October 30, 2023

International Affairs Budget Update

On Friday, October 20, the Administration released a $106 billion national security supplemental request, which includes $34.5 billion for the International Affairs Budget. The full request includes:

  • Ukraine Assistance: $61.4 billion to bolster Ukraine’s defense against Russia’s invasion, including $45.1 billion primarily for military and security assistance and $16.3 billion for security, economic, and humanitarian assistance through the International Affairs Budget.
  • Global Humanitarian Assistance: $9.2 billion for responding to the crisis in Israel and the region and Ukraine-related humanitarian crises, along with those worldwide, through the International Affairs Budget.
  • Countering China Globally: $7.4 billion to strengthen U.S. leadership and counter Chinese influence globally, including $3.4 billion for bolstering the U.S. defense industrial base and $4 billion for security and multilateral assistance through the International Affairs Budget.
  • Israel Assistance: $14.3 billion to support Israel, including $10.6 billion for military and $3.7 billion for security and diplomatic programs through the International Affairs Budget.
  • Border Control and Migration: $13.6 billion to reduce irregular migration in the Western Hemisphere, including $1.3 billion for diplomatic, humanitarian, and economic programs through the International Affairs Budget.
  • Note: In a separate request to Congress, an additional $1 billion in PL480 Food for Peace and $5 million for McGovern-Dole was requested to help combat global hunger.

Proposed funding for several accounts is designated to remain available until the end of Fiscal Year (FY) 2024 on September 30, 2024, while funding for several others is designated to remain available until the end of FY25 on September 30, 2025. In practice, this will allow expenditures to continue after FY24 and run until the end of the 2024 calendar year.

USGLC President and CEO Liz Schrayer released a statement calling for Congress and the Administration to pass a national security emergency package with no less than $34.5 billion in civilian and humanitarian resources as quickly as possible.

Select Highlights

Ukraine Assistance

The supplemental request prioritizes assistance to Ukraine through the Department of Defense, Department of State, U.S. Agency for International Development (USAID), and related agencies. In addition to $45.1 billion in military and security assistance, the request includes $16.3 billion for the International Affairs Budget, broken down as follows:

  • Economic Assistance: A total of $14 billion was requested to help Ukraine continue to provide critical services to its people and sustain its economy while under attack; including $11.8 billion for the Economic Support Fund (ESF) to provide critical resources to “ensure Putin does not succeed in collapsing the Ukrainian economy.” The request also includes $2.2 billion for Assistance to Europe, Eurasia, and Central Asia (ACCEA) to support “urgent recovery needs” including the energy sector ahead of the coming winter along with support for “critical infrastructure and the agriculture sector.”
  • Security Assistance: A total of $2.16 billion was requested for continued military, intelligence, and other defense support; including $1.7 billion for Foreign Military Financing (FMF) to “bolster capabilities”; $360 million for International Narcotics Control and Law Enforcement (INCLE); and $100 million for Nonproliferation, Anti-Terrorism, Demining, and Related Programs (NADR).
  • Department of State: A total of $65 million was requested, including $60 million for diplomatic programs to “sustain critical operational requirements” to respond to the situation in Ukraine and $5 million for the Office of the Inspector General.
  • USAID: A total of $49 million was requested, including $39 million for operating expenses and $10 million for the Office of the Inspector General.

Global Humanitarian Assistance

The request includes $9.2 billion for the International Affairs Budget critical to demonstrating U.S. leadership amid unprecedented levels of humanitarian need, geopolitical competition, and global challenges. The funding is broken down as follows:

  • International Disaster Assistance: $5.7 billion was requested to address humanitarian needs in Ukraine and countries impacted by the situation in Ukraine; to address humanitarian needs in response to the situation in Israel and the areas impacted by the situation in Israel; and for “cascading regional and global impacts of those crises.”
  • Migration and Refugee Assistance: $3.5 billion was requested to assist humanitarian needs in and refugees from Ukraine; assist refugees in response to the situation in Israel and in areas impacted by the situation in Israel; and for additional support for other “vulnerable populations and communities” across the globe.

Countering China Globally

The supplemental request includes resources provided through the Department of Defense and the Department of State, as well as through contributions to Multilateral Development Banks, to counter China globally. In addition to $3.4 billion for the defense industrial base, the request includes $4 billion for the International Affairs Budget, broken down as follows:

  • Foreign Military Financing: $2 billion was requested for the Indo-Pacific region for delivery of defense articles and services to critical partners in the region, counter malign influence, and deter acts of aggression.
  • Multilateral Assistance: A total of $2 billion was requested, in order to “mobilize tens of billions of dollars in additional funding from partner nations, allowing the World Bank to provide a credible alternative to PRC financing.”
    • $1.25 billion for the International Bank for Reconstruction and Development (IBRD). This request would leverage $25 billion of IBRD lending at below non-concessional rates to low-and-middle income countries “to build new infrastructure and essential development projects such supply chains, breaking reliance on the PRC.”
    • $750 million for the International Development Association (IDA). This request would provide support for the lowest-income countries that continue to face a number of vulnerabilities, including hunger, destabilizing fragility and conflict. However, this IDA requested level is 25% lower than the amount sought by the Administration in the August emergency supplemental request.
    • This request does not include $1 billion for the International Infrastructure Fund or $200 million for Countering Russian Malign Actors in Africa Fund that was included in the August supplemental request.
    • The request also includes authorizing language that would increase the leverage capacity of International Monetary Fund Trust Funds up to $21 billion.

Israel Assistance

The supplemental request prioritizes assistance to Israel through the Department of Defense, Department of State, and related agencies. In addition to $10.6 billion in military and security assistance, the request includes $3.7 billion for the International Affairs Budget, broken down as follows:

  • Security Assistance: $3.5 billion was requested for Foreign Military Financing (FMF) as Israel seeks to reestablish territorial security and deterrence.
  • Department of State: A total of $200 million was requested, including $150 million for Diplomatic Programs (DP) and $50 million for Emergencies in the Diplomatic and Consular Service.

Border Control and Migration

The request includes $1.3 billion for the International Affairs Budget, broken down as follows:

  • Migration and Refugee Assistance: A total of $850 million was requested to to help “forcibly displaced migrants” and address humanitarian needs in the Western Hemisphere to promote access to regular pathways to migration and international protection, including support for integration and regularization.
  • Economic Assistance: $400 million was requested for the Economic Support Fund (ESF) to provide “migrant integration support to target communities” and support safe, orderly, and humane migration in the Western Hemisphere.
  • Department of State: $50 million was requested for Diplomatic Programs (DP) to support safe, orderly, and humane migration in the Western Hemisphere.

What’s Next

Senate and House Democrats have expressed strong support for the request. Reception from Senate Republicans has been more qualified; key Senators, such as Republican Leader Mitch McConnell (R-KY) and Appropriations Committee Vice Chair Susan Collins (R-ME), have expressed overall support, but also made clear that Congress will review and shape the request. Meanwhile, hardline Senate and House Republicans have expressed their preference for delinking Israel and Ukraine aid.

We can expect greater clarity following the Senate Appropriations Committee’s forthcoming hearing on the request, scheduled for Tuesday, October 31. The election of a new speaker in the House allows the chamber to restart considering legislation including appropriations bills. What form the package ultimately takes remains to be seen, and it is possible the package could be attached to a Continuing Resolution (CR) intended to keep the government open following the expiration of the current CR on November 17.