FOREIGN OPERATIONS BILL HIGHLIGHTS
• Millennium Challenge Corporation (MCC):
President’s Request: $3 billion, + $500 million from FY05 request
House Bill: $1.75 billion
Senate Bill: $1.8 billion
Conference Report: $1.77 billion
Current Status: The MCC, the funding mechanism for the Millennium
Challenge Account (MCA), enjoyed the largest single program increase in the
President’s budget request. However, the Administration’s request of $3
billion faced significant cuts from Congress which funded the MCC $1.23
billion below the President’s request.
Description of Account: The MCA provides development aid to
impoverished nations in an effort to reduce poverty through economic growth.
However, only countries that pass a series of
“measurable indicators” are permitted to apply for assistance. According
to the State Department, these criteria are meant to gauge a government’s
performance with respect to good governance, investing in the health and
education of its people and promoting economic freedom. An effective MCA
will enable support of more results-oriented assistance programs to
countries that have taken responsibility for their own development through
the adoption of sound policies. But the MCA needs both the necessary
resources and the legislative support to really make a difference. President
Bush, when first announcing the MCA in 2002, set an ambitious goal of
funding the MCA at $5 billion by 2006. Congress’ recent slashing of this
account therefore represents a serious challenge to this goal. Either
Congress needs further convincing on the benefits of the MCA program or the
President needs to devote more political capitol toward ensuring he gets the
tools needed to properly implement his initiatives.
• International Organizations & Programs (IO&P):
President Bush’s request: $282 million, - $44 million from FY05 request
House Bill: $328.958 million
Senate Bill: $330 million
Conference Report: $329. 458 million
Current Status: IO&P funding was cut $44 million from FY05 in the
President’s budget request, but, Congress raised the bar, appropriating
$47.46 million more than the amount requested. Included in this is a $15
million increase for the United Nations Development Program (UNDP), the
primary development agency in the UN system working to alleviate poverty,
solve environmental problems, and fight HIV/AIDs, and a $13 million increase
to the UN Children’s Fund (UNICEF) which provides goods and services
directly to the world’s neediest children. President Bush had proposed
cutting U.S. contributions to the UNDP and UNICEF in his budget request, by
$13 million and $11 million, respectively.
Description of Account: IO&P spending covers U.S. voluntary
contributions to UN agencies and other International Organizations.
According to the State Department IO&P funds address issues of global
concern that “require international consultation and coordination”, where,
“solutions cannot be effective unless problems are addressed globally.”
• Non-UN Peacekeeping Operations (PKO)
President Bush’s Request: $196 million, + $18 million from FY05 request
House Bill: $177.8 million
Senate Bill: $195.8 million
Conference Report: $175 million
Current Status: The majority of the $196 million requested by the
President for non-UN peacekeeping was for two multinational efforts aimed at
resolving conflicts in Africa; $41 million for Africa Regional PKOs, and
$114 million for training and equipping the Global Peace Operation
Initiative (GPOI).
Congress allocated $175 million in funding for the PKO account, far less
than the President’s request and below even the minimal level set by House
lawmakers. In addition, the Conference Report fails to earmark the specific
allocation of these funds. The amount of funds given to GPOI and African
Regional PKO programs is therefore unclear, however, the low number makes
the House’s divisions – of $96.5 and $78.8 respectively – a much more likely
outcome.
Description of Account: In contrast to the U.S. share of U.N-assessed
peacekeeping operations, which is financed in the CIPA account (see below),
PKO funds provide voluntary support for international peacekeeping
activities.
African Regional PKO: Funding African regional peacekeeping
operations is a critical stage in our effort to end destructive conflicts
and ensure viable peace in Liberia, Sudan, Burundi, the Democratic Republic
of Congo (DRC), Uganda and Rwanda. Funds will support programs which enhance
African capabilities to respond to regional crises, especially in
conjunction with the Economic Community of West African States (ECOWAS).
GPOI: Begun in 2005,
GPOI is a bold initiative that would double the number of peacekeepers
world wide over the next five years. This presidential initiative provides
financial and technical assistance, primarily to African countries, with the
understanding that, by 2010, they will be able to effectively respond to or
prevent violent conflicts on their own continent. Armed with such a
capacity, these countries will become more effective partners in UN
peacekeeping missions around the globe. In conjunction with other G8
nations, GPOI focuses on military training which will increase and improve
African peacekeeping forces, as well as the equipment, transport and
logistical support for necessary for successful peace operations.
• Conflict Response Fund: $100 million (new initiative)
President Bush’s Request: $100 million
House Bill: $0
Senate Bill: $74 million
Conference Report: $0
Current Status: Congress completely eliminated funding for the
Conflict Response Fund (CRF), erasing a new initiative first outlined in the
President’s 2006 budget request. Senators had agreed to fund the CRF at $74
million but these funds were cut during the Conference Committee with House
lawmakers. Instead of providing the funds, Conferees asked for a
“comprehensive, disciplined and coherent strategy” from the Secretary of
State detailing how the Office of the Coordinator for Reconstructions and
Stabilization (S/CRS) -the office that would administer the CRF – will
coordinate U.S. Government-wide efforts to respond to international
post-conflict contingences.
It should be noted that the Administration made a similar budget request in
FY 2005 for $100 million for an “Emergency Fund for Complex Foreign crises”
that was not funded by Congress.
Description of Account: The Conflict Response Fund (CRF) was designed
to allow the State Department’s Office of the Coordinator for Reconstruction
and Stabilization
(S/CRS) to fulfill its mission of responding rapidly and effectively to
conflicts around the world. It would provide resources for stabilizing and
reconstructing regions after conflicts have erupted, and lend assistance to
security, governance and humanitarian operations in order to prevent
conflicts from escalating or even occurring.
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