State, Foreign Operations, and Related Programs: FY2010 Budget and Appropriations
Released: 2010-02-02T00:00:00

Recent Developments

In early December the 111 th Congress passed a consolidated budget bill ( H.R. 3288 ) containing six appropriations, including Division F, The Department of State, Foreign Operations and Related Programs Appropriations Act, 2010. The President signed the budget measure into law ( P.L. 111-117 ) on December 16, 2009. Funding for the Department of State, International Broadcasting, and related agencies totals $16.1 billion; for Foreign Operations, the FY2010 total is $32.8 billion. The foreign affairs grand total for FY2010 is $48.9 billion. Tables in Appendix C and Appendix D of this report contain updated funding, by account.

Congressional Action

Conference Report

Congress provided a total of $48.9 billion for State Department, Foreign Operations, and Related Agencies for FY2010, $3.3 billion (6%) below the President's request of $52.2 billion. Of the total, $16.1 billion is for the Department of State, related agencies, and International Broadcasting. The enacted FY2010 level for foreign operations is $32.8 billion. The conferees dropped language that would have repealed the Mexico City Policy that bans U.S. aid to organizations that perform or promote abortion services, even if done with their own funds.

State Department

FY2010 funding for the State Department and related programs was $15,789.3 million, which was a 0.2% below the FY2009 appropriations and 3.8% below the $16,388.7 million request. The Diplomatic and Consular Programs account (D&CP), the main operating account for the State Department was funded at $8,227.0 million or close to 9% below request. The Human Resources Initiative (HRI), however, which is a multi-year initiative to increase the number of Foreign and Civil Service employees at the Department by 25 % above the FY2008 number by FY2014, received $158.8 million (or close to 26% above request). The request proposed to increase FY2010 hiring by 565 people under the HRI. Earlier, in FY2009, and additional 520 positions were filled under HRI. Several studies found that both the Foreign Service and the Civil Service were seriously understaffed with vacancies maintained at posts and missions around the world, and in staff positions in Washington in order to fully staff the embassies in Iraq and Afghanistan. Currently there are about 12,000 Foreign Service Generalist and Specialists Officers serving in Washington and in 269 posts and mission worldwide.

The FY2010 appropriations also addressed serious concerns regarding the standing and image worldwide of the United States. Many studies indicated that the United States was becoming mistrusted and disliked among many around the world, which had implications on U.S. interests from its ability to achieve diplomatic and military objectives to negatively impacting U.S. trade and economic interests. Many analysts believed that traditional diplomacy needed to be enhanced with new methods of supporting U.S. relations including public diplomacy (PD), which reached beyond governments to talk with the populations and opinion leaders of other countries. Again, shortages were found in the number of PD Foreign Service Officers and public diplomacy programs. The FY2010 appropriations of $138.0 million more than doubled the funding request for PD specialists personnel which was part of the $519.9 million appropriations for public diplomacy in staffing and programs (2.6% above request).

Among other selected accounts, funding for the construction and maintenance of secure U.S. embassies and consulates around the world was below the request by 5.3%, with funding at $1,724.2 million. While providing funding for the operations and staffing of the Active and Standby portions of the Civilian Response Initiative, FY2010 appropriations did not provide the $50 million requested to fund the largest portion, the Civilian Response Corps. The Civilian Response Initiative is an effort to establish a deployable civilian corps to work in reconstruction and stabilization efforts around the world. Currently, many of these programs are being carried on by the U.S. military. Funding for treaty established-U.S. assessments to International Organizations was at $3.8 billion or 6.6% below request. U.S. contributions to International Organizations was $1.7 billion or 6.8% below request, and funding for U.S. contributions to U.N. sponsored international peacekeeping forces was $2.1 billion or 6.4% below request. Funding for U.S. non-military international broadcasting, such as Voice of America, was near the request at $746.4 million.

Foreign Operations

The total foreign operations FY2010 funding level of $32.8 billion is $2.0 billion (nearly 6%) below the President's request of $34.8 billion. For Global Health and Child Survival programs, Congress provided a total of $7.8 billion, $184.0 million more than requested. Other accounts receiving more than requested include Migration and Refugee Assistance, Peace Corps, International Organizations and Programs, and Peacekeeping Operations.

Selected accounts receiving less funding than requested include the Millennium Challenge Corporation (receiving $1.1 billion, $320 million below the request), the Development Assistance Account (receiving $2.5 billion, $214 million below the request), International Narcotics Control and Law Enforcement (receiving $1.6 billion, $351 million below the request), and the Foreign Military Financing account (receiving $4.2 billion, $1.1 billion below the request). Within the Foreign Operations FY2010 budget, $2.6 billion is for assistance to Afghanistan, $1.5 billion is for Pakistan aid, and $467 million is for aid to Iraq. Congress also provides a total of $1.3 billion for climate change programs within P.L. 111-117 .

House Action

On June 9, the House Appropriations Committee reported on the 302(b) allocations, including $48.8 billion for discretionary funding within the FY2010 State-Foreign Operations bill. On June 17, the House State-Foreign Operations Appropriations Subcommittee marked up FY2010 funding legislation and reported it to the full committee without amendment. The House Appropriations Committee approved H.R. 3081 ( H.Rept. 111-187 ), which recommended $49.0 billion in State-Foreign Operations appropriations on June 23. The legislation was approved by the House on July 9 by a vote of 318-106.

