Department of State, Foreign Operations, and Related Programs: FY2018 Budget and Appropriations
Released: 2018-04-13T00:00:00

Summary:
Nearly six months after the start of FY2018, the 115th Congress enacted the Consolidated Appropriations Act, 2018 (H.R. 1625; P.L. 115-141, signed March 23, 2018), which provided FY2018 funding for the Department of State, Foreign Operations, and Related Programs (SFOPS). Division K of the act―State, Foreign Operations, and Related Programs (SFOPS)― provided a total of $54.18 billion, including Overseas Contingency Operations (OCO) funds and rescissions. This represented a decrease of 6.1% from the FY2017 actual funding level. Of the total, $16.22 billion (not including rescissions) was for the Department of State, international broadcasting, and related agencies, a reduction of 10.7% as compared with FY2017 levels, and $37.99 billion (not including rescissions) was enacted for foreign operations, 4% below the FY2017 funding level.
President Donald J. Trump submitted his FY2018 budget request to Congress on May 23, 2017. The request sought $40.25 billion (-30% compared with FY2017 enacted) for SFOPS, including Overseas Contingency Operations (OCO) funds. Of this total, $13.20 billion (-27% compared with FY2017 enacted) would have been for Department of State Operations and related programs. For Foreign Operations, the FY2018 request included $27.05 billion (-31% compared with FY2017 enacted). The total OCO funds in the request amounted to $12.02 billion (-42% below FY2017 enacted, including the FY2017 supplemental; excluding the supplemental, it would have been -21%). The OCO designation has the important feature of not counting against the discretionary spending limits imposed by the Budget Control Act of 2011 (P.L. 112-25).
Prominent issues in the SFOPS request included, among others, reductions in annual appropriations for diplomatic security, contributions to international organizations and international peacekeeping, and educational and cultural exchange programs; a proposal to consolidate several bilateral foreign aid programs into one new account called the Economic Support and Development Fund (ESDF); proposed elimination of some foreign operations entities, such as the Trade and Development Agency and the Inter-American Foundation; and a 44% reduction in humanitarian assistance, including a zeroing out of the P.L. 480 (Food for Peace) foreign food aid program.
On July 24, 2017, the House Committee on Appropriations reported H.R. 3362, the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2018. The bill would have provided $47.5 billion in discretionary and mandatory funding for FY2018, including $12.02 billion for OCO (the same as requested). The text of H.R. 3362 was later incorporated into a consolidated spending bill, H.R. 3354, which passed the House on September 14, 2017. The total House funding level reflected a $7.3 billion (+18%) increase over the Administration request.
On September 7, 2017, the Senate Committee on Appropriations reported S. 1780 with a total of $51.35 billion in discretionary and mandatory funding for FY2018, including $20.79 billion (the same as the FY2017 enacted level) for OCO. This bill would have provided 42% more OCO funds than either the request or the House bill. The Senate SFOPS total funding level was $11.1 billion (22%) more than the Administration request and $3.8 billion (7%) more than the House bill.
On September 7 and 8, 2017, the Senate and House respectively passed the Continuing Appropriations Act, 2018, and Supplemental Appropriations for Disaster Relief Requirements Act, 2017 (H.R. 601; P.L. 115-56). As signed by the President on September 8, 2017, the act provided government funding (a continuing resolution, or CR) at the FY2017 rate, reduced by 0.6791%, through December 8, 2017. Subsequent CRs amended that date first to December 22, 2017, then to January 19, 2018, and then February 8, 2018.
On February 9, 2018, Congress passed the Bipartisan Budget Act of 2018 (BBA, H.R. 1892; P.L. 115-123), which continued government funding through March 23, 2018; raised discretionary spending limits for FY2018 and FY2019; and extended direct spending reductions through FY2027. The act eased the FY2018 budget process and prevented a breach of the BCA spending limits by raising the overall revised discretionary spending limit from $1.069 trillion for FY2017 to $1.208 trillion for FY2018. It raised the defense cap by $80 billion to $629 billion and the nondefense cap (including SFOPS) by $63 billion to $579 billion for FY2018. (For more detail on defense FY2018 budget issues, see CRS Report R44866, FY2018 Defense Budget Request: The Basics.)
This is the final update of this report.

subsections: section_title: Introduction
paragraphs: About six months into the fiscal year, the 115 th Congress passed the Consolidated Appropriations Act, 2018 ( H.R. 1625 ; P.L. 115-141 , signed March 23, 2018), which provided FY2018 funding through September 30, 2018. Division K of the act―State, Foreign Operations, and Related Programs (SFOPS)―provided a total of $54.18 billion, including Overseas Contingency Operations (OCO) funds and rescissions. This represented a decrease of 6.1% from the FY2017 actual funding level. Of the total, $16.22 billion (excluding rescissions) was for the Department of State, international broadcasting, and related agencies, 10.7% below FY2017 levels, and $37.99 billion (excluding rescissions) was enacted for foreign operations, 4% below the FY2017 funding level.
On May 23, 2017, the Trump Administration submitted its FY2018 budget request to Congress (see Appendix B for a discussion on the differences between the International Affairs budget function and State, Foreign Operations, and Related Programs appropriations). The SFOPS total requested for FY2018 (including Overseas Contingency Operations funds, otherwise known as OCO) was $40.25 billion, 30% below the enacted FY2017 SFOPS funding level of $57.53 billion. For State Operations and Related Programs, the request was $13.20 billion, 27% below the enacted level of $18.09 billion. For Foreign Operations, the FY2018 request was $27.05 billion, 31% below the FY2017 enacted level of $39.44 billion. (For a comparison of the FY2018 SFOPS request with past funding levels, see Table 1 below. For account-by-account details regarding the FY2018 request and legislation, compared to the FY2017 enacted funding levels, see Table A-1 .)
The SFOPS FY2018 request sought a total of $12.0 billion in OCO funds for FY2018, representing a 42% reduction compared with the FY2017 enacted OCO level. The Trump Administration wanted to expand the designation of OCO funds from short-term, temporary war-related costs as requested by the Obama Administration to include longer-term, core costs for countries vital to U.S. national interests; for extraordinary activities that are critical to U.S. national security objectives; for preventing, addressing, or recovering from natural and manmade crises; and for securing State Department and USAID global operations.
