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Diplomacy in Action

Appropriations Subcommittees


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Foreign Operations, Export Financing, and Related Programs (Foreign Operations); Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies (CJS); Agriculture, Rural Development, Food and Drug Administration, and Related Agencies; Departments of Labor, Health and Human Services, and Education, and Related Agencies

 

FOREIGN OPERATIONS, EXPORT FINANCING,
AND RELATED PROGRAMS (FOREIGN OPERATIONS)

I. Export and Investment Assistance

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

Export-Import Bank of the United States

     

Loan Program Account

863,097

727,323

541,400

Administrative Expenses

63,801

64,905

72,327

Direct Loans, Negative Subsidies

(21,144)

(25,000)

(13,000)

Total Ex-Im, w/ Retirement Costs

905,754

767,228

600,727

Less Retirement Costs - Ex-Im Admin

(1,937)

(1,905)

(1,928)

Total Ex-Im, w/out Retirement Costs

903,817

765,323

598,799

       

Overseas Private Investment Corporation

     

Administrative Expenses

38,487

39,367

40,676

Credit Funding

23,947

-

24,000

Net Offsetting Collections

(268,167)

(289,443)

(292,000)

Total OPIC, w/ Retirement Costs

(205,733)

(250,076)

(227,324)

Less Retirement Costs - Ex-Im Admin

(570)

(759)

(791)

Total OPIC, w/out Retirement Costs

(206,303)

(250,835)

(228,115)

       

Trade and Development Agency

     

Total TDA, w/ Retirement Costs

50,023

50,184

44,696

Less Retirement Costs

(133)

(160)

(184)

Total TDA, w/out Retirement Costs

49,890

50,024

44,512

       

Emergency Response Fund

     

Export-Import Administrative Expenses

75

-

-

       

Export-Import Bank of the United States (Ex-Im):

  • The Administration is requesting $541.4 million for the Export-Import Bank's loan and guarantee programs and $72.3 million for the bank's administrative expenses in FY 2003.
  • This funding will assist American businesses and sustain U.S. jobs by increasing exports, thus stimulating economic growth and job creation in the United States. The $541.4 million in program budget will support $11.5 billion in financing assistance.
  • The FY 2003 program budget represents a 26 percent decrease from FY 2002, but lending is estimated to increase from $10.4 billion in FY 2002 to $11.5 billion in FY 2003. The increase in lending can be achieved at the requested level because of a new credit risk methodology that uses more focused estimates of default risk.
  • The increase in administrative expenses will enable the bank to modernize its computer infrastructure to provide better service to the exporting community.

Overseas Private Investment Corporation (OPIC):

  • OPIC supports U.S. private investments in locations and sectors where the developmental impact will be greatest. OPIC's participation in an investment contributes to improvements in host country employment, infrastructure, and best business practices - including strengthening the institutional framework for free markets and rule of law.

  • OPIC fulfills this developmental mission in a self-sustaining manner. It provides political risk insurance, project finance, and investment funds products to small, medium, and large American businesses expanding into approximately 140 developing nations and emerging markets around the world.
  • From its estimated net offsetting collections of $292 million in FY 2003, OPIC is requesting $40.7 million for administrative expenses and $24 million for credit funding. These amounts will support an estimated $800 million in new direct loans and loan guarantees at an average credit funding rate of about three percent.
  • In FY 2003, new credit funding authority will be critical to OPIC's finance program. The zero request for credit funding in FY 2002 was a one-time budgetary adjustment due to the availability of carry-over funding from appropriated FY 2001 amounts and other funds.
  • OPIC-assisted projects also contribute to the health of the U.S. economy. They generate exports that in turn support high-value jobs where U.S. employees are most skilled and competitive. FY 2001 projects procured approximately $1 billion in exports from U.S. suppliers, supporting approximately 3,200 American jobs.

Trade and Development Agency (TDA):

  • The FY 2003 request for TDA of $44.7 million will enable the agency to maintain current programs while taking advantage of new opportunities in Africa, China, and Russia.
  • Through the funding of feasibility studies, orientation visits, specialized training grants, business workshops, and various forms of technical assistance, TDA helps American businesses compete for infrastructure and industrial projects in emerging markets.

II. Bilateral Economic Assistance

A. United States Agency for International Development

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

Child Survival and Health Programs Fund

1,050,8811

1,433,5001

-

Development Assistance (DA)

1,274,1902

1,178,000

2,739,500

       

International Disaster Assistance (IDA)

299,340

235,500

235,500

Transition Initiatives

49,890

50,000

55,000

       

Development Credit Program Subsidy-Transfer

[4,989]

[18,500]

-

Development Credit Program Subsidy-Approp.

1,497

-

-

Development Credit Administrative Expenses

3,991

7,500

7,591

Micro and Small Enterprise Development

1,996

-

-

       

USAID Operating Expenses (OE)

543,160

560,659

586,087

USAID Capital Investment Fund

-

-

95,000

USAID Inspector General Operating Expenses

28,024

32,806

34,046

Total USAID, w/ Retirement Costs

3,252,969

3,497,965

3,752,724

Less Retirement Costs - USAID OE

(11,333)

(11,659)

(13,887)

Less Retirement Costs - USAID OIG OE

(1,083)

(1,306)

(1,346)

Total USAID, w/out Retirement Costs

3,240,553

3,485,000

3,737,491

       

Emergency Response Fund

     

IDA

-

146,000

-

OE

2,400

15,000

-

Note /1 - Includes $110 million and $120 million for UNICEF in FY 2001 and FY 2002, respectively; requested in International Organizations and Programs for FY 2003.
Note /2 - Reflects transfer out of DA of funding for Inter-American Foundation and African Development Foundation.