The House approved the following amendments to H.R. 3081 before final passage on July 9:

An amendment proposed by State-Foreign Operations Subcommittee Chairwoman Lowey would increase funding for sanitation, democracy programs, maternal health, oversight and implementation of the U.S.-Brazil Joint Action Plan to Eliminate Racial and Ethnic Discrimination, with offsets coming from the State and USAID Capital Investment Funds. The amendment would also restrict FMF funds to Sri Lanka and first class travel by employees of agencies funded by the bill. An amendment proposed by Representative Anthony Weiner would strike presidential waiver authority in regard to blocking aid to Saudi Arabia. An amendment proposed by Representative Mark Kirk would prohibit the use of funds for negotiating an agreement that conflicts with requirements imposed by Congress relating to U.S. participation in the International Monetary Fund and World Bank.

The House rejected amendments to reduce funding for the Peace Corps, diplomatic and consular programs, USAID, global health activities, multilateral assistance and exchange programs, as well as a proposal to increase funds for the National Endowment for Democracy.

Senate Action

On June 22, the Senate Appropriations Committee reported its FY2010 302(b) allocations, including that of $48.7 billion for discretionary spending within the State-Foreign Operations appropriation. On July 9, the committee approved S. 1434 , the Department of State, Foreign Operations, and Related Agency Appropriations Act, 2010. The Senate bill, which totals $48.8 billion, provides $104.6 million more than the House for the Department of State Operations, but $264.8 million less than the House bill for Foreign Operations. The Senate bill includes $25 million more than the House for each of the Capital Investment Fund and the Civilian Stabilization Initiative, $35 million more than the House for Educational and Cultural Exchanges, and $251.9 million more for multilateral assistance. On the other hand, it provides $245 million less than the House version for bilateral economic assistance and $276.1 million less than the House bill for military aid. The Senate's FY2010 State, Foreign Operations appropriations bill, however, was never taken up by the full Senate except in the context of the consolidated appropriations legislation.

State-Foreign Operations Overview

The State-Foreign Operations appropriations bill funds most programs and activities within the international affairs budget, also known as Function 150, including foreign economic and military assistance, food assistance, contributions to international organizations and multilateral financial institutions, State Department and U.S. Agency for International Development (USAID) operations, public diplomacy, and international broadcasting programs. Nevertheless, the State-Foreign Operations bill does not align perfectly with the international affairs budget. Food aid, which is appropriated by the Agriculture Appropriations Subcommittees, and the International Trade Commission and Foreign Claims Settlement Commission, both funded through the Commerce-Science-Justice bills, are international affairs programs not funded through the State-Foreign Operations appropriations bill. Furthermore, a number of international commissions that are not part of the International Affairs 150 Function are funded through the State-Foreign Operations bill. A chart illustrating the organizational structure of the State-Foreign Operations appropriations bill is provided in Appendix A .

This report focuses only on accounts funded through the State-Foreign Operations appropriations bill, though provides appropriations figures for the entire international affairs (function 150) budget.

Table 2 and Figure 1 show State-Foreign Operations appropriations for the past decade in both current and constant dollars.

Background and Trends

The rationale for foreign affairs programs has transitioned from a largely anti-communist orientation for more than 40 years following World War II to a more recent focus on national security and anti-terrorism in the post September 11, 2001, environment. During the Cold War, foreign aid and diplomatic programs also pursued a number of other U.S. policy interests, such as promoting economic development, advancing U.S. trade, expanding access to basic education and health care, promoting human rights, and protecting the environment. In the 1990s, other objectives included stopping nuclear weapons proliferation, establishing nuclear arms control regimes, curbing the production and trafficking of illegal drugs, expanding peace efforts in the Middle East, achieving regional stability, protecting religious freedom, and countering trafficking in persons.

A defining change in focus came following the September 11, 2001, terrorist attacks in the United States. Since then, U.S. foreign aid and diplomatic programs have taken on a more strategic sense of importance and have been frequently cast in terms of contributing to the war on terrorism. In 2002, President Bush released a National Security Strategy that for the first time established global development as the third pillar of U.S. national security, along with defense and diplomacy. Development was again underscored in the Administration's re-statement of the National Security Strategy released on March 16, 2006.

Also in 2002, foreign assistance budget justifications began to highlight the war on terrorism as the top foreign aid priority, emphasizing amounts of U.S. assistance to 28 "front-line" states—countries that cooperate with the United States in the war on terrorism or face terrorist threats themselves. During the Bush years, the Administration implemented several new aid initiatives. Large reconstruction programs in Afghanistan and Iraq exemplified the emphasis on using foreign aid to combat terrorism. State Department efforts focused extensively on diplomatic security and finding new and more effective ways of presenting American views and culture through public diplomacy.

It appears that the Obama Administration will carry some Bush foreign aid initiatives forward. A transformational diplomacy initiative, announced in 2006, repositioned diplomats to global trouble spots, created regional public diplomacy centers, established small posts outside of foreign capitals, and trained diplomats in new skills. (See CRS Report RL34141, Diplomacy for the 21 st Century: Transformational Diplomacy , by [author name scrubbed] and [author name scrubbed], for background information.) At the same time, a new position was created at the State Department, a Deputy Secretary of State-level Director of Foreign Assistance (DFA), which was filled during the Bush Administration by the USAID Administrator. To date, the Obama Administration has not nominated a USAID Administrator and separate individuals are acting as DFA and USAID Administrator. The DFA created a new Strategic Framework for Foreign Assistance with the ultimate goal of promoting democracy and providing more coordination, coherence, transparency, and accountability for aid programs. The Obama Administration's first international affairs budget proposal continues to use this framework.

