International Affairs Budget Update
July 1, 2022

House Appropriations Committee Approves FY23 State-Foreign Operations Bill

This week, the House Appropriations Committee approved its FY23 State-Foreign Operations (SFOPS) Appropriations bill on a party-line vote (32-24) following approval at the subcommittee level last week. As previously mentioned, the bill provides $64.6 billion for America’s diplomatic and development agencies and programs – 15% above the FY22 non-emergency enacted level.

Adding in funding for international food assistance provided through the House FY23 Agriculture Appropriations bill and the small amount of funding for international programs provided through the House FY23 Commerce, Justice, and Science Appropriations bill, the FY23 International Affairs Budget receives a total of $66.6 billion. This represents a 14.8% ($8.6 billion) increase compared to the FY22 enacted level but is 2.4% ($1.7 billion) below the Administration’s FY23 request.

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

During the mark-up, Members offered 14 amendments on a variety of issues, including international organizations, climate change, reproductive health, military grants for Taiwan, and Iran. Six amendments were adopted by the full committee, including:

• 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. Steve Womack (R-AR) to prohibit UN peacekeeping funds from being used to procure Russian-made equipment. Adopted by voice vote.
• An amendment offered by Rep. Ben Cline (R-VA) to include new oversight requirements for funding provided to Ukraine. Adopted by voice vote.

Select Highlights

Below are select additional details on programmatic funding levels in the House SFOPS bill and report. Unless otherwise noted, all comparisons are to FY22 non-emergency enacted levels.

Global Health

As we reported last week, the House bill increases overall funding for Global Health Programs by 12% ($1.15 billion) to $10.98 billion – exceeding the Administration’s FY23 request by 4% ($401 million). A few areas to note:

• Recognizing that, “Many countries are still waiting on critical global health resources while simultaneously trying to recover from secondary impacts brought on by the pandemic,” funding for Global Health Security sees a 43% ($300 million) increase – slightly higher than the Administration’s FY23 request.
• As the U.S. prepares to host the Global Fund’s Seventh Replenishment Conference later this year, and consistent with the Administration’s FY23 request, the House bill includes $2 billion for the U.S. contribution to the Global Fund – a 28% ($440 million) increase.
• Funding for international family planning is increased by 37% ($223 million), including a $70 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.

Global Health*

*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

Development and Economic Assistance

The House bill boosts funding across all development and economic assistance accounts – largely in line with the Administration’s FY23 request. Notably, the increase for Assistance to Europe, Eurasia, and Central Asia (AEECA) is 14% ($134 million) less than the Administration’s FY23 request – which may be due, in part, to the significant emergency resources to support Ukraine approved by Congress in late May.

Development and Economic Assistance 

Humanitarian Assistance

The House bill provides $8.1 billion for humanitarian assistance, a 19% ($1.28 billion) increase but $616 million below the Administration’s FY23 request – which may also be due, in part, to the emergency humanitarian assistance funding included in the recent Ukraine supplemental.

Humanitarian Assistance 

Peacekeeping

Funding for both UN and non-UN peacekeeping operations is increased by 20% ($299 million) and 1% ($6 million), respectively. Although the House bill provides $530 million less in arrears payments than the Administration’s FY23 request for UN peacekeeping, it lifts the legislative cap on U.S. peacekeeping contributions – allowing the U.S. to fully pay its assessed costs and leaving sufficient additional funding to pay down over $200 million in U.S. arrears.

Peacekeeping

International Development Finance Corporation (DFC)

The DFC receives a total of $818 million in the House bill, including $813 million for administrative and program costs, and $5 million for the Inspector General. This represents an increase of 17% ($117 million) compared to the FY22 enacted level but is $212 million below the Administration’s FY23 request.

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 5% ($459 million) and 7% ($107 million), respectively, to help support and sustain staffing increases. The committee recommendation also specifically includes no less than $29.5 million to support diversity, equity, and inclusion initiatives at USAID. Additionally, the State Department and USAID are directed to submit reports to Congress on the implementation of workforce diversity activities, associated funding, benchmarks, and results.
• Food Security. Recognizing that the investments in food security and agriculture development “are especially critical as the COVID–19 pandemic and Russia’s war in Ukraine has placed enormous pressure on the global food supply chain as unprecedented quarantine orders and border closures have disrupted trade and created labor shortages,” the House bill includes $1.2 billion to support the Global Food Security Strategy, Feed the Future, and research and development initiatives at USAID.
• Environment and Climate Change. The House bill provides over $3.6 billion to address climate change and other environmental programs, including – as requested by the Administration – $1.6 billion for the Green Climate Fund (GCF).
• Women’s Empowerment and Gender Equality. The House bill includes $200 million for the Gender Equity and Equality Action Fund, $250 million to address gender-based violence, and $150 million to support the Women, Peace, and Security Strategy.

What’s Next

The House Appropriations Committee completed action on all 12 FY23 spending bills this week and at least some of these bills could be considered on the House floor in July, although no official schedule has been released. The Senate Appropriations Committee could begin marking up its FY23 spending bills as early as July, although that timeline could slip as Chairman Patrick Leahy (D-VT) recovers from hip replacement surgery.

Despite progress in the House, bipartisan negotiations on FY23 topline spending levels have stalled and there is no deal in sight. Given the political realities, slim Democratic majorities in the House and Senate, and a shortened legislative calendar in a midterm election year, it is unlikely Congress will approve all 12 spending bills before the start of the new fiscal year on October 1. At least one short-term Continuing Resolution (CR) may be needed to keep the government open and give lawmakers additional time to finalize FY23 spending.