39–010

[ERRATA]

Calendar No. 48

109TH CONGRESS REPORT

1st Session " ! SENATE 109–35

FOREIGN AFFAIRS AUTHORIZATION ACT,

FISCAL YEARS 2006 AND 2007

MARCH 10, 2005.—Ordered to be printed

Mr. LUGAR, from the Committee on Foreign Relations,

submitted the following

REPORT

[To accompany S. 600]

The Committee on Foreign Relations, having had under consideration an original bill (S. 600) to authorize appropriations for the

Department of State and international broadcasting activities for

fiscal years 2006 and 2007, for the Peace Corps for fiscal years

2006 and 2007, for foreign assistance programs for fiscal years

2006 and 2007, and for other purposes, reports favorably thereon

with amendments and recommends that the bill as amended do

pass.

ERRATA

This errata contains the Congressional Budget Office’s Cost Estimate which was not available when the report was originally filed.

In addition, this errata contains a revision to the table on page

25 of the original report (V. Division B—Foreign Assistance Authorization Act, Fiscal Year 2006—(A) Summary of Funds). That

table incorrectly stated that dollar amounts within the table were

expressed in thousands of dollars. The dollar amounts within the

table are expressed in millions of dollars. This errata contains the

corrected table.

CONTENTS

Page

Cost Estimate

Congressional Budget Office Cost Estimate for the Foreign Affairs Authorization Act, Fiscal Years 2006 and 2007 .............................................. 1

Division B—Foreign Assistance Authorization Act, Fiscal Year 2006

(A) Summary of Funds ..................................................................................... 12

(III)

(1)

Congressional Budget Office Cost Estimate for the Foreign

Affairs Authorization Act, Fiscal Years 2006 and 2007

COST ESTIMATE

In accordance with rule XXVI, paragraph 11(a) of the Standing

Rules of the Senate, the committee provides the following estimate

of the cost of this legislation prepared by the Congressional Budget

Office.

UNITED STATES CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, March 18, 2005.

Hon. RICHARD G. LUGAR, Chairman

Committee on Foreign Relations,

United States Senate,

Washington, DC.

DEAR MR. CHAIRMAN:

The Congressional Budget Office has prepared the enclosed cost

estimate for S. 600, the Foreign Affairs Authorization Act, Fiscal

Years 2006 and 2007.

If you wish further details on this estimate, we will be pleased

to provide them. The CBO staff contact is Sunita D’Monte.

Sincerely,

DOUGLAS HOLTZ-EAKIN, Director

Enclosure.

cc: Hon. Joseph R. Biden, Jr., Ranking Minority Member

CONGRESSIONAL BUDGET OFFICE

COST ESTIMATE

S. 600—FOREIGN AFFAIRS AUTHORIZATION ACT,

FISCAL YEARS 2006 AND 2007

As reported by the Senate Committee on Foreign Relations on March 10, 2005

SUMMARY

S. 600 would authorize appropriations of almost $30 billion in

2006 and such sums as may be necessary in 2007 for the Department of State, international assistance programs, and related agencies. The bill also contains provisions that would raise the cost of

discretionary programs for famine and reconstruction assistance,

debt relief, public diplomacy, personnel, and other programs over

the 2007–2010 period. CBO estimates that those provisions and the

indefinite authorizations for 2007 would require appropriations of

$34 billion over those four years. CBO estimates that implementing

2

the bill would cost about $59 billion over the 2006–2010 period, assuming the appropriation of the necessary amounts. CBO estimates that S. 600 would raise direct spending by $33 million in 2006 and by $87 million over the 2006–2015 period. S.

600 also would increase governmental receipts (i.e., revenues) by an

insignificant amount each year by creating new criminal penalties

related to law enforcement and protective functions of State Department special agents and guards. Finally, the Joint Committee

on Taxation estimates that the bill would lower revenues by less

than $500,000 a year by exempting employees of the U.S. Mission

to the United Nations in New York City from paying taxes on their

housing allowance.