Other Bush initiatives that the Obama Administration request continues address development and global health concerns. The Millennium Challenge Corporation (MCC) is an aid delivery concept, proposed by President Bush in 2002, authorized by Congress (Title VI, Division D of P.L. 108-199 ) and established in early 2004. It is intended to concentrate significantly higher amounts of U.S. resources in a few low- and low-middle income countries that have demonstrated a strong commitment to political, economic, and social reforms. President Bush initially promised $5 billion annually by FY2006, although funds requested and appropriated have never reached this level. The Obama Administration requested $1.43 billion for MCC in FY2010, which is 64% above estimated FY2009 appropriations, but the smallest request for MCC since its first year. (For more information, see CRS Report RL32427, Millennium Challenge Corporation , by [author name scrubbed].)

Building on large Bush Administration investments in global health, particularly programs to combat HIV/AIDS, the Obama Administration announced in May 2009 plans to dedicate $63 billion to global health programs through FY2014, but the Administration's FY2010 budget proposal includes only slight increases to global HIV/AIDS and other international health programs.

Beyond these recently emerging foreign policy goals relating to terrorism and global health concerns, the Obama Administration's FY2010 request calls for even greater emphasis on food security, as well as new resources to address issues related to climate change. The House-passed FY2010 State-Foreign Operations bill expressed support for these priorities as well.

FY2010 Budget Request Overview

On May 7, 2009, the Obama Administration sent its FY2010 international affairs (Function 150 account) budget request to Congress. Of that request, a total of $52.20 billion, or 97%, was for the Department of State, foreign operations, and related programs. This represents a 3% increase from estimated FY2009 funding, including supplemental funds, and 4.6% of the total discretionary budget authority proposed by the Administration for FY2010. Figure 2 provides a percentage breakout by assistance type of the FY2010 budget request for State and foreign operations. Further details of the international affairs account are provided in Appendix E .

Use of Supplemental Funding

Supplemental resources for State and Foreign Operations programs, which in FY2004 exceeded regular State and Foreign Operations funding, became a significant source of funds for U.S. international activities during the Bush Administration, especially for programs related to reconstruction efforts in Iraq and Afghanistan and strategic assistance to the Near East and South Central Asia. Before the Bush Administration, supplemental appropriations bills were typically used to provide additional funding to respond to unanticipated emergencies or natural disasters. Some have criticized the Bush Administration for relying too heavily on supplemental funds for predictable expenses, keeping funds off-budget and making year-to-year comparisons or future-year planning difficult.

The Obama Administration has pledged to discontinue the practice of requesting supplemental appropriations to fund ongoing activities, starting with the FY2010 request, and claims that all anticipated funding for FY2010 has been included in the request. As a result, the FY2010 request for State-Foreign Operations is 36% higher than the FY2009 request of $38.34 billion, and 42% higher than the FY2009 base appropriations (excluding all supplementals), but only 3% higher than the total appropriated for State-Foreign Operations in FY2009 when supplemental appropriations are included. If funding for the 2009 stimulus bill is excluded from the FY2009 total, which some observers feel it should be because it presumably represents a one-time expense, the FY2010 request is 4% higher. Figure 3 presents these various ways of comparing the FY2010 State-Foreign Operations budget request with FY2009 State-Foreign Operations appropriations.

FY2010 Budget Request: State Department and Related Agencies

The Administration's FY2010 budget request for the Department of State, international broadcasting, and related agencies is $17.36 billion, representing a 6% increase over the FY2009 estimate of $16.36 billion, including supplementals and the mandatory Foreign Service Retirement Fund. Related agencies funded in the State portion of the bill include the Broadcasting Board of Governors (BBG), U.S. assessed contributions to the United Nations (U.N.), U.S. contributions to International Organizations (CIO), and U.N. Peacekeeping (CIPA), and funding for several International Commissions. Also included are funding for The Asia Foundation, the National Endowment for Democracy, and several other independent, non-profit educational and exchange organizations, as well as resources for international commissions, and the U.S. Institute of Peace. (For a description of all the accounts within the State Department segment of the bill, see CRS Report R40482, State, Foreign Operations Appropriations: A Guide to Component Accounts , by [author name scrubbed] and [author name scrubbed].)

The House passed H.R. 3081 , which includes $16.05 billion for the Department of State and related agencies, on July 9, 7% less than the Administration request. However, many account recommendations that fall short of the request reflect significant FY2009 supplemental funding that many consider a down payment on FY2010 priorities shared by Congress and the Administration. Also on July 9, the Senate Full Appropriations Committee reported its bill with $16.15 billion for State operations.

Table 3 and Figure 4 show appropriations for the State Department and related agencies over the past decade in both current and constant dollars.

State Department—Administration of Foreign Affairs

The State Department's mission is to advance and protect the worldwide interests of the United States and its citizens through the staffing of overseas missions, the conduct of U.S. foreign policy, the issuance of passports and visas, and other responsibilities. Currently, the State Department coordinates with the activities of more than 40 U.S. government agencies at over 260 diplomatic posts in over 180 countries around the world. The State Department employs approximately 30,000 people, about 60% of whom work abroad. The Administration of Foreign Affairs includes funds for salaries and expenses, educational and cultural exchanges, and embassy construction and security. For FY2010, the Administration is seeking $12.23 billion, an increase of more than $1.12 billion (+10%) over the enacted FY2009 level, with supplementals. The House bill sets funding at $11.16 billion. The Senate committee-recommended level is $11.23 billion. Highlights follow.

