USGLC Analysis of FY09 State, Foreign Operations Appropriations Bill

Comparison of House & Senate $36.6 billion FY09 State, Foreign Operations Appropriations Bills

Prior to leaving for its summer recess, the Senate Appropriations Committee and the House Appropriations Subcommittee on State, Foreign Operations and Related Programs unanimously approved their respective versions of a $36.6 billion FY09 State, Foreign Operations Appropriations bill. When combined with the $1.3 billion in international food aid and the $300 million transfer from the Labor-HHS Appropriations bill, the FY09 International Affairs Budget stands at $38.2 billion.

While this overall funding level is $1.6 billion below the Administration’s request, it represents a $3.9 billion or 11 percent increase over present base spending and is among the largest percentage increases in the FY09 Federal budget. While the Senate has released its bill and committee report, the House will not do so until its version is approved by the House Appropriations Committee, which is expected later this month.

Listed below are highlights of the Senate and House versions of the FY09 State, Foreign Operations Appropriations bills. The House analysis is based on preliminary details and committee press releases. A more detailed analysis of the House bill will be completed once it has been made public.

NEW INITIATIVES

Civilian Capacity: When combined with FY08 and FY09 supplemental spending, both bills include funding for approximately 300 new positions within the State Department to increase language proficiency – 105 new positions in Diplomatic & Counselor Affairs and 20 new positions in Public Diplomacy – and 300 new USAID Foreign Service Officers.

Civilian Stabilization Initiative (CSI): The Senate bill recommends $115 million, or $133 million below the request level, to establish and implement a civilian response capacity within the State Department. This funding is in addition to the $55 million approved in the FY08/FY09 Supplemental Appropriations Act. The Senate bill also authorizes the transfer of funds of up to $50 million to the CSI if deployed. While the House bill provides funding for CSI, the exact funding level has not been released by the subcommittee.

Global Food Security: The Senate bill approved $150 million to create a Global Food Security Fund to help prevent hunger by improving crop yields and responding to critical food shortages in developing countries.

Clean Energy Technology: The Senate bill provides a $200 million U.S. contribution to the World Bank’s clean energy technology fund, which is $200 million below the request level. The House provides no funding, but would consider a future contribution to a multilateral trust fund.

NOTABLE HIGHLIGHTS

Millennium Challenge Corporation: The most significant difference between the House and Senate bills relates to funding for the Millennium Challenge Corporation. The Senate bill significantly reduces MCC’s funding level from the request level of $2.225 billion to $254 million, a decrease of $1.971 billion. The cut in MCC funding was reallocated to other accounts. The Senate committee report also instructs MCC to place a hold on all further country compacts and permits the transfer of up to $50 million in MCC funds to Zimbabwe should political transition permit, further reducing the MCC’s FY09 discretionary spending level. In the FY08 & FY09 Supplemental, the Congress approved a $54 million rescission in funding for the MCC, thus reducing its present funding from $1.54 billion to $1.486 billion. The House approved $1.54 billion in funding for MCC, representing a $685 million reduction from the request level.

Iraq Assistance Denied: The Senate bill provides reduced funding for Iraq across all accounts given that the FY08/FY09 Emergency Supplemental provided an additional $5 billion in funding for various programs. In addition, the Senate Committee directs the Administration to include all funding for Iraq and Afghanistan in its FY2010 budget request rather than rely on emergency supplementals. The House bill provides no funding for Iraq assistance.

Development Assistance: The House bill provides $1.728 billion for Development Assistance, which is $89 million above the request level of $1.639 billion, while the Senate approved a higher level of $1.850 billion or $211 million above the request.

HIV/AIDS: The House and Senate bills provide a total of $5.519 billion and $5.129 billion respectively for programs and activities to combat global HIV/AIDS. Both bills provide the request level of $4.779 billion for PEPFAR and $600 million for the U.S. contribution to the Global Fund to Fight HIV/AIDS, Tuberculosis, and Malaria, which is $400 million above the request. With the additional $300 million provided in the FY09 Labor-HHS Appropriations bill, the total for the Global Fund would be $900 million.