S. 600 contains no intergovernmental or private-sector mandates

as defined in the Unfunded Mandates Reform Act (UMRA) and

would not affect the budgets of state, local, or tribal governments.

ESTIMATED COST TO THE FEDERAL GOVERNMENT

The estimated budgetary impact of S. 600 is shown in Table 1.

The costs of this legislation fall within budget functions 150 (international affairs), 300 (natural resources and environment), 600 (income security), 750 (administration of justice), and 800 (general

government).

TABLE 1. BUDGETARY IMPACT OF S. 600, THE FOREIGN AFFAIRS

AUTHORIZATION ACT, FISCAL YEARS 2006 AND 2007

(By fiscal year, in millions of dollars)

2005 2006 2007 2008 2009 2010

SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law for State

Department, International Assistance

Programs, and Related Agencies:

Estimated Authorization Level 1 2 27,264 2,564 2,604 2,655 0 0

Estimated Outlays 26,805 14,288 7,906 5,492 3,389 1,416

Proposed Changes:

Estimated Authorization Level 3 0 29,872 30,748 1,035 1,133 1,226

Estimated Outlays 0 14,690 22,904 11,664 5,994 3,666

Spending Under S. 2144 for State Department, International Assistance Programs, and Related Agencies:

Estimated Authorization Level 2 3 27,264 32,436 33,352 3,690 1,133 1,226

Estimated Outlays 26,805 28,978 30,810 17,156 9,383 5,082

CHANGES IN DIRECT SPENDING AND REVENUES 4

Estimated Budget Authority 0 81 21 21 21 21

Estimated Outlays 0 33 14 11 11 11

1The 2005 level is the amount appropriated for that year.

2The estimated authorization levels over the 2006-2008 period are for international HIV/AIDS programs authorized by Public Law 108-25, the U.S. Leadership Against HIV/AIDS, Tuberculosis, and Malaria Act of 2003

for the Global HIV/AIDS Initiative and Child Survival and Disease and other programs. That act authorized the

appropriation of $15 billion for the 2004-2008 period for HIV/AIDS programs, including programs administered

by the Department of Health and Human Services. 3These amounts do not include costs for section 213 of the bill because CBO cannot estimate the timing or

amounts that may be necessary to implement those provisions. 4 In addition to the effects shown for direct spending, CBO estimates that provisions that would increase or decrease revenues would have a net effect of less than $500,000 each year over the 2006-2015 period.

BASIS OF ESTIMATE

The bill would authorize appropriations for the Department of

State and international broadcasting activities for fiscal years 2006

3

and 2007. It would be the first comprehensive foreign assistance

authorization act since the mid-1980s—authorizing funding for

most existing assistance programs and also several new ones. The

bill also would raise direct spending by $33 million in 2006 and by

$87 million over the 2006–2015 period. Finally, S. 600 would affect

governmental receipts (revenues), but CBO estimates that the net

effect would be less than $500,000 a year.

Spending Subject to Appropriation

S. 600 would authorize appropriations at the specified level of $29.8 billion in 2006 and for such sums as may be necessary for

2007 for the State Department, international assistance programs,

and related agencies. Of the 2006 amount, nearly $0.6 billion

would be for HIV/AIDS programs that are currently authorized in

existing law. The bill would authorize new programs that would affect costs for stabilization and reconstruction activities and assistance, safe water, debt relief, public diplomacy, personnel, and other

programs. CBO estimates that implementing those provisions

would require additional appropriations of $0.7 billion in 2006 and

$4.4 billion over the 2007-2010 period. For this estimate, CBO assumes that the authorized amounts will be appropriated near the

start of each fiscal year and that outlays will follow historical

spending patterns for the existing and similar programs.

Specified Authorizations. The authorizations of appropriations in

this bill cover the operating expenses and programs of the Department of State, the U.S. Agency for International Development, the

Broadcasting Board of Governors (BBG), the Peace Corps, and the

Millennium Challenge Corporation. The authorization levels for

2006 are equal to the President’s request for international affairs

spending.