Diplomatic and Consular Programs (D&CP)

The D&CP account funds most salaries and benefits; overseas operations (e.g., motor vehicles, local guards, telecommunications, medical); activities associated with conducting foreign policy; passport and visa applications; regional and functional bureaus and their programs; public diplomacy programs; Offices of the Secretary of State, the Deputy Secretaries, and Under Secretaries; and post assignment travel. Beginning in FY2000, the State Department's Diplomatic and Consular Program account included State's salaries and expenses, as well as the technology and information functions of the former U.S. Information Agency (USIA) and the functions of the former Arms Control and Disarmament Agency (ACDA).

The Administration is requesting $8.96 billion for D&CP's FY2010 budget, $1.81 billion more than the FY2009 enacted total of $7.15 billion, including supplementals. The D&CP account includes an increase in personnel of 1,181 positions above attrition with about 750 of these new positions reserved for the Foreign Service. The increase reflects the Obama Administration's intention to significantly expand U.S. diplomatic capacity. Within the FY2010 D&CP request, public diplomacy would receive $506.3 million and $1.65 billion is designated for worldwide security protection (for increased security personnel, maintenance, and ongoing salaries). These amounts represent 23.4% and 25% increases, respectively, above the FY2009 estimates of $410.4 million and of $1.31 billion.

The House-passed bill provides $8.23 billion for D&CP, including $1.58 billion for worldwide security protection, $520 million for public diplomacy, and $542 million to support 1,030 new positions for diplomatic and development personnel. The House report identifies the rebuilding of diplomatic and development capacity as one of four committee priorities for FY2010.

The Senate committee reported a similar D&CP level of $8.23 billion.

Embassy Security, Construction and Maintenance (ESCM)

This account supports the maintenance, rehabilitation, and replacement of facilities to provide appropriate, safe, secure and functional facilities for U.S. diplomatic missions abroad. Average annual funding for this account has increased significantly since the embassy bombings in Africa in August 1998, after which Congress establishing a new subaccount referred to as Worldwide Security Upgrades. This subaccount funds the bricks and mortar type of security needs overseas.

For FY2010, the Administration seeks $876.9 million for ongoing ESCM operations and $938.2 million for worldwide security upgrades, the later of which is planned to support new facilities in Kabul, Afghanistan; Peshawar and Islamabad, Pakistan; Sanaa, Yemen; and Dakar, Senegal. The total request for the ESCM account is $1.82 billion, representing a 32% decrease over the FY2009 estimated level of $2.7 billion. This change reflects anticipated completion of Embassy Baghdad in FY2009.

Both the House-passed bill and the Senate-reported bill provide $1.724 billion for ESCM, noting that the $91 million difference between their recommendation and the President's is made up for in FY2009 supplemental funds provided to accelerate completion of secure housing for diplomatic and development personnel in Pakistan.

Civilian Stabilization Initiative

The Civilian Stabilization Initiative was established in 2004 to improve the ability of U.S. civilian agencies to promote stability in post-conflict situations internationally. An Office of the Coordinator of Reconstruction and Stabilization was created at the State Department (S/CRS) to monitor, plan for, and coordinate interagency responses to such situations, and to develop mechanisms and capabilities necessary to carry out such operations. As part of its mandate, S/CRS is charged with establishing a Civilian Response Corps (CRC) of trained federal civilian employees, as well as non-governmental civilian personnel with expertise in various sectors, who can be rapidly deployed to post-conflict environments when a "surge" of personnel is warranted. Congress provided $65 million for S/CRS and related USAID activities, including the establishment and implementation of civilian response capabilities, in the Supplemental Appropriations Act, 2008 ( P.L. 110-252 ). Congress provided another $75 million in FY2009 appropriations in the Omnibus Appropriations Act, 2009 ( P.L. 111-8 ), with $30 million of that amount appropriated for USAID and $45 million for the Department of State. The CRC was formally launched in July 2008.

The Obama Administration's FY2010 request includes $323 million for the Civilian Stabilization Initiative, representing a 331% increase over the $75 million appropriated for this account in FY2009. All of the funding requested for CSI was within the State Department Administration of Foreign Affairs section of the request. The Administration says that the increased funding will support the recruitment, development, and training of both the active and standby components of the CRC, as well as operating expenses and 10 new staff positions for S/CRS.

H.R. 3081 provides $125 million for CSI under the State Department, and an additional $30 million under USAID. S. 1434 as reported out of committee provides $150 million for CSI.

Educational and Cultural Exchanges

This account funds programs authorized by the Mutual Educational and Cultural Exchange Act of 1961, such as the Fulbright Academic Exchange Program, as well as leadership programs for foreign leaders and professionals. Government exchange programs came under close scrutiny in past years for being excessive in number and duplicative. After the September 11 attacks, the Department of State began to emphasize public diplomacy activities in Arab and Muslim populations. The Obama Administration is requesting $633 million for exchanges in FY2010. This represents an 18% increase over the FY2009 estimate. The additional funds would expand English language and alumni programs and support 29 new staff positions to improve management of expanding programs.

The House-passed bill includes $600 million for educational and cultural exchanges. The Senate Appropriations Committee recommends $635.2 million for exchanges.

The Capital Investment Fund (CIF)

CIF was established by the Foreign Relations Authorization Act of FY1994/95 ( P.L. 103-236 ) to provide for purchasing information technology and capital equipment that would ensure the efficient management, coordination, operation, and utilization of State's resources.

