Comparison of the House and Senate FY10 State, Foreign Operations Bills

Administration Initiatives Funded in Senate Bill

Civilian Capacity Building – Although the Senate Committee does not estimate the number of new State Department and USAID staff that will be hired under its recommendation, the account totals are identical to those that passed the House. The House Appropriations Committee projected amounts in its bill would add about 1,000 new staff for the State Department and roughly 300 at USAID. This would keep on track President Obama’s plan to increase State Department Foreign Service Officers by 25% by 2013 and to double the number at USAID by 2012.

Afghanistan Assistance – Under the Committee-reported bill, Afghanistan receives $2.76 billion in non-military assistance, the same as the President’s request.
 
Global Challenges – The Administration highlighted four global needs in its FY10 request, seeking significant increases for food security and climate change and more modest increases for education and health. The Senate Appropriations measure meets or exceeds the President’s proposals in several areas, adding some of their own priorities while paring back in two areas:

• Global Health — $7.77 billion, $178 million higher than the request, of which:
  • Maternal and Child Health — $555 million (+$32 million)
  • Reproductive Health — $520 million (+$45 million)
  • Malaria — $585 million (as requested)
  • Tuberculosis — $200 million (+$27 million)
  • Bilateral HIV/AIDS — $5 billion (as requested)
  • Global HIV/AIDS Fund — $700 million (+$100 million) (total Global Fund, including Labor-HHS funds, is $1 billion)
• Biodiversity — $200 million (+$17 million)
• Microenterprise — $265 million (+$99 million)
• Water — $315 million (+$142 million)
• Higher Education — $200 million (+$12 million)

For three global challenges representing high priorities of the Administration, the Committee bill modestly reduces levels for FY10.

• Food Security and Agriculture Development — $1.5 billion (-$163 million). This includes $1.2 billion for bilateral agriculture assistance (-$163 million) and $300 million for local and regional procurement of food (as requested). Because of the large amounts of food security support planned for Afghanistan and Pakistan, it is likely that Africa and Latin America would absorb much of the cuts in agriculture support.
• Basic Education — $800 million (-$180 million). Like food security, Afghanistan and Pakistan are scheduled for significant amounts and with no cuts to either country. The impact of this reduction is likely to fall on other regions.
• Climate Change — $1.24 billion across all appropriation accounts (-$105 million). Bilateral programs are fully funded while there is a $125 million reduction proposed for the multilateral Clean Technology and Strategic Climate Change Funds.

World Bank’s International Development Association – The Senate Committee fully funds the $1.32 billion proposed U.S. contribution to IDA.

Significant Reductions to Administration’s Request

Millennium Challenge Corporation –- Similar to Senate-proposed bills in recent years, the Committee recommends a $475 million cut, providing $950 million for the MCC. While supporting new MCC Compacts in FY10 for Malawi, the Philippines, and Jordan, so long as each qualifies, the size of the Compacts would need to be somewhat smaller than the $350 million average projected by the Administration. The Committee further recommends that the MCC consider utilizing funds that have recently been suspended for Compacts in Nicaragua and Armenia as an additional source of funding in FY10.

Pakistan Military Assistance –- While the Senate Committee fully funds economic assistance to Pakistan in FY10 ($1.28 billion), it appears that there could be a significant gap between Committee unallocated Foreign Military Financing and the level proposed by the Administration for Pakistan. The Senate panel’s bill does not specify an FMF amount for Pakistan, leaving the $298 million request to be drawn from “unallocated” amounts. The bill provides a total of $199 million for unallocated countries. The Committee notes, however, that Pakistan received $700 million in FY09 “forward-funding” for a Counterinsurgency Capability Fund that had been requested for FY10. Nevertheless, the $700 million Fund was part of the DOD Appropriation request, not for State, Foreign Operations.

Mexico City Policy –- The Senate Committee bill further adopts one key policy question: eligibility of foreign non-governmental organizations to receive U.S funding for health, including family planning. This relates to the so-called Mexico City Policy that has been invoked by Republican Administrations since the mid-1980s, but repealed by Democrats in the White House. The Policy, which President Obama reversed in January 2009, prohibits any U.S. funding to go to a foreign non-governmental organization that spends privately raised money on performing abortions or promoting abortions as a method of family planning. 

The Mexico City Policy, or language in opposition to it, has never been permanently enacted into law. The Senate measure includes a provision stating that foreign NGOs will be eligible to receive U.S. support for health or medical services they may provide so long as such services are legal in the country in which they operate and would not be in violation of U.S. law. Foreign NGOs further would not be subject to any restrictions on lobbying or advocating that would differ from restrictions that apply to American NGOs. This provision essentially would place into permanent law a prohibition on applying the Mexico City Policy as it has been applied in the past.

Comparison of Major Differences Between House and Senate Bills

While similar in the overall total, the House and Senate bills have significant differences in several places.

