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International Affairs Budget Update
June 30, 2016
1. State-Foreign Operations Bill Moves Forward in Senate
2. Zika Funding Stalls in Senate
3. Foreign Aid Transparency Bill One Step Closer to
President's Desk

1. State-Foreign Operations Bill Moves Forward in Senate

With the House out of session this week the Senate Appropriations
Committee took up its twelfth and final FY17 spending bill,
approving the State-Foreign Operations (SFOPS) bill, which funds 96%
of the International Affairs Budget.

On Tuesday, the State-Foreign Operations Subcommittee quickly approved
the bill and on Wednesday the full Committee approved the bill
unanimously. As previously reported, the Senate's total
allocation of

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$52.1 billion includes $37.2 billion in base funding and $14.9 billion
in Overseas Contingency Operations (OCO) funding. The total allocation
is $600 million (1%) below the FY16 enacted level, though it is $100
million above the House allocation.

State-Foreign Operations Snapshot

FY16 Enacted
FY17 Request*
FY17 Senate SFOPS
FY17 House SFOPS

Base
$37.8 billion
$37.9 billion
$37.2 billion
$37.1 billion

OCO
$14.9 billion
$14.9 billion
$14.9 billion
$14.9 billion

Total
$52.7 billion
$52.8 billion
$52.1 billion
$52.0 billion

* CBO's re-estimate of the Administration's request

Notably, the bill includes an increase in funding for Israel and
establishes a Near East and Africa Relief and Recovery Fund to help
support areas in the Middle East and Africa recovering from extremist
control. The bill also maintains funding to address the refugee crisis
at current spending levels. Additionally, the bill:

Boosts Funding for Diplomatic Security, Development Assistance, and
Global Health

* Diplomatic and Embassy Security: The bill provides $6.1 billion
for embassy security, fully funding the Administration's
request.

* Development Assistance: The Senate bill fully funds the
Administration's request for this account, providing a
$179 million increase from FY16.

* Global Health Programs: The bill increases funding by $162
million-2% above current levels and $89 million more than
requested.

Cuts Security and Humanitarian Assistance, but Provides More than
Administration Requested

* International Security Assistance: The bill provides $8.32
billion for these programs, approximately $500 million below the
enacted FY16 level, but $215 million more than requested. As
noted above, the bill also includes a $300 million increase in
funding for Israel.

* Humanitarian Assistance: The bill maintains level funding for
the Migration and Refugee Assistance and Emergency Migration and
Refugee Assistance programs but cuts funding for International
Disaster Assistance by $400 million. With this cut, the combined
total for humanitarian assistance is down from FY16 but still
about $700 million above the requested level. The bill also
includes $400 million in transfer authority should additional
funding be needed.

Cuts Funding for Multilateral Assistance

* Multilateral Assistance: The bill provides $2.34 billion for
multilateral assistance, $277 million less than provide in FY16
and $275 million less than requested.

Provides Mixed Outcome for Other Accounts

* Economic Support Fund: The bill holds this funding flat at the
FY16 level, but provides $1.8 billion less than requested.

* UN Peacekeeping and International Organizations: The bill funds
UN Peacekeeping and contributions to international organizations
1% below the requested level and slightly below current levels.

Like the House State-Foreign Operations bill, the Senate bill contains
a number of controversial policy riders and funding restrictions,
including a prohibition on funding the Green Climate Fund and
codification of the Mexico City Policy (both of which were struck
during the full Committee markup as mentioned below), which prohibits
federal funding for foreign NGOs that provide abortion services.

Full Committee Markup Summary

During the full Committee markup, both Senators Lindsey Graham (R-SC)
and Patrick Leahy (D-VT), Chairman and Ranking Member of the
Subcommittee respectively, noted the many global challenges facing the
U.S. and the need for significantly more funding for international
affairs programs in order to strengthen America's global
leadership. In fact, Senator Graham mentioned that he is working with
Senate Democrats and the Administration on a possible supplemental
spending package that would significantly increase funding to address
the threat of violent extremism in the Middle East and Africa.