The Administration's broader FY2018 request to fund the government as a whole would have breached defense discretionary spending caps but not the caps for nondefense (that includes SFOPS) required by the Budget Control Act of 2011 (BCA, P.L. 112-25 ). To avoid sequestration, on February 9, 2018, Congress passed the Bipartisan Budget Act of 2018 (BBA, H.R. 1892 ; P.L. 115-123 ) that raised both security and nonsecurity discretionary spending limits for FY2018 and FY2019.
section_title: Congressional Action
paragraphs: On September 7 and 8, 2017, the Senate and House respectively passed the Continuing Appropriations Act, 2018, and Supplemental Appropriations for Disaster Relief Requirements Act, 2017 ( H.R. 601 ; P.L. 115-56 ). As signed by the President on September 8, 2017, the act provided continuous government funding (continuing resolution, or CR) at the FY2017 level, reduced by 0.6791%, through December 8, 2017. The date was extended by subsequent continuing resolutions, first through December 22, 2017, by P.L. 115-90 ; then January 19, 2018, by P.L. 115-96 ; and February 8, 2018 by P.L. 115-120 . 
Senate action . On September 7, 2017, the Senate Committee on Appropriations reported its State, Foreign Operations, 2018 bill ( S. 1780 ), with a total of $51.35 billion in discretionary and mandatory funding for FY2018 ($6.2 billion more than the FY2018 request), including $20.79 billion for OCO (the same as FY2017 enacted). As compared with the request and the House bill, the Senate bill included 42% more OCO funds. OCO funds were significant in negotiating the final consolidated bill because of the potential for sequestration. The Senate SFOPS total funding level was $11.1 billion (22%) more than the Administration request and $3.8 billion (7%) more than the House bill.
Supporting comparatively strong funding levels for SFOPS, the Senate committee report ( S.Rept. 115-152 ) referred to the President's SFOPS proposed reductions for FY2018 as "unjustified cuts" and stated that "battlefield technology and firepower cannot replace diplomacy and development." The report also included statements that would limit the Administration's discretion with respect to foreign affairs programs, such as setting minimum levels for Foreign Service and Civil Service positions that the appropriations are intended to support, and restates the Congressional Budget and Impoundment Control Act of 1974 (CBICA; title X of P.L. 93-344 ) that "limits the authority of the administration to reduce or withhold funding provided in the law by action or inaction."
House action . On July 24, 2017, the House Appropriations Committee reported H.R. 3362 ( H.Rept. 115-253 ), a FY2018 SFOPS proposal that would have provided $35.50 billion for enduring funds and $12.02 billion for OCO, totaling $47.52 billion. While the bill would have provided $7.3 billion more than the President's request, it represented a $10 billion (17%) decline compared with FY2017 total enacted. Overall, the House committee's bill proposed $1.24 billion (3%) less for enduring funds than the FY2017 enacted budget and $8.8 billion (42%) less for OCO funds. Compared with the Senate bill, the House funding levels would have been $3.8 billion (7%) less. The House Appropriations committee report stated the following: "Military power alone cannot solve all the [challenges and emerging crises throughout the world], especially over the long term. Advancing United States national interests also requires effective diplomatic engagement and foreign assistance." At the same time, the committee recognized resources are limited, and it supported steps to reduce waste, inefficiency, and duplication, and to press other nations to do more (see Table 2 ).
On September 14, 2017, the House approved a consolidated appropriations bill for FY2018, H.R. 3354 , which incorporated the text of H.R. 3362 in the SFOPS section, Division G.
BBA of 2018 . On February 9, 2018, Congress passed the Bipartisan Budget Act of 2018 (BBA, H.R. 1892 ; P.L. 115-123 ), which continued government funding through March 23, 2018; raised both defense and nondefense discretionary spending limits for FY2018 and FY2019; and extended direct spending reductions through FY2027. The act eased the FY2018 budget process and prevented a breach of the BCA spending limits by raising the overall revised discretionary spending limits from $1.069 trillion for FY2017 to $1.208 trillion for FY2018. It raised the defense cap by $80 billion to $629 billion and the nondefense cap (including SFOPS) by $63 billion to $579 billion for FY2018.
On March 23, 2018, Congress passed the Consolidated Appropriations Act, 2018 ( H.R. 1625 ; P.L. 115-141 ), which provided FY2018 funding through September 30, 2018. Division K of the act―State, Foreign Operations, and Related Programs (SFOPS)―included a total of $54.18 billion, about 6% less than the FY2017 SFOPS funding. 
section_title: FY2018 Budget Request for State, Foreign Operations, and Related Programs (SFOPS)
paragraphs: The Trump Administration's FY2018 budget request reflected a departure from past Administration budget proposals for the Department of State, Foreign Operations, and Related Programs (SFOPS). Discussion of some key changes follows.
subsections: section_title: Department of State and Related Programs
paragraphs: The Administration proposed to cut funding for the State Department and Related Agency category by 27% from FY2017 actual levels, to $13.20 billion. Base funding would have decreased under the Administration's proposal by 19%, while OCO funding would have decreased by 41%. Cuts were proposed in areas including Capital Security Cost Sharing (CSCS) and Maintenance Cost Sharing (MCS) program contributions, contributions to international organizations, contributions for international peacekeeping activities, and educational and cultural exchange programs. 
Among the top-line accounts, the Diplomatic and Consular Programs (D&CP) account, the State Department's main operations account, would have declined by 15% to $8.26 billion had the Administration's proposal been enacted. Additionally, the Embassy Security, Construction, and Maintenance (ESCM) account would have totaled $1.14 billion, a 62% decrease from the FY2017 actual level. Other noteworthy reductions in the proposal included significant cuts in "Related Programs" accounts, which fund a number of nongovernmental institutions (see Table 3 ). For example, the FY2018 request sought to end direct appropriations for the Asia Foundation and the East-West Center (the State Department said in its request that these organizations would remain eligible to compete for federal grant funding opportunities and receive private sector contributions). The request also looked to cut the direct appropriation for the National Endowment for Democracy by 39% from the FY2017 actual level (see Table 3 ). However, P.L. 115-141 maintained direct appropriations to all three of these entities that were equal to the direct appropriations provided to each of them in FY2017.
