Subject: International Affairs Budget Update 12/17/15
From: "Lindsay Plack, USGLC" <[email-masked]>
To: "Hunter Biden" <[email-masked]>
Date: Thu, 17 Dec 2015 11:38:40 -0600

USGLC

International Affairs Budget Update
December 17, 2015
Detailed Analysis of International Affairs Funding in Final FY16
Omnibus Spending Package

Following weeks of extensive and intense negotiations, congressional
leadership introduced the $1.15 trillion omnibus spending package in
the early morning hours Wednesday.  The measure, which funds the
government through September 30, 2016, is expected to pass both the
House and Senate in the coming days.

http://action.usglc.org/site/R?i=KzH7uCWDzZi9sHmjMj4pYg

While the overall FY16 funding level for the International Affairs
Budget was increased in the final spending package, the continued
erosion of funding in the base budget is a significant concern.
 Funding for FY16 International Affairs-including the
Overseas Contingency Operations (OCO) account and international food
aid-totals $54.6 billion: $39.7 billion in base funds and $14.9
billion in OCO.  While this is $3.7 billion (7%) above FY15
enacted levels, the increase is driven by the decision to boost the
OCO account by $5.6 billion (61%) while cutting base funding by $2
billion (approximately 5%).

Base funding has not been this low since FY09-well before the
myriad of new threats we are facing today, including the Syrian civil
war and the rise of ISIS, an increasingly belligerent Russia, and
epidemics like Ebola, had emerged.

While base funding for the International Affairs Budget is cut
significantly, base funding for most of the rest of the budget grows
under the agreement. Overall, base funding increases by about 6% for
other Non-Defense programs (taken as a whole) and by 5% for the
Department of Defense and other defense activities.

USGLC issued a press statement yesterday praising the overall increase
of funds to address extraordinary emergency needs but expressing
serious concern with the continued erosion of base International
Affairs funding in the omnibus, stating:

http://action.usglc.org/site/R?i=a20Puw8s7QfdxovY_YWqYA

"It is our strong hope that future budget negotiations will
address this dramatic shortfall in base funding that is essential for
America to remain a global leader."

INTERNATIONAL AFFAIRS BUDGET SNAPSHOT*

FY15 Enacted
FY16 Request
FY16 Enacted

Base
$41.6 billion
$48.5 billion
$39.7 billion

OCO
$9.3 billion
$7.0 billion
$14.9 billion

Total
$50.9 billion
$55.6 billion
$54.6 billion

*The table excludes $2.5 billion in FY15 emergency funding, which was
provided to combat the Ebola crisis in West Africa.

INCLUDED IN THIS UPDATE:
1.  Highlights of Increases and Decreases
2.  Notable Program Funding and Policy Issues
3.  Account-by-Account Detail of FY16 International Affairs Budget
4.  Additional Information and Resources

1. HIGHLIGHTS OF INCREASES AND DECREASES

Increases Compared to FY15 Enacted (figures include base and OCO)

*  State Department Diplomatic and Consular Affairs: up 4.8% (+$373
million)
*  Contributions to International Peacekeeping Activities: up 16%
(+$342 million)
*  National Endowment for Democracy: up 26% (+$35 million)
*  Development Assistance: up 11% (+$274 million)
*  International Disaster Assistance: up 47% (+$899 million)
*  Non-proliferation, Anti-terrorism, Demining and Related
Programs: up 29% (+$201 million)
*  Peacekeeping Operations: up 27% (+127 million)
*  Peace Corps: up 8% (+$30 million)
*  PL 480 Title II Food Aid: up 17% (+$250 million)

Decreases Compared to FY15 Enacted (figures include base and OCO)

*  Contributions to International Organizations: down 2% (-$27
million)
*  Embassy Security, Construction and Maintenance: down 4.4% (-$102
million)
*  Complex Crisis Fund: down 40% (-$20 million)
*  Conflict Stabilization Operations: down 100% (-$15 million)
*  Economic Support Fund: down 9% (-$428 million)
*  International Narcotics Control and Law Enforcement: down 2%
(-$30 million)
*  Contributions to International Development Association (IDA):
down 7% (-$91 million)

Programs Requested for FY16, but Not Funded

*  Peace Operations Response Mechanism
*  IDA Multilateral Debt Relief Initiative
*  African Development Fund Multilateral Debt Relief Initiative

2. NOTABLE PROGRAM FUNDING AND POLICY ISSUES

State Operations and Diplomatic and Embassy Security: Growth, but
Below the Request

The bill includes $8.2 billion for Diplomatic and Consular Affairs
Programs (D&CP), a 4.8% ($373 million) increase from current
levels, but $418 million below the Administration's
request-which covers the cost of State Department operations
around the world. Consistent with the Administration's request,
the omnibus provides $2.2 billion for embassy security, construction
and maintenance, a 4.4% ($102 million) cut from FY15.

