USAID's Fiscal Year 2005 Budget Request
WASHINGTON, DC 20523
PRESS OFFICE
http://www.usaid.gov/
Press: (202) 712-4320
Public Information: (202) 712-4810
2004-007
FOR IMMEDIATE RELEASE
February 25, 2004
Contact: USAID Press Office
The President's budget requests $8.8 billion in fiscal year 2005 for development and humanitarian assistance administered by the U.S. Agency for International Development (USAID). USAID will program and manage approximately $5.1 billion and manage an additional $3.7 billion, which it will program in coordination with the Department of State.
USAID programs are funded from several budgetary accounts:
- Child Survival and Health (CSH): $1.42 billion
- Development Assistance (DA): $1.329 billion
- International Disaster and Famine Assistance (IDFA): $385.5 million
- Transition Initiatives (TI): $62.8 million
- P.L. 480 Food for Peace: $1.185 billion
The Support for East European Democracies (SEED: $410 million) and the FREEDOM Support Act (FSA: $550 million) accounts fund programs in Europe and Eurasia and are jointly managed with the Department of State, while Economic Support Funds (ESF: $2.52 billion) finance programs administered by USAID at the State Department's request. In addition, USAID will manage funds from the new Global HIV/AIDS Initiative.
The fiscal year 2005 budget request also builds on the Agency's "pillar" programs: Democracy, Conflict and Humanitarian Assistance; Economic Growth; and Global Health. A fourth USAID "pillar" program, Global Development Alliance, mobilizes resources from and alliances with U.S. public and private sectors and is funded at $10 million.
Democracy, Conflict and Humanitarian Assistance
In fiscal year 2003, USAID responded to 63 disasters in 53 countries-48 natural disasters and 15 complex or human-caused emergencies. Many humanitarian disasters arise from the failure of states or stem from natural conditions and are exacerbated by poor governance. USAID seeks to address not just the symptoms but the causes of these humanitarian crises by helping to create transparent, accountable systems of governance. Key areas include:
- Democracy and governance, conflict mitigation and human rights programs: $208 million. This includes funding to support elections, the rule of law and anti-corruption and anti-trafficking efforts.
- Transition initiatives: $62.8 million. Fast and flexible assistance eases the transition of countries moving from war to peace, from civil conflict to national reconciliation, or consumed by political strife that is not yet violent.
- Disaster and famine assistance: $385.5 million. The new IDFA account was created by combining the former International Disaster Assistance (IDA) account and the essential elements of the previously proposed Famine Fund. Emergency needs might include medicines and health care, seeds to restart agricultural production when crops fail, potable water and sanitation after a flood. This account includes $50 million for famine prevention and relief, which is intended to support early intervention to either pre-empt famine or mitigate the impact.
- Food assistance: $1.185 billion (P.L. 480 Title II). Approximately half of the food assistance budget will be set aside for emergency situations and programmed as events unfold. The balance is programmed both to relieve chronic food shortages and finance developmental activities.
Economic Growth, Agriculture and Trade
USAID's investments in basic education and sustainable agriculture increased in fiscal year 2004, while its micro-enterprise, trade and investment, and environmental programs create opportunities for individuals and enhance economies' productivity and sustainability. Key areas include:
- Education: $262 million. The highest priority remains primary and secondary education ($212 million). Basic education programs will emphasize increasing access to education in Africa and Latin America and continue efforts to improve teacher training. In addition, $50 million will be devoted to higher education, training and literacy and support vocational training to improve the skills of the labor force to participate in the expanding global economy.
- Agriculture: $268 million. Special attention will be given to food security and sustainable agriculture in sub-Saharan Africa and South Asia.
- Business, Trade and Investment: $316 million. Stronger linkages between trade and development will increase the capacity of developing countries to participate in and benefit from global and regional trade.
- Environment: $275 million. Programs will improve management of natural resources by investing in programs that provide conservation of biological diversity, renewable and clean energy, access to clean water and sanitation, watershed management and environmentally sound urbanization.
Global Health
The U.S. government is recognized as a world leader in combating HIV/AIDS and other infectious diseases, as well as promoting child survival and maternal health. Investing in the health of the world's population contributes to global economic growth and reduction of poverty. Key areas include:
- HIV/AIDS: $600 million. Programs will focus on prevention, care, and treatment efforts, and support of children affected by AIDS, including a $100 million contribution to the Global Fund. USAID programs are integrated within the overall policy and strategic direction of the President's Emergency Plan for AIDS Relief (PEPFAR). USAID will play a significant role in implementing PEPFAR, which will be managed by the Department of State's Global AIDS Coordinator.
- Family and reproductive health programs: $425 million. ($346 million under the CSH account and $79 million from other accounts). These programs help to expand access to information and services regarding planning to reduce unintended pregnancies, improve infant and child health and reduce mortality rates, and decrease maternal deaths associated with childbirth.
- Child survival and maternal health ($325 million) and other infectious diseases ($139 million). These programs reduce the number of deaths in children under the age of five and save the lives of women in childbirth through interventions such as immunization, pneumonia and diarrhea prevention and treatment, micronutrient deficiencies, safe birthing and antenatal care, nutrition, and breastfeeding. Other infectious disease programs support the prevention and control of tuberculosis and malaria, combat anti-microbial resistance, and improve disease surveillance and response capabilities.
Europe and Eurasia
The administration requests $410 million for Assistance to Eastern Europe and the Baltics, giving priority to the still fragile Balkan states of Serbia and Montenegro ($102 million), Kosovo ($72 million), Bosnia-Herzegovina ($41 million), and Macedonia ($34 million). Assistance to Eurasia will total $550 million, with the Central Asian republics and Azerbaijan expected to receive up to $168 million.
Economic Support Funds
USAID will administer $2.52 billion in assistance given to countries supporting the economic and political foreign policy concerns of the United States. Major recipients of this aid include countries central to the Middle East peace process-Egypt, Israel, Jordan, and the West Bank and Gaza-and front-line states in the war on terrorism, including Turkey, Indonesia, Pakistan and Afghanistan. In addition, the new Middle East Partnership Initiative (MEPI) will support reform efforts in the Middle East and champion opportunity for all people of the region.
Operating Expenses and Capital Investment Fund
USAID is requesting $623.4 million for operating costs and $64.8 million for capital investment to administer an $8 billion program. A modest increase in the operating budget will allow USAID to hire, recruit and train junior foreign service officers to fill in the ranks behind retiring officers.
The U.S. Agency for International Development has provided economic and humanitarian assistance worldwide for more than 40 years.
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