As shown in Table 2, S. 600 would authorize the appropriation

of $10.3 billion for international development and humanitarian assistance programs—not counting HIV/AIDS programs, $8.3 billion

for international security assistance programs, $9.2 billion for the

State Department for programs related to the administration of foreign affairs, international organizations, and other associated programs, $1.2 billion for international broadcasting and exchange activities, and $0.1 billion for international commissions. Except

where otherwise discussed, CBO estimated authorizations for 2007

at the amount specified in 2006 adjusted for inflation.

TABLE 2. ESTIMATED AUTHORIZATIONS IN S. 600, THE FOREIGN AFFAIRS

AUTHORIZATION ACT, FISCAL YEARS 2006 AND 2007

By Fiscal Year, in Millions of Dollars

2006 2007 2008 2009 2010

Estimated Authorizations for Existing Programs1

International Development and Humanitarian Assistance

Estimated Authorization Level 2 10,344 10,518 0 0 0

Estimated Outlays 2,930 6,780 5,673 2,750 1,257

International Security Assistance

Estimated Authorization Level 8,348 8,491 0 0 0

Estimated Outlays 4,890 6,742 2,606 1,251 657

Conduct of Foreign Affairs

Estimated Authorization Level 9,237 9,436 0 0 0

4

TABLE 2. ESTIMATED AUTHORIZATIONS IN S. 600, THE FOREIGN AFFAIRS

AUTHORIZATION ACT, FISCAL YEARS 2006 AND 2007—Continued

By Fiscal Year, in Millions of Dollars

2006 2007 2008 2009 2010

Estimated Outlays 5,904 7,820 2,356 1,051 737

Foreign Information and Exchange Activities

Estimated Authorization Level 1,185 1,209 0 0 0

Estimated Outlays 810 1,129 357 67 23

Other Programs

Estimated Authorization Level 72 73 0 0 0

Estimated Outlays 59 67 12 6 1

Total Authorizations for Existing

Programs

Estimated Authorization Level 29,186 29,727 0 0 0

Estimated Outlays 14,593 22,538 11,004 5,125 2,675

Estimated Authorizations for New or Expanded Programs

Reconstruction & Stabilization Civilian

Management Act of 2005

Estimated Authorization Level 124 127 128 131 134

Estimated Outlays 57 111 124 128 131

Famine and Reconstruction Assistance

Estimated Authorization Level 500 508 517 527 536

Estimated Outlays 25 180 328 409 466

Safe Water

Estimated Authorization Level 50 135 305 390 470

Estimated Outlays 4 31 91 195 292

Debt Relief for the Poorest

Estimated Authorization Level 0 155 75 75 75

Estimated Outlays 0 15 84 92 83

Office Building for American Institute

in Taiwan

Estimated Authorization Level 0 78 0 0 0

Estimated Outlays 0 12 23 35 8

Personnel Benefits and Other Programs

Estimated Authorization Level 4 10 10 10 11

Estimated Outlays 3 9 10 10 11

Indefinite Authorizations for Currency

Fluctuations

Estimated Authorization Level 88000

Estimated Outlays 8 8 0 0 0

Total Estimated Authorizations

Estimated Authorization Level 686 1,021 1,035 1,133 1,226

Estimated Outlays 97 366 660 869 991

Total Authorizations

Estimated Authorization

Level 29,872 30,748 1,035 1,133 1,226

Estimated Outlays 14,690 22,904 11,664 5,994 3,666

1The estimated authorization for 2007 is the 2006 authorization level adjusted for inflation.

2The estimated authorization for 2006 does not include $1,970 million for the Global HIV/AIDS Initiative and

$594 million for HIV/AIDS programs in Child Survival and Disease and other programs that are authorized by

Public Law 108–25, the U.S. Leadership Against HIV/AIDS, Tuberculosis, and Malaria Act of 2003.