H.R. 3362 , the House committee bill, would have provided $15.52 billion in new appropriations for the State Department and Related Agency category (not reflecting rescissions of prior year funds). This was approximately 18% more than requested and 15% less than FY2017 actual funding. About 27% of the State Department and Related Agency funding would have been designated for OCO. The appropriations report accompanying the committee bill made note of ongoing Administration efforts to reorganize the Department of State, asserting that "it is essential that Congress be provided detailed information regarding any reorganization plan prior to its implementation."
The Senate committee bill, S. 1780 , would have provided $15.69 billion in new appropriations for the State Department and Related Agency Category. This comprised approximately 19% more than the Administration's request and 14% less than FY2017 actual funding. In addition, the Senate measure would have provided around 1% more funding than the House committee bill. If enacted, S. 1780 would have designated approximately 25% of the State Department and Related Agency funding contained therein for OCO. Like the House committee report, the Senate committee report accompanying S. 1780 addressed efforts to reorganize the Department of State. The report expressed concern that "the process by which the Department of State and USAID intend to reorganize lacks clarity" and that "the administration has a predetermined outcome for the reorganization or redesign." 
P.L. 115-141 provided $16.22 billion for the Department of State, international broadcasting, and related agencies. This was 11% less than the FY2017 funding level and 23% above the Administration's request. Of these appropriated funds, $12.04 billion were provided for the enduring budget and $4.18 billion were provided for OCO. The FY2018 enduring budget funds were 7% above the FY2017 actual funds, while FY2018 OCO funds were 39% below the FY2017 actual level. Section 7081 of this law provides that funds appropriated for the Department of State may not be used to implement a reorganization or redesign without consultation with Congress. 
section_title: Worldwide Security Protection
paragraphs: The Worldwide Security Protection (WSP) request within D&CP is the primary source of funding for DS. DS's responsibilities include but are not limited to developing and implementing security programs to protect all personnel at every U.S. diplomatic mission; protecting the Secretary of State, the U.S. Ambassador to the United Nations, and foreign dignitaries below the head-of-state level who visit the United States; investigating passport and visa fraud; conducting personnel security investigations; and issuing security clearances. 
Under the Administration's proposal, funding for WSP would have declined 19% from the FY2017 actual level of $4.64 billion to $3.76 billion. Excluding FY2017 supplemental funding, this proposal marked an increase of 1%. The Department of State maintained that congressional action to fully fund WSP with "no-year" appropriations created an ample pipeline of unobligated funds. It added that a large share of the difference between the FY2018 request and FY2017 figure owed to nonrecurrent OCO expenditures. However, the department cautioned that the increasing percentage of recurring DS operations at overseas facilities funded in the WSP account through OCO may present future year challenges, as it anticipated that OCO funding would be significantly reduced in the years ahead. With regard to non-OCO funds, the Administration's $871 million request for DS funds through WSP comprised a $46.4 million net decrease reflecting "prior-year efficiencies" and did not make mention of future efficiencies to be realized. 
H.R. 3362 and S. 1780 would have each appropriated a total of $3.76 billion for WSP, which was equal to the Administration's request. The proportions of enduring funds ($1.38 billion) and OCO funds ($2.38 billion) provided in each bill also mirrored the Administration's request. Both bills would have maintained the status of WSP as a no-year appropriation for both OCO and non-OCO funds, meaning that the Department of State could carry forward any balance of unobligated FY2018 appropriated funds for expenditure in subsequent fiscal years. The FY2018 appropriation for WSP provided in P.L. 115-141 was also identical to the Administration's request in terms of the overall appropriation, the proportions of enduring and OCO funds, and the maintaining of WSP as funded exclusively through no-year appropriations. 
section_title: Embassy Security, Construction, and Maintenance
paragraphs: The ESCM account is the primary source of funding for OBO. OBO's responsibilities include but are not limited to setting the department's priorities for the design, construction, acquisition, maintenance, and use of diplomatic mission properties. One key funding area within ESCM is the Worldwide Security Upgrades (WSU) allocation, which is used in part to meet the Department of State's share of obligations to the CSCS and MCS programs. 
Like WSP, Congress has provided no-year appropriations for ESCM and, by extension, WSU. The Administration's $1.14 billion request for ESCM constituted a 62% decrease relative to the FY2017 actual figure of $3.01 billion. However, the department intended to draw on its balance of unobligated funds to increase actual ESCM total direct obligations from an estimated $2.19 billion in 2017 to $2.29 billion in 2018. 
Within ESCM, the department intended to carry forward $618.4 million in funds that Congress previously appropriated for WSU in FY2017 to meet its FY2018 CSCS and MCS obligations. The department maintained that these carry-over funds and requested new funds totaling $337.7 million for this purpose for FY2018, and additional funds provided through Machine Readable Visa (MRV) fees would have been sufficient to meet its required share of contributions to CSCS and MCS. According to the department, other agencies with overseas staff under Chief of Mission authority would have contributed an additional $1.1 billion, bringing total contributions to $2.2 billion, which is the annual level the Benghazi Accountability Review Board recommended. 
H.R. 3362 would have appropriated a total of $2.31 billion for ESCM, or approximately 103% more than the Administration's FY2018 request. While the Administration did not request any OCO funds for the ESCM account, H.R. 3362 would have provided $71.78 million for OCO. With regard to WSU, the bill would have provided $1.49 billion, or over $1.1 billion more than what the Administration requested. The appropriations report accompanying H.R. 3362 noted that the committee recommendation did not include the Administration-requested authority to use prior year funds to augment its CSCS contribution for the Department of State. The committee instead recommended that the department obligate no less than $956.152 million made available for ESCM in this legislation for its CSCS and MCS obligations. As with WSP, the funds provided under ESCM would have comprised a no-year appropriation.
