Fact Sheet: The FY2012 State and Foreign Operations Budget Request

This fact sheet provides a brief overview of the Obama Administration's request for International Affairs programs.

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 Prepared 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 O 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 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 StateForeign 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. 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. 2 Congressional Research Service 1 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) FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 Enacted FY11 FY12 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 dollars 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). Congressional Research Service 2 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. $) FY2010 Enacted STATE OPERATIONS & Related FY2011 CR FY2012 Request Total Contingency % Change, FY2010 to FY2012 Req. 17,912.8 * 19,508.8 (4,386.2) +8.9% 12,905.5 * 14,907.3 (4,386.2) +15.5% 9,927.4 * 11,893.5 (4,323.3) +19.8% 139.0 * 125.0 - -10.0% 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% 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 Fellowship 0.5 * 0.5 - 0.0 Administration of Foreign Affairs Diplomatic and Consular Programs Capital Investment Fund Embassy Security Construction & Maintenance Representation Allowances Congressional Research Service 3 Fact Sheet: The FY2012 State and Foreign Operations Budget Request FY2010 Enacted Israeli Arab Scholarship Program FY2011 CR FY2012 Request Total Contingency % Change, FY2010 to FY2012 Req. 0.4 * 0.4 - 0.0 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% 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% 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% 54.4 * 51.5 - -5.3% 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% 8,824.0 * 7,185.3 (1,216.6) -18.6% 120.0 * - - n.a. East-West Center Int. Fisheries Commission USAID Operating Expenses USAID Inspector General Bilateral Economic Assistance Economic Support Fund Democracy Fund Congressional Research Service 4 Fact Sheet: The FY2012 State and Foreign Operations Budget Request FY2010 Enacted Assist. for Europe, Eurasia and Central Asia FY2011 CR FY2012 Request Total Contingency % Change, FY2010 to FY2012 Req. 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.(% 1,558.0 * 1,607.8 - +3.2% 400.0 * 439.6 - +9.9% 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% 9,586.2 * 11,322.8 (3,100.0) +18.1% 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% 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. 2,649.7 * 3,667.5 - +38.4% 394.0 * 348.7 - -10.9% 86.5 * 143.8 - +54.7% 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 4.7 * 20.4 - +334.0% 105.0 * 115.3 - +9.8% - * 32.4 - n.a. Independent Agencies Peace Corps Millennium Challenge Corporation International Security Assistance Int. Narcotics Control and Law Enforcement Foreign Military Financing Multilateral Economic Assistance Int. Organizations and Programs Global Environment Facility International Clean Technology Fund Inter-American Investment Corporation Asian Development Fund African Development Bank Congressional Research Service 5 Fact Sheet: The FY2012 State and Foreign Operations Budget Request FY2010 Enacted African Development Fund FY2011 CR FY2012 Request Total Contingency % Change, FY2010 to FY2012 Req. 155.0 * 195.0 - +25.8% 38.0 * 30.0 - -21.1% Asian Development Bank - * 106.6 - n.a. Global Agriculture and Food Security - * 308.0 - n.a. 75.0 * 190.0 - +153.3% - * 174.5 - n.a. (145.1) * (344.7) - -137.6% 2.4 * (212.9) - -8,9750% (202.7) * (188.1) - +7.2% 55.2 * 56.3 - +2.0% 59,642.0 (8,702.8) +5.1% Int. Fund for Agricultural Development Strategic Climate Fund Multilateral Debt Relief Initiative Export and Investment Assistance Export-Import Bank Overseas Private Investment Corporation Trade and Development Agency TOTAL – STATE & FOREIGN OPS 56,723.1 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 Specialist in Foreign Policy sepstein@crs.loc.gov, 7-6678 Tamara J. Resler Analyst in Foreign Affairs tresler@crs.loc.gov, 7-7367 Marian Leonardo Lawson Analyst in Foreign Assistance mlawson@crs.loc.gov, 7-4475 Congressional Research Service 6