International Security Assistance: Funding Up, but Further Shift to
OCO

The measure provides a total of $8.9 billion for international
security assistance, 5% ($446 million) more than in FY15 and 3% ($280
million) more than the President's request. Compared to the
request, the bill provides less for Nonproliferation, Anti-Terrorism,
Demining, and Related (NADR) Programs and more for International
Narcotics Control and Law Enforcement (INCLE) and Foreign Military
Financing (FMF), including an additional $50 million to equip European
and Eurasian partners facing Russian aggression. Consistent with the
growing dependence on OCO funding, the share of funding for
international security assistance provided through OCO increases from
21% in FY15 to 28% in FY16.

Global Health: Modest Increase in Funding

The bill provides $8.5 billion for Global Health programs, 0.6% ($50
million) more than in FY15. The measure maintains funding for the
Global Fund to Fight AIDS, tuberculosis, and malaria at FY15 levels,
$244 million more than the President's request.  Most other
programs are also held flat, but the bill provides increases for
Maternal and Child Health ($35 million), Malaria ($5 million) and
nutrition ($10 million). Gavi, the Vaccine Alliance, received $235
million within the MCH account-$35 million above FY15 and the
same as the Administration's request.

Global Health*
FY15 Enacted
FY16 Request
FY16 Enacted

Bilateral PEPFAR
$4.32 billion
$4.32 billion
$4.32 billion

Global Fund
$1.35 billion
$1.1 billion
$1.35 billion

HIV/AIDS
$330 million
$330 million
$330 million

Malaria
$670 million
$674 million
$674 million

Tuberculosis
$236 million
$191 million
$236 million

Maternal/Child Health
$715 million
$770 million
$750 million

 Vulnerable Children
$22 million 
$15 million 
$22 million 

 Nutrition
$115 million 
$101 million 
$125 million 

 Family Planning
$610 million 
$613 million 
$608 million 

 NTDs
$100 million 
$87 million 
$100 million

 Global Health Security
$73 million 
$50 million 
$73 million

 Total
$8.45 billion 
$8.18 billion 
$8.50 billion 

*State Department and USAID Global Health accounts only, except for
family planning.

Humanitarian Assistance: Major Increase in Funding, Continued Reliance
on OCO

Reflecting the expanding humanitarian crises in Syria, Sudan, South
Sudan, Iraq, Afghanistan, Burma and elsewhere, the bill provides an
18% ($899 million) increase for humanitarian assistance. Over the past
five years, as a result of these growing crises, funding for these
accounts has more than doubled.  Under the bill, approximately
$4.0 billion (68%) of the total funding provided for humanitarian
assistance would be included in the OCO portion of the budget.

Humanitarian Assist.
FY15 Enacted
FY16 Request
FY16 Enacted

Disaster Aid (IDA)
$1.9 billion
$1.74 billion
$2.79 billion

Refugees (MRA)
$3.06 billion
$2.45 billion
$3.06 billion

Emergency Refugees
$50 million
$50 million
$50 million

Total
$5.0 billion
$4.25 billion
$5.89 billion

Peacekeeping: Increase in Funding and Shift to OCO

The agreement provides $3.1 billion for peacekeeping (both UN and
other operations), an 18% ($468 million) increase.  While this
level is still below the initial proposal, the Administration lowered
its request for the Contributions to International Peacekeeping
Activities (CIPA) account to $2.7 billion due to the existence of
peacekeeping credits and savings. Overall, the agreement provides
$2.46 billion for this account, which includes $667 million in base
funds and $1.79 billion in OCO for the missions in Africa and the Near
East. It also includes a total of $601 million for Non-UN operations
and peacekeeper training programs. The measure shifts the bulk of
peacekeeping funding from the base budget to OCO. Under the bill, 74%
of these costs would now be funded through OCO, compared to only 13%
in FY15.  This is troubling because most of this funding is for
operations that constitute long-term, enduring commitments.

The bill also includes partial funding for the African Peacekeeping
Rapid Response Partnership (APRRP), which would build the rapid
peacekeeping response capacities of six African countries, but rejects
the $150 million requested for the Peace Operations Response Mechanism
(PORM). 

With respect to the long-standing legislative cap on peacekeeping
contributions, similar to the past three years, the omnibus calls for
a continuation of a partial peacekeeping cap lift to 27.14%.

Peacekeeping
FY15 Enacted
FY16 Request
FY16 Enacted

UN Operations
$2.12 billion
$2.93 billion
$2.46 billion

Non-UN Ops
$474 million
$495 million
$601 million

PORM
$0
$150 million
$0

Total
$2.59 billion
$3.58 billion
$3.06 billion

Multilateral Assistance: Reduced Funding, IMF Reform Approved

The omnibus cuts funding for multilateral assistance by 5% ($127
million). The most significant reduction is to the U.S. contribution
to the International Development Association, which is cut by 7% ($91
million). The bill holds multilateral climate-related funding largely
flat and does not include the additional $150 million requested by the
Administration for the new Green Climate Fund (GCF). However, the bill
gives the Administration flexibility to use other economic assistance
funds to make such a contribution. This is different than the original
House version of the bill, which prohibited such a contribution.
Importantly, the omnibus provides the authority to restructure the
U.S. financial position at the IMF-authority which the
Administration has sought from Congress for the past four budget
cycles.