S. 1780 would have provided a total of $2.06 billion for ESCM. This was approximately 80% more than the Administration's FY2018 request and 11% less than the House committee bill. Despite appropriating less total funds for ESCM than the House committee bill, S. 1780 would have designated far more ($158.82 million, compared to $71.78 million in the House committee measure) for OCO. Within this amount, the Senate committee measure provided $1.30 billion for WSU, or over $900 million more than the Administration's request. The appropriations report accompanying S. 1780 included funding recommendations for several programs and activities funded by ESCM, including $1.12 billion for CSCS and MCS obligations. This indicated that, as with the House committee measure, the Senate bill conflicted with the department's intended approach of using prior-year funds to account for a significant proportion of its FY2018 CSCS and MCS contributions. Among other provisions, the appropriations report also called for making available at least $160.5 million of MCS program funds for the compound renovation project at Embassy Moscow and $32 million of such funds for an American Center at Embassy Moscow. As in the House committee bill, all funds provided under this measure would have comprised no-year appropriations. 
Like the House committee measure, the ESCM appropriation within P.L. 115-141 provided a total of $2.31 billion. While the ESCM appropriation and the House committee measure appropriated identical funds for OCO ($71.78 million), P.L. 115-141 provided a slightly smaller proportion of the broader enduring appropriation ($1.48 billion) for WSU than was provided in the House bill ($1.49 billion). However, the sum of the overall ESCM appropriation ($2.42 billion) in P.L. 115-141 and the House committee measure was identical. The overall appropriation for ESCM was 23% less than the FY2017 actual level for this account. The explanatory statement accompanying this law, as did the appropriations report accompanying S. 1780 , provides $1.12 billion for the State Department's CSCS and MCS obligations, in effect rejecting the department's aforementioned intent to use prior-year funds to meet a large share of its FY2018 contributions. However, the explanatory statement did not provide prescriptive funding levels for capital projects in Russia, requiring instead that the Secretary of State consult with the committees on appropriations regarding funding directives for diplomatic facilities in that country. 
section_title: Contributions to International Organizations and Contributions for International Peacekeeping Activities
paragraphs: Within the Department of State and Related Agency category, funds are provided to international organizations through the Contributions to International Organizations (CIO) and Contributions for International Peacekeeping Activities (CIPA) accounts. In previous years, requests for these accounts have included itemized lists of intended U.S. contributions to international organizations and international peacekeeping activities. However, the department did not clarify how much it intended to contribute to individual entities in FY2018. Therefore, its FY2018 request included aggregate figures divided only into enduring and OCO requests. 
CIO . The Administration's request for the CIO account totaled $996.43 million, a 27% decrease from the FY2017 actual level of $1.36 billion. The department stated that inherent in this request was the expectation that organizations to which the United States contributes would cut costs and distribute funding burdens more evenly across member states. The budget request noted that the department would lead an interagency review of U.S. contributions to international organizations, adding that priority would be given to organizations that "most directly support U.S. national security interests" and "American prosperity." The request also provided three means through which the department was considering significantly reducing U.S. contributions to international organizations: (1) reducing the levels of international organizations' budgets, including through cooperating with key allies that have supported previous efforts to limit budget growth; (2) reducing the U.S. assessment rate; and/or (3) possibly not paying U.S. assessments in full. 
H.R. 3362 would have provided $1.17 billion for CIO, a 17% increase relative to the Administration's FY2018 request and a 14% decrease from the FY2017 actual figure. The appropriations report stated the committee's expectation that the Secretary of State prioritize payments for organizations whose work promotes human health and international security, which the committee said included the North Atlantic Treaty Organization (NATO) and the International Atomic Energy Agency (IAEA). It added that the appropriation for this account is intended to ensure adequate resources for such organizations. 
S. 1780 would have provided $1.45 billion for CIO. This amount was an approximately 45% increase compared to the Administration's FY2018 request, a 7% increase relative to the FY2017 actual figure, and a 24% increase from the House committee measure. The appropriations report noted "the importance of United States engagement with international organizations, including the United Nations, the Organization for Economic Cooperation and Development, and the World Trade Organization" and stated the committee's view that "fully meeting U.S. commitments to such organizations, combined with robust engagement to promote transparency and accountability to member states, is important to U.S. security and economic interests." The report also called on the Secretary of State to provide a cost-benefit analysis of each contribution made to an international organization receiving $5 million or less in the most recent report of U.S. contributions to international organizations. The committee stated that such analysis shall include information regarding "(1) the extent to which the U.S. contribution and the mission of such organization align with the U.S. national interest; (2) the efficacy and cost effectiveness of the operations and programs conducted by such organization; and (3) whether the organization conducts or funds programs and activities similar to other organizations included in the report, and the extent of any such overlap." 
The $1.47 billion appropriation for CIO in P.L. 115-141 was 8% higher than the FY2017 actual figure, 25% higher than the House committee measure, and 1% higher than the Senate committee measure. Of the funds appropriated, $1.37 billion was provided for the enduring budget. An additional $96.2 million was provided for OCO, which was identical to the proposed OCO sums in the House and Senate committee measures and the Administration's request. In lieu of the cost benefit analysis reporting requirement called for in the Senate bill report, the explanatory statement requires the Secretary of State to inform Congress of the current tools available to the Department of State and others to prioritize and assess the value of contributions to international organizations, and to provide any recommendations for the development of more effective tools and methods. 
CIPA. The Administration's request for CIPA totaled $1.20 billion, a 37% decrease from the FY2017 actual level of $1.91 billion. The department asserted that because the United States would not have an opportunity to achieve a reduction in its U.N. peacekeeping assessment rate until December 2018, reduced U.S. funding had to be achieved through reductions in overall U.N. peacekeeping budget levels or reduced U.S. contributions. The department added that while U.N. peacekeeping missions help achieve U.S. government objectives, these missions must be implemented in a more effective manner, enabling them to better "address conflicts, support political solutions, and meet the needs of the people they are intended to help." The request also included a call to other permanent members of the U.N. Security Council to join the United States in a strategic review of each peacekeeping mission, and more equitable mission cost sharing among U.N. member states.
H.R. 3362 would have provided $1.50 billion for CIPA. This would have been a 25% increase relative to the Administration's FY2018 request and a 22% decrease from the FY2017 actual figure. The appropriations report noted that the committee recommendation provided the resources necessary to fund the assessed cost of peacekeeping missions at the statutory level of 25%. It also stated the committee's concern about the scope, duration, and costs of U.N. peacekeeping missions and supported U.S. efforts to bring down costs while maintaining U.S. interests and international security. 