The FY2010 budget request includes $160 million for CIF, which is 56% lower than the FY2009 estimate of $361 million, including Recovery Act funding of $290.0 million. The House bill provides $134.7 million for this account, while the Senate Appropriations Committee reported out a bill that includes $160 million.

International Organizations and Conferences

In recent years, U.S. contributions to the United Nations and its affiliated agencies (Contributions to International Organizations—CIO) and peacekeeping activities (Contributions to International Peacekeeping Account—CIPA) have been affected by a number of issues. These have included the withholding of funds related to international family planning policies; issues related to implementation of the Iraq Oil for Food Program, and the findings and recommendations of the Volcker Committee Inquiry into that program; alleged and actual findings of sexual exploitation and abuse by personnel in U.N. peacekeeping operations in the field and other misconduct by U.N. officials at U.N. headquarters in New York and at other U.N. headquarters venues; and efforts to develop, agree to, and bring about meaningful and comprehensive reform of the United Nations organization, in most of its aspects.

Contributions to International Organizations (CIO)

CIO provides funds to pay the assessed U.S. membership dues (as distinguished from the voluntary contributions to international organizations made through the Foreign Operations account) in numerous international organizations and for multilateral foreign policy activities. Maintaining a membership in international organizations, the Administration argues, benefits the United States by advancing U.S. interests and principles while sharing the costs with other countries. Payments to the United Nations and its affiliated agencies, the Inter-American Organization, as well as other regional and international organizations, are included in this account to meet assessed contribution levels. The President's FY2010 request totals $1.80 billion for this account, representing a 12% increase over the estimated FY2009 level of $1.60 million, including supplementals. Within the request is $175 million in "synchronization" payments to get the United States up to date on payments to international organizations, and $50 million for the U.N. Population Fund, for which no funding was requested during the previous administration.

Both H.R. 3081 and S. 1434 provide $1.7 billion for CIO, with $100 million less than the Administration requested for synchronization payments.

Contributions to International Peacekeeping Activities (CIPA)

The United States supports multilateral peacekeeping efforts around the world through payment of its share of the U.N. assessed peacekeeping budget. The President's FY2010 request of $2.26 billion is intended to pay the full U.S. assessed share of U.N. peacekeeping mission expenses. The request represents an 5% decline from the FY2009 estimate of $2.39 billion, which includes more than $870 million in supplemental appropriations.

Both House and Senate bills contain $2.13 billion for CIPA, or 6% less than the Administration request.

International Commissions

The International Commissions account (in the State Department budget, but not a part of the 150 account) includes the U.S.-Mexico Boundary and Water Commission, U.S. and Mexico, the American Sections Commission, and the International Fisheries Commission. The President requested $132.5 million for these. The House and Senate bills provide $137.5 million and $137.9 million, respectively, for these commissions.

Other commissions include the Commission for the Preservation of America's Heritage Abroad, the Commission on International Religious Freedom, the Commission on Security & Cooperation in Europe, the Congressional-Executive Commission on the People's Republic of China, and the United States-China Economic Security and Review Commission. The FY2010 request of $13.0 million represents a slight decline of under 2% as compared with the FY2009 total of $13.2 million. Both the House and Senate bills fund these at $13.0 million.

Related State Department Appropriations

Several private, non-profit organizations receive U.S. funding through State Department appropriations. The FY2010 request for The Asia Foundation, which supports efforts to strengthen democratic processes and open markets in Asia, is $16.23 million, a 1% increase over the FY2009 estimate. The International Center for Middle Eastern-Western Dialogue Trust Fund, established in FY2004 by P.L. 108-199 , would be authorized in FY2010 to disburse $875,000 (compared with $876,000 in FY2009) of interest and earnings from the Trust Fund to be used for programming activities and conferences. The National Endowment for Democracy would receive a 13% budget cut, from $115 million in FY2009 to $100 million requested for FY2010, to carry out programs to strengthen democratic institutions throughout the world. The East-West Center, established in 1960 by Congress to promote understanding and cooperation among the governments and peoples of the Asia/Pacific region and the United States, would receive $11.7 million under the Administration's budget, a decrease of 44% from the FY2009 funding estimate of $21 million. Additionally, the Administration is requesting $49.2 million for the U.S. Institute of Peace, established in 1984 by P.L. 98-525 to promote international peace through activities such as educational programs, conferences and workshops, professional training, applied research, and dialogue facilitation in the United States and abroad. This request represents a $18.2 million (59%) increase from the FY2009 estimate of $31.0 million.

The House and Senate bills match the Administration request with two exceptions: the House includes no funding for the East-West Center, while the Senate bill provides $24.0 million for it, and both bills recommend $19 million ($2.77 million more than requested) for The Asia Foundation.

Broadcasting Board of Governors

The Administration's FY2010 funding request for the BBG, which broadcasts to the world through radio, television, the Internet, and other media in 60 languages, is $745.5 million, or $30.0 million (4%) above the FY2009 level of $715.5 million. The BBG budget is composed of two elements: the International Broadcasting Operations and Broadcasting Capital Improvements. The FY2010 request for the International Broadcasting Operations portion, which provides funding for the Voice of America, Radio Free Asia, and the Middle East Broadcasting network, among other broadcast services, is $732.2 million. This is $28 million above the FY2009 estimate of $704.2 million, or an increase of about 4%. The FY2010 request for Broadcasting Capital Improvements, at $13.3 million, is 17% higher than the FY2009 estimate of $11.3 million.

In prior years, the BBG has separated out funding for broadcasts to Cuba. The Administration's FY2010 proposal does not include a separate line item for Cuba, but includes $32.5 million in funding for the Office of Cuba Broadcasting within the International Broadcasting Operations account.

