Appropriations for FY1998: Foreign Operations, Export Financing, and Related Programs (CRS Report for Congress)
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| Release Date |
March 2, 1998 |
| Report Number |
97-211 |
| Authors |
Larry Nowels, Foreign Affairs and National Defense Division |
| Source Agency |
Congressional Research Service |
Summary:
The annual Foreign Operations appropriations bill is the primary legislative vehicle through which
Congress reviews the U.S. foreign aid budget and influences executive branch foreign policy making
generally. It contains the largest share -- about 67% -- of total U.S. international affairs spending.
For Foreign Operations programs, President Clinton sought $13.324 billion in discretionary
budget authority for FY1998, $1.056 billion, or 8.6% higher than available for last year. Most of
the increases were concentrated in three activities: multilateral development bank (MDB)
contributions, especially payment of arrears; Partnership for Freedom (PFF), a new phase of U.S. aid
to Russia and other former Soviet republics; and meeting emerging regional democracy, human rights,
and peace making needs. In addition (and not included in the $13.324 billion), the Foreign
Operations proposal included $3.521 billion for U.S. participation in the International Monetary
Fund's New Arrangements to Borrow (IMF/NAB). Other issues receiving considerable attention
were: bilateral development aid policy priorities, especially child survival and infectious disease
programs; regional allocations of economic aid; and population assistance and congressional
restrictions on abortion.
On July 17, the Senate agreed to a $13.3 billion foreign aid spending bill ( S. 955 ),
over $1 billion higher than FY1997 funding and only $24 million below the President's request. The
Senate also approved the $3.5 billion IMF/NAB proposal. The House passed its version of the bill
( H.R. 2159 ) on September 4, setting overall funding considerably lower at $12.267
billion. Compared with the President's request, the House cut funds sharply for aid to the former
Soviet Union and for U.S. contributions to the World Bank's International Development Association
(IDA). The House bill also excluded U.S. payments for the IMF/NAB.
After weeks of delay over policy and funding disputes, House/Senate conferees met on October
28 and agreed to a $13.15 billion Foreign Operations appropriations for FY1998 ($12.787 billion for
regular programs, plus $360 million for multilateral development bank arrears). Conferees, however,
could not reach an accommodation on two issues -- international family planning restrictions and U.S.
participation in the IMF's New Arrangements to Borrow. Negotiations continued until Nov. 12 when
conferees filed a conference report that deleted both the House-passed family planning restrictions
and the Senate-passed IMF/NAB funding. Efforts to attach other Administration foreign policy
priorities to the Foreign Operations bill, including funds for U.S. arrearage payments to the U.N. and
State Department reorganization, also failed. H.R. 2159 passed the House on Nov. 12
(333-76), followed by Senate approval (voice) on Nov. 13. The President signed the legislation Nov.
26 ( P.L. 105-118 ).
The Foreign Operations appropriation was influenced by a number of other bills and resolutions
moving through Congress in 1997. Perhaps the most prominent was the budget resolution for
FY1998. Negotiators reached agreement May 15 on final details of a five year budget plan that for
FY1998 made foreign policy spending a priority budget item, fully funding the President's $19.45
billion request.
