As Global Crises Mount, Congressional Spending Bills Provide Critical New Resources for Development and Diplomacy to Advance American Interests

Executive Summary

Now more than ever, global instability is affecting the everyday lives of American families from the grocery store to the gas pump. Russia’s invasion of Ukraine and the ongoing global pandemic have exacerbated health, humanitarian, and economic challenges around the world, with spillover effects on conflict, disease, hunger, climate, migration, and poverty – all of which have significant and increasing economic and security impacts here at home.

Recognizing the magnitude of global threats facing America and the imperative for American leadership to confront them, the Administration’s budget request for Fiscal Year (FY) 2023 included a significant 17.7% ($10.2 billion) increase for the International Affairs Budget compared to the FY22 non-emergency enacted level.

The House and Senate proposals similarly increase funding for the regular FY23 International Affairs Budget compared to the FY22 enacted level – by 15.1% ($8.54 billion) and 14.7% ($8.46 billion), respectively – although both fall short of the Administration’s request. Additionally, the Senate proposal includes $5.95 billion in FY22 and FY23 emergency international affairs funding for the global COVID-19 response and to strengthen global health security and pandemic preparedness.

International Affairs Budget Snapshot 

*Excludes $29.3 billion in primarily Ukraine and Afghanistan-related emergency funding.
**Reflects CBO’s re-estimate of the Administration’s request.
***Excludes $950 million in FY23 emergency funding for pandemic preparedness and $5 billion in FY22 emergency funding for the global COVID-19 response.

If enacted, the increased investments for the FY23 International Affairs Budget proposed by the House and Senate would go a long way toward advancing U.S. interests at a time when global crises are mounting. The U.S. cannot afford for international affairs funding to be shortchanged for the second year in a row, especially after the final FY22 spending deal provided significantly less than initial proposals from Congress and the Administration to address growing global needs.

There is a legacy of strong, bipartisan support in Congress for strengthening America’s development and diplomacy tools. As bipartisan negotiations on final FY23 spending bills continue, the USGLC urges Congress to provide no less than the House proposal of $66.6 billion for the regular budget – as well as additional emergency resources proposed by the Senate – to ensure our international affairs investments meet the urgent needs affecting America’s security and economic interests.

The following analysis is a comparison of the House and Senate proposals alongside the Administration’s request for the FY23 International Affairs Budget.

I. Select Highlights of Similarities and Differences

In general, FY23 funding levels for international affairs agencies, accounts, and programs are similar across the Administration’s request and the House and Senate proposals. However, there are also some notable areas where differences exist. Select highlights of these similarities and differences are included in the chart, with additional details in the analysis below. Unless otherwise noted, comparisons are to the FY22 non-emergency enacted levels. 

II. Notable Program and Policy Issues

Global Health Programs

As the world continues to grapple with the COVID-19 pandemic and other global health challenges, both the House and Senate increase overall funding for global health programs compared to the FY22 enacted level. The House provides a total of $10.98 billion – 12% ($1.15 billion) above the FY22 enacted level and 4% ($401 million) higher than the Administration’s proposed increase. While the Senate comes in slightly below the Administration’s request, it provides an additional $950 million in FY23 emergency funding and $4.88 billion in FY22 emergency funding for pandemic preparedness and the global COVID-19 response. A few areas to note:

• The House increases funding for Global Health Security by 43% ($300 million), slightly more than requested by the Administration, while the Senate provides a more modest 6% ($45 million) boost – which may reflect the Senate’s inclusion of additional emergency global health funding.

• As the U.S. prepares to host the Global Fund’s Seventh Replenishment Conference later this month, and consistent with the Administration’s request, both the House and Senate increase funding for the U.S. contribution to the Global Fund by 28% ($440 million).

• While the Administration’s request would reduce funding for Tuberculosis compared to the FY22 enacted level, both the House and Senate provide increases of 26% ($98 million) and 8% ($29 million), respectively.

• Both the House and Senate provide more funding for international family planning compared to the FY22 enacted level and the Administration’s FY22 request. Both chambers also permanently repeal the Mexico City Policy, also known as the Global Gag Rule, and the House also removes existing Helms Amendment restrictions.

Global Health Funding*

*State Department and USAID Global Health accounts only, except for family planning.
** Excludes $6.5 billion in mandatory funding requested for a five-year effort to improve pandemic preparedness globally.
^ Excludes $950 million in FY23 emergency funding for pandemic preparedness and $4.88 billion in FY22 emergency funding for the global COVID-19 response.

