Summary and Background

 

H.R. 2764, the Fiscal Year 2008 Department of State, Foreign Operations, and Related Programs Appropriations bill, would provide a total of $34.4 billion in budget authority, including $34.24 billion in discretionary funding and $158.9 million in mandatory spending.  This amount is nearly $2.725 billion more than Fiscal Year 2007 funding level but $700.7 million less than the President’s budget request.  The bill includes $10.68 billion for Department of State and related agency, which is $1.044 billion more (or 9.78 percent) than the Fiscal Year 2007 enacted amount and $40 million less than the President's request.

 

 

Major Provisions

 

Title I: Department of State and Related Agency

 

Department of State

 

Diplomatic and consular programs.  The bill would provide $4.79 billion for diplomatic and consular programs, which is $481.2 million above last year’s appropriation (excluding supplemental funding) and $147.7 million below the President’s request.  Of the recommended amount, $3.885 billion would be allocated for operations, including public diplomacy initiatives, and $909.6 million would be used for worldwide security protection.

 

Office of the Inspector General.  H.R. 2764 would provide $35.5 million to the Office of the Inspector General to strengthen oversight of programs in Iraq and Afghanistan.  This amount is $3 million above the requested amount and $5.6 million above Fiscal Year 2007 allocations (excluding supplemental funding).

 

Capital Investment Fund.  The bill would provide $63.7 million for the Capital Investment Fund, which is $7 million below the President’s budget request, and $5.6 million more than last year’s appropriation.

 

Educational and cultural exchange programs.  H.R. 2764 would provide $509.48 million for education and cultural exchange programs, which is $23.08 million above the requested amount and $63.8 million more than last year's funding level (excluding supplemental funding).

 

Embassy security, construction, and maintenance.  The bill would provide $1.441 billion for embassy security, construction, and maintenance, to provide diplomatic and consular missions with secure, safe, and functional facilities.  This amount is $157 million below the President’s request and $47.9 million below the Fiscal Year 2007 funding level.

 

Contributions to international organizations.  The bill would provide $1.374 billion for contributions to international organizations including the United Nations and related agencies.  This amount is $20 million above the requested amount as well as last year’s funding level (excluding supplemental funding).

 

Contributions to international peacekeeping activities.  H.R. 2764 would provide $1.35 billion for contributions to international peacekeeping activities, which is an increase of $245 million above the President’s request and $216 million more than the amount appropriated in last year’s regular appropriations process.  These allocations support global peacekeeping operations, including Liberia, the Sudan, the Democratic Republic of Congo, Ethiopia, Eritrea, Haiti, Timor-Leste, Kosovo and the Middle East.

 

International commissions and other organizations.  The bill would make appropriations to international commissions and organizations, including the following:

 

• $30.43 million for the United States and Mexico International Boundary and Water Commission (IBWC), which is equal to the budget request;

 

• $88.4 million for IBWC construction programs, which is $16.7 million above the President’s request;

 

• $11.25 million for American Sections, International Commissions, which is $855,000 more than the requested amount and $1.2 million above Fiscal Year 2007;

 

• $27 million for the International Fisheries Commission, $6 million above the budget request and $3.3 million above Fiscal Year 2007;

 

• $20 million for the East-West Center, which is $10 million above the budget request and $1 million above the Fiscal Year 2007 enacted level; and

 

• $16 million for the Asia Foundation, which is $5 million above the President’s budget request and $2 million above Fiscal Year 2007.

 

Broadcasting Board of Governors.  H.R. 2764 would appropriate $673.5 million for international broadcasting programs, which is $5.25 million above the President's request and $29.5 million more than last year’s appropriation (excluding supplemental funding).

 

Additional appropriations under this title include:

 

• $3 million for the Commission on International Religious Freedom;
• $2.037 million for the Commission on Security and Cooperation in Europe;
  
  
• $2 million for the Congressional-Executive Commission on the People’s Republic of China;
• $2.962 million for the United-States China Economic and Security Review Commission; and
• $25 million for the United States Institute of Peace.

 

 

Title II: Export and Investment Assistance

 

Export-Import Bank of the United States.  The Export-Import Bank provides direct loans, loan guarantees, and insurance programs to aid in the financing and promotion of U.S. exports.  H.R. 2764 would provide $147 million for the Bank, including $1 million for the Inspector General, $78 million for administrative expenses, and $68 million for subsidy appropriation.  With offsetting collections, however, only $1 million is provided to the Bank.  These proposed appropriations are equal to the President’s budget request and $53.8 million less than Fiscal Year 2007 appropriations.  

