January 27, 2014

International Affairs Budget Update, 1-17-14

Total FY14 International Affairs Budget Down 3.1% but base resources up 6.1%.

Yesterday the Senate (72-26) and Wednesday the House (359-67) passed the $1.012 trillion FY14 omnibus appropriations bill, which includes all 12 annual appropriations bills (including State-Foreign Operations). The President will sign the measure by this weekend.

As reported on Tuesday, the overall funding levels for the International Affairs Budget fared relatively well in the final spending package and generally track much closer to the Senate’s proposed amounts as opposed to House levels that would have resulted in draconian cuts to many International Affairs accounts. Notably, base International Affairs discretionary appropriations grow by 6.1% ($2.5 billion) over FY13 post-sequestration levels while total defense and non-defense spending grows by a smaller 2.6%.

Overall, the total FY14 International Affairs appropriation, including the Overseas Contingency Operations (OCO) and the international food aid funding in the Agriculture bill, comes to $50.6 billion – about 3.1% ($1.6 billion) below current levels. The reason for the overall cut in the International Affairs Budget is a $4.1 billion (-39%) reduction for OCO, the account that largely funds U.S. support for the Frontline states of Afghanistan, Pakistan, and Iraq. As American forces withdraw from Afghanistan, the demands for OCO funding are declining.

FY14-Final Chart

Despite the increase in overall base funding, there are decreases to some accounts. These and other major outcomes of the FY14 International Affairs Budget are discussed below. USGLC’s press statement on the bill is found here.


 State Department Operations and Related Accounts:

  • Diplomatic and Consular Programs: up 6.2% ($384 million) in base appropriations
  • Embassy Security: up 55% ($849 million) in base appropriations
  • National Endowment for Democracy: up 21% ($23 million)

 Foreign Assistance:

  • Global Health: up 4.7% ($378 million)
  • International Disaster Assistance: up 16.2% ($251 million)
  • Economic Support Fund: up 16.7% ($423 million) in base appropriations
  • Democracy Fund: up 20.2% ($22 million)
  • Migration and Refugee Assistance: up 13.1% ($355 million)
  • Millennium Challenge Corporation: up 5.3% ($45 million)
  • Peace Corps: up 6.5% ($23 million)
  • Non-Proliferation, Anti-terrorism, Deming: up 13.1% ($73 million) in base appropriations
  • Non-UN Peacekeeping Operations: up 19.5% ($71 million)
  • Foreign Military Financing: up 8.9% ($402 million) in base appropriations
  • P.L. 480 Food Assistance: up 7.9% ($107 million)

 Investment Assistance:

  • Export-Import Bank: up 29% ($27 million)
  • Overseas Private Investment Corporation: up 17% ($13 million)
  • U.S. Trade and Development Agency: up 19% ($8 million)


 State Department Operations and Related Accounts:

  • Contributions to International Organizations: down 9% (-$133 million) (no funding for UNESCO)
  • Contributions for International Peacekeeping: down 7.7% ($147 million) and does not include funding for a for new mission in Syria

 Foreign Assistance:

  • USAID Operating Expenses: down 10.8% (-$139 million), although it is unclear whether this reduction is covered by a larger-than-expected carry-in of FY13 funds for Afghanistan
  • Development Assistance: down 7.8% (-$211 million)