Reconstruction and Stabilization Civilian Management Act of 2005

Title VII of the bill would authorize the President to provide assistance to stabilize and rebuild a country or region that is in, or

emerging from, conflict or civil strife. The bill would authorize assistance to respond to international crises through a new emergency fund and it would establish an Office of Reconstruction and

Stabilization within the Department of State to provide civilian

management of stabilization and reconstruction efforts. The bill

5

would authorize the appropriation of $24 million in 2006 and such

sums as may be necessary in 2007 for personnel, education and

training, equipment, and travel costs. It would authorize an initial

appropriation of $100 million for the emergency fund plus a permanent, indefinite authorization of such sums as may be necessary to

replenish funds expended. In addition, it would authorize the President to waive the percentage and aggregate dollar limitations in

current law regarding various authorities to draw down or to transfer resources to respond to such crises.

Office of Reconstruction and Stabilization. Section 706 would authorize a new office within the Department of State with responsibility to monitor and assess international crises, to prepare contingency plans for various types of crises, to identify and train personnel with necessary skills for stabilization and reconstruction operations, and to coordinate the U.S. efforts should the President decide to respond to any crisis. The Office of Reconstruction and Stabilization was created in August 2004.

The bill also would authorize the establishment of a response

readiness corps with up to 250 members to staff the office and for

deployment on short notice, plus a readiness reserve from current

federal employees and up to 500 nonfederal personnel to support

operations if needed. The costs of activating the corps would be

paid from the emergency fund. Based on information from the

State Department, CBO estimates that annual costs associated

with the office and the response readiness corps would be $24 million, adjusted annually for inflation.

Emergency Fund. Section 705 would authorize $100 million for

an emergency stabilization and reconstruction fund. Considering

the number of regions in the world in conflict or recovering from

conflict and that appropriations for the reconstruction of Iraq and

Afghanistan have totaled nearly $24 billion over the 2003-2005 period, reconstruction could require much larger funding levels than

the amount authorized. CBO estimates that the emergency fund

would be used for an initial response to an international crisis and

not for major reconstruction efforts which are discussed below. For

this estimate, CBO assumes that the fund would be replenished—

through discretionary appropriations—on an annual basis at the

$100 million level, adjusted for inflation, and that it would be used

for a mix of activities with an aggregate spending pattern similar

to the Economic Support Fund.

Famine and Reconstruction Assistance

Section 2205 would expand the purposes for which appropriations for international disaster assistance may be provided to include programs of famine relief and reconstruction following manmade or natural disasters abroad. The bill would authorize the appropriation of $656 million in 2006 for international disaster and

famine assistance, but not reconstruction. Reconstruction following

manmade or natural disasters can be very expensive and has often

been funded by supplemental appropriations.

This year the President is requesting supplemental appropriations of $0.7 billion for tsunami relief and reconstruction and nearly $2.0 billion for Afghanistan. Those amounts are in addition to

$100 million enacted for Central America and the Caribbean to reVerDate 11-MAY-2000 13:02 Apr 01, 2005 Jkt 000000 PO 00000 Frm 00009 Fmt 6633 Sfmt 6602 ERRATA SFRELA2 PsN: SFRELA2
6

cover after disastrous hurricanes last fall. While it is impossible to

estimate future funding levels on an annual basis, CBO estimates

that meeting the expanded purposes could require appropriations

of several hundred million dollars to one billion dollars above the

level specified by the bill for countries emerging from natural disasters, conflict, or civil strife. For this estimate, based on historical

funding for similar activities, CBO assumes the costs for implementing this section would total about $500 million each year over

the 2006-2010 period, assuming the appropriation of the necessary

funds. Spending of such funding would likely occur over a period

of years so that annual outlays would start well below that level,

and grow gradually.

Safe Water

Title XXVI would authorize the President to furnish assistance

to improve the safety of water supplies in developing countries, to

expand access to safe water and sanitation, and to promote sound

water management. In addition to grant assistance to local governments and nongovernmental organizations, it would authorize the

President to create a pilot program with the authority to issue investment insurance, investment guarantees, and loan guarantees;

to provide direct investment or investment encouragement; and to

carry out special projects and programs for eligible investors to assist in the development of safe drinking water and sanitation infrastructure. It would authorize the appropriation of such sums as

may be necessary over the 2006-2011 period to carry out the title.

