After weeks of intense negotiations and multiple last-minute Continuing Resolutions (CR), Congress passed an end of year spending package containing a $1.4 trillion omnibus to fund all 12 FY21 spending bills, as well as a $900 billion COVID-relief package. The deal totals $2.3 trillion.

The bill passed the House by a vote of 359-53 and the Senate by a vote of 92-6. The President signed the year-end package Sunday, December 27, one day before government funds were set to expire.

The year-end package yet again overwhelmingly rejects deep and disproportionate cuts to America’s development and diplomacy programs proposed by the Administration in its final budget request for FY21. All told, Congress provided a total of $62.7 billion for the International Affairs Budget – including $49.4 billion in base funding, $8 billion in Overseas Contingency Operations (OCO) funding, and $5.3 billion in emergency funds. This represents an $800 million (1.5%) increase compared to the FY20 enacted level (not including FY21 emergency funding for emergency COVID relief) and a $12.7 billion (29%) increase over the Administration’s request.

House Democrats and Senate Republicans negotiated for months over an additional supplemental bill intended to address the growing health and economic impacts from the COVID-19 pandemic, both at home and abroad. The long-anticipated $2.3 trillion package includes $5.3 billion in emergency funding for the International Affairs Budget. The funding allocation consists of $4 billion for GAVI, the vaccine alliance, $820 million in economic aid and debt relief for Sudan and $150 million for reimbursements to American victims of the 1998 terrorist attacks in East Africa. While the international funding for vaccine distribution included in this bill is a vital step towards combating the virus globally, more resources will be needed to mount a robust international response.

The USGLC released a statement applauding Congress’s rejection of the Administration’s proposed cuts to the International Affairs Budget and emphasizing the need for no less than $20 billion in emergency funding for a global response that supports essential global health programs, such as GAVI, the Global Fund, and CEPI, the international economic and humanitarian response, and frontline operations for U.S. civilian agencies overseas.

Congress’s rejection of the Administration’s proposed cuts to America’s development and diplomacy programs for the fourth year in a row demonstrates an overwhelming reaffirmation of the importance of maintaining and strengthening U.S. global leadership. Now, more than ever, bipartisan support for the International Affairs Budget is critical to addressing today’s growing global threats and to protect the health, security, and prosperity of Americans. Whether it is fighting the spread of COVID-19, tackling growing conflicts in developing countries, or competing in the world’s fastest-growing economies, America cannot afford to be left behind.

International Affairs Budget Snapshot

HIGHLIGHTS OF INCREASES AND DECREASES (non-emergency)
Increases Compared to FY20 Enacted

• Treasury Debt Restructuring: up $189 million (+1260%)
• State Capital Investment Fund: up $111 million (+79%)
• USAID Capital Investment Fund: up $48 million (+23%)
• Economic Support Fund: up $107 million (4%)
• Development Assistance: up $100 million (3%)
• Global Health: up $104 million (1%)

Decreases Compared to FY20 Enacted

• Broadcasting Capital Improvements: down $2 million (-17%)
• UN Peacekeeping: down $70 million (-5%)
• Non-UN Peacekeeping: down $17 million (-4%)
• Treasury Contributions to International Financial Institutions: down $38 million (-2%)

NOTABLE PROGRAM AND POLICY ISSUES
Food Aid: Modest Increases
Congress provides a $15 million (1%) boost for the Food for Peace program compared to the FY20 enacted level, rejecting the Administration’s proposal to eliminate it for the fourth year in a row. The McGovern-Dole International Food for Education and Child Nutrition program also saw a $10 million (5%) increase, with $23 million from the program’s overall funding designated to purchase food aid locally or regionally, $3 million more than in FY20.

Trade Agencies: New Agency’s Funding Grows
The year-end package includes $571 million for the U.S. International Development Finance Corporation (DFC). The new agency is now in its second year of funding — designed to modernize and expand America’s development finance capabilities. Although below the Administration’s request, the funding represents a $270 million increase from FY20. The total includes $119 million for administrative expenses, level with FY20, but $270 million more in the program budget, including an additional $167 million for equity financing.

The bill also funds the Export-Import (Ex-Im) Bank and the U.S. Trade and Development Agency (USTDA) close to their FY20 enacted levels.
Global Health: Strong Support
The end of year package provides $9.2 billion for global health programs in FY21 – a $104 million (1%) increase over the FY20 enacted level. Funding for Global Health Security accounts for $90 million of this increase. Funding for most of the other global health components is flat (HIV/AIDS, Malaria, Family Planning, Vulnerable Children, Nutrition, and Neglected Tropical Diseases), while two areas (Tuberculosis and Maternal/Child Health) receive slight increases.

Congress also provides $4 billion in emergency funding for GAVI, the global vaccine alliance, to help with international COVID-19 relief.

Humanitarian Assistance: Held Flat
At a time of unprecedented global humanitarian challenges, including the dangerous impacts of the COVID-19 pandemic on vulnerable communities, the end of year package holds FY21 funding for humanitarian assistance essentially flat at the FY20 enacted level. Congress once again rejected the Administration’s proposal to consolidate most humanitarian assistance funding into a new International Humanitarian Assistance (IHA) account.

Development and Economic Assistance: Modest Boost
Many of the major development and economic assistance programs receive a modest increase, compared to FY20. The Economic Support Fund (ESF), Development Assistance (DA), and Democracy Fund accounts are increased by $107 million, $100 million, and $17 million, respectively. Funding for Assistance to Europe, Eurasia, and Central Asia (AEECA) is held flat. For the fourth year in a row, Congress rejects the Administration’s proposal to consolidate these four accounts into a new State Department-led Economic Support and Development Fund (ESDF). The year-end deal also provides an increase of $7 million for the Millennium Challenge Corporation, while maintaining funding for the Peace Corps at the FY20 enacted level.

