western Dialogue Trust Fund
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.
Eisenhower Exchange Fellowship Program
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.
Israeli-Arab Scholarship Program (IASP)
The IASP funds scholarships for Israeli Arabs to attend institutions of higher education in the
United States.
East-West Center (The Center for Cultural and Technical Interchange Between
East and West)

The East-West Center promotes understanding and cooperation among the governments and
peoples of the Asia/Pacific region and the United States.
National Endowment for Democracy (NED)
NED is a private, non-profit organization established to support democratic institutions in over 90
countries.
Other Commissions
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.
Commission for the Preservation of America’s Heritage Abroad
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.
Commission on International Religious Freedom (CIRF)
In consultation with the State Department, the Commission seeks to promote international
religious freedom.
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Commission on Security and Cooperation in Europe (CSCE)
The Commission oversees the work of the Organization on Security and Cooperation in Europe
(OSCE), particularly in the area of humanitarian affairs.
Congressional-Executive Commission on the People’s Republic of China
The Commission monitors China’s compliance with international human rights agreements and
standards.
United States-China Economic and Security Review Commission
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.
Title II—United States Agency for International
Development (USAID)

This title provides operational funds for USAID, an independent agency directly responsible for
implementing most bilateral development assistance and disaster relief programs, many of which
are funded in Title III.
Funds Appropriated to the President
Operating Expenses (OE)
The Operating Expense account funds the operational costs of USAID including salaries and
benefits, overseas and Washington operations, staff training, security, and information technology
maintenance and upgrades.
Capital Investment Fund
A program begun in FY2003, the Capital Investment Fund supports USAID modernization of
information technology systems and the construction of facilities overseas.
USAID Office of Inspector General
This account supports operational costs of USAID’s Inspector General office, which conducts
audits and investigations of USAID programs.
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Title III—Bilateral Economic Assistance
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.
Funds Appropriated to the President
Funds in this category of appropriations are provided chiefly through USAID or in close
association with the Department of State.
Global Health Programs
The Global Health Programs account supports multiple health programs conducted by USAID
and the Department of State through funding of two major elements:
Global Health-USAID
Managed by USAID, appropriations in this sub-account fund programs focused on combating
infectious diseases such as immunization and oral rehydration; HIV/AIDS; malaria; tuberculosis;
maternal and child health; vulnerable children; and family planning and reproductive health.
Global Health-State
Managed by the Office of the Global AIDS Coordinator (OGAC) in the Department of State, this
sub-account is the largest source of funding for the President’s Emergency Plan for AIDS Relief
(PEPFAR). Programs funded from this sub-account are implemented by USAID, the Department
of Defense, the Centers for Disease Control and Prevention, and the Peace Corps, among others.
GHCS-State also supports part of the U.S. contribution to the multilateral organization, the
Global Fund to Fight AIDS, Tuberculosis and Malaria.
Development Assistance (DA)
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.
International Disaster Assistance (IDA)
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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Transition Initiatives
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.
Complex Crises Fund
The Fund allows USAID to respond to emerging or unforeseen crises with projects aimed at the
root causes of conflict or instability. It is meant to replace funding formerly provided through the
Department of Defense Section 1207 authority.
Development Credit Authority (DCA)
Managed by USAID, the Development Credit Authority specifies an amount of funds that may
transferred from other accounts to subsidize U.S. loan guarantees that assume a portion of the risk
taken by private banks financing housing shelter projects, water and sanitation systems, and
microcredit and small enterprise development programs, among others. The provision also
directly appropriates administrative costs to run the credit program.
Economic Support Fund (ESF)
The Economic Support Fund uses economic assistance to advance U.S. political and strategic
goals in countries of special importance to U.S. foreign policy. Key recipients in recent years
include Afghanistan, Iraq, South Sudan, Egypt, Colombia, and Jordan. Funding decisions are
made by the State Department; programs are implemented largely by USAID.
Democracy Fund
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.
Assistance for Europe, Eurasia, and Central Asia (AEECA)
This account combined two formerly separate accounts into one. The two accounts were:
• Assistance for Eastern Europe and the Baltic States. This account was commonly
known as the SEED Act account (Support for East European Democracy), its
authorizing legislation (P.L. 101-179). Since 1989, USAID and other agencies,
under the guidance of the State Department, channeled U.S. economic assistance
to Eastern Europe through this regional program.
• Assistance for the Independent States of the former Soviet Union. This account
was commonly known as the FREEDOM Support Act account (Freedom for
Russia and Emerging Eurasian Democracies and Open Markets Support Act), its
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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.
In the FY2013 appropriations, the AEECA account was discontinued at the Administration’s
request. Its functions may be funded from the ESF account.
Department of State
Migration and Refugee Assistance (MRA)
The Migration and Refugee Assistance program supports refugee relief activities worldwide and,
in some cases, helps resettle refugees.
Emergency Refugee and Migration Assistance (ERMA) Fund
ERMA holds contingency funds that can be drawn upon quickly in times of refugee emergencies.
Appropriations replenish resources to this account.
Independent Agencies
Peace Corps
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. In 2011, 9,095 volunteers served in
76 nations.
Millennium Challenge Corporation (MCC)
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, education, and the environment, and support for
economic freedom.
Inter-American Foundation (IAF)
The IAF finances small-scale enterprise and grassroots community self-help activities aimed at
assisting poor people in Latin America.
African Development Foundation (ADF)
The ADF finances small-scale enterprise and grassroots community self-help activities aimed at
assisting poor people in Africa.
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Department of the Treasury
International Affairs Technical Assistance
This technical assistance program supports financial advisors to countries seeking help in
implementing economic reforms, focusing on banking and financial institutions, economic
crimes, government debt, revenue policy, and budget and financial accountability.
Debt Restructuring
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.
Funds support the U.S. commitment to the Heavily Indebted Poor Country (HIPC) Initiative.
Title IV—International Security Assistance
Department of State
International Narcotics Control and Law Enforcement (INCLE)
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. Funds support the efforts in Mexico to enhance bilateral and regional cooperation
to combat drug trafficking and organized crime, in Colombia and the Andean region for both drug
interdiction and alternative development, and in Iraq to train police.
Nonproliferation, Anti-terrorism, Demining, and Related programs (NADR)
This account funds a variety of State Department-managed activities aimed at countering
proliferation of weapons of mass destruction, supporting anti-terrorism training and related
activities, and promoting demining operations in developing nations.
Peacekeeping Operations (PKO)
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. The State
Department controls the funds and sets the policy; DOD implements.
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Funds Appropriated to the President
International Military Education and Training (IMET)
Through IMET, the United States provides training and education to selected foreign military and
civilian personnel on U.S. military practices and standards, including democratic values. The
State Department controls the funds and has policy authority; the Department of Defense
implements this program.
Foreign Military Financing (FMF) Program
The Foreign Military Financing Program supports U.S. overseas arms transfers on a grant basis.
The State Department controls the funds and has policy authority; the Department of Defense
implements this program.
Title V—Multilateral Economic Assistance
Funds Appropriated to the President
Under this category, funds are provided through the Department of State to international
organizations, including the United Nations.
International Organizations and Programs (IO&P)
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).
International Financial Institutions
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
entities in those countries. Not all international financial institutions require or receive U.S.
contributions from year to year.6