Overview:

  • The events of September 11 represent a significant challenge to U.S. foreign policy and demonstrate the necessity of a robust foreign assistance program. In response, the President's request makes significant changes in geographic emphasis and program content. These include economic and humanitarian assistance for the war on terrorism, with new or expanded programs in Central and South Asia, and greater attention to conflict prevention.
  • The FY 2003 request for the United States Agency for International Development (USAID) includes increases to support a much larger HIV/AIDS program and an expansion of agriculture and trade activities to reduce hunger in Africa. The request also provides additional funding for promoting prosperity in Central America and Mexico and for environment and education programs.
  • USAID has four pillars. The first is the Global Development Alliance, which provides a new model in using USAID program funds to mobilize resources from U.S. public and private sectors. Three program pillars orient USAID's programs strategically: (1) Economic Growth, Agriculture, and Trade; (2) Global Health; and (3) Democracy, Conflict, and Humanitarian Assistance.

Development Assistance (DA):

  • The FY 2003 request for DA is $2.74 billion. This account now includes not only traditional development assistance programs, but also programs previously funded from the Child Survival and Health Programs Fund. DA is directed chiefly to Africa, Latin America, and Asia, as well as to global programs.
  • Within this amount, DA programs for Economic Growth, Agriculture, and Trade total $1.1 billion and include related areas of environmental protection and basic education. The request provides increased funding for basic education; agriculture; environment; business, trade, and investment; and human resources development. Funds will support new initiatives to cut hunger in Africa and promote prosperity in Central America and Mexico.
  • DA programs for Global Health total $1.4 billion. This funding includes $500 million for HIV/AIDS bilateral programs, plus $100 million for the Global Fund to Fight AIDS, Tuberculosis, and Malaria. The request also funds programs on child survival and maternal health; family planning and reproductive health; and other infectious diseases.
  • DA programs for Democracy, Conflict, and Humanitarian Assistance total $223 million. With the inclusion of International Disaster Assistance, Transition Initiatives, and P.L. 480 Title II food aid, this pillar totals $1.7 billion. DA will fund human rights, democracy and local government, and conflict prevention programs, with a new focus on combating terrorism in Central and South Asia.

International Disaster Assistance (IDA):

  • The FY 2003 request for IDA is $235.5 million.
  • These funds support emergency relief and transitional activities provided in response to natural and manmade disasters and other emergencies often accompanied by the displacement of large numbers of people, such as the prevention of famine this year in Afghanistan.

Transition Initiatives:

  • The FY 2003 request of $55 million will support programs that bridge the gap between emergency humanitarian assistance and long-term development by conducting fast, flexible interventions in priority conflict-prone countries.
  • Funding will address the needs of countries experiencing significant political transitions or facing critical threats to basic stability and democratic reform. This assistance is an important tool in responding to crises, such as in Kosovo.

Development Credit Program:

  • In FY 2003, we are requesting $7.6 million for administrative costs for this program, which consolidates the former Urban and Environmental Credit programs with the Micro and Small Enterprise Development programs and the former Development Credit Authority program.
  • Transfer authority is requested at $18.5 million to include both FY 2002 carryover and new FY 2003 transfer authority.
  • The Development Credit Program allows USAID to use credit as a flexible development tool for a wide range of development purposes. It also increases the flow of funds to urban credit and micro and small enterprise development programs.
  • The program augments grant assistance by mobilizing private capital in developing countries for sustainable development projects. It is not intended for sovereign risk activities.

Operating Expenses (OE):

  • The FY 2003 request for USAID's Operating Expenses is $586.1 million. This account excludes funds to address physical security concerns as well as funds for the Office of Inspector General; these are requested in separate accounts below.
  • OE covers the salaries, benefits, and other administrative costs associated with USAID programs worldwide, including those managed by USAID and financed through International Disaster Assistance, the Economic Support Fund, the Support for East European Democracy Act, the FREEDOM Support Act, and P.L. 480 Title II Food for Peace Programs.
  • The OE request will maintain current staffing levels associated with USAID's presence in over 70 developing countries. Funds will address the increasing costs of providing security personnel worldwide. Funds will also continue to build the agency's financial management capabilities and strengthen staff skills with training.

Capital Investment Fund:

  • The FY 2003 request includes the establishment of a new account for capital investments with funding of $95 million.
  • The new account provides $82 million for USAID overseas construction and related costs that have become increasingly urgent in the face of new worldwide security concerns. It also includes $13 million to procure and enhance information technology.

Office of Inspector General (OIG):

  • For FY 2003, $34 million is requested as a separate appropriation to fund the activities of USAID's Inspector General. The request will provide OIG salaries and benefits for staff and support critical audit and investigative coverage.