The bill would, to the extent provided for in advance in appropriation acts, authorize the President to create such legal mechanisms as may be necessary for implementing the authorities under

the pilot program and to deem such legal mechanisms to be nonfederal borrowers for purposes of the Federal Credit Reform Act. It

would, notwithstanding any other provision of law, authorize the

President to provide assistance under the pilot program in the form

of partial loan guarantees of up to 75 percent of the total amount

of the loan.

It is unclear whether the pilot program would be entirely new or

would be an augmentation of the existing credit programs of the

U.S. Agency for International Development and Overseas Private

Investment Corporation. It is also unclear whether this new program would create federal or nonfederal entities (legal mechanisms) or whether credit reform treatment would apply. However,

it is clear that the bill would intend that resources devoted to providing safe water be increased. For the purpose of the estimate,

CBO assumes the bill would double the assistance for safe water

provided to Sub-Saharan Africa in 2004, or an increase in 2006 of

$50 million over the amounts otherwise authorized in the bill, and

that amount would increase over the next five years to $470 million, or the amount spent in 2004 for water programs including

those in Iraq. Because the cost recovery of water investments

projects would be in local currencies, CBO assumes that investments relying on hard-currency credits would remain unattractive

and would be little used.

7

Debt Relief for the Poorest

Section 2114 would authorize the appropriation of $100 million

in 2006 for the cost, as defined by the Federal Credit Reform Act,

of restructuring bilateral debts, for debt relief under the Tropical

Forest Conservation Initiative, and for a contribution to the Heavily Indebted Poor Countries Trust Fund administered by the World

Bank. In addition, section 2221 would authorize the President to

reduce the U.S. bilateral debt of low-income countries as part of

multilateral debt-relief agreements, commonly referred to as the

Paris Club, limited to such extent or in such amounts as may be

provided in advance in an appropriation act. That authorization is

the same as the authorization contained in general provisions of

annual appropriation acts for nearly a decade.

The U.S. government has forgiven the bilateral debt that it once

held for most of the world’s poorest countries; however, it still holds

the debt of some of the world’s poorest countries such as the Democratic Republic of the Congo, Afghanistan, Sudan, Somalia, and Liberia. Congo has been offered multilateral debt relief by the Paris

Club. At some point after 2006, the other poor countries may meet

the minimum requirements for multilateral debt relief as stipulated by the bill. We cannot project the exact timing of such action,

but given the experience of other countries emerging from internal

conflict, we estimate that it would take at least two to three years

after a reconstituted civilian government is established in those

countries before any multilateral debt agreement would be negotiated. While the bill does not specifically authorize the appropriation of any funds, CBO estimates that the present value of all debt

of low-income countries held by the U.S. government to be between

$550 million and $600 million. CBO estimates that forgiving bilateral loans to Congo would cost about $235 million in 2007, an increase of $155 million over the amount authorized for 2006. CBO

estimates that forgiving the bilateral loans to other poor countries

would cost about $75 million a year over the 2008-2010 period, assuming appropriation of the necessary amounts.

Office Building for American Institute in Taiwan (AIT)

Section 211 would amend current law to authorize such sums as

may be necessary for the construction of a new office building for

the AIT in Taipei, Taiwan. Public Law 106–212 authorized the appropriation of $75 million for the facility without fiscal year limitation. According to the Department of State, the projected cost of the

building is now $153 million, and roughly $20 million has been

spent on site acquisition and design. CBO estimates a net increase

in authorization of $78 million and assumes that construction

would begin in 2007 and end in 2010.

Personnel Benefits

S. 600 contains several provisions that would provide benefits to

State Department personnel that would increase costs by up to $10

million each year, assuming the appropriation of the necessary

funds.

Hardship and Danger Pay Allowances. Section 303 would increase the cap on hardship allowances and danger pay allowances

from 25 percent to 35 percent of basic pay for employees serving

8

overseas. Based on information from the Department of State, CBO

estimates implementing this section would cost about $6 million a

year, assuming the appropriation of the necessary funds.