Development and Economic Assistance: Programs Grow, But Fall Below the
Request

The bill increases funding for most of the major development and
economic assistance accounts and agencies, although the levels are
still below the requested amounts.  Funding for Development
Assistance grows by 11% ($274 million). The measure also provides a 6%
($67 million) boost to USAID's Operating Expenses account and an
8% ($30 million) increase for the Peace Corps. The measure includes a
$428 million reduction in Economic Support Funds. However, this is
more than offset by the inclusion of $930 million in the Assistance to
Europe, Eurasia and Central Asia (AEECA) account, which is provided in
lieu of a portion of the Administration's request for ESF
funding. The bill provides $901 million for the Millennium Challenge
Corporation, $1 million above the FY15 level but well below the
President's request.

Development and Economic Assist.
FY15 Enacted
FY16 Request
FY16 Enacted

DA
$2.51 billion
$3.0 billion
$2.78 billion

MCC
$900 million
$1.25 billion
$901 million

Peace Corps
$380 million
$410 million
$410 million

USAID OE
$1.22 billion
$1.43 billion
$1.28 billion

ESF
$4.75 billion
$6.14 billion
$4.32 billion

AEECA
$0
$0
$930 million

Central America: Funding Increased to Support Greater U.S. Engagement

The bill includes a major increase in economic and other assistance to
Central America to help address the underlying causes of the surge in
unaccompanied minors attempting to cross the southern border.  In
its request, the Administration proposed to more than triple U.S.
assistance to Central America, raising such aid from about $300
million in FY14 to approximately $1 billion in FY16. While falling
short of the request, the omnibus includes about $750 million for the
initiative, more than a doubling current funding. The funding is
provided through a range of different International Affairs accounts,
including the Development Assistance, Economic Support Fund, Foreign
Military Financing, and International Narcotics Control and Law
Enforcement accounts.

Food Aid: Significant One-Time Increase Provided

The bill provides a total of $1.9 billion for international food aid.
This includes $1.7 billion for the Food for Peace (PL 480) program
funded through the Agricultural appropriations section of the omnibus.
The $250 million increase from FY15 (and $300 million addition to the
request) is described by the appropriators as a "one-time"
increase intended to help the U.S. respond to ongoing emergency food
assistance requirements resulting from the conflicts in Syria and
elsewhere.

Policy Provisions

The bill generally maintains current law on major policy provisions.

*  The bill does not include the Mexico City Policy (originally
included in the House bill), which requires that all
non-governmental organizations that receive federal funding
refrain from performing or promoting abortion services as a
method of family planning.
*  The bill excludes a provision that would have withheld some
State Department funding related to the ongoing controversy over
its email system-though it does direct improvements in
transparency and records management.
*  Similarly, the bill excludes a proposal to require background
checks for refugees from Syria and some other countries, but
includes a provision that would require increased scrutiny for
individuals wishing to come to the U.S. but who have traveled to
certain "high risk" countries, including Syria,
Iran, Iraq, and Sudan.
*  The bill includes several provisions to increase transparency,
effectiveness, and sustainability of foreign assistance
programs. 
*  As noted earlier, the bill also does not include a prohibition
on contributions to the Green Climate Fund. 

3. ACCOUNT-BY-ACCOUNT DETAIL OF FY16 INTERNATIONAL AFFAIRS BUDGET

Account-by-account details for the final FY16 appropriations for
International Affairs Programs can be found here.

http://action.usglc.org/site/R?i=GBp5qVxCJEzOi6QAlkq9eA

4. ADDITIONAL INFORMATION AND RESOURCES
*  FY16 Omnibus Spending Package Text

http://action.usglc.org/site/R?i=n-10ErVzrkSwd1f8Nh0AQw

*  FY16 State-Foreign Operations Appropriations Omnibus Report
Language

http://action.usglc.org/site/R?i=23ckop0_p_O3OAeOD61ZTw

*  FY16 Agriculture Appropriations Omnibus Report Language

http://action.usglc.org/site/R?i=d5_cQV0Z6Ajpy210Jdc9wA

*  The President's FY16 Budget Request
http://action.usglc.org/site/R?i=Vj9RZ3LEaZSVQkQzoyF1qQ

*  USGLC's Analysis of the FY16 International Affairs Budget
Request 

http://action.usglc.org/site/R?i=teEnoRYNC3g780Z5MuDcxA

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