B. Other Bilateral Economic Assistance

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

Economic Support Fund (ESF)
(including International Fund for Ireland)

2,314,896

2,224,000

2,290,000

Assistance for Eastern Europe and the
Baltic States (SEED)

674,338

621,000

495,000

Assistance for the Independent States of the
Former Soviet Union (FSA)

808,218

784,000

755,000

       

Emergency Response Fund

     

ESF

-

600,000

-

FSA

-

46,500

-

Economic Support Fund (ESF):

  • The FY 2003 ESF request of $2.29 billion supports the economic and political foreign policy interests of the United States. It focuses on the top U.S. priority - the war on terrorism - providing assistance to the front-line states and building new relationships as the campaign against global terror widens:
    • Africa - $77 million: $32 million for the Africa Regional Democracy funds to ensure free and fair elections in the region, promote peace and reconciliation in the Democratic Republic of Congo and anchor democratic change in Nigeria; $31 million for Countries in Transition to support short-term interventions in countries moving from conflict to democratic rule and countries consolidating recent gains in democratic and economic reforms, such as Sierra Leone, Ethiopia, Eritrea, and Angola; $8 million for Safe Skies to expand the airport security program to combat the increased threat of terrorism; and $6 million for regional organizations, such as SADC and the Organization of African Unity.
    • East Asia and the Pacific - $167 million, including: $60 million for Indonesia and $19 million for East Timor to strengthen democratic institutions and market-oriented economic mechanisms; $20 million for anti-corruption and peace-promoting programs in the Philippines; $17 million for Cambodia to bolster grassroots NGOs, strengthen the National Assembly, ensure fair communal elections, and begin addressing long-term education and health needs; $12 million for democracy and free market support in Mongolia; $6.5 million to lay the foundation for democratic transition in Burma; $5 million for rule of law programs in China focused on human rights and civil society; $4 million for regional women's programs; and $18 million for South Pacific Multilateral Fisheries Treaty commitments.
    • Europe and Eurasia - $44 million: $25 million for the International Fund for Ireland; $15 million for Cyprus; and $4 million for the final intake year of the Irish Visa Program, established in 1998 to support the Northern Ireland peace process and to bring youths from disadvantaged areas to the United States to develop job skills.
    • Near East - $1.624 billion to continue restructuring assistance levels in the Middle East in support of regional stability and a comprehensive peace between Israel and its neighbors. Funding includes $600 million for Israel, $615 million for Egypt, $75 million for the West Bank and Gaza, $32 million for Lebanon, and $25 million for the Iraq opposition program. The request also provides for considerable increases in economic assistance to Jordan (for a total of $250 million) and Yemen (for a total of $10 million) to support their efforts in the war on terrorism. Finally, the request continues programs to strengthen regional cooperation (MERC/ME Multilaterals), promote democracy and civil society (MEDF), and encourage economic growth and integration through increased trade and market-oriented reforms (USNAEP).
    • South Asia - $244 million, including: $200 million for Pakistan; $25 million for India to promote energy efficiency, strengthen local governance, enhance the openness of India's emerging market economy, and improve disaster preparedness; $7 million to consolidate Bangladesh's democratic institutions in the wake of successful 2001 elections, assist with opening markets, and mitigate the problem of arsenic poisoning; $6 million for Nepal for quick-impact grassroots infrastructure and employment projects to address underlying causes of the Maoist insurgency; $4 million for Sri Lanka to support rule of law, human rights, and community-level efforts to address ethnic conflict; and assistance for Afghanistan focused on rehabilitation and reconstruction, with the exact level to be determined.
    • Western Hemisphere - $96 million, including: $44 million for democratic institution building and economic growth programs in Ecuador, Bolivia, Peru, Panama, and Venezuela under an Andean regional initiative; $12 million total to support the Ecuador/Peru border and Guatemala peace processes; $12 million for reform in Mexico; $11 million for ICITAP administration of justice throughout the region; $3 million for the Third Border Initiative in the Caribbean; $7 million for democracy-building programs in the Dominican Republic and Paraguay; and $6 million for Cuban democracy programs.
    • Global - $38 million, including: $12 million for Human Rights and Democracy Funds that support innovative programs to advance democracy, human rights, and religious freedom throughout the world; $4 million for programs to eliminate sweatshop conditions in overseas factories that produce goods for the U.S. market; and $2 million for Oceans, Environment, and Science Initiatives that support negotiations and activities to further U.S. objectives.

Assistance for Eastern Europe and the Baltic States (SEED):

  • The Support for East European Democracy (SEED) Act is the foundation for U.S. assistance to Eastern Europe and the Baltic States. The FY 2003 SEED request of $495 million will help stabilize southeast Europe and support the region's transition into the European and trans-Atlantic mainstream.
  • For FY 2003, the SEED request includes $110 million for Serbia. These funds will enable the reform government to speed implementation of its economic policy agenda. They will also be used to deepen grassroots support through a community development and humanitarian needs program and to start mortgage financing.
  • For Kosovo, the request provides $85 million to continue to back the UN Interim Administration Mission in Kosovo (UNMIK) as it implements UNSC 1244. By supporting security, democratization, and respect for human rights and rule of law, UNMIK is assisting the provisional self-government. SEED funding will strengthen the administrative and financial structures necessary to revive the Kosovar economy and provide social services.
  • The request includes $50 million to help The Former Yugoslav Republic of Macedonia increase employment generation programs, work with small and medium-sized businesses, basic education, and labor deployment, as well as work with municipal governments. SEED funds will also bolster the peace settlement in Macedonia by helping to implement constitutional changes and restore inter-ethnic tolerance.
  • Funding for the Bosnia-Herzegovina program is $50 million. This amount will support a new international police force and speed the withdrawal of regular military units from SFOR. Progress continues on minority refugee returns, economic development, judicial reform, and reform of military and state institutions.
  • In Southeast Europe, SEED-funded regional programs will help build stability by fostering cooperation among neighboring countries. Regional funding of $60 million will support initiatives to curb trafficking in persons and infectious diseases (HIV/AIDS and tuberculosis); promote trade, private investment, and energy efficiency; combat crime and corruption; and strengthen democracy.

