During the past several decades, the United States has had a mixed relationship with the United Nations Educational, Scientific and Cultural Organization (UNESCO). Most recently, decisions by some UNESCO member states have led to increased congressional interest in U.S. funding of and participation in the organization. Established in 1946 in the aftermath of World War II, UNESCO aims to contribute to peace and security by promoting collaboration among member states in the fields of education, science, and culture. The organization, which has a specialized agency relationship with the United Nations, is headquartered in Paris, France, and composed of 195 member states. With an annual budget of about $326 million, its programs and activities encompass a wide array of issues, including literacy, media and Internet freedom, ocean management, and environmental and cultural preservation, among others. The United States played a key role in UNESCO's establishment and has generally supported the overall objectives of the organization. At the same time, U.S. policy makers—particularly some Members of Congress—have expressed concern with UNESCO's apparent politicization, lack of budget discipline, and perceived leanings toward anti-democratic countries. These concerns led to the United States' withdrawal from UNESCO in 1984. Since the United States rejoined the organization in 2003, Congress has demonstrated support for UNESCO—appropriating about $618.6 million in regular budget contributions and $9.5 million in voluntary contributions from FY2004 through FY2011. In October 2011, UNESCO garnered significant attention from U.S. policy makers when a majority of member countries decided to admit "Palestine" as a member. (The decision to pursue UNESCO membership was part of a broader, ongoing effort by Palestine Liberation Organization Chairman and Palestinian Authority President Mahmoud Abbas to achieve membership or non-member observer state status in various U.N. bodies as a means for achieving recognition of Palestinian statehood.) As a result of this decision, the United States withheld its contributions to UNESCO in accordance with two laws enacted in the 1990s that prohibit funding to U.N. entities that admit the Palestine Liberation Organization (PLO) as a member ( P.L. 101-246 ), or grant full membership as a state to any organization or group that does not have the internationally recognized attributes of statehood ( P.L. 103-236 ). From FY2012 through FY2014, the United States withheld nearly $80 million per year, or 22% of the UNESCO annual regular budget. The Obama Administration actively opposes Palestinian membership in UNESCO. It argues that Palestinian statehood can only be realized through direct negotiation between Israel and the Palestinians, and not through membership in international organizations. At the same time, the Administration maintains that U.S. participation in UNESCO is in the interest of the United States and that the government should continue to fund and participate in the organization. In his FY2013 and FY2014 budget proposals, President Obama requested nearly $80 million in assessed contributions for UNESCO, and stated that the Administration intended to work with Congress to "waive" the funding restrictions. In both FY2013 and FY2014, Congress did not enact a waiver. Critics argued that waiving the laws would undermine U.S. credibility and encourage the Palestinians to continue to pursue membership in other U.N. entities. As the debate over U.S. funding of and participation in UNESCO moves forward, Congress may consider a number of issues, including UNESCO's role, if any, in U.S. foreign policy, as well as the organization's overall effectiveness and reform efforts. It may also consider the long- and short-term implications, both positive and negative, of withholding funding to UNESCO. More broadly, policy makers might consider the efficacy of laws restricting funding for U.N. entities that admit Palestine as a member. A particularly pressing question moving forward is how, if at all, the United States will engage with UNESCO given its ongoing financial withholding and loss of voting rights in the General Conference. UNESCO programs and activities encompass five sectors—education, natural sciences, social and human sciences, culture, and communication and information. The organization sponsors international exchanges and meetings in science, education, and other fields; promotes the free flow of ideas, including media freedom; encourages the conservation of books, monuments, and works of art; and assists member states in developing educational, scientific, and cultural programs. It also provides a mechanism for the drafting, adoption, and review of several international conventions and commissions, including the Convention concerning the Protection of the World Cultural and Natural Heritage (often referred to as the World Heritage Convention), the Intergovernmental Oceanographic Commission (IOC), and the Convention against Discrimination in Education. More than 2,000 personnel from 170 countries work for UNESCO; approximately 850 staff work in the organization's 65 field offices and institutes worldwide. UNESCO's governing structure consists of three key mechanisms, described as follows. The General Conference (GC), composed of representatives from all member countries, is UNESCO's primary decision-making body. It meets every two years to determine the organization's policies, programs, and budget. With a few exceptions, GC decisions on important questions are made by consensus; consequently, approved resolutions are often not very specific, even those addressing budgetary issues. The Executive Board , composed of 58 member state representatives, meets twice a year and is responsible for implementing the program adopted by the GC. Members are elected to the Board by the GC for a four-year term. The United States is currently a member of the Board; its term will expire in 2015. The Director-General (DG), currently Irina Bokova of Bulgaria, heads the UNESCO Secretariat. The DG is appointed to a four-year term by the GC on the recommendation of the Executive Board. She is charged with preparing the UNESCO program and budget, making proposals to the GC, creating the organizational structures of the Secretariat, and appointing staff. The DG can also play a key role in negotiations regarding budgets, resolutions, and programs. The Executive Board and GC include various committees composed of member countries that consider issues related to the functioning of the organization or specific issues related to education, science, or culture. UNESCO maintains relationships with non-governmental organizations (NGOs), foundations, the private sector, and intergovernmental organizations (IGOs). More than 350 NGOs and 20 foundations have an official relationship with UNESCO, and many more work with the organization on specific activities and programs at the local, national, and international level. UNESCO also works with several hundred private companies and organizations through traditional philanthropic and sponsorship relationships, as well as strategic partnerships developed through shared resources and expertise. In addition, it collaborates with more than 80 IGOs, including the European Union (EU) and various multilateral development banks, on specific programs and projects through formal agreements or ad hoc arrangements. UNESCO also partners and coordinates with other parts of the U.N. system through various system-wide coordination mechanisms and memoranda of understanding with other U.N. entities. UNESCO's relationships with other organizations are strengthened by National Commissions established by member governments in their respective countries. The commissions aim to provide links among UNESCO and NGOs, the private sector, local and national governments, and the public in each country. Commission members, who are appointed by governments, provide insight on UNESCO programs, and help implement training programs, studies, public awareness campaigns, and media outreach. There are currently 199 National Commissions worldwide, including one in the United States. UNESCO activities are funded through a combination of assessed contributions by member states to the regular budget; voluntary contributions by member states, organizations, and others to special programs; and funds provided by partners such as other U.N. entities, NGOs, and the private sector. The U.S. share of UNESCO's regular budget is 22%, the largest among contributing members. Four countries—the United States, Japan (assessed at 15%), Germany (8%), and France (6%)—account for more than 50% of the assessed budget. UNESCO's recent budget and cash flow have been significantly affected by member countries' October 2011 decision to admit Palestine as a member. As a result of Palestine's membership, the United States began to withhold its contributions to UNESCO in FY2012. Two laws enacted in the 1990s prohibit funding to U.N. entities that admit the PLO as a member ( P.L. 101-246 ), or that grant full membership as a state to any organization or group that does not have the internationally recognized attributes of statehood ( P.L. 103-236 ). The UNESCO budget for 2010-2011 was $653 million, or about $326.5 million annually. The start of U.S. suspension of contributions, however, left UNESCO with immediate shortfall of $72 million by the end of 2011. Funding for the 2012-2013 budget, which was originally $653 million, was also affected by the U.S. withholding. It was decreased to $465 million, or about $232.5 annually—representing a $188 million (or 29%) funding reduction.