Educational Expenses of Dependent Children. Section 301 would

authorize payments for certain educational expenses of dependent

children of Foreign Service employees posted overseas. Section 506

would allow the BBG to pay for the educational expenses of certain

dependents of employees in the Commonwealth of the Northern

Mariana Islands. Based on information from the Department of

State and the BBG, CBO estimates implementing these provisions

would cost about $3 million annually.

Housing for Employees. Section 318 would allow the department

to provide housing to 10 more employees of the U.S. Mission to the

United Nations in New York City. Based on information from the

State Department, CBO estimates the additional housing would

cost between $500,000 and $1 million a year, assuming the availability of appropriated funds.

Indefinite Authorizations for Currency Fluctuations

Section 102(c) would authorize the appropriation of such sums as

may be necessary in 2006 and 2007 to compensate for adverse fluctuations in exchange rates that might affect contributions to international organizations. Any funds appropriated for this purpose

would be obligated and expended subject to certification by the Office of Management and Budget. CBO estimates that the dollar will

decline roughly 2 percent in 2006 and that the Department of State

would require an additional $8 million that year to fully pay assessed contributions to international organizations. Currency fluctuations over the longer term are extremely difficult to project, and

they could result in spending either higher or lower than the

amounts specifically authorized in the bill for contributions to

international organizations and programs. Therefore, this estimate

assumes no additional currency fluctuations in 2007.

Miscellaneous Provisions

S. 600 would authorize several new or expanded programs. In

general, the bill would fund these programs through earmarks of

funds otherwise authorized or the provisions would have an insignificant impact on spending subject to appropriation, CBO estimates.

• Section 213 would create a Victims of Crime Office within the

Department of State and authorize the department to provide

services and financial assistance from its emergency fund to

U.S. nationals who become crime victims overseas. CBO cannot

estimate the budgetary impact of this provision given the uncertainties associated with estimating how many individuals

may be victimized and whether victims of terrorist acts would

also be covered under this provision.

• Title XXIII would authorize assistance to reduce the threat to

diplomatic missions abroad from an attack using radioactive

materials. In particular, it would authorize assistance to foreign countries to develop appropriate response plans and to

train foreign personnel who would be the first to respond to

9

such an attack. The bill would earmark $2 million from the

amount authorized elsewhere in the bill for Nonproliferation,

Anti-Terrorism, Demining and Related (NADR) programs to

fund these activities.

• Title XXIV would authorize a program of global pathogen surveillance to assist in the monitoring and response to bioterrorism and outbreaks of infectious disease. The bill would earmark $35 million from the amount authorized for NADR to

fund these activities.

• Title XXVIII would authorize a program for safeguarding and

eliminating man- portable air-defense systems and other conventional arms. It would earmark $20 million from amounts

otherwise authorized in the bill.

• Section 2224 would authorize the Secretary to designate a nonprofit organization as the Middle East Foundation and to fund

the organization through grants. While the provision is silent

on the level of funding, the President is requesting $25 million

for the foundation.

• Section 2211 would authorize appropriations for educating children in Afghanistan about the dangers of land mines.

• The bill includes numerous provisions that would expand or introduce new reporting requirements and other provisions that

would eliminate or consolidate existing reporting requirements.

Direct Spending and Revenues

CBO estimates that S. 600 would raise direct spending by $33

million in 2006 and by $87 million over the 2006–2015 period (see

Table 3). The bill also contains provisions that would increase and

decrease governmental receipts (revenues), but CBO estimates that

the net effect of these provisions would be less than $500,000 a

year.

TABLE 3. ESTIMATED DIRECT SPENDING AND REVENUES IN THE FOREIGN

AFFAIRS AUTHORIZATION ACT, FISCAL YEARS 2006 AND 2007

(By fiscal year, in millions of dollars)

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Changes in Outlays 0 33 14 11 11 11 3 1111

Changes in Revenues 0 (*) (*) (*) (*) (*) (*) (*) (*) (*) (*)

Note: (*) = less than $500,000.