Assistance for the Independent States of the Former Soviet Union
(FREEDOM Support Act, or FSA):

  • The FY 2003 request for the FREEDOM Support Act (FSA) for the Independent States (NIS) totals $755 million. Funding underscores the continued U.S. commitment to the region and the vital role played by the front-line states in the coalition against terrorism.
  • The request includes $194 million for the republics of Central Asia and Azerbaijan, building on assistance provided in the Emergency Response Fund and the regular FY 2002 appropriation. During Operation Enduring Freedom, these countries provided basing and overflight rights, shared information on terrorist groups, cooperated in law enforcement, and blocked terrorist-related financial flows.
  • The request continues the shift of funding from core economic and democracy programs in Russia and Ukraine to the Central Asian republics and Azerbaijan begun in FY 2002 to address the region's porous borders, political instability, economic development needs, and humanitarian concerns.
  • To help sustain economic growth throughout the NIS, FSA funds will support small and medium-sized private businesses through training, exchanges, and greater access to credit. In Russia, Kazakhstan, and Ukraine, programs will support initiatives designed to facilitate growth in pro-reform regions. Programs will also support U.S. investment and trade.
  • FSA funds will promote change at the grassroots by strengthening NGOs, increasing Internet access, and improving community-level access to such social services as health care, education, and water. As freedom of the press is under threat in most countries of the region, programs will emphasize support for the independence and viability of the media.
  • FSA funds will address some of the most serious socio-economic problems in the NIS, especially in the field of health. At least $50 million will support health programs, including efforts to improve maternal and infant health, combat infectious diseases (HIV/AIDS and tuberculosis) through public awareness campaigns, and improve community health services.
  • FSA funds will continue to advance important nonproliferation goals. They will support programs to improve the functioning of the Georgian Border Guards and Customs Service ($18 million) and the Civilian Research and Development Foundation's program to fund the peaceful research projects of former NIS weapons scientists ($14 million).
  • The request will provide funding to improve the capabilities of local law enforcement agencies to deal with terrorism and other forms of organized crime. In particular, FSA programs will confront trafficking in persons by improving legislative and regulatory remedies, strengthening law enforcement and border control capabilities, and helping repatriate and treat the victims.
  • The request includes $6 million to continue a program to prevent conflict in the volatile regions of Uzbekistan, Tajikistan, Kyrgyzstan, and Kazakhstan by addressing the root causes of discontent, including lack of jobs, poor social services, and decaying infrastructure.
  • In FY 2003, the Bio Redirection program and most Export Control and Border Security programs, which have traditionally been funded under FSA, will be funded from the Nonproliferation, Anti-terrorism, Demining, and Related Programs account.

C. Independent Agencies

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

Peace Corps

     

Total Peace Corps, w/ Retirement Costs

267,275

278,043

320,228

Less Retirement Costs

(2,858)

(3,043)

(3,228)

Total Peace Corps, w/out Retirement Costs

264,417

275,000

317,000

       

Inter-American Foundation

     

Total IAF, w/ Retirement Costs

12,147

13,290

14,185

Less Retirement Costs

(173)

(183)

(185)

Total IAF, w/out Retirement Costs

11,974

13,107

14,000

       

African Development Foundation

     

Total ADF, w/ Retirement Costs

16,080

16,680

16,689

Less Retirement Costs

(115)

(138)

(147)

Total ADF, w/out Retirement Costs

15,965

16,542

16,542

       

Emergency Response Fund

     

Peace Corps

2,600

3,900

-

Peace Corps:

  • The FY 2003 request provides $320.2 million for the Peace Corps, an increase of $42.2 million over the FY 2002 level. This funding responds to greater American interest in volunteerism and will increase America's contribution to people overseas.
  • In addition to re-opening currently suspended posts, the Peace Corps will establish new programs in eight countries and place over 1,200 additional volunteers worldwide. Directing $36.3 million toward this goal, the Peace Corps will have more than 8,000 volunteers on the ground by the end of FY 2003.
  • These volunteers will assist host countries and communities in addressing local issues such as poverty reduction, education, health (including HIV/AIDS), the environment, information technology, and agriculture. Peace Corps volunteers offer a unique advantage in their broad outreach to rural areas and small villages where international projects have little or no access.
  • Other Peace Corps increases support enhancing the security of volunteers and staff overseas and implementing enterprise-wide information architecture.

Inter-American Foundation (IAF):

  • The FY 2003 request of $14.2 million for the IAF will support innovative partnerships and programs in Latin America and the Caribbean to improve economic and social conditions.
  • By encouraging the self-help efforts of grassroots organizations and local governments, the IAF strengthens democratic structures and widens participation in the development process.

African Development Foundation (ADF):

  • The FY 2003 request of $16.7 million for ADF will enable the foundation to launch new programs for HIV/AIDS prevention and mitigation. The funding will also allow ADF to expand programs in Nigeria and Eritrea and trade and investment programs in accordance with the African Growth and Opportunities Act.
  • ADF will leverage approximately $3.7 million in matching funds from African governments, other donors, and the private sector.
  • ADF plays a special role among U.S. Government agencies in developing micro and small enterprises, fostering grassroots trade and investment, improving community-based resource management, and strengthening civil society in Africa.