 

Overseas Private Investment Corporation.  The Overseas Private Investment Corporation (OPIC) provides financing through direct loans and loan guarantees that provide medium to long-term funding to ventures involving significant equity and/or management participation by U.S. businesses.  In addition, OPIC provides political risk insurance and makes direct equity and equity-related investments in new, expanding, and privatizing companies in emerging market economies.  The bill would provide $47.5 million to OPIC for administrative expenses to carry out the credit and insurance programs, which is equal to the budget request, and $21 million for direct and guaranteed loans, which is $8 million below the requested amount.

 

Trade and Development Agency.  The Trade and Development Agency (TDA) assists U.S. companies in pursuing overseas business opportunities through the funding of feasibility studies; orientation visits; specialized training grants; business workshops; and various forms of technical assistance.  H.R. 2764 would appropriate $50.4 million to TDA, which is equal to the amount requested in President Bush’s budget.

 

 

Title III: Bilateral Economic Assistance

 

H.R. 2764 would provide a total of $17.3 billion for bilateral economic assistance, which is $516 million below the President’s budget request.

 

The bill includes $9.141 billion for global health programs, development assistance, USAID operating expenses, international disaster and famine assistance, transition initiatives, and credit programs.  This amount is $5.385 billion above the President’s budget request and $4.447 billion above the Fiscal Year 2007 funding level. 

 

Global Health Programs (GHP).  The bill would provide $6.531 billion for health activities abroad, including programs to combat HIV/AIDS, TB, malaria and other infectious diseases, as well as programs for family planning and protecting women’s health.  H.R. 2764 consolidates all funding for all health programs, including HIV/AIDS, under the GHP account and also includes $1.481 billion for programs requested under the Child Survival and Health Programs Fund, which is $267 million more than the President’s request. 

 

• HIV/AIDS programs.  The bill would provide a total of $5.09 billion for HIV/AIDS prevention, treatment, and care programs around the world, which is $940 million above the President’s request and $2.221 billion above the Fiscal Year 2007 enacted level.  This includes $590 million for the Global Fund to fight AIDS, which is $590 million above the requested amount and, if the funds provided in the Labor-HHS appropriations bill are counted, is $166 million above last year’s funding level.   

 

• Child survival and maternal health.  H.R. 2764 would provide $476.5 million for child survival and maternal health programs, which is $58.5 million above the President’s budget request.

 

• Family planning and reproductive health.  The bill includes $461 million for family planning and reproductive health initiatives, which is $137 million above the requested amount, which is $21 million above last year’s level.

 

• Other infectious diseases.  H.R. 2764 would provide $634.6 million for the infectious diseases program, including avian influenza, tuberculosis, malaria, measles, meningitis and polio.  This amount is $51 million above the President’s request.

 

• Vulnerable Children.  The bill would provide $15 million for Vulnerable Children, which is $11 million above the requested amount.

 

United States Agency for International Development (USAID)

 

• Development assistance.  The Development Assistance (DA) account funds a wide range of poverty-reduction and long-term development activities including democracy and the rule of law, free market development, agriculture and rural development, urban, environment, and energy, basic education, and micro-credit programs.  H.R. 2764 would provide $1.455 billion for DA, which is $413.75 million above the requested amount and $53 million below the Fiscal Year 2007 level.  

 

• International disaster assistance.  The bill would provide $322 million for international disaster relief, including $20 million for famine prevention and relief activities.  This amount is $25 million above the President’s budget request and $39 million below Fiscal Year 2007 appropriations.

 

• USAID operating expenses.  H.R. 2764 would allocate $645.7 million for USAID’s operating expenses, which is $36.7 million above the requested amount and $19 million above Fiscal Year 2007, excluding supplemental funds, to address critical staff shortages at the agency.

 

• Other USAID expenses. The bill would appropriate $21 million for development credit authority; $90.5 million for the Capital Investment Fund; and $38 million for the USAID Inspector General.

