Fact Sheet: The FY2012 State and Foreign Operations Budget Request

Fact Sheet: The FY2012 State and Foreign Operations Budget Request

Fact Sheet: The FY2012 State and Foreign
Operations Budget Request
Susan B. Epstein
Specialist in Foreign Policy
Marian Leonardo Lawson
Analyst in Foreign Assistance
Tamara J. Resler
Analyst in Foreign Affairs
March 9, 2011
Congressional Research Service
7-5700
www.crs.gov
R41680
CRS Report for Congress
P
repared for Members and Committees of Congress

Fact Sheet: The FY2012 State and Foreign Operations Budget Request

Summary
On February 14, 2011, the Obama Administration presented its FY2012 budget request for
International Affairs (function 150) programs. Within that request was $59.64 billion for
programs funded through the State Department, Foreign Operations and Related Accounts
appropriation, a 5.1% increase over the current funding level. This fact sheet provides a brief
overview of that request. A full report on FY2012 State and Foreign Operations budget and
appropriations issues will follow initial congressional consideration of appropriations legislation.

Congressional Research Service

Fact Sheet: The FY2012 State and Foreign Operations Budget Request

Contents
FY2012 Core and Overseas Contingency Operations Request ............................................... 1
Key Issues for Congress ........................................................................................................ 1
Broader Budget and Historic Context .................................................................................... 2

Tables
Table 1. State-Foreign Operations Appropriations, FY2002-FY2012 ........................................... 2
Table A-1. State, Foreign Operations and Related Accounts Appropriations, FY2010
Enacted and the FY2012 Request, by Account.......................................................................... 3

Appendixes
Appendix. State, Foreign Operations and Related Accounts Appropriations, FY2010
Enacted and the FY2012 Request, by Account.......................................................................... 3

Contacts
Author Contact Information ........................................................................................................ 6

Congressional Research Service

Fact Sheet: The FY2012 State and Foreign Operations Budget Request

n February 14, 2011, the Obama Administration presented its FY2012 budget request for
International Affairs (function 150) programs. Within that request was $59.64 billion for
O programs funded through the State Department, Foreign Operations and Related
Accounts appropriation, a 5.1% increase over the current funding level. This fact sheet provides a
brief overview of that request. A full CRS report on FY2012 State and Foreign Operations budget
and appropriations issues is planned to follow initial congressional consideration of
appropriations legislation.
FY2012 Core and Overseas Contingency Operations Request
The Administration, for the first time, divided the FY2012 International Affairs request into two
parts: the “core” budget request reflecting “enduring” needs, which account for $47.03 billion,
and Overseas Contingency Operations (OCO), for which $8.70 billion are requested. OCO funds
are described in the Administration’s budget documents as “extraordinary, temporary costs in
Iraq, Afghanistan and Pakistan.”1 This approach reflects the way that the Department of Defense
has presented its budget in recent years. Secretary of State Clinton has described the State-
Foreign Operations OCO request as a portion of a government-wide OCO request of $126 billion.
The total request includes $19.51 billion for State Department operations and related accounts, a
nearly 9% increase over the FY2010-enacted level. The total foreign operations request is $40.12
billion, or 3% above the FY2010-enacted level. For a breakdown of the State-Foreign Operations
requests by account, including OCO designations for FY2012, see the Appendix.
Key Issues for Congress
Civilian Transition in Iraq: The planned withdrawal of the U.S. military operations in Iraq by
December 31, 2011,2 in accordance with U.S.-Iraq bilateral agreements, will represent a dramatic
shift in the U.S. government’s presence in Iraq. For FY2012, $3.2 billion in OCO funds are
requested to cover the transition from military to civilian leadership in Iraq. Some Members of
Congress remain skeptical of the State Department’s capacity to take over more than 300
activities—ranging from environmental cleanup to medical support—that the U.S. military had
been performing.3
Front-Line States: Budget constraints may lead to questions about sustaining high levels of aid
to Afghanistan, Iraq, and Pakistan, which makes up 18% of the total FY2012 foreign operations
request. For Afghanistan, roughly $3.1 billion is requested through USAID and State budget
accounts, a roughly 20% decrease in funding for the same programs from the FY2010-enacted
level of $4.2 billion. The Administration has requested $2.3 billion for aid to Iraq, a 108%
increase over the roughly $1.1 billion enacted aid level for FY2010, reflecting the shift of
responsibility for police and military assistance from the Department of Defense to the State

