Budgets for the Department of State and the Broadcasting Board of Governors (BBG), as well as U.S.contributions toUnited Nations (U.N.) International Organizations, and U.N. Peacekeeping, are within the Commerce, Justice, StateandRelated Agency (CJS) appropriations. Intertwined with the annual appropriations process is the biannual ForeignRelationsAuthorization that, by law, Congress must pass prior to the State Department's expenditure of its appropriations. Secretary of State Colin Powell testified on the FY2002 State Department appropriations request before House and SenateCommittees in February and March 2001. The Administration's budget request for the Department of State wasreleased March 12, 2001, although the Administration officially sent the FY2002 budget request to Congress on April 9,2001. The Administration's FY2002 State Department and BBG budget request totaled nearly $8 billion, more than 13% abovethe FY2001 enacted funding level ( P.L. 106-553 ). Increased hiring, improving information technology, andoverseassecurity funding were the three key issues in the State Department portion of the FY2002 CJS appropriations debate. (Formore details on security issues, see CRS Report 98-771, Embassy Security: Background, Funding, and theBudget .) In the wake of the September 11th attack, Congress passed the Emergency Supplemental Appropriations Act ( P.L. 107-38 )which provides State with $390,000 for Diplomatic and Consular Programs, $7.5 million for its Capital InvestmentFund,and $41 million for Emergencies in the Diplomatic and Consular Service account. These funds will be used foroverseaspersonnel evacuations, information and reward money for apprehending terrorists, and improvement of emergencycommunications technology at U.S. and overseas facilities. International broadcasting received supplemental fundstotaling$12.25 million for expanding VOA and RFE/RL broadcasts in Arabic and the many languages in and aroundAfghanistan. The House adopted the CJS appropriations conference report ( H.Rept. 107-278 ) by a vote of 411-15 on November 14th andthe Senate adopted it by a vote of 98-1 the following day. On November 28, 2001, the President signed it into law( P.L.107-77 ). The State Department's mission is to advance and protect the worldwide interests of the United States and itscitizensthrough the staffing of overseas missions, the conduct of U.S. foreign policy, the issuance of passports and visas,and otherresponsibilities. Currently, the State Department coordinates with the activities of 50 U.S. government agenciesandorganizations in operating 257 posts in over 180 countries around the world. The Department's staff size hasincreased,largely because of the integration of ACDA and USIA into State. Highlights follow. (See Table 1. StateDepartment,USIA, and Related Agencies Appropriations below for account-by-account and recent years' appropriations.) Diplomatic and Consular Programs (D&CP) - The D&CP account funds overseas operations (e.g., motor vehicles, localguards, telecommunications, medical), activities associated with conducting foreign policy, passport and visaapplications,regional bureaus, under secretaries, and post assignment travel. Beginning in FY2000, the State Department'sDiplomaticand Consular Program account included State's salaries and expenses, as well as the technology and informationfunctionsof the former USIA, and the functions of the former ACDA. The FY2001 enacted level was $3.167 billion with$409million for worldwide security upgrades. The Bush Administration requested for D&CP's FY2002 level a 17% increase - to $3,705.1 million - largely for bothForeign and Civil Service personnel. In addition, the Administration advocated hiring floats - staff that could fillin whileothers are attending training classes. The House Appropriations Committee set funding for this account at $3,653.7 million, including $487.7 million forworldwide security upgrades, in FY2002. The House transferred $8 million from D&CP and into the SmallBusinessAdministration, recommending the final D&CP total to be $3,645.7 million. The Senate set DC&P funding at $3,471.2 million, including $409.4 million for worldwide security upgrades, the same asthe current level. The Senate Committee had not recommended full funding, as requested, for hiring 186 DiplomaticSecurity agents. The Committee expressed concern that such an increase in hiring would create a disproportionatenumberof rookie versus seasoned agents, resulting in a loss of effectiveness. Congress enacted $3,630 million for the diplomatic and consular programs account for FY2002, nearly the House-passedamount, including $487.7 million for worldwide security upgrades. The funding supports the hiring of 360 newemployees in FY2002, 186 diplomatic