D. Department of State

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

International Narcotics Control and Law Enforcement (INCLE) - Base Programs

     

Total INCLE, w/ Retirement Costs

324,9721

197,703

197,713

Less Retirement Costs

(687)

(703)

(713)

Total INCLE, w/out Retirement

324,285

197,000

197,000

       

Andean Counterdrug Initiative (ACI)

-

645,0002

731,000

       

Migration and Refugee Assistance (MRA)

     

Total MRA, w/ Retirement Costs

699,002

705,556

705,565

Less Retirement Costs

(542)

(556)

(565)

Total MRA, w/out Retirement

698,460

705,000

705,000

       

U.S. Emergency Refugee and Migration
Assistance (ERMA) Fund

14,967

15,000

15,000

Nonproliferation, Anti-terrorism, Demining,
and Related Activities (NADR)

310,914

313,500

372,400

       

Emergency Response Fund

     

INCLE

-

73,000

-

MRA

-

100,000

-

NADR

-

155,700

-

Note /1 - Includes $154 million for countries covered by ACI in FY 2002.
Note /2 - Includes $20 million transferred from INCLE.

International Narcotics Control and Law Enforcement (INCLE):

  • The FY 2003 request includes $197.7 million for base programs of the Bureau of International Narcotics and Law Enforcement (INL).
  • The request provides $147 million to support counter-narcotics programs outside of the Andean region. These INL programs are effectively straightlined worldwide. They include regional programs for Latin America, Southeast Asia, and South Asia; participation in the UN Drug Control Program and other international organizations' counter-narcotics efforts; and support for drug awareness and demand reduction.
  • The request also provides $50 million for programs to counter transnational crime, including trafficking in women and children. These programs also include a center to counter international migrant smuggling/trafficking in persons; support of a Civilian Police Contingent for deployment as part of international relief efforts in post-conflict situations; an African regional anti-crime program, focused particularly on Nigeria and South Africa; and support to five International Law Enforcement Academies. These programs will be operated under performance goals that will be established.

Andean Counterdrug Initiative (ACI):

  • The FY 2003 request includes $731 million for ACI, a multi-year counterdrug assistance effort designed to sustain and expand programs funded by the FY 2000 Plan Colombia emergency supplemental.
  • ACI differs from Plan Colombia in several respects. ACI increases to 40 percent the share of counter-narcotics assistance for countries other than Colombia. The initiative also increases to 40 percent the amount of ACI funding for social and economic programs, exclusive of other economic assistance accounts. Finally, other accounts will support reforms directed toward strengthening democracy and economic growth in ACI countries.
  • FY 2003 funding for ACI provides:

(BA in millions of dollars)

Country

Interdiction

Alternative Development/
Institution Building

Total

Colombia

275

164

439

Peru

66

69

135

Bolivia

49

42

91

Ecuador

21

16

37

Brazil

12

-

12

Venezuela

8

-

8

Panama

9

-

9

       

Total

440

291

731

  • As the second year of follow-on assistance to Plan Colombia, ACI will make a significant, immediate impact on the flow of narcotics out of the Andes. Specific goals include:
    • Colombia - A prime goal in FY 2003 is to spray 200,000 hectares. Repeated spraying will deter replanting and allow the Government of Colombia to reduce coca cultivation by the end of FY 2006 to 50 percent of the 2000 level. The goal for poppy eradication is 10,000 hectares. Requested funding will result in the seizure of 40 metric tons of cocaine derivatives, the destruction of 2,000 base labs, and the dismantling of 160 cocaine labs in FY 2003.
    • Bolivia - FY 2003 goals include the eradication of all residual coca, the prevention of new plantings in the Chapare, and the elimination of all illegal coca in the Yungas.
    • Peru - FY 2003 ACI funding will permit a 22 percent increase in the number of eradication/interdiction missions flown; a drop in coca leaf prices to 1997 levels (below costs of production); abandonment of remaining coca fields; a 10 percent increase in licit crops in coca growing areas; and a reduction in coca cultivation leading to its virtual elimination by 2008.
  • ACI will support Colombia's push into the former coca-growing sanctuaries in Putumayo and elsewhere by adding a second new Army air mobile counter-narcotics (CN) brigade to expand the force for joint operations with the Colombian National Police's anti-narcotics unit (DIRAN). It will also support alternative development and assistance to internally displaced persons, maritime and aerial interdiction, the Colombian National Police's aerial eradication program with additional spray aircraft, and human rights and judicial reform in Colombia.

Migration and Refugee Assistance (MRA):

  • The FY 2003 request for MRA is $705.6 million.
  • The request includes $524 million for Overseas Assistance. This funding will support programs to protect refugees and conflict victims; meet basic needs for life and health; and resolve refugee problems through voluntary repatriation, local integration, or permanent resettlement in a third country including the United States.
  • The request for Refugee Admissions is $105 million. This reflects an increase in the number of refugee admissions and a grant increase in the reception and placement program.
  • The request for Refugees to Israel is $60 million - the same amount appropriated in FY 2002.
  • The request for Administrative Expenses is $16.6 million. This amount will support the full-year salaries and operating costs associated with 112 positions.

U.S. Emergency Refugee and Migration Assistance (ERMA) Fund:

  • The FY 2003 request includes $15 million to replenish the U.S. Emergency Refugee and Migration Assistance Fund.