6 Among those that sometimes receive funding but for which there was no request or appropriation in FY2013 are:
The International Finance Corporation (IFC). IFC, another World Bank window, makes loans and equity investments to
promote growth of productive private enterprise in developing nations.
World Bank Multilateral Investment Guaranty Agency (MIGA). MIGA encourages private investment in developing
countries by offering insurance against noncommercial risks such as expropriation.
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
(continued...)
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In the case of concessional lending institutions, U.S. appropriations contribute to periodically
agreed donor replenishments as capital is drawn down. Non-concessional bank institutions rarely
require new financial commitments. However, in FY2013, additional financial support is being
provided to five major non-concessional lending facilities at the multilateral development banks
to allow them to increase their lending capacity in response to the demands for capital resulting
from the global financial crisis. For each of these institutions, the U.S. contribution takes the form
of paid-in capital, an appropriated amount to be provided over several years, and callable capital,
a guaranteed amount, authorized by Congress, but payable only in case of default. The latter is
denoted in legislation as a “Limitation on Callable Capital Subscriptions.”
Global Environment Facility (GEF)
Cosponsored by the UNDP, UNEP, and the World Bank, the GEF makes grants to help
developing countries deal with global environmental problems.
World Bank: International Development Association (IDA)
As the World Bank’s “soft loan” window, IDA lends at concessional rates to low-income
countries.
World Bank: International Bank for Reconstruction and Development (IBRD)
The 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. To
support a “general capital increase” at the IBRD, legislative provisions include both paid-in
capital and callable capital subscriptions.
Clean Technology Fund (CTF)
This multilateral fund, for which the World Bank is trustee, seeks to reduce the growth of
greenhouse gas emissions in developing countries by financing the extra costs of commercially
available cleaner technologies over dirtier, conventional alternatives.
Strategic Climate Fund (SCF)
Another multi-donor fund seeking to address climate change under the auspices of the World
Bank, the SCF supports three targeted programs: the Pilot Program for Climate Resilience, the
Forest Investment Program, and the Program for Scaling-Up Renewable Energy in Low-Income