 

Other Bilateral Economic Assistance

 

Economic Support Fund (ESF).  H.R. 2764 would provide $3.015 billion for Economic Support Fund assistance, which is $304.5 million below the President’s budget request and $560 million above last year’s funding levels, excluding supplemental appropriations. Of this amount, the bill would specifically designate:

 

• $415 million in ESF assistance for Egypt (combined with military funding is a total of $1.175 billion), which is equal to the requested amount;

 

• $363.5 million in assistance for Jordan, which is $100 million above the President’s budget request;

 

• $25 million for democracy programs in Iran, which is $50 million below the requested amount;

 

• $45 million for Lebanon, which is $2.9 million above the President’s request;

 

• $75 million in assistance for the West Bank/Gaza, which is $11.5 million above the President’s request;

 

• $55 million for the Middle East Partnership Initiative (MEPI), which is $20 million below the requested amount;

 

• $10 million for Afghan civil assistance, which was not requested by the President; and

 

• $30 million for assistance for the Philippines, an increase of $4 million above the requested amount.

 

Assistance for Eastern Europe and the Baltic States.  The bill would make available $294.56 million for assistance to Eastern Europe and the Baltic States, which is $5.2 million above the President’s request and $20.688 million more than last year’s funding levels.  The largest recipients would be Kosovo at $151.2 million and Serbia at $53.3 million.

 

Assistance for the Independent States of the former Soviet Union.   H.R. 2764 would provide $401.885 million for assistance to Independent States of the former Soviet Union, which is $50.3 million above the President’s budget request and $50 million below last year’s appropriation.  Specifically, it would provide $72 million to Ukraine, $55.5 million to Georgia, $74 million to Russia, and $39 million to Armenia.

 

Independent Agencies

 

Peace Corps.  The bill would provide $323.5 million for the Peace Corps, which is $10 million below the requested amount and $3.8 million above the Fiscal Year 2007 level.

 

Millennium Challenge Account.  H.R. 2764 would appropriate $1.2 billion to the Millennium Challenge Account, $1.8 billion less than the President’s budget request and $552.3 million below the Fiscal Year 2007 level.  In its committee report, the Appropriations Committee expresses concern about the slow pace at which the Millennium Challenge Corporation has spent money already appropriated, noting the $2.1 billion unobligated balance currently available for compact assistance.

 

Other independent agencies.  The bill would provide $22 million to the Inter-American Foundation and $30 million to the African Development Foundation.

 

Department of State

 

Democracy Fund.  H.R. 2764 would allocate $177 million for the Democracy Fund, which is $82.9 million above the Fiscal Year 2007 enacted level.  This account combines funds requested by the President in different accounts, including $80 million for the National Endowment for Democracy (NED) and $97 million in funds requested under Economic Support Fund, which will be used to strengthen democracy.  H.R. 2674 would provide a total of $75 million for the Human Rights and Democracy Fund, which is $35 million above the requested amount and $102 million for the NED, which is $22 million above the President’s budget request.

 

International narcotics control and law enforcement.  $558.4 million would be provided for international narcotics control and law enforcement programs, which is $76 million below President Bush’s request and $85.8 million more than the Fiscal Year 2007 level, excluding supplemental funds.

 

Andean Programs.  H.R. 2764 would appropriate $415.05 million to support counterdrug and other activities in the Andean region of South America, which is $27.7 million below the President’s budget request and $306.45 million below last year’s appropriation.  (Last year funding for ACI programs included funds which in Fiscal Year 2008 are funded in the ESF account.)  This amount would include $30 million for Bolivia, $1 million for Brazil, $337.2 million for Colombia, $8 million for Ecuador, $1 million for Panama, and $37.8 million for Peru. 

 

Migration and refugee assistance.  The bill would provide $889 million for migration and refugee assistance, which is $115.5 million above the President's budget request and $56 million more than last year’s funding level, excluding supplemental funds.  

 

United States Emergency Migration and Refugee Assistance Fund (ERMA).  H.R. 2764 would provide $45 million for the ERMA account, which is $10 million below the President’s request and last year’s funding level.

 

Nonproliferation, anti-terrorism, demining, and related programs.  The bill would make available $499 million for nonproliferation, anti-terrorism, demining, and related programs.  This amount is $35 million above the President’s budget request and $93 million more than the Fiscal Year 2007 level, excluding supplemental funds.  The proposed funding would include $226.7 million for nonproliferation programs, $150 million for anti-terrorism programs, and $122.2 million for regional stability and humanitarian assistance programs.

 

Department of Treasury

 

International Affairs Technical Assistance.  H.R. 2764 would provide $22.8 million for international affairs technical assistance through the Department of Treasury, which is $2 million below the requested amount and $3 million above the Fiscal Year 2007 appropriation.

 

Debt restructuring.  The bill would provide $200.3 million for bilateral Heavily Indebted Poor Country (HIPC) and poorest country debt restructuring, of which $20 million would be for the Tropical Forest Conservation Act (TFCA).