Buying Power Maintenance Account

The State Department may maintain an approved level of program activity in the face of currency fluctuations through a Buying

Power Maintenance Account. Under current law, the Secretary of

State may transfer any current funds in excess of needs that result

from an increase in the purchasing power of the dollar from accounts under ‘‘Administration of Foreign Affairs’’ to the Buying

Power Maintenance Account. The funds in the account are available for transfer back to those accounts only to offset future adverse fluctuations in exchange rates or overseas wage or price levels. The Secretary may also transfer unavailable balances into the

Buying Power Maintenance Account, but only to the extent and in

10

such amounts as specifically provided in advance in appropriation

acts. No appropriation act has ever provided that authority. Section

207 of the bill would strike the requirement for appropriation action, thus allowing the Secretary to transfer lapsed funds into the

Buying Power Maintenance Account and making them available to

offset future adverse currency fluctuations.

According to the Treasury Combined Statement on Receipts, Outlays, and Balances, 2004, the Department of State had $80 million

in unobligated, unavailable balances in various accounts in the Administration of Foreign Affairs bureau at the start of 2005. Under

the bill, such balances could be transferred into the Buying Power

Maintenance account upon enactment and made available to meet

adverse exchange rate fluctuations. In addition, CBO estimates approximately 0.5 percent of obligated balances, or about $20 million,

would be deobligated each year and reappropriated under the bill.

Because we estimate the dollar will decline in value over the next

year, we estimate that about half of the funds would be transferred

out of the Buying Power Maintenance Account and spent. In total,

we estimate direct spending of about $80 million over the 2006–

2015 period.

Medical Reimbursements

Section 206 would provide the State Department greater flexibility in retaining reimbursements for funding medical care provided to employees and eligible family members overseas. Based on

information from the department, CBO estimates that it would collect and spend between $500,000 and $1 million a year.

Other Provisions

CBO estimates that several provisions in the bill would affect direct spending and revenues by less than $500,000 annually.

• Section 318 would exempt, for federal income tax purposes,

housing allowances paid to employees of the U.S. Mission to

the United Nations in New York City. The Joint Committee on

Taxation estimates that the provision would reduce tax receipts by less than $500,000 each year, assuming it would be

effective for allowances paid on or after October 1, 2005.

• Sections 201 and 203 would raise governmental receipts (revenues) by establishing new criminal penalties that would be assessed against persons interfering with the law enforcement

and protective functions of State Department special agents

and guards. CBO estimates that the increase in revenues

would not be significant in any year. Collections of criminal

fines are deposited in the Crime Victims Fund and are later

spent. CBO estimates that the criminal penalties that would

be established under the bill would increase direct spending

from the Crime Victims Fund by less than $500,000 per year.

• Section 205 would allow the State Department’s International

Litigation Fund to retain awards of costs and attorneys’ fees as

a result of a decision by an international tribunal. Based on information from the department, CBO estimates that the Department of State would collect and spend less than $500,000

a year.

11

• Section 214 would authorize the Secretary to provide museum

visitor and educational outreach services and to sell, trade, or

transfer documents and articles that are displayed at the

United States Diplomacy Center. Any proceeds generated from

these services or sales would be retained and spent by the center, and CBO estimates that this provision would have an insignificant net effect on direct spending.

• Several sections in title III of the bill would amend retirement

benefits for State Department personnel by slightly broadening

the authority of the department to temporarily rehire Foreign

Service retirees without terminating their pension benefits;

changing personnel review and termination procedures for

each Foreign Service class; establishing a 60-day deadline for

the Office of Personnel Management to issue regulations in accordance with a previously enacted change in pension benefits

for certain spouses of Foreign Service workers; and allowing

employees of Office of Coordination for Reconstruction and Stabilization to continue collecting full retirement annuities provided by the Foreign Service retirement system. Under current

law, Foreign Service retirement benefits are temporarily suspended during any period of reemployment by the federal government. CBO estimates that enacting the provisions would increase direct spending by less than $500,000 annually over the

2005–2015 period.