The House bill virtually matches the Administration's request, while the Senate reported bill sets the broadcasting funding level $16.1 million below request.

FY2010 Budget Request: Foreign Operations

The Foreign Operations budget comprises the majority of U.S. foreign assistance programs, both bilateral and multilateral. (See Appendix D for Foreign Operations accounts and funding levels.) The annual State-Foreign Operations Appropriations bill funds all U.S. bilateral development assistance programs, with the exception of food assistance appropriated through the Agriculture Appropriations bill (for which $2.42 billion was appropriated in FY2009 and $1.89 billion is requested for FY2010). These funds are managed primarily by USAID and the State Department, together with several smaller independent foreign aid agencies such as the Millennium Challenge Corporation, the Peace Corps, and the Inter-American and African Development Foundations. The legislation also supports U.S. contributions to major multilateral financial institutions, such as the World Bank and United Nations entities, and includes funds for the Export-Import Bank, whose activities are regarded more as trade promotion than foreign aid. On occasion, the bill replenishes U.S. financial commitments to international financial institutions, such as the World Bank and the International Monetary Fund. (For a description of all the accounts within the Foreign Operations section of the bill, see CRS Report R40482, State, Foreign Operations Appropriations: A Guide to Component Accounts , by [author name scrubbed] and [author name scrubbed].)

The foreign operations budget request for FY2010 totals $34.85 billion in foreign assistance programs, representing a 1% increase from the estimated FY2009 level of $34.42 billion. Table 4 and Figure 5 provide funding levels, including supplemental appropriations and rescissions, for foreign operations since FY2000 in both current and constant dollars. Between FY2000 and FY2009, foreign aid funding increased 112% in current dollars, and by 66% in constant dollars.

H.R. 3081 provides $32.96 billion for Foreign Operations for FY2010, which is 5% less than the Administration's request. The Senate committee-reported bill provides $32.69 billion.

Top 10 U.S. Foreign Aid Recipient Countries

Prior to the wars in Iraq and Afghanistan, Israel and Egypt typically received the largest amounts of U.S. foreign aid every year since the Camp David Peace Accords in 1978. The reconstruction efforts in Iraq and Afghanistan moved those countries into the top five, though assistance to Iraq has declined sharply in the past couple of years, with the FY2010 request of $500 million falling just outside of the top 10. West Bank & Gaza funding also fell just outside of the top 10 in the FY2010 request, with the recommended $503 million representing a 45% reduction from the FY2009 estimate of $910 million. South Africa, a recipient of significant HIV/AIDS assistance, and Colombia, a recipient of significant counter-narcotics assistance, emerge among the top 10 recipients in the FY2010 request, though the requested funding does not represent a significant increase. The $548 million requested for South Africa is just over the $541 million estimated for FY2009, and the $513 million requested for Colombia is lower than the FY2009 estimate of $542 million. See Table 5 for top U.S. aid recipients in FY2009 and the FY2010 request.

FY2010 Foreign Operations Account Details

When the Obama Administration submitted its FY2010 foreign operations budget proposal in May 2009, it calculated that the request was nearly a 9% increase over FY2009 funding, including the supplemental request of $4.5 billion then pending before Congress for foreign operations accounts. However, the supplemental bill ( H.R. 2346 / H.Rept. 111-151 ) that was signed by the President on June 24, 2009 ( P.L. 111-32 ) included $7.04 billion for foreign operations, reducing the increase between enacted FY2009 appropriations and the FY2010 request for foreign operations to 1%. Because Congress approved FY2009 base and supplemental appropriations after the Obama administration took office in January 2009, and a significant portion was enacted after the FY2010 budget proposal was released, it may be difficult to detect shifting policies and priorities by comparing the FY2009 appropriations to the FY2010 request.

The FY2010 Congressional Budget Justification highlights a proposed increase in economic assistance to thwart a resurgence of the Taliban in Afghanistan and Pakistan by promoting economic development and enhancing counternarcotics activities. However, so much supplemental funding has been appropriated for Afghanistan and Pakistan in FY2009 that the FY2010 economic assistance (excluding military aid) request for these countries, at $2.78 billion and $1.28 billion, respectively, represents only a 4% and 15% increase, respectively. Compared with FY2008 appropriations, however, the FY2010 request is a 32% increase for Afghanistan and a 189% increase for Pakistan. The House bill provides $2.54 billion for Afghanistan and $1.46 billion for Pakistan under the ESF, INCLE, and FMF accounts, but does not specify a portion of NADR, GHCS, or other funds for either country, which the Administration's request includes.

The Administration also proposes in its FY2010 budget request to meet financial commitments to multilateral development banks, the United Nations, and other international multilateral organizations with a request for $2.70 billion, a 46% increase over the total FY2009-enacted level. The Administration's stated goal for this funding is to enhance the United State's leadership role within these forums and address food insecurity through a $12 million (67%) increase in funding to the International Fund for Agricultural Development. A new request for $600 million for international clean technology and strategic climate funds at the World Bank is, according to the Administration, intended to demonstrate a U.S. commitment to addressing problems related to climate change.

The House recommendation of $2.35 billion for multilateral assistance largely follows the request, though it included less than half the funds requested ($225 million) for the clean technology and strategic climate funds, and an additional $38.5 million for international organizations and programs. Among these, the House recommended increases for the UN Children's Fund, the UN Development Program, the UN Population Fund, the UN High Commissioner on Human Rights, the UN Women's Fund, and the UNIFEM Trust Fund, while recommending less than the request for the UN Democracy Fund. The Senate Appropriations Committee-reported bill provides $257.9 million more for multilateral assistance than the House-passed bill, including $400 million for the International Clean technology Fund.