Family Planning and Reproductive Health: The House and Senate bills significantly increase funding for this sector above the request level of $302 million. The Senate increases funding by $173 million to $475 million, while the House increases funding by $238 million to $540 million.

NOTABLE ACCOUNT INCREASES

Global Health and Child Survival

FY08 Base	$6.376 billion
FY09 Request	$6.357 billion
FY09 House Allocation	$7.0 billion (+$643 million)
FY09 Senate Allocation	$6.740 billion (+$383 million)

Key Highlights:

House & Senate bills combine Child Survival and Global HIV/AIDS into a single account, which includes PEPFAR funding.

Malaria: House allocates $377 million, $8 million below the request; Senate allocates $385 million, same as request level.

Tuberculosis: House provides $165 million; Senate $155 million compared to a request level of $84.5 million.

Child Survival and Maternal Health: House provides $455 million, $85 million above the request of $370 million; Senate provides $500 million, $130 million above the request.

Development Assistance

FY08 Base	$1.623 billion
FY09 Request	$1.639 billion
FY09 House Allocation	$1.728 billion (+$89 million)
FY09 Senate Allocation	$1.850 billion (+$211 million)

International Disaster Assistance

FY08 Base	$319.7 million
FY09 Request	$298 million
FY09 House Allocation	$310 million (+$12 million)
FY09 Senate Allocation	$450 million (+$152 million)

USAID Operating Expenses

FY08 Base	$629.8 million
FY09 Request	$767 million
FY09 House Allocation	$809 million (+$42 million)
FY09 Senate Allocation	$817 million (+$50 million)

Both bills endorse the Administration’s proposal to double the number of Foreign Service Officers over the next several years and provide funding to hire up to 300 new USAID Foreign Service Officers in FY09.

Migration and Refugee Assistance

FY08 Base	$823 million
FY09 Request	$824 million
FY09 House Allocation	$823 million (-$1 million)
FY09 Senate Allocation	$1.1 billion (+$276 million)

Contribution for International Peacekeeping

FY08 Base	$1.2 billion
FY09 Request	$1.497 billion
FY09 House Allocation	$1.547 billion (+$50 million)
FY09 Senate Allocation	$1.650 billion (+$153 million)

Nonproliferation, Anti-Terrorism, Demining & Related Programs

FY08 Base	$483 million
FY09 Request	$499 million
FY09 House Allocation	$509 million (+$10 million)
FY09 Senate Allocation	$564 million (+$65 million)

NOTABLE ACCOUNT DECREASES

International Narcotics Control & Law Enforcement

FY08 Enacted	$554 million
FY09 Request	$1.2 billion
FY09 House Allocation	$872 million (-$328 million)
FY09 Senate Allocation	$925 million (-$275 million)

Economic Support Fund

FY08 Enacted	$2.4 billion
FY09 Request	$3.319 billion
FY09 House Allocation	$2.995 billion (-$324 million)
FY09 Senate Allocation	$3.098 billion (-$221 million)

Diplomatic and Consular Programs

FY08 Enacted	$4.51 billion
FY09 Request	$5.364 billion
FY09 House Allocation	$5.159 billion (-$205 million)
FY09 Senate Allocation	$5.290 billion (-$74 million)

Andean Counter-Drug Initiative

FY08 Enacted	$325 million
FY09 Request	$407 million
FY09 House Allocation	$319 million (-$88 million)
FY09 Senate Allocation	$315 million (-$92 million)

Millennium Challenge Corporation

FY08 Enacted	$1.540 billion
FY09 Request	$2.225 billion
FY09 House Allocation	$1.540 billion (-$685 million)
FY09 Senate Allocation	$254 million (-$1.971 billion)