International Security Assistance: Varied Funding
The year-end deal includes a total of $9.0 billion for international security assistance, just $10 million (0.1%) below the FY20 enacted level. Within that total, Foreign Military Financing (FMF) receives a $19 million (0.3%) increase, while most other programs see modest cuts: Nonproliferation, Anti-Terrorism, Demining, and Related (NADR) programs are cut by $7 million (1%), and International Narcotics Control and Law Enforcement (INCLE) programs are cut by $5 million (0.4%). Funding for the International Military Education and Training (IMET) account is maintained at its FY20 enacted level.

Peacekeeping: Some Cuts
For the second year in a row, Congress cuts funding for Contributions for International Peacekeeping (CIPA) – which covers assessed contributions for UN peacekeeping missions – by $70 million (5%), and Peacekeeping Operations (PKO) – which funds non-UN peacekeeping forces, training, and operations – by $17 million (4%). The year-end package maintains the 25% legislative cap on UN peacekeeping contributions, lower than the negotiated rate of 27.9%, once again preventing the U.S. from meeting its peacekeeping obligations and continuing the accumulate arrears, which exceeded an estimated $900 million at the start of 2020.

Multilateral Assistance: Mixed Bag
The year-end deal provides $1.5 billion to cover assessed contributions to the UN and other international organizations – a $32 million (2%) increase compared to the FY20 enacted level. Congress once again rejects the Administration’s request to eliminate the International Organizations and Programs (IO&P) account – which funds voluntary contributions to various UN-affiliated and other international organizations – though it does include a slight, $3 million (1%) cut to the program.

The bill also provides $1.65 billion for Treasury International Programs – which provide contributions to various international financial institutions – representing a $38 million (2%) cut. In addition, the package includes $120 million in emergency funding to cover debt relief costs for Sudan.

State Operations: Mostly Flat Funding
The end of year package provides $9.17 billion for Diplomatic Programs, $44 million (0.5%) above than the FY20 enacted level. It maintains flat funding for overall Embassy Security, while providing $300 million in emergency funding for Consular and Border Security programs to offset losses related to the COVID-19 pandemic.

OTHER NOTABLE PROGRAMS
Environment and Climate
While the bill once again does not include funding for contributions to the Green Climate Fund, it provides $140 million in flexible funding for the Global Environment Facility. It also provides $6.4 million for the Intergovernmental Panel on Climate Change (IPCC)/UN Framework Convention on Climate Change (UNFCCC). In both cases, funding remains flat at the FY20 enacted level.

The year-end deal also maintains funding for environment-related sector allocations within the development and economic assistance accounts – including conservation, poaching and wildlife trafficking, sustainable landscapes, adaptation, and renewable energy programs – at their FY20 levels. However, the sector allocation for biodiversity is increased by $5 million (to $320 million) compared to the FY20 allocation, and a new allocation of $75 million is specified for addressing ocean plastic pollution and other marine debris.

Countering Chinese and Russian Influence
Congress provides $300 million for the Countering Chinese Influence Fund and $290 million for the Countering Russian Influence Fund, level with the FY20 enacted levels. The two funds are intended to counter malign influences by the two countries along a range of dimensions, including diplomatic efforts associated with China’s Belt and Road initiative and Russia’s efforts to sow distrust in democratic institutions around the world.

Policy Provisions

• Workforce Diversity:The year-end package endorses language included in the House bill to require the Secretary of State and USAID Administrator to submit reports to the relevant congressional committees on workforce diversity activities and the status of implementing GAO recommendations to address barriers to hiring diversification.
• Foreign Assistance and Global Health Security Review: The bill prohibits the Administration from reprogramming foreign assistance or making organizational changes without Congress’s prior consultation. It also includes language specifying that any changes resulting from a global health review or initiative will also require Congressional consultation.
• Pandemic Preparedness: The bill includes language requiring the USAID Administrator to report to Congress on a comprehensive strategy to implement funding to prevent, detect, and respond to zoonotic and infectious disease outbreaks. It also directs the Administrator to work in coordination with other relevant Federal agencies.

AUTHORIZING MATTERS
In addition to the twelve FY21 appropriations bills, the year-end deal also included authorizing priorities, including the U.S. – Northern Triangle Enhanced Engagement Act (H.R.2615).

Led by HFAC Chairman Eliot Engel (D-NY) and Ranking Member Michael McCaul (R-TX), the bill requires the publication of a list of corrupt and undemocratic actors from El Salvador, Guatemala and Honduras who will be denied entry to the United States (now being referred to as the “Engel” list) and the creation of a five-year strategy from the Secretary of State and USAID Administrator on efforts to advance prosperity, combat corruption, strengthen democratic governance and improve civilian security in the Northern Triangle and curb irregular migration.

The year-end package also includes a brand-new fund in honor of the retiring Chairwoman of the House Appropriations Committee: the Nita M. Lowey Middle East Partnership for Peace Fund. Congress provides an initial $50 million authorized to help set up joint economic development projects to help end the Israeli-Palestinian conflict.

Next Steps
With year-end package finally complete, Congress will spend the last days of the 116^th session on President Trump’s veto of the National Defense Authorization Act; and then will turn to preparing for arrival of the new administration and the 117^th Session. The new Congress will be sworn in on January 3, 2021.

USGLC thanks our partners and allies in Congress for tirelessly championing America’s development and diplomacy programs, advancing America’s interests abroad, and strengthening the nation’s role as a global leader. We look forward to working with the Biden-Harris Administration and lawmakers on both sides of the aisle to bolster funding for the International Affairs Budget and strengthen the international response to the world’s most pressing issues.

Account-by-Account Details
Download the Account-by-Account details of the FY21 omnibus here.