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International Affairs Budget Update
April 15, 2016
1. Senate Appropriations Committee Approves Spending Allocations:
State-Foreign Operations Slightly Down
2. Unobligated Ebola Funds Redirected for Zika
3. Food Security & Food Aid Funding Moves in the House
4. All-Star State-Foreign Operations Hearing

1. Senate Appropriations Committee Approves Spending Allocations:
State-Foreign Operations Slightly Down

The Senate kicked off the appropriations season this week and issued
its spending allocations for each of the 12 appropriations
bills-known as 302(b) allocations. Under the bipartisan budget
deal reached last year, which staved off draconian sequestration cuts,
discretionary spending is held essentially flat, which left little
room for increases for programs other than those that had mandatory
needs (i.e. veterans' health benefits). This resulted in some
bills receiving small bump ups and others with small
decreases.

The State-Foreign Operations (SFOPS) appropriations bill, which funds
96% of the International Affairs Budget, received a total of $52.1
billion for FY17, 1% below current levels ($600 million). As has been
the case for several years, there are two funding streams:

* $37.2 billion in base funding, which includes funding for
long-term programs that implement core development and diplomacy
programs overseas; and

* $14.9 billion in Overseas Contingency Operations (OCO) funding,
which includes funding for war-related programs and other global
hotspots and emergencies.

The allocation, while down, is actually significantly better than
earlier rumors of a potential $3-$4 billion cut, similar to the
non-binding levels in the current House budget resolution. The
allocation was not that different than the Administration's
request-both had the same OCO levels, with the Senate calling
for a $600 million reduction in base funding and the Administration
including a $500 million cut in base funding. Hopefully, House
appropriators will follow the Senate's lead rather than the
draconian cuts outlined in the budget resolution when determining
their SFOPS allocations.

It should be noted that Senate offices reported hearing from a wide
range of influential constituents on this issue leading up to the
markup and praised the letter signed by nearly 20 of their former
colleagues as an indication of the importance of these programs. The
USGLC thanks all of our partners and supporters who contacted Senators
this week, as it clearly made a difference.

State-Foreign Operations Snapshot

FY16 Enacted
FY17 Request
FY17 Senate SFOPS

Base
$37.8 billion
$37.7 billion
$37.2 billion

OCO
$14.9 billion
$14.9 billion
$14.9 billion

Total
$52.7 billion
$52.6 billion
$52.1 billion

While it is certain that the wide range of voices that weighed in with
policymakers, coupled with the reality of the global challenges, made
a difference as Senate appropriators finalized spending levels, it is
important to keep in mind that even under the Administration's
request, since 2010, funding for International Affairs is not keeping
pace with global needs-having been cut 12% when adjusted for
inflation. Given the challenges abroad-from ISIS and Zika to the
historic refugee crisis-we have our work cut out for us to
ensure adequate resources, both in the short- and long-term.


Next Steps

The Senate is moving at an unprecedented speed on appropriations in
the hopes of reaching Senate Majority Leader Mitch McConnell's
(R-KY) stated goal of "regular order"-i.e., passing
all 12 spending bills before October 1st. The House traditionally
moves appropriations bills first, but with the chamber at a standstill
over the fate of the budget resolution, Senate Leadership is planning
to use spending bills from last year as a vehicle to accelerate its
process.

In the House, appropriators have also begun to draft and approve
spending bills but until the budget resolution stalemate is resolved,
they are unlikely to advance beyond the Committee until at least the
middle of May. In fact, it remains unclear as to when the Committee
will release its 302(b) allocations. House Budget Committee Chairman
Tom Price (R-GA) emphasized this week that floor action on the FY17
budget resolution was still possible and Speaker Paul Ryan (R-WI) has
made similar statements, though a vote has yet to be scheduled.

2. Unobligated Ebola Funds Redirected for Zika

Last week, two months after submitting a $1.9 billion emergency
funding request to combat the Zika virus to Congress, the
Administration reprogrammed approximately $600 million to fight the
disease, approximately $140 million of which is for the Department of
State and USAID. Much of the reprogrammed funding came from
unobligated Ebola funding.

While there is broad agreement on Capitol Hill that the U.S. must
confront the spread of the disease before the outbreak worsens,
Republican appropriators in the House and Senate have resisted an
emergency supplemental, arguing that the Administration should first
use unobligated funding. On Wednesday, during a markup of the Military
Construction and Veterans Affairs spending bill, House Appropriations
Committee Ranking Member Nita Lowey (D-NY) introduced an amendment
that would have provided the Administration's requested amount
of $1.9 billion in emergency funding to address the Zika virus.
Arguing that the Administration's request would constitute a
"slush fund," Chairman Hal Rogers (R-KY) opposed the
amendment. The Committee voted on party lines to adopt a substitute
amendment that makes clear the Administration has the authority to use
unobligated Ebola funds to address Zika.