The Senate committee measure, S. 1780 , would have provided $1.38 billion for CIPA. This figure constituted an approximately 16% increase compared with the Administration's request, a 27% decrease from the FY2017 actual figure, and an 8% decrease from the amount that would have been provided under H.R. 3362 . As with the House committee measure, the appropriations report for S. 1780 stated that the bill provided sufficient funds for contributions equal to the 25% statutory limitation on such contributions. 
P.L. 115-141 provided an appropriation of $1.38 billion for CIPA. This marked a reduction of 28% from the FY2017 actual figure and an increase of 16% relative to the Administration's FY2018 request. While the total amount provided for CIPA through P.L. 115-141 is very close to that provided through the Senate measure, P.L. 115-141 provides $20,000 less than what would have been provided had the Senate committee measure been enacted. Of this appropriation, more was provided for OCO ($967.46 million) than was offered in the House committee measure ($965.91 million) and the Senate committee measure ($602.34 million). However, the enduring appropriation ($414.62 million) was lower than the Senate committee measure ($779.76 million) and the House committee measure ($529.91 million). As with the appropriations reports accompanying the House and Senate committee measures, the explanatory statement accompanying this law states that sufficient funds are provided for United States contributions to peacekeeping missions at the statutory level of 25%. 
section_title: Educational and Cultural Exchange Programs
paragraphs: The Administration's FY2018 budget request for the Educational and Cultural Exchange Programs account totaled $285 million, a 55% reduction from the FY2017 actual level of $634.14 million. The department noted that these programs help build strategic relationships and networks between American citizens and people in other countries to advance U.S. foreign policy goals. 
According to the Department of State, the FY2018 request was intended to be more narrowly targeted toward specific foreign policy goals, avoid duplication, and focus on "core programs" including the Fulbright program. The request called for federal funding for the Fulbright program to total $125.6 million, a 48% reduction from the FY2017 actual level of $240 million. 
H.R. 3362 would have provided $590.9 million for Educational and Cultural Exchange Programs, including no less than $236 million for the Fulbright program. This marked a 107% increase relative to the Administration's FY2018 request and a 7% reduction compared to the FY2017 actual level. It also included language provided in past appropriations laws requiring that any substantive modifications from the prior fiscal year to programs funded by this act under this heading shall be subject to prior consultation with, and the regular notification procedures of, the Committees on Appropriations.
S. 1780 would have provided $634.14 million for Educational and Cultural Exchange Programs, which was equal to the FY2017 actual figure. Furthermore, it marked an increase of 123% relative to the Administration's request and 7% more than the House committee measure. Of these funds, S. 1780 set aside no less than $240 million for the Fulbright program. Unlike H.R. 3362 , S. 1780 provided that a portion of the Fulbright awards from the Eurasia and Central Asia regions shall be designated as Edmund S. Muskie Fellowships. Similar provisions designating a portion of Fulbright awards as such have been included in recent appropriations bills, as enacted. Like the House committee bill, this measure included language requiring the department to engage with the Committees on Appropriations prior to enacting substantive modifications from the prior fiscal year to programs funded under this heading of this act.
P.L. 115-141 provided a slight increase in the level of funds appropriated for the Educational and Cultural Exchange Programs account; the appropriation of $646.14 million marked a 2% increase relative to the FY2017 actual figure and an increase of 127% relative to the Administration's request. Of this amount, not less than $240 million was set aside for the Fulbright Program, which is identical to the amount set aside in the Senate committee measure. Like both the House and Senate committee measures, it included language requiring consultation with Congress prior to substantive modifications from the prior fiscal year to programs funded by the act. It also provided, like that Senate committee measure, that a portion of Fulbright Awards be designated as Muskie Fellowships. 
section_title: Foreign Operations
paragraphs: The Foreign Operations accounts fund a range of activities encompassing bilateral economic aid, humanitarian assistance, security assistance, and export promotion programs. Together with two international food aid accounts appropriated through the Agriculture appropriation (P.L. 480 Title II Food for Peace and the McGovern-Dole Food for Education accounts), Foreign Operations accounts comprise the foreign assistance component of the international affairs budget. 
For FY2018, the Administration requested $27.05 billion for Foreign Operations, about 31% less than the FY2017 enacted funding level. Of this total, $7.95 billion was designated as OCO (29%). 
The House committee bill, H.R. 3362 , included $33.46 billion in new appropriations for Foreign Operations (not reflecting rescissions of prior year funds), about 24% more than requested and 15% less than the FY2017 enacted funding. About 24% of the Foreign Operations funding would have been designated as OCO. 
The Senate committee bill, S. 1780 , included $35.66 billion in new appropriations for Foreign Operations (not reflecting rescissions of prior year funds), about 32% more than requested and 10% less than the FY2017 enacted funding. About 47% of the Foreign Operations funding would have been designated as OCO. 
P.L. 115-141 , the Consolidated Appropriations Act, 2018, was enacted on March 23 and included $37.99 billion for Foreign Operations accounts. This was 4.0% less than the FY2017 funding level and 40.4% above the funding level requested by the Administration. Of that total, $7.84 billion, or about 21%, was designated as OCO.
 Table 4 shows Foreign Operations and foreign aid funding (foreign operations plus food aid) by major categories for FY2016, FY2017, and the FY2018 request, House and Senate legislation, and enacted funding. 
Every major category of foreign assistance would have been reduced from FY2017 levels under the FY2018 request. Bilateral economic assistance and humanitarian assistance (not including food aid) would both have been reduced by about a third overall from FY2017 levels, and multilateral aid cut about 30%. Security assistance and USAID administrative accounts would have been subject to proportionately lighter cuts (-24% and -14%, respectively). Several accounts would have been merged, eliminated, or funded only to cover close-out expenses, as discussed below.
The House bill would have reduced funding compared to FY2017 in every category as well, though the cuts would generally have been less than those proposed in the budget request. An exception was multilateral assistance, for which the House bill included $877 million, a 58% cut from the FY2017 appropriation and 41% less than the budget request. 
The Senate committee proposal would have provided more funding than requested by the Administration, but less than enacted for FY2017, in every aid category. Most notably, the bilateral assistance funding in the Senate bill would have exceeded the Administration's request by 40%. The Senate funding levels also exceeded the House funding for every aid category except for security assistance.
