Foreign Policy Budget Trends: A Thirty-Year Review (CRS Report for Congress)
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| Release Date |
Revised June 20, 2006 |
| Report Number |
RL33262 |
| Report Type |
Report |
| Authors |
Larry Nowels, Foreign Affairs, Defense, and Trade Division |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
There have been sharp debates over the past three decades concerning the appropriate level of
funding for U.S. foreign policy programs, and it is likely that these debates will continue as Congress
reviews the President's FY2007 budget proposal. The past 30 years have witnessed wide swings in
the amounts of U.S. resources committed to advancing foreign policy and national security interests,
reflecting changes in global challenges faced by the United States. Efforts to promote peace in the
Middle East, to confront Soviet influence, to support new democracies in the post-Cold War era, to
fight poverty and disease affecting poor nations, to combat global terrorism, and to stabilize fragile
or failed states have had a substantial impact on levels of foreign policy resources.
Key highlights of international affairs spending trends include:
After a substantial decline during the mid-1990s, total foreign policy spending
has grown significantly since the terrorist attacks of September 11, 2001. Not only has the United
States allocated large amounts of resources for fighting the global war on terror, the Bush
Administration has launched two major new foreign aid initiatives -- the Millennium Challenge
Account and the President's Emergency Plan for AIDS Relief (PEPFAR). The $53.8 billion
(constant FY2006 dollars) budget for FY2004, which included Iraq reconstruction funds, represented
by far the highest level of spending during the past three decades.
Although the amount of spending for international activities has grown
significantly since September 11, compared to changes in the overall size of the federal budget, the
share allocated for foreign policy programs has declined (with the exception of FY2004) due to
increases in defense, homeland security, and, in FY2005 and FY2006, Hurricane Katrina
relief. "Core" bilateral development assistance funding accounts -- those
focusing on
long-term poverty reduction and economic growth -- have more than tripled since
FY2000.
The $5.9 billion in U.S. aid to Africa estimated for FY2006 is the largest level
in three decades and totals over two and a half times the $2.2 billion annual average since FY1977.
President Bush pledged to double U.S. assistance to Africa between 2004 and
2010.
Funding for State Department personnel, embassy security, public diplomacy,
and dues for international organizations has increased steadily over the past three decades, peaking
in FY2006 at $12.2 billion (constant dollars), including operational costs in
Iraq.
This report will be updated as new data become available.