Other foreign operations accounts that would see significant changes from the total FY2009 levels in the FY2010 budget proposal or House recommendation include the following:

USAID operating expense and capita l investment accounts , which would fund the Administration's proposal to create an additional 350 Foreign Service Officer positions at USAID, would increase by 36% and 74%, respectively, under the request. A floor amendment reduced the Capitol Investment Fund from $213 million to $185 million. H.R. 3081 , as passed, provides $1.39 billion, a 31% increase for operating expenses over the FY2009 total.

Development Assistance , from which additional funding would support the Administration's agricultural development and food security priorities, would increase by 37% over the FY2009 funding level under the Administration request, by 25% under the House-passed bill, and by 28% in the Senate-reported bill.

Emergency Refugee & Migration Assistance would increase by 88% under the Administration request, as well as the House and Senate plans, in order to reduce reliance on supplemental appropriations.

International Disaster Assistance would receive a 7% increase over the FY2009 funding level under the Administration request to address emergency food security and certain new responsibilities taken over from the Federal Emergency Management Agency. The House bill provides a 1% increase and the Senate bill provides a 4% increase.

The Millenn ium Challenge Corporation would receive an increase of more than 60% over FY2009 levels under both the Administration request and the House-passed bill. The Senate bill, however, provides a 9% increase.

Treasury Department's Debt Restructuring Activities would get an 84% increase over the FY2009 funding level under the Administration request, to meet U.S. commitments related to the enhanced Heavily Indebted Poor Countries (HIPC) initiative. The House and Senate bills both provide $60 million, the same as the FY2009 level.

International Military Education and Training would increase 19% under both the Administration and House proposals. The Senate bill provides $5 million less than requested, but still more than the FY2009 funding level for this account.

Non-P roliferation, Anti-Terrorism and Demining would increase by 21% under the Administration request and the Senate bill, to fund a portion of the new Shared Security Partnership Initiative (discussed below under "New Initiatives"), while the House bill provides a 14% increase.

International Narcotics Control and Law Enforcement would grow by 25% under the Administration request, to incorporate activities previously funded through the Andean Counterdrug Initiative account, combat opium production and trafficking in Afghanistan, fund Merida Initiative programs in Mexico and Central America, and expand civilian law enforcement support to Pakistan. The House bill is 16% below the request, but 4% above the FY2009 total, and the Senate-reported bill is 22% below the request and 2% below FY2009 funding level.

The Transition Initiatives (TI) account would receive a 152% increase over the FY2009 estimated appropriation under the Administration request. However, the request is 22% above actual FY2009 funding for TI, which, since FY2003, has routinely received at least half its funds through transfers from other accounts. The House bill provides a 100% increase over the FY2009 level, while the Senate Committee recommends a 30% increase.

Only a few accounts would receive less than their estimated FY2009 appropriation under the Administration's FY2010 request.

The Economic Support Fund , assistance to countries of strategic importance to the United States, as requested by the Administration, would decrease by 9% from the FY2009 total, largely because of FY2009 supplemental funds for this account. Both the House and Senate bills provide $6.37 billion for this account, $134 million less than the Administration requested.

Assistance for Europe, Eurasia and Central Asia would decline by 17% under the Administration request and 22% under the House level, due to the large FY2009 supplemental funding for Georgia. The Senate committee recommends a 19% decline for this account.

While Emergency Refugee and Migration Assistance would increase by 88%, regular Migration and R efugee Assistance funds would be cut by 11% under both the Administration and House proposals. The Senate bill recommends nearly $7 million more than the FY2009 level.

International Peacekeeping contributions would be reduced by 44% under the request, and 37% under the House and Senate plans, due largely to FY2009 levels inflated by large supplemental allocations for Somalia and the Democratic Republic of Congo.

Foreign Military Financing would decrease by 15% under the request, reflecting large FY2009 supplemental FMF appropriations for Mexico, Egypt and Jordan. The House-passed a 32% cut from FY2009 (almost $2 billion), noting that Congress "forward funded" a portion of the FMF request for Egypt, Israel and Jordan in the FY2009 supplemental. The Senate Committee recommends cutting $2.2 billion from this account in FY2010.

Democracy Fund and Fund for Ireland would receive increases (3% and 20%, respectively) in the House bill over FY2009 levels, while neither account was included in the Administration request. The Senate Appropriations Committee contains 3% for the Democracy Fund and no funding for the Fund for Ireland.

Export-Import Bank assistance was limited by a managers amendment to the House bill, first proposed by Representative Mark Kirk, which would restrict funds to countries having detonated a nuclear device in violation of the Treaty on the Non-Proliferation of Nuclear Weapons. The provision addresses concerns that current law does not prevent the Export-Import Bank from providing credit, insurance, or guarantees assistance to companies that contribute significantly to Iran's petroleum industry.

Figure 6 shows proposed changes to the largest bilateral assistance accounts.(See for FY2008 totals, FY2009 estimates, and the FY2010 request by account.)

New Initiatives

The Administration's budget request calls for a new Shared Security Partnership , funded through the INCLE, NADR, PKO, and FMF accounts, to develop strategic partnerships aimed at confronting common threats. The House bill expresses support for this initiative, which would expand on the Trans-Sahara Counterterrorism Partnership and the East Africa Regional Strategic initiative program to develop and support Regional Strategic Initiatives designed to improve coordination and cooperation on global terrorism and crime issues.