Nonproliferation, Anti-terrorism, Demining, and Related Programs (NADR):

  • The Nonproliferation, Anti-terrorism, Demining, and Related Programs account provides resources to support critical security and humanitarian-related foreign policy objectives. The FY 2003 request for this account totals $372.4 million:

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

Nonproliferation and Disarmament Fund

14,967

14,000

15,000

Export Control & Related Border
Security Assistance (EXBS)

19,100

17,000

36,000

Science Centers/Bio Redirection

35,000

37,000

52,000

IAEA Voluntary Contribution

50,458

49,000

50,000

CTBT Preparatory Commission

17,598

20,000

18,200

Korean Peninsula Energy Development
Organization (KEDO)

74,879

90,500

75,000

Anti-Terrorism Assistance

38,000

38,000

64,200

Terrorist Interdiction Program

4,000

4,000

5,000

Lockerbie Trial Support

15,000

-

-

Humanitarian Demining

39,912

40,000

45,000

International Trust Fund

-

-

10,000

Small Arms Destruction

2,000

3,000

2,000

       

Total, NADR

310,914

313,500

372,400

       

Emergency Response Fund

     

Export Control and Border Related
Security (Central Asian Republics)

-

42,200

-

Science Centers/Bio Redirection

-

30,000

-

Anti-Terrorism Assistance

-

45,500

-

Terrorist Interdiction Program

-

4,000

-

CT Engagement with Allies

-

3,000

-

Israel CT Assistance

-

28,000

-

Humanitarian Demining

-

3,000

-

       

Total, ERF - NADR

-

155,700

-

    • $15 million for the Nonproliferation and Disarmament Fund (NDF), a rapid-reaction fund to meet unanticipated needs and take advantage of high-risk opportunities to achieve nonproliferation objectives.
    • $36 million for Export Control and Related Border Security Assistance (EXBS), which is designed to help prevent the proliferation of weapons of mass destruction, missile delivery systems, related goods and technologies, and other weapons to rogue states and terrorist networks. Funds provide training, equipment, and services to establish or enhance export control systems and border control capabilities and infrastructure to mitigate the illegal transit of prohibited material. The program supports activities in Russia and the Eurasian republics, India, Central and Eastern Europe, and key transit states worldwide. The increase represents a consolidation of about $20.5 million in FREEDOM Support Act/NIS-funded export control activities into the NADR account for FY 2003, and assumes continued expenditures for programs augmented in FY 2002 with supplemental appropriations.
    • $52 million for the Science Centers and Bio Redirection program. Funding for the Science Centers helps prevent former Soviet weapons experts from providing weapons of mass destruction expertise to terrorist networks or to proliferant states. Funding finances civilian research in Russia and Ukraine, Kazakhstan, Armenia, Georgia, and Uzbekistan. Funding will also support cross-regional projects, activities to promote the permanent redirection of these scientists to peaceful civilian careers, and increased oversight, audits, monitoring, and other administrative expenses due to expanded activities.
    • Funding for Bio Redirection prevents the spread of biological weapons (BW) expertise by providing former Soviet BW scientists opportunities to conduct other research and development in areas such as public health, agriculture, and environment. Funds support activities carried out by DHHS, EPA, and USDA and coordinated by an interagency working group which ensures that appropriate monitoring and oversight provisions are in place for funded projects. BW Redirect programs were previously funded through the FSA/NIS account and are being consolidated into the NADR account beginning in FY 2003.
    • $50 million for voluntary contributions to the International Atomic Energy Agency (IAEA) to support effective implementation of strengthened nuclear safeguards measures, purchase of safeguards equipment, and growth in the area of nuclear inspections. Funds will also support an expanded program to counter threats of nuclear terrorism, including expanded use of International Physical Protection Advisory Services when requested by IAEA member states, enhanced training in nuclear materials security and in countering nuclear smuggling, and upgrading nuclear regulatory infrastructures worldwide.
    • $18.2 million for the Comprehensive Nuclear Test Ban Treaty (CTBT) Preparatory Commission to pay the U.S. share for the ongoing development and implementation of the international monitoring system (IMS) to detect nuclear explosions.
    • $75 million for the U.S. contribution to the Korean Peninsula Energy Development Organization (KEDO) for administrative costs and heavy fuel oil (HFO) purchases in FY 2003. KEDO is responsible for implementing elements of the Agreed Framework between the United States and the Democratic People's Republic of Korea (DPRK) by financing and constructing light water reactors in North Korea and by providing annual shipments of heavy fuel oil to the DPRK until completion of the first light water reactor. The requested amount, plus expected contributions from other international donors, reflects the amount needed to fulfill the 500,000 metric ton commitment under the Agreed Framework based on estimates of continued moderate prices of HFO on world markets. Depending on oil prices, funding may allow the United States to retire part of the $15.5 million in KEDO's outstanding debt to Japan for previous HFO funding shortfalls.
    • $64.2 million for the Anti-Terrorism Assistance (ATA) program to support the global campaign against terrorism by providing training and equipment to coalition partners. Funds will support ongoing core ATA programs, including increased training for South/Central Asia and Middle East states, and implementation of new courses developed with resources from the Emergency Response Fund. The request also supports implementation of a new Kidnap Intervention Training course and an Advanced Crisis Response Team training course. Finally, the request includes funding to continue and expand the Weapons of Mass Destruction (WMD) Preparedness Program to help foreign government officials and "first responders" manage terrorist incidents involving weapons of mass destruction.
    • $5 million for the Terrorist Interdiction Program to support a multi-pronged border security program designed to assist selected vulnerable countries in stopping terrorists from crossing their borders or using their territory as transit points or staging areas for attacks. Funds will support up to six installations of an integrated personal identification database system and associated training with an initial focus on countries in South and East Asia, Africa, and the Middle East. Funds will also help upgrade INTERPOL's communications system to complement the database network.
    • $45 million for the Humanitarian Demining program, which supports a wide range of humanitarian mine action initiatives in nearly 40 countries. The program emphasizes landmine and unexploded ordnance (UXO) clearance, landmine surveys, and landmine/UXO awareness, although some funds are provided for training and special projects that indirectly benefit mine-affected nations. The FY 2003 increase will expand the number of landmine surveys worldwide and target priority needs in Afghanistan and other countries severely impacted by landmines and UXO.
    • $10 million to shift to the NADR account (from DoD appropriations) support for the International Trust Fund (ITF) for Demining and Mine Victims' Assistance. As with previous funding, this $10 million will be used to match dollar-for-dollar contributions from other international donors to conduct a broad range of mine action initiatives.
    • $2 million to support the third year of the Small Arms Destruction initiative, designed to eliminate stockpiles of excess small arms and light weapons left over from Cold War and post-Cold War conflicts, particularly in Eastern Europe, Central Asia, Latin America, and Sub-Saharan Africa. Destruction of these weapons contributes to U.S. force protection and regional security efforts by helping prevent the spread of illicit weapons to rebel/guerilla groups and terrorist organizations.

