June 21st, 2005 - - FY05 Enacted: $19.54 billion
FY06 President's Request: $22.82 billion
FY06 Bill: $20.27 billion
Addressing the AIDS Pandemic
- Provides a total of $2.7 billion global assistance to combat HIV/AIDS, tuberculosis and malaria, $131 million above the President’s request and $502 million more than FY05. The bill provides $400 million --double the requested amount -- for the U.S. contribution to the Global Fund to Fight AIDS, Tuberculosis, and Malaria from these accounts.
An Innovative Approach to Foreign Assistance
- The bill provides record level funding for the President’s signature foreign assistance initiative, the Millennium Challenge Corporation. Total funding is $1.75 billion, $262 million above last year and represents the Committee's effort to respond positively to the President's proposal.
Supporting the Global War on Terror
The bill provides significant increases in security assistance to our allies in the global war on terrorism. It also increases resources for our anti-narcotic programs abroad.
- Provides $60 million increase for Foreign Military Financing for Israel to assist in their security and counter-terror efforts. Total funding is $2.3 billion, the same as the President’s request. Also fully funds the President's $240 million request for economic assistance to Israel.
- The bill dramatically increases economic assistance for Afghanistan by providing the requested level of $430 million, $205 million above last year’s level. In addition the bill includes a new provision that withholds a little more than half of this assistance ($225 million), until the Secretary of State certifies that the national and local governments in Afghanistan are fully cooperating with the U.S.-funded narcotics eradication and interdiction efforts.
- $220 million for military assistance for Pakistan as they assist us in hunting terrorists along the Afghan border;
- Fully funds the President's $1.3 billion request for Foreign Military Financing for Egypt. Also fully funds the President's $535 million request for economic assistance to Egypt.
- International Narcotics Control is funded at $437 million, $111 million above last year and $89 million below the request and provides $10 million more than the President's request for Mexico.
- The Andean Counter drug Initiative is increased by $9 million over last year and funded at the requested level of $735 million.
Other Items of Interest
- Oversight of International Organizations: In light of the U.N. Oil-for-Food scandal, the Appropriations Committees has proposed a greater role in oversight of U.S. taxpayer contributions to international organizations. The committee included two new provisions to ensure greater effectiveness and oversight of such funding.
- The Global Environment Facility (GEF) receives no funding in the bill for a savings of $108 million from FY05 and $107 million from the request. In 2002, GEF and the rest of the other multilateral development bank agreed to adopt a number of good government reforms. These reforms would establish performance measures for grant programs and increase transparency of funding streams. To date, GEF is the only international financial institutions that has made no effort to implement the reforms and in fact is actively resisting their implementation.
- The bill would limit expenditures of 25% of the funds made available for the U.S. contribution to the World Bank’s International Development Association unless they embrace open and transparent contracting and procurement procedures.
- The bill conditions the contribution to the Global Fund on strong financial and results monitoring systems
- The Subcommittee directs that funds available to the West Bank and Gaza Program and funding provided for Sudan, be detailed in financial plans with project-by-project descriptions.
- The bill includes no additional funds for assistance to Iraq. The budget requested $459 million for a variety of economic and security assistance for Iraq. Currently, $5 billion remains unobligated from the original $18.4 billion reconstruction package enacted in 2003 and the subcommittee directed that the 2006 requirements be financed from the unobligated funds.
- The bill includes $150 million in economic assistance for West Bank and Gaza region, $75 million above FY05 and the same as the President’s request. The funds are provided under the exact same terms and conditions as FY 2005 and flow only for projects funded by USAID, not for direct budgetary assistance. The Subcommittee requires the submission of a detailed financial plan prior to the obligation of these funds.
- Peace Corps is funded at $325 million, $8 million above FY05 and $20 million below the President's request.
- Total funding of the United States Agency for International Development is $4.16 billion, $23 million below the President’s request and $2 million below last year’s enacted level.
- Provides $432 million for bilateral international family planning programs, and $34 million for the UNFPA. Retains current law on restrictions and prohibitions on assistance.
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