Highlights of the FY 2010 International Affairs Budget Request

The proposed $4.1 billion increase for the International Affairs Budget spans broadly across the entire spectrum. For the 67 specific accounts that make up International Affairs Budget, 53 are scheduled for increases in FY 2010. Moreover, proposed cuts for several of the 14 accounts are the result of special, one-time requirements in FY 2009 that, for the moment, do not require additional funding. 

Unlike budgets in previous years, the Obama Administration request includes full funding for Iraq, Afghanistan, and Pakistan, plus humanitarian assistance programs, as they are currently estimated, that were to a large extent funded through supplemental emergency appropriations in prior years. 

The FY 2010 request launches the Obama Administration’s pledge to double foreign assistance – now promised by FY 2015 – as well as campaign pledges to increase the Foreign Service by 25%. Three themes dominate the detailed FY 2010 request, some of which are based on promises made during the elections: 

• Rebuild civilian capacity at State and USAID;
• Restructure assistance to Pakistan and Afghanistan by emphasizing non-military aid; and
• Launch global initiatives, especially for food security and climate change. 

NOTABLE INITIATIVES

BUILDING CAPACITY AT USAID AND THE STATE DEPARTMENT

Building on programs launched late in the Bush Administration, the FY 2010 budget proposes substantial increases to bolster civilian capacity to manage U.S. foreign policy and assistance activities. The request continues an USAID Development Leadership Initiative, providing $116 million for an additional 350 USAID Foreign Service Officers (FSOs). This puts USAID on a path to double its Foreign Service personnel by FY 2012.

Proposed increases for State Department personnel support President Obama’s pledge to increase State FSOs by 25%. The budget would permit the hiring of 802 new positions at the Department. Diplomatic and Consular Programs, out of which most of the increased positions would be funded, grows by one-third to $8.96 billion.

IMPLEMENTING NEW AID STRATEGIES IN AFGHANISTAN, PAKISTAN, AND IRAQ

Prior to his election, President Obama called for new U.S. military and civilian strategies in Afghanistan and Pakistan, including increases in non-military assistance to both nations. The FY 2010 request comes close to achieving these campaign pledges. Under the proposed budget, Afghanistan would receive $2.8 billion in non-military aid, $150 million higher than in FY 2009 and slightly under the $3 billion necessary to meet the plan to add $1 billion annually for non-military assistance to Kabul.

Consistent with legislation under consideration in Congress, the budget proposes $1.3 billion in non-military aid for Pakistan. This is roughly triple the amount provided in FY 2008, but somewhat less than the $1.5 billion ceiling proposed in pending legislation. Total aid to Pakistan, including military assistance, would reach $1.6 billion in FY 2010. The Defense Department proposes an additional $700 million in security force support, funds that are outside the International Affairs Budget.

For Iraq, the FY 2010 budget proposes a ramping-down of U.S. economic aid, set for $500 million. This is $109 million less than FY2009 estimated, shifting greater responsibility for reconstruction and economic stabilization to the Iraqi government.

GLOBAL INITIATIVES

The FY 2010 budget proposes major global initiatives in four areas, two of which would receive substantial additional resources:

• Food security and agriculture development:  As announced at the recent G-20 summit, the Administration proposes $1.4 billion for agriculture development next year. Excluding funds for Afghanistan and Pakistan, this is roughly double the level provided in FY 2009. The budget includes a total of $3.4 billion for agriculture development, emergency food aid, and local and regional purchases of commodities.
• Climate Change:  The FY 2010 budget includes $579 million for environmental programs, nearly double the amount allocated in the current year. The funds are distributed into three major categories of Adaptation, Sustainable Forestry, and Clean Energy. In addition, the Administration seeks $600 million for the two multilateral Clean Investment Funds managed by the World Bank. In FY 2009, Congress rejected a similar request of $400 million to support the Clean Technology Fund.
• Basic Education:  While the FY 2010 does not include details on precise figures for basic education, it is anticipated that levels will grow beyond the $700 million earmarked in FY 2009. Most of the increase, however, will be centered in Pakistan, with small growth in other parts of the world. The Administration continues to study the proposal to launch a global education fund, an initiative not specifically included in the FY 2010 request.
• Global Health:  Following the announcement on May 5 of Administration plans to dedicate $63 billion in global health programs through FY 2014, the FY 2010 budget proposes modest increases for next year. HIV/AIDS programs within the International Affairs Budget would grow by $100 million. Within that figure, U.S. contributions to the Global Fund to Fight HIV/AIDS, Tuberculosis, and Malaria would remain at $900 million, as appropriated in FY 2009. (Of the $900 million, $600 million is proposed within International Affairs and $300 million from HHS appropriations.) Amounts for reproductive health and maternal health would grow slightly by $20 million and $30 million, respectively, within USAID’s Global Health account. (Additional amounts would be provided from other foreign aid accounts, although details have not yet been provided.) The budget proposes $50 million for the UN Population Fund (UNFPA), the same as provided in FY 2009. The U.S. had not contributed to UNFPA during the previous Administration.

