1. House Appropriation Committee Approves FY22 State-Foreign Operations Bill

Yesterday, the House Appropriations Committee approved its FY22 State-Foreign Operations (SFOPS) Appropriations bill on a party-line vote (32-25) following approval at the subcommittee level earlier this week. As previously mentioned, the overall funding level in the bill is $62.2 billion.

Adding in funding for international food aid provided through the FY22 Agriculture Appropriations bill (and assuming the small amount of funding for international programs provided through the FY22 Commerce, Justice, Science Appropriations bill will be maintained at the FY21 enacted level), House Appropriators provided a total of $64.1 billion for the FY22 International Affairs Budget. This represents an 11.7% ($6.7 billion) increase compared to the FY21 enacted level and is 0.2% ($112 million) above the Administration’s FY22 request.

International Affairs Budget Snapshot

*Another $16.1 billion was provided in primarily COVID-related FY21 emergency funding
**Reflects CBO’s re-estimate of the Administration’s request
^Assumes FY21 enacted levels for international programs funded in the Commerce, Justice, Science Appropriations billDuring the mark-up, Members offered 10 amendments on a variety of issues – including the World Health Organization, climate change, and family planning. Three amendments were adopted by the full committee:

• A manager’s amendment offered by Chairwoman Barbara Lee (D-CA) to make technical and non-controversial changes to the bill and report. Adopted by voice vote.
• An amendment offered by Rep. Marcy Kaptur (D-OH) that blocks the Administration from waiving Nord Stream 2 sanctions in FY22. Adopted by voice vote.
• An amendment offered by Rep. Mario Diaz-Balart (R-FL) that requires the State Department to notify Congress within 5 days of any agreement reached with another country to receive detainees from Guantanamo Bay, Cuba. Adopted by voice vote.

Select Highlights
Below are some additional details on programmatic funding levels and other policy provisions included in the House SFOPS bill and report.

Global Health
As we reported earlier this week, the House bill provides a 16% ($1.45 billion) increase in funding for Global Health Programs compared to the FY21 enacted level – nearly twice as large as the Administration’s proposed 9% ($855 million) increase. A few areas to note:

• Recognizing that, “The global experience of the COVID-19 pandemic has reinforced the interrelated nature of all nations and underscored that the safety of United States citizens is dependent on the strength of every nation’s global health system,” funding for Global Health Security sees the largest growth – with an 426% ($810 million) increase, slightly higher than the Administration’s FY22 request.

• Tuberculosis programs receive a significant 47% ($150 million) increase compared to the Administration’s proposal to maintain funding at the FY21 enacted level.

• Funding for bilateral HIV/AIDS programs is increased by $150 million, in contrast to the Administration’s proposal to maintain funding at the FY21 enacted level.

• Funding for international family planning is increased to $830 million, including a $38 million boost for the UN Population Fund (UNFPA). The bill also removes existing Helms Amendment restrictions and permanently repeals the Mexico City Policy, also known as the Global Gag Rule.

• Funding for several other global health programs is held flat at FY21 enacted levels, including:
  • U.S. Contributions to the Global Fund
  • Gavi, the Vaccine Alliance
  • Polio Eradication

Global Health Funding*

*State Department and USAID Global Health accounts only, except for family planning

Development and Economic Assistance
Consistent with the Administration’s FY22 request, the House bill includes a 16% increase for Development Assistance (DA) and a 2% ($19 million) increase for Assistance to Europe, Eurasia and Central Asia (AEECA), while maintaining funding for the Democracy Fund and the Millennium Challenge Corporation at their FY21 enacted levels. While the Administration’s request would maintain Peace Corps funding at current levels, the House bill would boost funding by 5%.

Reflecting a decision by House Appropriators to have the Treasury Department cover the full cost of the proposed U.S. contribution to the Green Climate Fund – rather than splitting it between the Departments of Treasury and State, as proposed by the Administration – the House bill includes a smaller increase for the Economic Support Fund compared to the FY22 request.

Development and Economic Assistance

Humanitarian Assistance
The House bill provides $8.5 billion for humanitarian assistance, a 9% ($700 million) increase compared to the FY21 enacted level and in line with the Administration’s FY22 request.

Humanitarian Assistance Funding

Peacekeeping
The House bill increases funding for UN Peacekeeping by 32% ($472 million), consistent with the Administration’s request. Funding for non-UN peacekeeping programs also increases, though by less than the Administration’s request. In addition, the bill suspends the statutory cap of 25% on U.S. contributions to UN peacekeeping and includes a total of $325 million in UN and non-UN peacekeeping funding to begin paying down accumulated arrears.

Peacekeeping Funding

International Development Finance Corporation (DFC)
Consistent with the Administration’s request, the House bill includes $601 million for the DFC, including $598 million for administrative and program costs, and $3 million for the Inspector General. This marks a 5% ($30 million) increase from the FY21 enacted level.

Other Funding and Policy Priorities

• Staffing and Diversity. Consistent with the Administration’s request, the House bill increases funding for State Department and USAID core operating budgets by 3% ($307 million) and 6% ($78 million), respectively, to support staffing increases. It also includes $9.5 million to support diversity, equity, and inclusion initiatives to “to ensure that the United States foreign policy workforce reflects the richness and diversity of America itself.”
• Northern Triangle. Includes $861 million for assistance to Central America – in line with the Administration’s request – and directs that funding prioritize programs that “address the key factors that contribute to irregular migration, particularly that of unaccompanied minors, to the United States and that help promote the opportunity and desire to remain in one’s community of origin.”
• Environment and Climate Change. Provides over $3 billion to address climate change and for other environmental programs, including $1.6 billion for the Green Climate Fund (GCF) – $350 million above the Administration’s request.
• Multilateral Cooperation. The House bill increases funding for U.S. assessed and voluntary contributions to the UN and other international organizations by 10% ($157 million) and 23% ($90 million), respectively, compared to the FY21 enacted level and supports the repayment of accumulated arrears. It also directs the Administration to submit a report to Congress within 180 days on how the U.S. is contributing to the achievement of the Sustainable Development Goals (SDGs) by 2030.
• Human Rights. The bill includes resources to advance the “the protection and promotion of human rights,” including $200 million for the Gender Equity and Equality Action Fund, the successor to the W-GDP Fund, $200 million to address gender-based violence, $150 million to support the Women, Peace and Security Strategy, $17 million to address women at risk due to violent extremism, and $19 million for protection of LGBTQI+ persons.

What’s Next

The House Appropriations Committee is scheduled to complete action on
all twelve FY22 spending bills by mid-July. The House could take up some of these bills on the floor prior to the August recess, although no official schedule has been released. The Senate Appropriations Committee is even further behind but could begin marking up its FY22 spending bills later this month.

With less than three months left until the end of the fiscal year and no bipartisan agreement on FY22 spending levels, Congress will likely need to rely on short-term Continuing Resolutions (CR) to keep the government funded while negotiations take place.