Appropriations for FY2004: Foreign Operations, Export Financing, and Related Programs (CRS Report for Congress)
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| Release Date |
Revised March 23, 2004 |
| Report Number |
RL31811 |
| Report Type |
Report |
| Authors |
Larry Nowels, Foreign Affairs, Defense, and Trade Division |
| Source Agency |
Congressional Research Service |
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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 two-thirds -- of total U.S. international affairs
spending.
President Bush asked Congress to appropriate $18.89 billion for FY2004 Foreign Operations.
The budget proposal was $2.7 billion, or 16.7% higher than regular (non-supplemental)
Foreign
Operations appropriations for FY2003. If enacted, the President's recommendation would have
resulted in one of the largest increases of regular Foreign Operations funding in at least
two decades.
Congress subsequently approved in mid-April an additional $7.5 billion FY2003 supplemental
foreign aid spending in P.L. 108-11 , for Iraq reconstruction, assistance to coalition partners, and
other activities supporting the global war on terrorism. Including the supplemental, Foreign
Operations appropriations totaled $23.67 billion in FY2003.
The FY2004 budget blueprint continued to make funding in support of the war on terrorism as
the highest priority, with about $4.7 billion recommended. The submission also sought funding for
four new aid initiatives which together accounted for most of the $2.7 billion increase over
regular
FY2003 levels. Combined, the Millennium Challenge Account, a new foreign aid concept, the State
Department's Global AIDS Initiative, and two new contingency funds, totaled $2.05 billion. Other
Foreign Operations programs were left with a more modest 4% increase.
In total, the request included $1.2 billion for HIV/AIDS, about $350 million more than enacted
for FY2003, and $7.1 billion for military and security-related economic aid, up nearly $650 million
or 10% from regular FY2003 appropriations. "Core" bilateral development assistance funding,
however, would have fallen by 8%, although recipients of these accounts would be expected to
benefit significantly from the new Millennium Challenge Account (MCA) and Global AIDS
Initiative.
On July 23, the House passed H.R. 2800 , appropriating $17.12 billion. The Senate
passed the legislation on October 30, providing $18.4 billion. Foreign Operations was merged into
H.R. 2673 , the Consolidated Appropriations Act, 2004, a bill that passed the House on
December 8 and the Senate on January 22, 2004. The enacted measure provides $17.48 billion, a
total that includes a 0.59% across-the-board rescission. This is about $1.4 billion, or 7.4% less than
the President requested. The enacted measure increases resources for international HIV/AIDS by
about $400 million and cuts the request for the MCA by $300 million.
The FY2004 Foreign Operations debate has included discussion of several significant policy
issues, including foreign aid as a tool in the global war on terrorism, the Millennium Challenge
Account, programs to combat HIV/AIDS, international family planning programs, and Afghan
reconstruction.