security employees (including 86 special agents), and allows the Department to collectanddeposit Machine Readable Visa fees as offsetting collections to the D&CP account for FY2002 and FY2003. In addition,Congress had approved emergency supplemental DC&P funding of $390,000 for possible evacuation needsrelated toterrorist attacks. Embassy Security, Construction and Maintenance (ESCM) - This account supports the maintenance, rehabilitation, andreplacement of overseas facilities to provide appropriate, safe, secure and functional facilities for U.S. diplomaticmissionsabroad. Congress originally had enacted $640 million for this account for FY1999. However, following theembassybombings in Africa in August 1998, Congress agreed to more than $1 billion (within a supplemental funding bill)for the Security and Maintenance account by establishing a new subaccount referred to as WorldwideSecurity Upgrades. Theenacted FY2001appropriation included $416 million for regular ESCM and $661.2 million for Worldwide SecurityUpgrades . The FY2002 request was $475 million for ongoing ESCM and $816 million for Worldwide Security Upgrades . This 23.4%increase would be for both ongoing expenses of security programs in place already, as well as increasing securityin certainlocations, according to State Department officials. The House approved $470 million for ongoing maintenance and construction and agreed with $816 million for embassysecurity. The Senate passed $405 million for ESCM activities and $661.6 million for worldwidesecurity upgrades inembassies. The final FY2002 appropriation for ESCM is $1,274 million, including $458 million for regular ESCM and $816 millionfor worldwide security upgrades. Educational and Cultural Exchanges - This account funds programs authorized by the Mutual Educational and CulturalExchange Act of 1961, such as the Fulbright Academic Exchange Program, as well as leadership programs forforeignleaders and professionals. Government exchange programs have come under close scrutiny in recent years for beingexcessive in number and duplicative. As a result, a July 1997 executive order created the Office of U.S.GovernmentInternational Exchange and Training Coordination. For FY2001, Congress passed $231.6 million ($6 million morethanrequested) for the international exchanges account, including $115.3 million for the Fulbright Program. TheAdministration requested $242 million for the Education and Cultural Exchange account in FY2002. The House bill setfunding at $237 million ($5 million less than requested) for educational and cultural exchange programs in FY2002. TheSenate passed the full amount requested-$242 million. Congress agreed to the House's $237 million, including $118million for the Fulbright programs in FY2002. 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 which would ensure the efficientmanagement, coordination, operation, and utilization of State's resources. In FY1998 Congress approved a 250%increasein this fund, from $24.6 million in FY1997 to $86 million in FY1998. The Administration sought $118.3 million(anincrease of 38%) in FY1999 for CIF. Congress exceeded the request, agreeing to $158.6 million for this account,whichincluded funds from the emergency supplemental appropriation for Y2K compliance. For FY2000, Congress agreedto$79.7 million and for FY2001 appropriated $96.8 million-essentially the Clinton Administration's request for CIF. In the early months of 2001, Secretary of State Colin Powell testified before both House and Senate foreignaffairscommittees that the State Department is in dire need of improvements in its information technology. The FY2002requestof $210 million (117% above the previous year) would put full Internet capability on every desktop at State andimprovecommunications technology overall for State Department personnel, according to the Secretary's testimony. The House Appropriations Committee agreed with the Administration request, but a floor amendment transferred $7million from this account and into the Small Business Administration. The Senate Appropriations Committeeagreed withthe $210 million requested by the Administration for CIF. After the September 11th attack, Congressrecognized theurgency for immediate improvements in communication technology and passed the emergency supplemental ( P.L.107-38 )which included $7.5 million for CIF for improving emergency communications capabilities overseas and in theWashingtonoffice. In addition to this supplemental, Congress passed $203 million for CIF FY2002 appropriation, matchingthe Houselevel. The conference report included $102.7 million for information technology investments within the DC&Paccountand also noted that an additional $63 million from expedited passport fees will go toward CIF in FY2002.