1 Executive Budget Summary, Function 150 & Other International Programs, Fiscal Year 2012, p. 2.
2 Though the U.S. combat mission in Iraq ended in August 2010, some 50,000 U.S. military forces continue to provide
training until their expected departure at the end of 2011. U.S. Department of State, Office of the Inspector General,
Compliance Follow-Up Review of Embassy Baghdad, Iraq, ISP-C-11-08A, October 2010.
3 The remaining tasks were either concluded, terminated, or given to others. U.S. Department of State, Office of the
Inspector General, Compliance Follow-Up Review of Embassy Baghdad, Iraq, ISP-C-11-08A, October 2010.
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Fact Sheet: The FY2012 State and Foreign Operations Budget Request

Department. For Pakistan, total funding would increase by 62.8% over the FY2010-enacted
levels, largely due to $1.1 billion requested for the Pakistan Counterinsurgency Capability Fund.
Recent Events in the Arab World: The wave of popular unrest gripping the broader Middle East
may have major repercussions for U.S. regional assistance strategy. While the FY2012 budget
request does not directly address this issue, foreign aid remains a key lever of U.S. influence in
the region; lawmakers and Administration officials are likely to focus in the coming months on
how country-specific circumstances will affect aid policy and allocations.
Administration Initiatives: The Administration request demonstrates continued support for three
major global initiatives. The request includes $1.37 billion for the Feed the Future Initiative, $125
million more than the amount allocated in FY2010. The Global Health Initiative would receive
roughly $9.9 billion ($8.7 billion through State-Foreign Operations accounts), compared to the
FY2010-enacted level of just under $9.0 billion. The request for programs supporting the Global
Climate Change Initiative totals slightly over $1.3 billion, a 40% increase over the $946 million
enacted in FY2010.
Personnel: The State Department’s request includes $67 million to build civilian capacity in
FY2012. The funding would support 197 new positions, including 130 Foreign Service and 67
Civil Service positions. An additional $399 million is requested through the USAID Operating
Expenses account to support new and recently hired Foreign Service Officers at USAID. The
personnel growth reflects a continuing priority of the Obama Administration, building on efforts
started by the George W. Bush Administration, to alleviate a chronic shortage of personnel at
State and USAID.
Broader Budget and Historic Context
Table 1. State-Foreign Operations Appropriations, FY2002-FY2012
(in billions of current and 2011constant U.S. dollars)
FY10
FY12

FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 Enacted FY11 Req.
Current
$
24.25 31.72 48.34 34.23 34.25 37.28 40.47 50.50 56.72
* 59.64
Constant
2011 $
29.97 38.36 57.00 38.08 37.84 40.14 42.06 52.15 57.53
* 59.64
Source: Executive Budget Summary, Function 150,FY 2012; CRS appropriations reports; CRS calculations.
Notes: * Federal agencies are currently being funded through a continuing resolution, which maintains funding at
FY2010 levels for most programs. Includes supplementals. Constant dol ars were calculated using deflators from
Table 10.1 of the FY2012 Historic Budget Tables.
The State, Foreign Operations and Related Accounts request, at $59.64 billion, represents about
1.6% of the $3.7 billion in total budget authority requested for FY2012, and about 4% of
proposed discretionary budget authority. The request is a 5.1% increase over the FY2010-enacted
appropriation, in current dollars. The request continues a general trend of increasing international
affairs spending over the past decade, driven largely by strategic and reconstruction aid to Iraq,
Afghanistan, and Pakistan, as well as large global health initiatives. In constant dollars, the
FY2012 request is a 4% increase over FY2010, and is nearly double the FY2002 appropriation
(Table 1).
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Fact Sheet: The FY2012 State and Foreign Operations Budget Request

Appendix. State, Foreign Operations and Related
Accounts Appropriations, FY2010 Enacted and the
FY2012 Request, by Account
Table A-1. State, Foreign Operations and Related Accounts Appropriations, FY2010
Enacted and the FY2012 Request, by Account
(in millions of current U.S. $)
FY2012 Request
% Change,
FY2010
FY2011
FY2010 to