E. Department of the Treasury

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

Treasury Technical Assistance

5,987

6,500

10,000

Debt Restructuring

447,014

229,000

-

       

Emergency Response Fund

     

Treasury Technical Assistance

-

3,000

-

Treasury Technical Assistance:

  • The FY 2003 request for Treasury International Affairs Technical Assistance is $10 million.
  • The program provides financial advisors to countries seeking assistance in implementing significant economic reforms, especially during crucial periods of transition to market-based economies. The program supports economic policy and financial management reforms, focusing on the functional areas of budget, taxation, government debt, financial institutions, and financial crimes law enforcement.
  • In FY 2003, Treasury Technical Assistance will fund a wide range of resident and short-term advisor projects, including a program that provides expertise and training to foreign governments as they address terrorist financing activity.
  • The funding flexibility and rapid response times of this program are critical elements in helping countries combat the financing of terrorist activities.

Debt Restructuring:

  • The FY 2002 appropriation, together with FY 2001 carryover, fully funded the U.S. commitment of $600 million to the Heavily Indebted Poor Countries (HIPC) Trust Fund. Consequently, no additional funds are required in FY 2003. The HIPC Trust Fund helps regional development banks and other multilateral institutions meet the costs of debt relief.
  • The request includes authority to transfer up to $40 million from the USAID Development Assistance account for debt reduction under the Tropical Forest Conservation Act.

III. Military Assistance

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

International Military Education and Training (IMET)

57,748

70,000

80,000

Foreign Military Financing (FMF)

3,568,373

3,650,000

4,107,200

Peacekeeping Operations (PKO)

126,721

135,000

108,250

       

Emergency Response Fund

     

FMF

-

45,000

-

International Military Education and Training (IMET):

  • The FY 2003 request for IMET is $80 million.
  • IMET promotes more professional militaries around the world through training and education. The increased professionalism of militaries makes them more efficient, more effective, and more reflective of U.S. values, as well as more interoperable with American and NATO forces and regional coalitions.
  • Recipients of IMET training include foreign military personnel and civilian government and NGO personnel whose participation contributes to improved civil-military relations, civilian control of the military, and human rights.
  • Increases over FY 2002 levels reflect the U.S. policy interest in building military alliances and the international coalition against terrorism.
    • Africa - An increase of almost $1 million will boost programs in Rwanda, Togo, and Zambia, among others. It will also support a new multilateral program request for the Economic Community of West African States (ECOWAS).
    • East Asia and the Pacific - An increase of $1.2 million will provide for significant growth in the Philippines program and reinstatement of the Fiji program.
    • Europe and Eurasia - A $4.2 million increase in IMET will contribute to the growth in the breadth of NATO with the accession of new members and maintain depth in its recent members' professional cadre of military and civilian personnel. Funding is also requested for new programs in Armenia, Azerbaijan, and Yugoslavia (Serbia).
    • Near East - An increase of $2.35 million reflects significant increases for programs in Algeria, Jordan, Morocco, Oman, and Tunisia.
    • South Asia - An increase of $350,000 will provide program increases for Nepal and Bangladesh, among others.
    • Western Hemisphere - An increase of nearly $1 million for additional professional and technical training as well as courses which focus on civilian control of the military and human rights.

Foreign Military Financing (FMF):

  • The FY 2003 request for FMF is $4.107 billion. Increased funding focuses on the front-line states that are critical in the war on terrorism, continues our support for NATO expansion, and reflects a new dimension to the war on drugs in Colombia.
    • Near East - $3.6 billion, including: $2.1 billion for Israel, an increase of $60 million consistent with the agreement to increase FMF and decrease Economic Support Funds (ESF) for Israel; $1.3 billion for Egypt; and $198 million for Jordan, including an increase to support border security and counter-terrorism.
    • Europe and Eurasia - $168.7 million, including: $35 million for ongoing efforts to incorporate the most recent NATO members into the alliance and $113 million for Partnership for Peace countries in Central Europe, the Baltics, the Caucasus, and Central Asia. The request will help support programs such as defense reform, which is a crucial building block for countries where the organizational relationship between the military commands and the civilian administration needs restructuring. Funding will also permit continued implementation of Membership, Partnership, and Individual country Action Plan goals, which may include communications equipment, air defense radar, tactical vehicles, support for previous Excess Defense Article (EDA) transfers, and nuclear, biological, and chemical (NBC) equipment.
    • East Asia and the Pacific - $25 million, including: $20 million for the Philippines for the second year of a multi-year effort to help sustain Philippine military capability, particularly in their effort to address Islamic terrorists, and aid in correcting defense budgetary and logistical shortcomings; $2 million to continue support for the East Timor Defense Force; and $1 million to complete the border communications program in Mongolia.
    • South Asia - $103 million, including: $50 million each for Pakistan and India for the war on terrorism and $3 million for Nepal to counter the Maoist insurgency and terrorism.
    • Western Hemisphere - $115 million, including: $98 million for Colombia's effort to defend its economy by supporting a brigade to protect its oil pipeline (Colombia is a strategic supplier of U.S. imported oil); $4 million for WHA Regional Stability to help support Bolivia, Ecuador, Panama, and Peru in sustaining and expanding the capabilities of militaries through force modernization, training, and equipment and enabling them to respond to spillover effect of the drug interdiction effort; $5 million for WHA Conflict Prevention Response to increase the capabilities of key countries such as Chile, Argentina, Bolivia, and Uruguay that participate in worldwide peacekeeping operations and humanitarian and disaster assistance operations.
    • Africa - $18.5 million, including: $2 million for a new Military Health Affairs program that will complement Department of Defense (DoD) training efforts to address the HIV/AIDS crisis facing the militaries of Africa; $4.5 million for African regional stability, which includes funding for Botswana, a stable country which plays a role in advancing U.S. interests in Southern Africa, and Kenya, where U.S. interests in Sudan are advanced; $6 million to continue engagement with the Nigerian military on reform, modernization, and democratization; and $6 million to continue engagement with the South African military, including assistance in C-130 fleet sustainment, defense reform, and EEO activities.
    • Global - $47 million, including: $4 million for Enhanced International Peacekeeping Capabilities, which provides assistance to key countries to improve their peacekeeping capabilities, creating a bigger pool of potential peacekeepers and reducing dependence on U.S. forces; $37 million for DoD costs for the administration of global grant military assistance programs; and $6 million for new requirements.