The final appropriation, P.L. 115-141 , increased humanitarian assistance by 15% over for 2017 levels, maintained almost level funding for USAID Operations and security assistance, and cut bilateral economic assistance by about 12% and multilateral aid by 11%. Food aid funded through the agriculture appropriation was increased by 15%.
Under the FY2018 request, foreign assistance funding levels would have declined in every region compared to FY2017, with proposed cuts ranging from 60% in Europe and Eurasia to 23% in the Near East/North Africa. The proportional share of aid for each region would not have changed significantly, though the Near East would have replaced Africa as the top regional recipient of foreign assistance, as aid to Africa would have declined by 37%. Aid to the East Asia and Pacific region would have been cut 52% from FY2017 estimates, while aid to South and Central Asia would have been cut by about 30% and Western Hemisphere by 36%. The request numbers, however, did not include humanitarian assistance, which may have altered the regional breakdown once allocated. 
The FY2018 budget request would have continued to emphasize strategic allies in the Middle East (Israel, Egypt, and Jordan); ongoing U.S. military, development, and reconstruction activities in Afghanistan; and major global health and development partners in Africa. Iraq would have rejoined the top-10 list, even while receiving less assistance than in FY2017. Among top aid recipients, most would have received less assistance than they were allocated in FY2017. A few countries would have received more aid under the FY2018 proposal than in the FY2017 allocation, including Chad, Lesotho, Swaziland, Malaysia, Turkey, Libya, Syria, and Yemen.
 Table 5 compares country allocations for the top 10 aid recipients in FY2017 to those that would have been top recipients under the FY2018 request.
The House committee bill did not provide comprehensive information on regional and country allocations, but did provide specific allocations for certain countries, including Israel ($3.10 billion), Egypt ($1.457 billion), Jordan ($1.28 billion), and Colombia ($336 million). The bill also provided $615 million for the U.S. Strategy for Engagement in Central America. 
The Senate committee bill and report specified assistance levels for many countries and regional funds, and country allocation for many accounts. Top recipients would have included Israel ($3.10 billion), Afghanistan ($2.22 billion), Jordan ($1.50 billion), Pakistan ($1.41 billion), Egypt ($1.082 billion), Ukraine ($421 million), Colombia ($391 million), and West Bank/Gaza ($258 million). The Senate bill also included $600 million for the U.S. Strategy for Engagement in Central America and $500 million for the ISIS Relief and Recovery Fund to assist ISIS-liberated communities in the Middle East and North Africa.
The final FY2018 appropriation did not specify country and regional allocations for the most part, but did include funding directives for some countries, including Israel ($3,100 million), Jordan (not less than $1,525 million), Egypt (up to $1,412.5 million), Colombia (not less than $391.3 million), and Ukraine (not less than $420.7 million). The law also included up to $615 million for the U.S. Strategy for Engagement in Central America.
section_title: Key Foreign Operations Issues
paragraphs: The Trump Administration sought several changes within the context of the FY2018 Foreign Operations budget. They included consolidating some bilateral foreign assistance programs, eliminating some programs/entities, and zeroing out funding for the P.L. 480 and McGovern-Dole foreign food aid programs.
subsections: section_title: Economic Support and Development Fund
paragraphs: Under bilateral economic assistance, the Administration proposed to eliminate the Development Assistance (DA), Economic Support Fund (ESF), Assistance to Europe, Eurasia, and Central Asia (AEECA), and Democracy Fund (DF) accounts and replace them with a new Economic Support and Development Fund (ESDF) account. The Administration cited "improved ability to assess, prioritize and target development-related activities in the context of broader U.S. strategic objectives" as the reason for consolidation. Authorization language to clarify the authorities under which the new account would operate was not requested.
The proposed funding level for ESDF, $4.938 billion, was more than 40% below the FY2017 funding for the accounts it would have replaced. Thirty-eight countries that received DA, ESF, or AEECA in FY2016 would have no longer received funding from these accounts or from ESDF under the FY2018 request. 
The International Organizations & Programs (IO&P) account, which funds U.S. voluntary contributions to many U.N. entities, including UNICEF, U.N. Development Program, and U.N. Women, would also have been zeroed out. Budget documents suggested that some unspecified activities currently funded through IO&P could have received funding through the ESDF.
The House committee bill maintained the ESF, DA, AEECA, and DF accounts, rejecting the proposed merger into an ESDF account and noting that the management review then underway within the State Department and USAID should inform future account changes. The bill did not include funding for the IO&P account, but the committee noted that a contribution to UNICEF could be made through the Global Health Programs account.
The Senate committee rejected the requested account mergers entirely, noting in their report that "the establishment of the ESDF account has not been justified," and used the same foreign operations accounts as were used for FY2017. Funding for the IO&P account would have increased by 7% under the Senate proposal compared to FY2017 funding.
P.L. 115-141 also rejected the proposed account mergers and eliminations. The FY2018 enacted appropriation used the same Foreign Operations accounts as the FY2017-enacted appropriation.
section_title: Proposed Agency Eliminations
paragraphs: The FY2018 request proposed the elimination of the following entities funded through foreign operations line items:
Inter-America Foundation (IAF) U.S.-Africa Development Foundation (USADF) Overseas Private Investment Corporation (OPIC) Trade and Development Agency (TDA) 
The Administration justified the proposed eliminations on the basis of fiscal responsibility and prioritizing security investments. In each of these cases, funds were requested only for the orderly close-out of activities in FY2018.
Neither the House nor the Senate committee bills proposed the elimination of any of these agencies, though the House bill proposed large reductions for IAF and USADF (-50% compared to FY2017 funding). The final FY2018 appropriation funded all of these entities at levels similar to FY2017.
section_title: Possible Impact on Key Sectors
paragraphs: Unlike previous Administrations, the Trump Administration did not identify sector-specific initiatives in its foreign assistance budget request. Rather, the request cited "priority areas" around which the budget request was formulated, including advancing U.S. national security, asserting U.S. leadership, fostering U.S. economic interests, and ensuring accountability to U.S. taxpayers. Despite this stated priority framework, aid sectors that have long made up the bulk of U.S. foreign assistance would have continued to do so under the request. Foreign assistance in the global health, humanitarian, and security sectors together would have comprised about 70% of the foreign aid budget request for FY2018, compared to 67% of FY2017 enacted funding. 
subsections: section_title: Global Health
paragraphs: The Administration requested $6.48 billion for global health programs in FY2018, a 26% reduction from the FY2017 funding level of $8.72 billion, and authority to redirect $322.5 million in prior year Ebola emergency funds to malaria and health security activities in FY2018. Every health subcategory would have been reduced from the FY2017 enacted level:
HIV/AIDS ($4,975 million, -17%). The request would have eliminated funding implemented by USAID and provided $1.1 billion to the Global Fund. 