Enacted
CR
Total Contingency
FY2012 Req.
STATE OPERATIONS & Related
17,912.8
*
19,508.8
(4,386.2)
+8.9%
Administration of Foreign Affairs
12,905.5
* 14,907.3
(4,386.2)
+15.5%
Diplomatic and Consular Programs
9,927.4
*
11,893.5
(4,323.3)
+19.8%
Capital Investment Fund
139.0
*
125.0
-
-10.0%
Embassy Security Construction &
Maintenance
1,894.1 *
1,801.5
- -0.7%
Conflict Stabilization Operations
120.0
*
92.2
-
-23.2%
Office of the Inspector General
112.6
*
128.1
(62.9)
+13.8%
Educational and Cultural Exchange
Programs
635.0 *
637.1
- +0.3%
Representation Al owances
8.2
*
8.2
-
0.0
Protection of Foreign Missions and
Officials
28.0 *
27.7
- -1.1%
Emergencies in Diplomatic, Consular
Affairs
10.0 *
10.0
- 0.0
Buying Power Maintenance Account
8.5
*
-
-
n.a.
Repatriation Loans Program
1.5
*
1.8
-
+20.0%
American Institute in Taiwan
21.2
*
23.3
-
+9.9%
Foreign Service Retirement and
Disability (mandatory)
158.9 *
158.9
- 0.0%
International Organizations
3,904.0
*
3,539.4
-
-9.3%
Contributions to International
Organizations
1,682.5 *
1,619.4
- -3.8%
Contributions to Int. Peacekeeping
Activities
2,221.5 *
1,920.0
- -13.6%
Related Programs
161.8
*
131.5
-
-18.7%
The Asia Foundation
19.0
*
14.9
-
-21.6%
Center for Middle East-Western
Dialogue
0.9 *
0.8
- -11.1%
Eisenhower Exchange Fel owship
0.5
*
0.5
-
0.0
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Fact Sheet: The FY2012 State and Foreign Operations Budget Request

FY2012 Request
% Change,
FY2010
FY2011
FY2010 to

Enacted
CR
Total Contingency
FY2012 Req.
Israeli Arab Scholarship Program
0.4
*
0.4
-
0.0
East-West Center
23.0
*
10.8
-
-53.0%
National Endowment for Democracy
118.0
*
104.0
-
-11.9%
International Commissions
142.9
*
120.8
-
-15.4%
Int. Boundary and Water Commission
76.3
*
77.5
-
+1.6%
American Sections
12.6
*
12.0
-
-4.8%
Int. Joint Commission
8.0
*
7.2
-
-10.0%
Int. Boundary Commission
2.4
*
2.4
-
0.0
Border Environment Coop.
Commission
2.2 *
2.3
- +4.5%
Int. Fisheries Commission
54.0
*
31.3
-
-42.0%
Broadcasting Board of Governors
749.4
*
767.1
-
+2.4%
International Broadcasting Operations
736.8
*
754.3
-
+2.4%
Capital Improvements
12.6
*
12.8
-
+1.6%
U.S. Institute of Peace
49.2
*
42.7
-
-13.2%

FOREIGN OPERATIONS
38,810.3
*
40,133.2
(4,316.6)
+3.4%
U.S. Agency for International
Development
1,668.2 *
1,744.1
- +4.5%
USAID Operating Expenses
1,398.8
*
1,503.4
-
+7.5%
Conflict Stabilization Operations
30.0
*
-
-
n.a.
USAID Capital Investment Fund
185.0
*
189.2
-
+2.3%
USAID Inspector General
54.4
*
51.5
-
-5.3%
Bilateral Economic Assistance
23,401.2
* 22,090.6
(1,216.6)
-5.6%
Global Health and Child Survival
7,874.0
*
8,715.5
-
+10.7%
Development Assistance
2,520.0
*
2,918.0
-
+15.8%
International Disaster Assistance
1305.0
*
860.7
-
-34%
Transition Initiatives
55.0
*
56.0
-
+1.8%
Complex Crisis Fund
50.0
*
75.0
-
+50%
Development Credit Authority –
Subsidy
[25.0] *
[50.0]
- +100%
Development Credit Authority –
Admin.
8.6 *
8.3
- -3.5%
Economic Support Fund
8,824.0
*
7,185.3
(1,216.6)
-18.6%
Democracy Fund
120.0
*
-
-
n.a.
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Fact Sheet: The FY2012 State and Foreign Operations Budget Request