• Section 2207 would authorize the President to waive the requirement that a foreign government pay to the United States

the net proceeds from the sale of any military equipment it has

received from the United States on a grant basis. CBO estimates the forgone offsetting receipts would not be significant.

INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

S. 600 contains no intergovernmental or private-sector mandates

as defined in UMRA and would not affect the budgets of state,

local, or tribal governments.

Estimate Prepared By:

Federal Costs—State Department: Sunita D’Monte; Foreign Aid:

Joseph C. Whitehill; Foreign Service Retirement: Geoffrey

Gerhardt; Law Enforcement: Mark Grabowicz; Revenue Effects:

Annabelle Bartsch.

Impact on State, Local, and Tribal Governments: Melissa

Merrell.

Impact on the Private Sector: Paige Piper/Bach.

Estimate Approved By:

Peter H. Fontaine, Deputy Assistant Director for Budget Analysis.

12

DIVISION B—FOREIGN ASSISTANCE AUTHORIZATION ACT, FISCAL YEAR 2006

(A) SUMMARY OF FUNDS

[in millions of dollars]

FY 2005

estimate

FY 2006

request

Committee

mark

Child Survival & Health Programs

Fund (CSH) .......................................... 1,538 1,252 1,252

Global Fund to Fight AIDS, Tuberculosis, and Malaria 1 .......................... (248) (100) (100)

Development Assistance (DA) ................ 1,448 1,103 1,103

International Disaster and Famine Assistance ................................................. 485 656 656

Transition Initiatives .............................. 49 325 325

Development Credit Authority (DCA) ... 8 8 8

USAID Operating Expenses (OE) .......... 613 681 681

USAID Capital Investment Fund .......... 59 78 78

USAID Inspector General Operating

Expenses (IG) ....................................... 35 36 36

Economic Support Fund (ESF) .............. 2,481 3,036 3,036

Assistance for Eastern Europe and the

Baltic States (SEED) ........................... 393 382 382

Assistance for the Independent States

of the Former Soviet Union (FSA) ..... 556 482 482

Peace Corps ............................................. 317 345 345

Inter-American Foundation .................... 18 18 18

African Development Foundation .......... 19 19 19

Millenium Challenge Corporation ......... 1,488 3,000 3,000

International Narcotics Control and

Law Enforcement (INCLE) ................. 326 524 524

Andean Counterdrug Initiative (ACI) ... 725 735 735

Nonproliferation, Anti-Terrorism,

Demining (NADR) ............................... 399 440 440

Treasury Technical Assistance ............... 19 20 20

Debt Relief ............................................... 99 100 100

International Military Education &

Training (IMET) .................................. 89 87 87

Foreign Military Financing (FMF) ........ 4,745 4,589 4,589

Peacekeeping Operations (PKO) ............ 178 196 196

International Organizations & Programs (IO&P) ....................................... 326 282 282

Total .............................................. 16,413 18,394 18,394

1The administration requested $3.16 billion for international HIV/AIDS, tuberculosis, and malaria programs in FY2006, a 9 percent increase over the estimated amount to be provided in

FY2005. The request included $2.564 billion to be appropriated through the Foreign Operations

appropriations and $596 million through appropriations for the Departments of Labor and

Health and Human Services.

This bill authorizes part of this request through the Child Survival and Health (CSH) account which includes the President’s request of $439 million for HIV/AIDS, tuberculosis, and malaria

programs. The authorized amount for the CSH account also includes $100 million for the Global

Fund to Fight AIDS, Tuberculosis, and Malaria. (The President requested $300 million to be appropriated for contributions to the Global Fund; the other $200 million is divided between the

Global HIV/AIDS Initiative ($100 million) and NIH/HHS ($100 million). The GHAI account, for

which the President requested $1.87 billion, is not authorized in this bill because it is already

authorized in the United States Leadership Against HIV/AIDS, Tuberculosis, and Malaria Act of

2003 (P.L. 108–25).