Development and Economic Assistance

Consistent with the Administration’s FY23 request, both the House and Senate increase overall funding for State Department and USAID development and economic assistance compared to the FY22 enacted level. Within this total, there are some notable similarities and differences:

• Both chambers generally align with the Administration’s request to boost funding for Development Assistance, the Economic Support Fund, the Peace Corps, and the Millennium Challenge Corporation compared to FY22 enacted levels.

• The House and Senate both provide smaller increases than requested by the Administration for Assistance to Europe, Eurasia, and Central Asia – which may be due, in part, to the significant emergency funding to support Ukraine approved by Congress in late May.

Development and Economic Assistance Funding

* Excludes $10.5 billion in emergency funding for Ukraine.

Humanitarian Assistance

The House and Senate both increase overall funding for humanitarian assistance by 19% (approximately $1.3 billion) compared to the FY22 enacted level but come in 7% (approximately $600 million) below the Administration’s request. The reduction compared to the Administration’s request may reflect the inclusion of $4.7 billion in emergency funding for humanitarian assistance in the emergency funding package for Ukraine approved by Congress earlier this summer.

Humanitarian Assistance Funding

* Excludes $11.8 billion in emergency funding primarily for Ukraine and Afghanistan.
** Excludes $75 million in FY22 emergency funding for the global COVID-19 response.

International Food Assistance

Both the House and Senate increase funding for international food assistance programs provided through the Agriculture Appropriations bill compared to FY22 enacted levels. This stands in contrast to the Administration’s request, which would either make cuts or hold funding flat at FY22 enacted levels.

• While the Administration proposed to maintain funding for the Food for Peace program at the FY22 enacted level, both chambers increase its funding by 3% ($60 million).

• The House and Senate boost funding for the McGovern-Dole International Food for Education and Child Nutrition Program by 12% ($28 million) and 5% ($13 million), respectively, compared to the FY22 enacted level – in contrast to the Administration’s proposed 3% ($7 million) cut.

Agriculture Appropriations International Programs Snapshot

Peacekeeping

Both the House and Senate increase overall funding for peacekeeping operations compared to the FY22 enacted level, although by less than the Administration’s request. A few areas to note:

• The Senate increases funding for UN Peacekeeping by 31% ($464 million) compared to the FY22 enacted level, while the House provides a more modest increase of 20% ($299 million).

• Both the House and Senate suspend the statutory 25% cap on assessed U.S. contributions to UN peacekeeping and include funds to both fully cover the U.S. FY23 peacekeeping assessment and begin paying down accumulated arrears – which currently total $1 billion.

• Both chambers provide less than the Administration’s request for non-UN peacekeeping, with the House providing a 1.3% ($6 million) increase and the Senate including a 0.6% ($3 million) cut compared to the FY22 enacted level.

Peacekeeping Funding

International Security Assistance

In general, the House and Senate maintain funding for international security assistance programs at close to FY22 enacted levels. Of note:

• Similar to the Administration’s request, the House sustains funding for Foreign Military Financing – by far the largest security assistance account – at roughly the FY22 enacted level, while the Senate includes a 3% ($178 million) cut.

• Both the House and Senate increase funding for International Narcotics Control and Law Enforcement by 5% ($75 million) and 4% ($59 million), respectively, compared to the FY22 enacted level — in contrast to the Administration’s request which holds funding essentially flat.

Multilateral Assistance and International Organizations

The House and Senate both increase funding for international financial institutions and other multilateral institutions, largely in keeping with the Administration’s FY23 request.

• The House matches the Administration’s request to maintain funding for Contributions to International Organizations – which covers the cost of U.S. assessed contributions to the UN and other international organizations – at the FY22 enacted level of $1.66 billion, while the Senate includes a 4% ($59 million) cut.

• Funding for International Organizations and Programs – the source of U.S. voluntary contributions to UN-affiliated and other international entities – increases by 40% ($169 million) in the House and 14% ($58 million) in the Senate compared to the FY22 enacted level. These levels exceed the Administration’s request by $135 million and $24 million, respectively.

• Closely in line with the Administration’s request, funding for U.S. contributions provided through the Treasury Department to International Financial Institutions sees an increase of 119% ($2.3 billion) in the Senate and 109% ($2.1 billion) in the House compared to the FY22 enacted level – with most of the additional funding going to the Green Climate Fund and Clean Technology Fund.