(...continued)
both nations.
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.
Inter-American Investment Corporation (IIC), an IADB facility that makes loans and equity investments to promote the
growth of small and medium-sized private enterprise in Latin America and the Caribbean.
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Countries. Each program seeks to pilot new approaches and scaled-up activities to address
climate change challenges in developing countries.
Global Agriculture and Food Security Program (GAFSP)
The GAFSP was established with leading developed and developing countries (the G-8 and G-20)
to increase investments in agriculture and food security in poor countries. The United States
chairs the Steering Committee of this fund.
Inter-American Development Bank (IADB)
The IADB 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). To support a general capital
increase, legislative provisions include both paid-in capital and callable capital subscriptions.
Enterprise for the Americas Multilateral Investment Fund (MIF)
The MIF, a multi-donor trust fund residing within the Inter-American Development Bank,
provides technical and financial assistance to help countries in Latin America and the Caribbean
reform their investment policies in order to attract foreign investment.
Asian Development Bank (AsDB)
The Asian Development Bank provides loans on near-market terms to promote economic
development. To support a general capital increase, legislative provisions include both paid-in
capital and callable capital subscriptions.
Asian Development Fund (ADF)
The ADF is the “soft loan” window of the Asian Development Bank (ADB), which finances
economic development programs in Asia and the Pacific.
African Development Bank (AfDB)
The AfDB lends at near-market rates, with special emphasis on agriculture, infrastructure, and
industrial development. To support a general capital increase, legislative provisions include both
paid-in capital and callable capital subscriptions.
African Development Fund (AfDF)
The AfDF lends on concessional terms to low-income sub-Saharan African countries. It resides
within the African Development Bank.
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International Fund for Agricultural Development (IFAD)
IFAD is a multilateral financial institution helping developing countries increase agricultural
productivity and income, improve nutritional levels, and integrate into larger markets.
Title VI—Export and Investment Assistance
Export-Import Bank of the United States
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. An appropriation is provided for the agency’s inspector general. An appropriation
ceiling is also specified for a subsidy to support the agency’s programs and administrative
expenses, but most, if not all, of these costs are annually covered by Bank receipts.
Overseas Private Investment Corporation (OPIC)
OPIC offers political risk insurance, guarantees, and investment financing to encourage U.S.
firms to invest in developing countries. Although the agency is self-sustaining, the appropriation
sets ceilings on administrative expenses to carry out the insurance programs and denotes a level
of support for credit financing.
Trade and Development Agency (TDA)
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.
Title VII—General Provisions
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.7
Title VIII—Overseas Contingency
Operations/Global War on Terrorism

Since FY2012, the Administration’s budget has distinguished between “core” international affairs
funding and funding to support “overseas contingency operations” (OCO), described in budget
documents as “extraordinary, but temporary, costs of the Department of State and USAID in Iraq,

7 For further discussion, see CRS Report R40557, Foreign Operations Appropriations: General Provisions, by Dianne
E. Rennack, Lisa Mages, and Susan G. Chesser.
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Afghanistan, and Pakistan.”8 Congress has adopted this approach, but has defined OCO more
broadly. In each of the past two years, Congress appropriated OCO funding for a broader range of
countries and activities, including Transition Initiative OCO funding for Libya and Yemen,
International Disaster Assistance OCO funding for the Horn of Africa, and Foreign Military
Financing OCO funding for the Philippines.

Author Contact Information

Curt Tarnoff
Alex Tiersky
Specialist in Foreign Affairs
Analyst in Foreign Affairs
ctarnoff@crs.loc.gov, 7-7656
atiersky@crs.loc.gov, 7-7367


Key Policy Staff

Area of Expertise
Name
Phone
E-mail
State Department Appropriations
Alex Tiersky
7-7367
atiersky@crs.loc.gov
Foreign Operations Appropriations
Curt Tarnoff
7-7656
ctarnoff@crs.loc.gov
Foreign Operations Appropriations
Marian Leonardo Lawson
7-4475
mlawson@crs.loc.gov
Foreign Operations Appropriations
Susan B. Epstein
7-6678
sepstein@crs.loc.gov


8 From Executive Budget Summary, Function 150 & Other International Programs, Fiscal Year 2014, p. 97.
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