 

 

Title IV: Military Assistance

 

International Military Education and Training.  H.R. 2764 would appropriate $85.8 million for International Military Education and Training (IMET) assistance, which is $3.6 million below President Bush’s budget request and equal to last year’s funding level.

 

Foreign Military Financing Program.  The bill would provide $4.579 billion for the Foreign Military Financing (FMF) Program, which is $43 million above the President's request and $29 million above the Fiscal Year 2007 level, excluding supplemental funds.  Of this amount, the bill would allocate:

 

• $2.4 billion for Israel, equal to the request;

 

• $1.3 billion for Egypt, equal to the request;

 

• $300 million for Pakistan, equal to the request; and

 

• $300 million for Jordan, an increase of $100 million above the request.

 

Peacekeeping operations.  H.R. 2764 would provide $273.2 million for the peacekeeping operations account to support multilateral peacekeeping operations and training, which is $52 million above the requested amount and $50 million above the Fiscal Year 2007 level, excluding supplemental funds.  The Senate bill includes $25 million for a United States contribution to the Multinational Force and Observer mission in the Sinai, which is $4 million above the requested amount.     

 

 

Title V: Multilateral Economic Assistance

 

International Financial Institutions.  The bill would appropriate $1.346 billion for international financial institutions, which is $152 million less than the requested amount and $73.6 million above last year’s appropriation.  This amount includes the following contributions:

 

• $106.7 million for the Global Environmental Facility, equal to the request;

 

• $1 billion for the International Development Association, $60 million below the request and $59 million above last year;

 

• $25 million for the Enterprise for the Americas Multilateral Investment Fund, $4 million below the request and $23 million above last year;

 

• $90 million for the Asian Development Fund, $44 million below the request and $9 million below last year;

 

• $2.037 million for the African Development Bank, equal to the request and $1.5 million below last year;

 

• $105 million for the African Development Fund, $35.5 million below the request and $29 million below last year;

 

• $10.159 million for the European Bank for Reconstruction and Development, equal to the request and an increase of $10 million above last year; and

 

• $18.072 million for the International Fund for Agricultural Development, equal to the request and $3 million above last year.

 

International organizations and programs.  H.R. 2764 would provide $313.9 million for other international organizations and programs, which is $24.5 million above the President's request and $12.2 million below last year's funding level.  Of this amount, $129 million would be provided for the UNICEF and $100 million for the United Nations Development Program.  The bill would also allocate $5.5 million to the Organization of American States (OAS) Development Assistance Programs and $3.5 million to the OAS Fund for Strengthening Democracy.

 

 

Title VI: General Provisions

 

Independent States of the former Soviet Union.  The bill would prohibit the use of any appropriations under Assistance for the Independent States of the Former Soviet Union for any state that violates the territorial integrity or national sovereignty of another or for any state to enhance its military capability.  The bill also includes a provision that would require that 60 percent of the available assistance for the government of the Russian Federation be withheld until the President certifies to Congress that the Russian government has: 1) terminated arrangements to provide Iran with technical expertise, training, or equipment for developing nuclear or ballistic missile capability and; 2) is providing full access to international NGOs providing humanitarian relief to refugees and internally displaced persons in Chechnya.  This provision is the same as current law.

 

Afghanistan.  H.R. 2764 would allocate $1.057 billion of the funding provided in Titles III and IV for humanitarian assistance and reconstruction activities in Afghanistan.  The bill specifies that, of this amount, no less than $75 million should be made available to support programs that directly address the needs of Afghan women and girls; no less than $12 million be made available for grants to support training and equipment to improve the capacity of women-led Afghan NGOs; and no less than $3 million be made available for reforestation activities.  The bill also would require that $20 million in funding be made available through United States universities to develop agriculture extension services for Afghan farmers and not less than $10 million be made available for USAID’s Afghan Civilian Assistance Program.  This is similar to previous funding recommendations for Afghanistan.

 

Pakistan.  The bill would provide $300 million in funding for military assistance to Pakistan unless the Secretary of State reports to Congress that the Government of Pakistan is not making effective efforts to combat al Qaeda and associated terrorist groups operating in Pakistan; to prevent the Taliban from gaining sanctuary in Pakistan and conducting operations from within Pakistani territory; and to implement democratic reforms.

 

Burma.  The bill would require the Secretary of Treasury to instruct the U.S. executive director of each international financial institution in which the U.S. participates to oppose the extension of any loan or assistance to Burma.  The bill would also set aside $11 million in ESF funding to support activities promoting democracy in Burma and $3 million for assistance to Burmese refugees.  This provision is the same as current law.