Notably, during debate, Chairman Rogers revealed that Committee staff
had begun drafting the emergency supplemental, although he said that
they needed additional information from the Administration before
proceeding.

3. Food Security & Food Aid Funding Moves in the House

Congress took several actions this week to advance food security
policy and ensure funding for emergency food aid programs.

* On Tuesday, the House voted 370-33 to pass the Global Food
Security Act (H.R. 1567). The bill, introduced by
http://action.usglc.org/site/R?i=4bO5PYINTu8PdIBvopH2gg
http://action.usglc.org/site/R?i=wH_GbdwuzHXBKXrwdQro3w

Reps. Chris Smith (R-NJ) and Betty McCollum (D-MN), authorizes a
comprehensive U.S. government strategy to promote global food
security and combat malnutrition. During floor debate, Foreign
Affairs Committee Ranking Member Eliot Engel (D-NY) said the
bill demonstrates "bipartisanship at its best,"
which USGLC President and CEO Liz Schrayer also emphasized in a
statement praising the bill's passage.

http://action.usglc.org/site/R?i=I7KdvuE2TcOBeWXo6d5VwQ

* On the Senate side, the Global Food Security Act (S. 1252) was
reported out of the Foreign Relations Committee in March and
will likely be acted upon soon. Should the bill pass the Senate,
it will be the second major piece of foreign assistance
legislation passed by the Congress in the last several
months-the Electrify Africa Act being the
first-which is a good indication of the bipartisan support
these programs enjoy in Congress.
http://action.usglc.org/site/R?i=vn_RkSDZDOlNvuIz5uqq0g

Finally, the House Appropriations Agriculture Subcommittee on
Wednesday approved its FY17 Agriculture Appropriations bill, which
includes funding for two food aid accounts: Food for Peace (PL
480/international food assistance) and the McGovern-Dole International
Food for Education and Child Nutrition program. The bill provides
$1.47 billion for Food for Peace, $250 million (15%) below current
levels but 9% above the request. This would bring funding back to the
FY15 level, after what appropriators had described as a one-time plus
up of $250 million in FY16.

FY17 Agriculture Appropriations International Programs Snapshot

FY16 Enacted
FY17 Request
FY17 Senate SFOPS

Food for Peace/P.L. 480 Title II
$1.72 billion
$1.35 billion
$1.47 billion

McGovern-Dole
$202 million
$182 million
$202 million

Local and Regional Procurement
$0
$15 million
$0

Total
$1.92 billion
$1.55 billion
$1.67 billion

4. All-Star State-Foreign Operations Hearing

On Tuesday, State-Foreign Operations Appropriations Subcommittee
Chairman Lindsey Graham (R-SC) convened another all-star hearing to
discuss the important role foreign assistance plays in combating
violent extremism featuring Bono, General Jim Jones, USMC (Ret.),
Deputy Secretary of State Tony Blinken, and Deputy High Commissioner
for Refugees Kelly Clements. At the hearing, Senator Graham noted his
support for developing a Marshall Plan for the Middle East to help
counter violent extremism and his intention to develop an emergency
supplemental package to address growing needs in the region and
elsewhere. Below are several key quotes from the hearing:

http://action.usglc.org/site/R?i=TxXyIf6kJ9PskmbKqKYESg

* Senator Graham (R-SC): "This account is 1% of the federal budget
and because of world events it is tremendously under siege and I
don't want to take money away from PEPFAR. I don't
want to take money away from malaria. I don't want to take
money away from Peace Corps."

* Senator Leahy (D-VT): "You know the way the public is-'why
are we giving 25% of our budget to foreign aid?' Of course
it's a fraction, it's a fraction of 1%, and the
return, you know, pay for it now or pay many, many, many times
more later on."

* General Jones: "U.S. foreign assistance has produced great
achievements in the last century to alleviate extreme poverty,
advance global health and respond to natural disasters and
humanitarian emergencies. The return on investment in global
influence and national security is enormous."

* Bono: "The fact is that aid can no longer be seen as
charity-a nice thing to do if you can afford it. If
there's one thing I'd like you to take away from
this testimony it is that aid in 2016 is not charity-it is
national security."


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