Shortly before the May 7, 2009, release of the Administration's FY2010 budget request, President Obama announced a six-year, $63 billion Global Health Initiati ve . Of this amount, $51 billion would support ongoing HIV/AIDS, tuberculosis, and malaria programs, and $12 billion would address other health needs, including post-natal and child health. Administration officials have stated that the intention of the initiative is to move beyond the HIV-specific focus of the Bush Administration's PEPFAR initiative and towards a more comprehensive and integrated approach to global health. This strategy has been applauded by many global health advocates, but others have expressed concern that the funding request does not match the rhetoric. The budget request does not show dramatic changes in total global health funding for FY2010 (the FY2010 request for Global Health and Child Survival is a 3% increase over the FY2009 total, including supplementals), prompting some critics to claim that global health programs will be asked to take on broader responsibilities without additional resources. However, the request does include sizable budget increases for relatively small programs to address neglected tropical diseases, avian influenza, and infectious disease surveillance. The House funding for the Global Health and Child Survival account is $7.78 billion, or 2% more than the Administration's request.

Emergency Crises Fund, established as a new account by the Senate bill ( S. 1434 ), would enable the Secretary of State, in consultation with the USAID Administrator, to respond to certain unforeseen crises. The committee notes that the department of State is establishing crisis prevention and response capabilities to assume much of the functions currently funded under Department of Defense's (DOD) Section 1207, P.L. 109-163 . The Senate committee recommends $100 million for FY2010.

Regional Distribution

As shown in Figure 7 , under the FY2010 proposal, Africa would be the region receiving the most U.S. foreign assistance, with a 1% increase over the FY2009 total, including supplementals, of $6.67 billion bringing the request to $6.74 billion. Funding for Africa would continue to be heavily focused on HIV/AIDS and other health programs, while expanding activities related to agriculture, governance, education, and economic growth. South and Central Asia would continue to see high aid levels, though the FY2010 proposal of $4.87 billion is a 6% decrease from the total FY2009 estimate of $5.20 billion. The FY2009 figure was bolstered by $1.30 billion appropriated by Congress ($678 million beyond the Administration's request) in supplemental funds for counterinsurgency support to Pakistan. The Western Hemisphere would remain fairly steady, with the $2.41 billion FY2009 total, including $420 million is supplemental FMF and INCLE funds for Mexico, 2% higher than the $2.37 billion request for FY2010. East Asia & Pacific would receive a 17% increase over the FY2009 estimate of $690 million, which did not include funds requested by the Administration for North Korea, with priority given to ongoing support for Indonesia, increasing assistance to Burma, and funds available for negotiating the dismantlement of North Korea's nuclear program. The Near East would also receive a 17% reduction from the FY2009 total of $7.96 billion, in part because of large increases to Israel, Egypt, and Jordan included in the FY2009 supplemental. Under the FY2010 proposal, most funds would go to Iraq, West Bank and Gaza, and for the Trans Sahara Counter-Terrorism Partnership. Cuts to Europe and Eurasia would also be substantial, at -14%, reflecting more pressing needs elsewhere.

Iraq and Afghanistan Share of Total Aid Budget

Including both base budgets and supplemental appropriations, the share of U.S. bilateral foreign assistance going to Iraq and Afghanistan has increased sharply since FY2002. Foreign aid to Afghanistan has increased significantly, though inconsistently, since the U.S. invasion of Afghanistan in 2001, and the FY2010 request for Afghanistan—$2.78 billion—would provide the highest funding to date for that country. For Iraq, assistance consisted of small sums to support Iraqi opposition groups in the early 2000s, but picked up precipitously in FY2004 to more than $17 billion, before dropping sharply back in recent years. The FY2010 request for Iraq is $500 million, down 15% from the FY2009 estimate. The portion of the foreign operations budget allocated to Iraq and Afghanistan has hovered just under 10% in the past few years after reaching 50% in FY2004, the peak of Iraq reconstruction and rehabilitation appropriations. It is important to note, however, that both countries receive significant assistance through the Defense appropriations bill, which is not covered in this report. Table 6 tracks funding to both countries from FY2002 through FY2009, including the FY2010 request. The FY2010 requested funding for Iraq and Afghanistan represents 9% of total funding requested for foreign operations.

Sector Distribution

Over the years, Congress has expressed interest in various discrete aid sectors, such as education, trade, maternal and child health, and biodiversity, that are either subcategories of the "Program Area" level depicted in the budget funding tables or are budgeted across multiple program elements or areas. Table 7 compares the FY2009 and FY2010 budget requests for key interest areas identified by the Administration—obligated and actual FY2009 funding levels for these sectors are not available. The 487% increase in the request for Clean Energy and 672% increase requested for Global Climate Change, compared with the FY2009 requests, seems to demonstrate the Obama Administration's heightened interest in global environmental issues. Particularly large increases were also proposed for Avian Influenza (+145%), to strengthen national capacities to prepare for and respond to the emergence of pandemic-capable viruses, such as H1N1 ("swine flu"), and for Other Public Health Threats (+103%) to address neglected tropical diseases, containment of anti-microbial resistance, and infectious disease surveillance.

Appendix A. Structure of State-Foreign Operations Appropriations

Appendix B. Abbreviations

Appendix C. State Department and Related Agencies Appropriations

Appendix D. Foreign Operations Appropriations

Appendix E. International Affairs (150) Budget Account