The InterDependent

Chuck Kennedy/White House

President Barack Obama and Russian President Dmitri Medvedev sign a preliminary agreement on July 6, 2009, at the Kremlin in Moscow to reduce their countries' nuclear arsenals.

Before adjourning for its monthlong August recess, Congress sent to President Obama a fiscal-year 2010 emergency spending bill containing nearly $100 million for UN peacekeeping to cover expenses for Haiti. It also began consideration of fiscal-year 2011 appropriations bills to finance US contributions to the United Nations. In an environment of intense political pressure to limit federal spending, the House and the Senate, with a slight exception, met or exceeded the president’s financing requests for UN peacekeeping, US dues to the UN and UN specialized agencies and voluntary contributions to UN programs.

On July 27, the House passed a $58 billion supplemental spending bill for the current fiscal year, which includes $37 billion for the wars in Iraq and Afghanistan, $13.3 billion for Vietnam War veterans exposed to Agent Orange and approximately $3 billion for Haiti earthquake assistance. The bill also provides the administration’s full request of $96.5 million for additional US dues payments for UN peacekeeping related to the post-earthquake expansion of the UN mission in Haiti. Since the Senate passed an identical version of the bill the week before, the House vote allowed the bill to be sent to the White House, where the president signed it into law July 29.

The Senate Appropriations Committee on July 29 reported to the floor a $54.1 billion bill financing US international affairs programs for the next fiscal year, which is $2.6 billion below the president’s request. The committee included $1.6 billion for dues to international organizations, including the UN and its specialized agencies, a cut of $20 million from the request. The committee provided the full $2.2 billion request for the US share of UN peacekeeping expenses, as well as the full $55 million request for a voluntary contribution to the UN Population Fund. A total of $3 billion was provided for the account financing voluntary contributions to UN and other multilateral programs, as well as payments to international financial institutions, which represents a cut of $298 million from the administration’s request.

On June 30, a House appropriations subcommittee approved its version of a $52.7 billion bill financing the State Department and foreign assistance programs for fiscal-year 2011, $4 billion below the administration’s request. However, the subcommittee included full financing of the President’s $1.6 billion request for US assessed contributions to international organizations, including the UN and its specialized agencies and the administration’s $2.2 billion request for UN peacekeeping dues. The subcommittee also provided $398 million for voluntary payments to UN funds and programs (including $60 million for the UN Population Fund, $5 million above the request), an increase of $47.4 million above the request. In a major cut, the subcommittee provided $2.3 billion for international financial institutions, $647 million below the president’s request.

The subcommittee’s bill does not include any of the administration’s $3.9 billion request for assistance to Afghanistan, which is approximately equal to the $4 billion cut to the bill’s overall funding level. Subcommittee chair Nita Lowey (Democrat of New York) said she deferred consideration of the request for Afghanistan in response to reports of Afghan government corruption and the diversion of US financial assistance. Lowey said the subcommittee will consider providing some or all of the Afghanistan funding after it investigates the allegations and reviews the actions of the Afghan government. If funding for Afghanistan is reinserted into the bill, it is not clear whether corresponding cuts will be made to other accounts.

The subcommittee’s senior minority member, Rep. Kay Granger (Republican of Texas), warned her colleagues about the fiscal context within which Congress will be making important budgetary decisions. She said that in addition to trying to help solve difficult global problems, “we also face the continued concern in our own country about our economy and the devastating effects of skyrocketing deficits and debt.” Granger later added that it is also difficult to consider financing for the State Department and foreign assistance “without knowing the plan for funding the Defense Department.” Noting that financing for the two departments is complementary and should be balanced appropriately, she said, “I want to be sure that we aren’t increasing foreign aid at the expense of our troops.”

With work left to be done on all 12 appropriations bills and the August recess and midterm Congressional elections looming, it is very unlikely that the fiscal-year 2011 State Department spending bill will be enacted by the start of the next fiscal year on Oct. 1. In fact, it is very possible that it will not be completed until the start of the new Congress early next year. If so, Congress would pass a “continuing resolution” to temporarily finance federal government programs at current levels.