FY2012 Request
% Change,
FY2010
FY2011
FY2010 to

Enacted
CR
Total Contingency
FY2012 Req.
Assist. for Europe, Eurasia and Central
Asia
741.6 *
626.7
- -15.5%
Migration and Refugee Assistance
1,858.0
*
1,613.1
-
-13.2%
Emergency Migration and Refugee
Assist.
45.0 *
32.0
- -28.(%
Independent Agencies
1,558.0
*
1,607.8
-
+3.2%
Peace Corps
400.0
*
439.6
-
+9.9%
Millennium Challenge Corporation 1,105.0
*
1,125.1 -
+1.8%
Inter-American Foundation
23.0
*
19.1
-
-17.0%
African Development Foundation
30.0
*
24.0
-
-20.0%
Department of Treasury
92.1
*
45.1
-
-51.0%
Treasury Technical Assistance
32.1
*
30.1
-
-6.2%
Debt Restructuring
60.0
*
15.0
-
-75.0%
International Security Assistance
9,586.2
* 11,322.8
(3,100.0)
+18.1%
Int. Narcotics Control and Law
Enforcement
2,872.7 *
2,511.8
(1,000.0) -12.6%
Nonproliferation, Antiterrorism,
Demining and Related Programs
754.0 *
708.5
- -6.0%
Peacekeeping Operations
331.5
*
292.0
-
-11.9%
Int. Military Education and Training
108.0
*
110.0
-
+1.9%
Foreign Military Financing
5,520.0 *
6,550.5
(1,000.0) +18,7%
Pakistan Counterinsurgency Capability
Fund
- *
1,100.0
(1,100.0) n.a.
Global Security Contingency Fund
-
*
50.0
-
n.a.
Special Defense Acquisition Fund
-
*
-
-
n.a.
Multilateral Economic Assistance
2,649.7
*
3,667.5
-
+38.4%
Int. Organizations and Programs
394.0
*
348.7
-
-10.9%
Global Environment Facility 86.5
* 143.8
-
+54.7%
International Clean Technology Fund
300.0
*
400.0
-
+33.0%
International Development Association
1,262.5
*
1,358.5
-
+7.6%
Int. Bank for Recon. and Development
-
*
117.4
-
n.a.
Inter-American Development Bank
204.0
*
102.0
-
-50.0%
Enterprise for the Americas – MIF
25.0
*
25.0
-
0.0
Inter-American Investment
Corporation
4.7 *
20.4
-
+334.0%
Asian Development Fund
105.0
*
115.3
-
+9.8%
African Development Bank
-
*
32.4
-
n.a.
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Fact Sheet: The FY2012 State and Foreign Operations Budget Request

FY2012 Request
% Change,
FY2010
FY2011
FY2010 to

Enacted
CR
Total Contingency
FY2012 Req.
African Development Fund
155.0
*
195.0
-
+25.8%
Int. Fund for Agricultural Development
38.0
*
30.0
-
-21.1%
Asian Development Bank
-
*
106.6
-
n.a.
Global Agriculture and Food Security
-
*
308.0
-
n.a.
Strategic Climate Fund
75.0
*
190.0
-
+153.3%
Multilateral Debt Relief Initiative
-
*
174.5
-
n.a.
Export and Investment Assistance
(145.1)
*
(344.7)
-
-137.6%
Export-Import Bank
2.4
*
(212.9)
-
-8,9750%
Overseas Private Investment
Corporation
(202.7) *
(188.1)
- +7.2%
Trade and Development Agency
55.2
*
56.3
-
+2.0%
TOTAL – STATE & FOREIGN OPS
56,723.1

59,642.0
(8,702.8)
+5.1%
Source: Executive Budget Summary, Function 150 & Other International Programs, Fiscal Year 2012. Table uses
enacted FY2010 numbers, rather than FY2010 “actuals.”
Note: * Federal agencies are currently being funded through a continuing resolution, which maintains funding at
FY2010 levels for most programs, as Congress has yet to enact funding legislation for the whole fiscal year.

Author Contact Information

Susan B. Epstein
Tamara J. Resler
Specialist in Foreign Policy
Analyst in Foreign Affairs
sepstein@crs.loc.gov, 7-6678
tresler@crs.loc.gov, 7-7367
Marian Leonardo Lawson

Analyst in Foreign Assistance
mlawson@crs.loc.gov, 7-4475

Congressional Research Service
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