Maternal & Child Health ($749.6 million, -8%). The request was level with FY2016 funding.
Malaria ($424 million, -44%). The requested reprogramming of prior year Ebola funding would have brought malaria funding to FY2016 levels.
Tuberculosis ($178.4 million, -26%).
Family Planning and Reproductive Health ($0, -100%). The request would have eliminated assistance for family planning and reproductive health services ($524 million in FY2017). 
Nutrition ($78.5 million, -37%).
Other . The request specified no funding allocation for vulnerable children ($23 million in FY2017) or for neglected tropical diseases ($100 million in FY2017), and would have reduced funding for pandemic/emerging health threats by 47% from the FY2017 enacted level (though seeking to use $72.5 million in previously authorized Ebola funds for unspecified health security activities).
Overall, the Administration explained the reduction in global health aid as reflecting an effort to realign all foreign assistance with U.S. national security goals and to encourage other donors and partner countries to devote greater resources and political commitment to global health efforts.
The House committee bill included $8.321 billion for global health, which was 4.6% less than the FY2017 enacted funding level and 28.4% higher than the Administration's request. It would have continued funding for most health subsectors at a level similar to FY2017. The primary exception was reproductive health and family planning, for which the bill did not specify a GHP allocation but specified in general provisions that no more than $461 million in the bill (including from other accounts) may have been used for reproductive health and family planning, about 20% less than funding for this purpose in FY2017. The House committee bill would also have reduced funding for global health security, compared to FY2017, and did not specify a funding level for neglected tropical diseases. The bill authorized the requested reprogramming of previously appropriated Ebola emergency funds for malaria and global health security programs.
The Senate committee bill included $8.59 billion for global health, which was 1.5% less than the FY2017 enacted funding level, 32.6% higher than the Administration's request, and 3.2% higher than the House proposal. It also proposed to reprogram $120 million in prior year funds to support malaria and tuberculosis programs. With these reprogrammed funds included, the bill would have continued funding for HIV/AIDS, nutrition, and malaria programs at the FY2017 funding level and slightly boosted allocations for maternal and child health, family planning and reproductive health, and tuberculosis programs compared to FY2017.
P.L. 115-141 included $8.69 billion for global health programs in FY2018, a decrease from FY2017 funding of 0.8% and 34% more than the Administration request. The allocations specified in the statement of conferees were identical to the FY2017 allocations, with the exceptions of an increase of 1.8% for maternal and child health programs, an 8.3% increase for tuberculosis programs, and a 49% decrease for global health security/emerging threats. 
section_title: Humanitarian Assistance
paragraphs: The Trump Administration's FY2018 budget request for humanitarian assistance totaled $5.25 billion, which was roughly 44% less than the FY2017 appropriated amount ($9.44 billion—a record high) and about 20% of the total FY2018 foreign aid request. Humanitarian responses to the Syria and Iraq crises and the threat of famines in Yemen, East Africa, and Nigeria were cited as priorities.
The request included humanitarian assistance in only two accounts: $2.746 billion for the Migration and Refugee Assistance (MRA) account and $2.508 billion for the International Disaster Assistance (IDA) account. It provided zero funding for the Food for Peace (P.L. 480, Title II) and Emergency Refugee and Migration Assistance (ERMA) accounts. The request also included broad OCO transfer authority (see Table 6 ).
Compared to the FY2017 appropriated amounts, the FY2018 request would have decreased MRA by 18% and IDA by about 39% (accounting for a required transfer of funds from IDA to P.L. 480, Title II). State Department officials indicated that they expected significant carry-over of previously appropriated funds into FY2018 due to the increased allocations and late enactment of the FY2017 appropriations. They also suggested that the proposed funding reduction assumed that other donors would shoulder an increased share of the overall humanitarian assistance burden worldwide. The request continued a trend of annual humanitarian assistance requests being consistently and significantly lower than prior year appropriations.
P.L. 480, Title II . The FY2018 request provided no funding for the P.L. 480 Title II (Food for Peace) account funded through the Agriculture appropriation, which provides in-kind food aid from U.S. farmers. Instead, the request allocated $1.1 billion within the IDA account for emergency food assistance. Funding food aid entirely through IDA, many believe, could improve program efficiency and flexibility by avoiding the commodity purchase and cargo preference requirements applied to P.L. 480. However, with P.L. 480 Title II funded at $1.766 billion in FY2017 (including the $300 million transfer from IDA), the $1.1 billion earmark for emergency food assistance within IDA for FY2018 would have been a cut of about 38%. 
The House committee bill included $5.931 billion in humanitarian accounts, 24% less than the FY2017 enacted level and 13% more than the Administration's request. Like the request, the House committee bill did not include funding for the ERMA account. However, the House agriculture appropriations committee bill, H.R. 3268 , disregarded the requested elimination of the P.L. 480 Title II account, proposing a funding level of $1.4 billion for FY2018. Including P.L. 480, House committee legislation provided $7.33 billion for humanitarian aid, which was 21% less than FY2017 funding and almost 40% more than the Administration requested.
The Senate SFOPS committee bill included $6.294 billion in humanitarian accounts, which was about 20% less than the FY2017 enacted level, 20% more than the Administration's request, and 6% more than the House proposal. The Senate committee bill did not zero out the ERMA account and instead provided $50 million, level with FY2017 funding. The Senate agriculture appropriations committee bill, S. 1603 , also disregarded the requested elimination of the P.L. 480 Title II account, providing $1.60 billion for the program for FY2018. Including P.L. 480, Senate committee legislation provided $7.89 billion for humanitarian aid, which is 15% less than FY2017 funding, 50% more than the Administration's request, and about 7% more than the House committee bill.