Millennium Challenge Corporation: The largest area of disagreement between the two bills is over the MCC, the U.S. aid program targeting best performing developing nations. The House provides $1.4 billion while the Senate measure appropriates $950 million. Each bill supports new compacts for Malawi, the Philippines, and Jordan in FY10, so long as successful compacts are completed, but the size of the compacts under the Senate level would be much smaller.

Educational and Cultural Exchanges:  The Senate measure provides $635 million, $35 million more than the House, allocating slightly higher levels throughout the Exchange Program account.

National Endowment for Democracy:  S. 1434 appropriates $120 million for NED, $20 million higher than the House and the Administration’s request.

Broadcasting to Cuba:  The House bill fully funds Radio and TV Marti at $32.5 million while the Senate measure reduces spending to $17.5 million, citing frequent Cuban jamming of the broadcasts that limits the impact of the program.

Development Assistance:  While both House and Senate bills are below the President’s $2.73 billion request, the Senate, at $2.57 billion, comes closer to meeting the proposal than the House ($2.49 billion).

• Food Security: One of President Obama’s signature programs and emphasized at the recent G8 Summit, this initiative receives $1.5 billion in the Senate bill compared with $1.2 billion in the House measure and $1.66 billion requested by the Administration – $1.36 billion in bilateral agriculture assistance and $300 million to procure food locally and regionally.
• Basic Education:  The House provides $1 billion, $20 million higher than the Administration’s request, while the Senate allocates $800 million.

Transition Initiative and Emergency Crisis Fund: The Administration requested $126 million for Transition Initiative activities, including $76 million for a new Rapid Response Fund. The House appropriates $100 million, capping the Rapid Response Fund at $50 million. The Senate bill splits the two parts of the request, providing $65 million for Transition Initiatives ($15 million higher than the request) and $100 million for a new Emergency Crisis Fund, which combines the Rapid Response Fund and the Stabilization Bridge Fund requested under the ESF account. The Senate total is $16 million less than the proposed budget for the two Funds.

Peace Corps:  Supporting a rapid expansion of the Peace Corps, the House measure provides $450 million, $77 million higher than the request.  S. 1434 provides the amount requested by the President.

International Narcotics and Law Enforcement (INCLE):  Both House and Senate bills fall short of the Administration’s INCLE request of $1.95 billion. The funding measures take different approaches in allocating the reduced funding.  H.R. 3081, with total funding of $1.63 billion, reduces Mexico by $254 million and Afghanistan and Pakistan by $30 million each. The Senate bill, providing $1.53 billion, cuts Mexico by $354 million but supports full funding for Afghanistan and Pakistan. The reductions for Mexico are off-set to a large extent by “forward-funding” provided in the FY09 Supplemental.

Migration and Refugee Assistance:  The Senate Committee provides $1.68 billion for refugee aid, nearly $200 million higher than amounts recommended by the President and by the House.

Pakistan Foreign Military Financing (FMF):  While the Senate bill does not specify a precise amount of FMF for Pakistan ($298 million requested), the Committee provides only $199 million for “unallocated” FMF, out of which Pakistan funds must be drawn. The House measure reduces Pakistan FMF to $268 million.

World Bank’s International Development Association (IDA):  The Senate measure provides full funding for IDA at $1.32 billion. The House bill reduces the request by $85 million, cutting proposed payment of U.S. arrears to the institution.

Clean Technology and Strategic Climate Funds:  Both the House and Senate bills reduce the Administration’s $500 million request for the Clean Technology Fund and $100 million for the Strategic Climate Fund. The Senate comes closer than the House, allocating $400 million and $75 million, respectively. The House measure provides $225 million for the Technology Fund and $75 million for the Climate Fund.

MAJOR SENATE BILL ACCOUNTS INCREASED OR AT THE PRESIDENT’S REQUEST

Educational and Cultural Exchanges
FY10 Senate Bill: $640 million
FY10 House Bill: $600 million
FY10 Budget Request: $630 million
Change Senate to Request: $10 million (+1.6%)

National Endowment for Democracy
FY10 Senate Bill: $120 million
FY10 House Bill: $100 million
FY10 Budget Request: $100 million
Change Senate to Request: $20 million (+20%)

East-West Center
FY10 Senate Bill: $20 million
FY10 House Bill: $0
FY10 Budget Request: $10 million
Change Senate to Request: $10 million increase (+100%)

Global Health and Child Survival
FY10 Senate Bill: $7.77 billion
FY10 House Bill: $7.78 billion
FY10 Budget Request: $7.60 billion
Change Senate to Request: $170 million increase (+2.2%)

African Development Foundation
FY10 Senate Bill: $30 million
FY10 House Bill: $30 million
FY10 Budget Request: $30 million
Change Senate to Request: $0

Inter-American Foundation
FY10 Senate Bill: $20 million
FY10 House Bill: $20 million
FY10 Budget Request: $20 million
Change Senate to Request: $0

Peace Corps
FY10 Senate Bill: $373 million
FY10 House Bill: $450 million
FY10 Budget Request: $373 million
Change Senate to Request: $0