Over the course of the markup, a number of amendments were offered,
including several related to Iran and Cuba. Other amendments of note
include:

* A Manager's Amendment making technical and
non-controversial changes to the underlying bill. Passed by
voice vote.

* An amendment offered by Senator Jeanne Shaheen (D-NH) to
increase family planning funding at the State Department and
USAID by $124 million, restore $37.5 million in funding to
UNFPA, and permanently repeal the Mexico City Policy. Passed
17-13, with all Democrats and three Republicans (Senators Susan
Collins (R-ME), Lisa Murkowski (R-AK), and Mark Kirk (R-IL))
supporting it.

* An amendment offered by Senator Jeff Merkley (D-OR) to eliminate
the prohibition on funding for the Green Climate Fund and to
provide $500 million for the Fund. Passed by voice vote.

In addition, a few notable amendments were offered but withdrawn or
only discussed, including:

* An amendment offered by Senator Chris Coons (D-DE) to restore
funding to UNESCO. Withdrawn.

* An amendment discussed but not offered by Senator James
Lankford (R-OK) to enforce the 25% cap on UN peacekeeping dues.

Next Steps

Given that the Senate has less than 30 days left on the legislative
calendar before the election, we are unlikely to see the State-Foreign
Operations bill move any farther through the legislative process. On
the House side, appropriators are committed to re-scheduling both the
Subcommittee and full Committee markup of the spending bills after the
July 4th recess.

With so little time left on the legislative calendar, the question now
becomes when Congress will pass a Continuing Resolution (CR) before
the fiscal year ends on September 30th. Regardless of the timing of
the vote, which usually occurs in September, it is likely that the CR
would fund the government through at least late November or early
December, with a possible omnibus in late December.

2. Zika Funding Stalls in Senate

On Tuesday Senate Democrats blocked the Zika supplemental conference
report from moving forward by a vote of 52-48, delaying any deal on
funding to combat the virus until at least next month.
http://action.usglc.org/site/R?i=iNbQPPH7Q2z22ZbK7x9cqg

http://action.usglc.org/site/R?i=wQQCqLk9k-BbPL39WJopHw

Senator Joe Donnelly (D-IN) was the only Democrat to vote for the
conference report and Senators James Lankford (R-OK) and Mike Lee
(R-UT) joined Democrats in voting no. Majority Leader Mitch McConnell
(R-KY) also voted no in order to ensure he could bring the measure
back up for a vote in the coming weeks. The procedural motion required
60 votes to move forward.

As we reported last week, the funding package-which includes
$175 million for the State Department and USAID-has been caught
up in several contentious issues, including Democrats' criticism
that the $1.1 billion package falls too short of the President's
$1.9 billion request, controversial policy riders, and objection to
the bill being paid for by cuts to Obamacare and remaining Ebola
balances. The Senate is expected to reconsider the legislation when it
returns from the July 4

http://action.usglc.org/site/R?i=iVr1FHtCUEQImRUlL7zjIg

th recess.

3. Foreign Aid Transparency Bill One Step Closer to
President's Desk

The Foreign Aid Transparency and Accountability Act moved one step
closer to the President's desk this week when the Senate passed
the bill by unanimous consent. The legislation, H.R. 3766, authored by

http://action.usglc.org/site/R?i=_gogYUfbLwTzWw6YaVxkpw

Representatives Ted Poe (R-TX) and Gerry Connolly (D-VA) and
shepherded through the Senate by Senators Marco Rubio (R-FL) and Ben
Cardin (D-MD), ensures that U.S. foreign assistance programs continue
to be effective, accountable, and results-driven. USGLC released a
statement applauding Congress for working to build upon the
game-changing reforms to foreign assistance programs that have taken
place over the last decade.

http://action.usglc.org/site/R?i=Z4EY5N9fb2yLjmpTPidWsA


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