MILLENNIUM CHALLENGE CORPORATION FUNDING NEARLY RETURNS TO FY2008 LEVELS

For FY 2010, the Administration proposes $1.425 billion, nearly two-thirds higher than the amount appropriated in FY 2009, and about $120 million below the FY 2008 level. The MCC estimates that it will sign two compacts this year and that the FY 2010 request would permit three more compacts next year, most likely with Jordan, Malawi, and the Philippines, at an average size of $350 million. Although a significant increase over FY 2009 funding, the FY 2010 MCC proposed budget would be the smallest request since it was launched in FY 2004. For the past several years, Congress has not supported larger MCC proposals, cutting appropriations by half or more.

ACCOUNT-BY-ACCOUNT DETAIL OF FY10 REQUEST

EXPORT-IMPORT BANK
FY10 Request: $ 0.4 million net
FY09 Enacted: $ 2.5 million net
Change from FY09 to FY10: -$ 2.1 million (84% decrease)

OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC)
FY10 Request: $ 81 million for admin and credit subsidy
FY09 Enacted: $ 80 million for admin and credit subsidy
Change from FY09 to FY10: $ 1 million (1% increase)

TRADE AND DEVELOPMENT AGENCY (TDA)
FY10 Request: $ 55 million
FY09 Enacted: $ 51 million
Change from FY09 to FY10: $ 4 million (8% increase)

GLOBAL HEALTH AND CHILD SURVIVAL
FY10 Request: $ 7.60 billion
FY09 Enacted: $ 7.19 billion
Change from FY09 to FY10: $ 410 million (6% increase)

DEVELOPMENT ASSISTANCE (DA)
FY10 Request: $ 2.73 billion
FY09 Enacted:* $ 2.04 billion
Change from FY09 to FY10: $ 690 million (34% increase)

INTERNATIONAL DISASTER AND FAMINE ASSISTANCE (IDFA)
FY10 Request: $ 880 million
FY09 Enacted:* $ 750 million
Change from FY09 to FY10: $ 130 million (17% increase)

TRANSITION INITIATIVES (TI)
FY10 Request: $ 126 million
FY09 Enacted: $ 50 million
Change from FY09 to FY10: $ 76 million (152% increase)

USAID OPERATING EXPENSES (OE)
FY10 Request: $ 1.44 billion
FY09 Enacted:* $ 1.05 billion
Change from FY09 to FY10: $ 390 million (37% increase)

USAID CAPITAL INVESTMENT FUND
FY10 Request: $ 213 million
FY09 Enacted:* $ 122 million
Change from FY09 to FY10: $ 91 million (75% increase)

USAID INSPECTOR GENERAL OPERATING EXPENSES (IG)
FY10 Request: $ 47 million
FY09 Enacted: $ 46 million
Change from FY09 to FY10: $ 1 million (2% increase)

ECONOMIC SUPPORT FUND (ESF)
FY10 Request: $ 6.50 billion
FY09 Enacted:* $ 7.19 billion
Change from FY09 to FY10: $-690 million (10% decrease)

ASSISTANCE FOR EUROPE, EURASIA, AND CENTRAL ASIA
FY10 Request: $ 762 million
FY09 Enacted:* $ 893 million
Change from FY09 to FY10: $-131 million (15% decrease)

PEACE CORPS
FY10 Request: $ 373 million
FY09 Enacted: $ 340 million
Change from FY09 to FY10: $ 33 million (10% increase)

INTER-AMERICAN FOUNDATION
FY10 Request: $ 23 million
FY09 Enacted: $ 23 million
Change from FY09 to FY10: $ 0 million

AFRICAN DEVELOPMENT FOUNDATION
FY10 Request: $ 30 million
FY09 Enacted: $ 33 million
Change from FY09 to FY10: $-3 million (10% decrease)

MILLENNIUM CHALLENGE CORPORATION
FY10 Request: $1.43 billion
FY09 Enacted: $ 880 million
Change from FY09 to FY10: $ 550 million (63% increase)

INTERNATIONAL NARCOTICS CONTROL AND LAW ENFORCEMENT (INCLE)
FY10 Request: $ 1.95 billion
FY09 Enacted:* $ 1.78 billion
Change from FY09 to FY10: $ 170 million (10% increase)

MIGRATION AND REFUGEE ASSISTANCE (MRA)
FY10 Request: $ 1.48 billion
FY09 Enacted:* $ 1.58 billion
Change from FY09 to FY10: $-100 million (6% decrease)

U.S. EMERGENCY REFUGEE AND MIGRATION ASSISTANCE (ERMA)
FY10 Request: $ 75 million
FY09 Enacted: $ 40 million
Change from FY09 to FY10: $ 35 million (88% increase)