P.L. 115-141 included a total of $9.405 billion of humanitarian assistance, a 0.9% reduction from FY2017 funding and 78% more than requested ( Table 6 ). The legislation increased IDA funding by about 4%, and P.L. 480 Title II by 20%, compared to FY2017. MRA funding is slightly lower than the FY2017 level (-0.2%), and only $1 million was appropriated for ERMA, a 98% reduction from FY2017, with no explanation provided in the statement of conferees.
section_title: Security Assistance
paragraphs: The FY2018 security assistance request totaled $7.093 billion, a 24% reduction from the FY2017 enacted funding level and about 26% of the total foreign aid request. The International Narcotics Control and Law Enforcement (INCLE) account would have been reduced by 33%; Nonproliferation, Antiterrorism, Demining and Related (NADR) by 30%; and International Military Education and Training (IMET) by about 9%. In each of these cases, the Administration described the proposed reductions as concentrating resources where they offered the most value and U.S. national security impact. 
The Foreign Military Financing (FMF) account would have been reduced by 19% compared to FY2017 enacted funding, with 95% of the request allocated to four countries: Israel ($3.1 billion), Egypt ($1.3 billion), Jordan ($350 million), and Pakistan ($100 million). These countries comprised 85% of FMF funding in FY2016. The remaining $200.7 million would have been for a global account to be allocated as necessary, on a grant or loan basis, to meet pressing security challenges. It is unclear what the terms of any FMF loans would have been. This approach was justified as providing the department with additional flexibility and could have potentially greatly reduced the number of countries receiving FMF assistance (from 56 in FY2016).
The Peacekeeping Operations (PKO) account, which is primarily used to support a U.N. logistical support operation in Somalia as well as U.S. training and equipment for African militaries, would have seen the biggest reduction under the request, down 54% from FY2017 enacted funding, though the figure is distorted by funds for the U.N. Support Office in Somalia ($474 million in FY2017) being requested through the Contributions to International Peacekeeping Activities (CIPA) rather than PKO account, which happens every year. No funds were requested for the African Peacekeeping Rapid Response Partnership and the Security Governance Initiative (which totaled $114 million in FY2017), but PKO-funded counterterrorism assistance to African countries would nonetheless have increased under the proposal.
The House committee bill would have provided $8.756 billion in security assistance accounts, which was about 7% less than the FY2017 appropriation and 23% more than the Administration's request. Every account would have seen cuts from the FY2017 funding level. In contrast with the Administration's request, which specified FMF allocations to four countries, the House committee bill specified the allocation of FMF funding to 21 countries and three regional funds, and did not include the requested authority for FMF loan assistance on a global basis.
The Senate committee bill included $8.293 billion for security assistance, about 12% less than the FY2017 funding. Cuts would have been applied to all accounts except for International Military Education and Training (IMET), which would have been level funded. Total security assistance in the Senate committee bill was 17% more than the Administration request and about 5% less than the House committee level. The bill rejected the proposed Global Fund within the FMF account, as well as the proposed shift of FMF assistance from grants to loans. The accompanying report detailed FMF allocations to 54 countries and several regional funds. 
P.L. 115-141 appropriated $9.025 billion for security assistance in FY2018, about 3% less than the FY2017 funding. Compared to FY2017, INCLE funding increased by 9%, IMET funding was almost level, and NADRE (-10%), FMF (-13%) and PKO (-18%) funding declined. Neither the appropriations bill nor the statement of conferees mentioned an FMF global fund or the use of FMF for loans, but FMF allocations for FY2018 were specified for at least 23 countries.
section_title: Proposed Funding Changes by Selected Objectives and Program Areas
paragraphs: Foreign assistance is categorized in the Congressional Budget Justification by the objectives and program areas of the Foreign Assistance Framework, which identifies funding by purpose across multiple foreign aid accounts. Funding for all program areas (except Program Design and Learning, which would have been level funded at $1 million) would have been cut under the FY2018 budget proposal compared to the FY2017 funding. Select examples of possible interest to Congress, listed in the order they appear in the framework, included the following:
Counterterrorism, $315.4 million (-36%) Counternarcotics, $373.9 million (-25%) Rule of Law & Human Rights, $429.9 million (-48%) Education, $509.1 million (-50%) Trade & Investment, $113.7 million (-16%) Agriculture, $499.8 million (-41%) Environment, $185.3 million (-71%) Disaster Readiness, $120.3 million (-45%)
The House committee bill did not detail its foreign assistance proposal in accordance with the Foreign Assistance Framework categories, but specified funding levels for several aid categories that are comparable to categories in the framework, including Democracy Programs ($2,309 million), Counterterrorism ($359 million), Basic Education ($800 million), Higher Education ($235 million), Food Security and Agricultural Development ($1,001 million), Water and Sanitation ($400 million), Biodiversity Conservation ($265 million), and Microenterprise and Microfinance ($265 million).
Major sector allocations in the Senate committee bill included Democracy Programs ($2,309 million), Food Security and Agricultural Development ($1,001 million), Basic Education ($500 million), Environment Programs ($893 million), Water and Sanitation ($400 million), Microenterprise and Microfinance ($265 million), and Higher Education ($235 million).
P.L. 115-141 specified funding levels for a number of assistance sectors and objectives, including Education ($1,035 million, including $800 million for basic education), Environmental Conservation ($483 million), Food Security and Agricultural Development ($1,001 million), Microenterprise ($265 million), Water and Sanitation ($400 million), and Democracy Promotion ($2,309 million).
Appendix A. SFOPS Appropriations, FY2017-FY2018
Appendix B. International Affairs Budget
The International Affairs budget, or Function 150, includes funding that is not in the Department of State, Foreign Operations, and Related Programs appropriation: foreign food aid programs (P.L. 480 Title II Food for Peace and McGovern-Dole International Food for Education and Child Nutrition programs) are in the Agriculture Appropriations, and the Foreign Claim Settlement Commission and the International Trade Commission are in the Commerce, Justice, Science appropriations. In addition, the Department of State, Foreign Operations, and Related Programs appropriation measure includes funding for certain international commissions that are not part of the International Affairs Function 150 account.
Appendix C. Glossary