 

Arab League boycott of Israel.  H.R. 2764 would express the sense of the Congress that the Arab League boycott of Israel should be immediately terminated and that Arab League states should normalize relations with Israel.  This provision is the same as current law.

 

International terrorism.  The bill includes a number of provisions prohibiting assistance to foreign governments that support terrorism or terrorist groups.  This provision is the same as current law.

 

Special debt relief for the poorest nations.  The bill provides authority for the President to cancel debt owed by the countries identified by the International Development Association (IDA) as the world's poorest.  This provision is the same as current law.

 

Sudan.  H.R. 2764 would condition U.S. assistance to the Sudanese government on its commitment to honoring its pledges made in all previous cease-fire arrangements, that it is taking steps to cease attacks on civilians, has disarmed and disbanded militias operating in the Darfur province, and is providing full access to the region for humanitarian aid organizations.  This provision is the same as current law.

 

Restrictions on assistance to the Palestinian Authority.  The bill would prohibit the provision of any direct assistance to the Palestinian Authority or in support of Palestinian statehood unless the President exercises a waiver and certifies that certain conditions have been filled, including that assistance is in the national security interests of the United States.  This provision is similar to restrictions in current law.

 

Uzbekistan.  H.R. 2764 would require the Secretary of State to determine that the Uzbek government is making progress toward improving human rights, democratic government, independent media, and rule of law, and that a credible international investigation of the May 31, 2005 shootings in Andijan is underway before the Secretary may provide any aid to Uzbekistan. This provision is similar to restrictions in current law, with additional visa restrictions.

 

War crimes.  The bill maintains current law linking aid to Serbia to its cooperation with the war crimes tribunal.  The bill also maintains a provision, originally enacted in Fiscal Year 2004, which cuts off assistance to central governments that are harboring war criminals indicted by the Special Court for Sierra Leone or the International Criminal Tribunal for Rwanda.  This provision is the same as current law.

 

 

Legislative History

 

On June 28, 2007, the Senate Appropriations Committee agreed to favorably report H.R. 2764, the Fiscal Year 2008 Department of State, Foreign Operations, and Related Programs Appropriations bill, as amended by the Committee, by a vote of 28 to 1.

 

On June 22, 2007, the House of Representatives passed its version of H.R. 2764 by a vote of 241 to 178.

 

Previous Votes

 

 

The Senate included H.R. 5522, the Fiscal Year 2007 Foreign Operations, Export Financing, and Related Program Appropriations Act in H.J. Res. 20, the Revised Continuing Appropriations Resolution, Fiscal Year 2007.  H.J. Res. 20 passed the Senate on February 14, 2007 by a vote of 81-15. 

 

The Senate passed H.R. 3057, the Fiscal Year 2006 Foreign Operations, Export Financing, and Related Programs Appropriations Act, on July 20, 2005, by a vote of 98-1.  The conference report passed the Senate on November 10, 2005, by a vote of 91-0.

 

The Senate passed H.R. 4818, the Fiscal Year 2005 Foreign Operations, Export Financing, and Related Programs Appropriations Act, on September 23, 2004 by voice vote.  On November 19, 2004, conferees reached agreement on H.R. 4818 along with eight remaining pending appropriations bills.  The eight pending bills were added to H.R. 4818, making it an omnibus appropriations bill.  The Senate passed H.R. 4818, by then the Fiscal Year 2005 Consolidated Appropriations Act, by a vote of 65 to 30.

 

The Senate included S. 1426, the Fiscal Year 2004 Foreign Operations, Export Financing, and Related Programs Appropriations Act, in H.R. 2673, the Fiscal Year 2004 Consolidated Appropriations Act.  H.R. 2673 passed the Senate on November 6, 2004 by a vote of 93 to 1.  The conference report passed the Senate on January 22, 2004 by a vote of 65 to 28.

 

 

Statement of Administration Policy

 

As of press time, the White House has not issued a Statement of Administration Policy (SAP) for the Senate version of H.R. 2764.  However, on June 19, 2007, the White House issued a SAP for the House version of H.R. 2764, citing its strong opposition to the legislation.  The SAP is available at the Office of Management and Budget's website: (http://www.whitehouse.gov/omb/legislative/sap/110-1/hr2764sap-h.pdf).

 

Amendments

 

The DPC will provide Senators and staff with a list of possible amendments as information becomes available.