U.S. International Development Finance Corporation

The U.S. International Development Finance Corporation (DFC) receives an increase from both the House and Senate compared to the FY22 enacted level, although both chambers come in below the Administration’s request. While the Senate comes in just $25 million shy of the Administration’s request with a 43% ($305 million) increase, the House provides a more modest 17% ($117 million) boost – and, in particular, includes $187 million (24%) less than requested for program costs. Of note:

• In FY23, the DFC is projected to offset $412 million of its costs through the interest and fees it collects, making it partially self-sustaining.

• Both the House and Senate continue to follow the Administration’s lead in treating equity investments on a dollar-for-dollar basis – similar to grants – which could limit DFC’s ability to catalyze more significant amounts of private investment.

III. Other Funding and Policy Priorities

• Food Security: The House exceeds the Administration’s requested 4% ($45 million) increase for the Global Food Security Strategy, Feed the Future, and food security research and development initiatives at USAID, providing a 19% ($189 million) increase for these programs, while the Senate maintains funding at the FY22 enacted level.

• Climate Change: The Senate matches the Administration’s request of $2.3 billion for multilateral international climate change assistance, including $1.6 billion for the Green Climate Fund and $550 million for the Clean Technology Fund, while the House provides $200 million less for the Clean Technology Fund. These proposals represent an 804% ($2 billion) and 475% ($1.7 billion) increase, respectively, compared to the FY22 enacted level.

• Competition with China: Consistent with the Administration’s request, the Senate increases funding for the U.S. Indo-Pacific Strategy by 13% ($200 million) compared to the FY22 enacted level, while the House provides a slightly smaller 6% ($100 million) increase. Additionally, while the Administration requested a 33% ($100 million) increase above the FY22 enacted level for the Countering PRC Influence Fund, the House provides a smaller 17% ($50 million) boost, and the Senate holds funding flat.

• Democracy Promotion: The Senate fully funds the Administration’s request of $2.9 billion for democracy promotion programs – a 12% ($300 million) increase compared to the FY22 enacted level. The House also increases funding compared to the FY22 enacted level, but by a more modest 8% ($200 million).

• Staffing and Diversity: In line with the Administration’s request, both the House and Senate increase funding for State Department and USAID core operating budgets by 5% ($459 million) and 7% ($107 million), respectively, compared to the FY22 enacted level to help support and sustain staffing increases and “ongoing efforts to strengthen the recruitment, retention, and professional development of a diverse workforce.”

• Gender Equity and Equality: The House and Senate fully fund the Administration’s request for the Gender Equity and Equality Action Fund at $200 million – equal to the FY22 enacted level. Also consistent with the request, the House provides $250 million to address gender-based violence, a 43% ($75 million) increase from FY22, while the Senate holds funding for these programs flat. Funding for implantation of the Women, Peace, and Security strategy sees an 11% ($15 million) boost from the House, while the Senate maintains funding at the FY22 enacted level.

IV. What’s Ahead

When Congress reconvenes after Labor Day, Members will have just a few short weeks to take action to prevent a government shutdown when the current fiscal year ends on September 30^th. With bipartisan negotiations on FY23 topline spending levels at a standstill and Members set to leave town again in October to campaign, it’s likely Congress will need to approve a stopgap Continuing Resolution (CR) to keep the government funded until after the midterm elections.

As the global threats facing America continue to grow, it is critical for Congress to reach a bipartisan spending deal that provides urgently needed new resources for development and diplomacy. While the emergency supplemental funding provided by Congress has been essential to address unanticipated needs, it is imperative that our international affairs agencies have the necessary resources through the regular budget to plan and operate effectively and advance American interests.

V. Additional Information and Resources

USGLC Analysis of the Administration’s FY23 International Affairs Budget Request

• https://www.usglc.org/the-budget/analysis-of-the-administrations-fy23-international-affairs-budget-request/

House FY23 State-Foreign Operations Appropriations Bill & Report

• https://www.congress.gov/117/bills/hr8282/BILLS-117hr8282rh.pdf
• https://www.congress.gov/117/crpt/hrpt401/CRPT-117hrpt401.pdf

House FY23 Agriculture Appropriations Bill & Report

• https://www.congress.gov/117/bills/hr8239/BILLS-117hr8239rh.pdf
• https://www.congress.gov/117/crpt/hrpt392/CRPT-117hrpt392.pdf

Senate FY23 State-Foreign Operations Appropriations Bill & Report

• https://www.appropriations.senate.gov/download/sfopsfy2023
• https://www.appropriations.senate.gov/download/sfopsfy23rpt

Senate FY23 Agriculture Appropriations Bill & Report

• https://www.appropriations.senate.gov/download/agfy2023
• https://www.appropriations.senate.gov/download/agfy23rpt 

VI. Account-by-Account Details

Download the account-by-account details