NON-PROLIFERATION, ANTI-TERRORISM, DEMINING (NADR)
FY10 Request: $ 765 million
FY09 Enacted:* $ 652 million
Change from FY09 to FY10: $ 113 million (17% increase)

TREASURY TECHNICAL ASSISTANCE
FY10 Request: $ 31 million
FY09 Enacted: $ 25 million
Change from FY09 to FY10: $ 6 million (25% increase)

DEBT RESTRUCTURING
FY10 Request: $ 111 million
FY09 Enacted: $ 60 million
Change from FY09 to FY10: $ 51 million (85% increase)

INTERNATIONAL MILITARY EDUCATION AND TRAINING PROGRAM (IMET)
FY10 Request: $ 110 million
FY09 Enacted:* $ 93 million
Change from FY09 to FY10: $ 17 million (18% increase)

FOREIGN MILITARY FINANCING (FMF)
FY10 Request: $ 5.27 billion
FY09 Enacted:* $ 5.04 billion
Change from FY09 to FY10: $ 230 million (5% increase)

PEACEKEEPING OPERATIONS (PKO)
FY10 Request: $ 296 million
FY09 Enacted:* $ 395 million
Change from FY09 to FY10: $ -99 million (25% decrease)

INTERNATIONAL FINANCIAL INSTITUTIONS
FY10 Request: $ 2.34 billion
FY09 Enacted: $ 1.49 billion
Change from FY09 to FY10: $ 850 million (57% increase)

INTERNATIONAL ORGANIZATIONS AND PROGRAMS (IO&P)
FY10 Request: $ 357 million
FY09 Enacted: $ 353 million
Change from FY09 to FY10: $ 4 million (1% increase)

DIPLOMATIC AND CONSULAR PROGRAMS
FY10 Request: $ 8.96 billion
FY09 Enacted:* $ 6.75 billion
Change from FY09 to FY10: $ 2.21 billion (33% increase)

CAPITAL INVESTMENT FUND
FY10 Request: $ 160 million
FY09 Enacted: $ 323 million
Change from FY09 to FY10: $-163 million (50% decrease)

EMBASSY SECURITY, CONSTRUCTION & MAINTENANCE
FY10 Request: $ 1.82 billion
FY09 Enacted:* $ 2.65 billion
Change from FY09 to FY10: $-830 million (31% decrease)

CIVILIAN STABILIZATION INITIATIVE
FY10 Request: $ 323 million
FY09 Enacted: $ 45 million
Change from FY09 to FY10: $ 278 million (617% increase)

STATE DEPARTMENT OFFICE OF THE INSPECTOR GENERAL
FY10 Request: $ 100 million
FY09 Enacted: $ 103 million
Change from FY09 to FY10: $- 3 million (3% decrease)

EDUCATIONAL AND CULTURAL EXCHANGE PROGRAMS
FY10 Request: $ 633 million
FY09 Enacted: $ 538 million
Change from FY09 to FY10: $ 95 million (18% increase)

OTHER ADMINISTRATION OF FOREIGN AFFAIRS
FY10 Request: $ 77 million
FY09 Enacted: $ 63 million
Change from FY09 to FY10: $ 14 million (22% increase)

CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS
FY10 Request: $ 1.80 billion
FY09 Enacted: $ 1.60 billion
Change from FY09 to FY10: $ 200 million (13% increase)

CONTRIBUTIONS FOR INTERNATIONAL PEACEKEEPING
FY10 Request: $ 2.26 billion
FY09 Enacted:* $ 2.50 billion
Change from FY09 to FY10: $-240 million (10% decrease)

RELATED APPROPRIATIONS
FY10 Request: $ 130 million
FY09 Enacted: $ 154 million
Change from FY09 to FY10: $-23 million (15% decrease)

BROADCASTING BOARD OF GOVERNORS
FY10 Request: $ 745 million
FY09 Enacted: $ 715 million
Change from FY09 to FY10: $ 30 million (4% increase)

INTERNATIONAL CLEAN TECHNOLOGY & STRATEGIC CLIMATE FUNDS
FY10 Request: $ 600 million
FY09 Enacted: $ 0
Change from FY09 to FY10: $ 600 million increase (new program)

INTERNATIONAL DEVELOPMENT ASSOCIATION (IDA)
FY10 Request: $1.32 billion
FY09 Enacted: $1.12 billion
Change from FY09 to FY10: $ 200 million increase (18%)

INTERNATIONAL AGRICULTURAL PROGRAMS (P.L. 480 & McGovern-Dole)
FY10 Request: $ 1.89 billion
FY09 Enacted:* $ 2.02 billion
Change from FY09 to FY10: $-130 million (6% decrease)

*Includes pending FY09 supplemental funds.