Peacekeeping Operations (PKO):

  • The Administration is requesting $108 million for PKO in FY 2003.
  • PKO funds are designed to advance international support for voluntary multinational efforts in conflict resolution, including support for international missions in response to emerging crises. These funds promote involvement of regional organizations and help leverage support for multinational efforts where no formal cost-sharing mechanisms exist.
  • The PKO request provides $30 million for Africa Regional Peacekeeping Operations. These funds help meet a variety of peacekeeping needs on the African continent. Funds will assist ECOWAS and other African countries committed to providing peacekeeping troops. Funds will also assist efforts of the Joint Military Commission (JMC) to maintain peace in the Democratic Republic of Congo, including disarming, demobilizing, and reintegrating combatants, and efforts by the Organization of African Unity (OAU) to support military observers in Ethiopia and Eritrea.
  • The request provides $10 million to initiate a comprehensive U.S. crisis response training program in Africa. Building on the achievements of ACRI, this successor program will enhance African peacekeeping and humanitarian relief capacity although at a reduced level of funding. This program will be a streamlined peacekeeping/humanitarian relief training course tailored to recipient countries' needs. Where possible, it will emphasize training African trainers. The program will increase the number of countries receiving common training and equipment for peacekeeping operations. At the same time, it will provide the basis for lethal peace enforcement training. It will also include an annual sustainment event that exercises recipient countries' peacekeeping skills. Potential recipients in FY 2003 include (but are not limited to) Ghana, Kenya, Senegal, Tanzania, and Botswana.
  • The request includes $47 million for Organization for Security and Cooperation in Europe (OSCE) peacekeeping activities in the Balkans and OSCE preventive diplomacy missions elsewhere in Europe and countries in the Caucasus and Central Asia.
  • The request also includes $16.4 million to continue the Administration's commitment to the Multinational Force and Observers (MFO) in the Sinai and $5 million to continue support for U.S. Civilian Police (CIVPOL) assigned to the UN Transitional Administration in East Timor (UNTAET).

IV. Multilateral Economic Assistance

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

International Financial Institutions

     

Global Environment Facility (GEF)

107,762

100,500

177,813

International Development Association (IDA)

773,295

792,400

874,338

Multilateral Investment Guarantee Agency

9,978

5,000

3,631

Asian Development Fund

71,842

98,017

147,386

African Development Bank

6,087

5,100

5,104

African Development Fund (AfDF)

99,780

100,000

118,073

European Bank for Reconstruction and
Development

35,700

35,779

35,805

IADB - Multilateral Investment Fund

9,978

-

29,591

Inter-American Investment Corporation

24,945

18,000

30,352

International Fund for Agricultural Development

4,989

20,000

15,004

Arrears

[10,477]

-

[177,718]

Subtotal, IFIs

1,144,356

1,174,796

1,437,097

       

International Organizations and Programs
(IO&P)

185,591

208,500

310,4001

Note /1 - Includes UNICEF funding, which was previously appropriated in Child Survival.

International Financial Institutions (IFIs):

  • The FY 2003 request includes $1.26 billion for scheduled annual U.S. commitments to IFIs. This includes funding for the first year commitment of three new replenishments: $850 million for IDA, $118 million for AfDF, and $107.5 million for GEF. The three-year pledge to IDA is subject, in part, to a set of performance indicators tied to increased contributions in 2004 ($950 million) and 2005 ($1.050 billion).
  • The request also includes $177.7 million to clear one third of outstanding U.S. arrears to IFIs as part of a three-year payment plan to eliminate all U.S. arrears by FY 2005.
  • IFIs lend to and invest in developing and transition economies and private sector enterprises in countries where risks are too high for private financing alone and where leverage is needed to encourage private financing.
  • Bank policies and lending programs reflect U.S. priorities in promoting growth, increasing productivity, and reducing poverty in developing countries.
  • IFIs support U.S. foreign policy initiatives, including combating terrorism, in Eastern Europe and the NIS, Latin America, Asia, Africa, and the Middle East.

International Organizations and Programs (IO&P):

  • The FY 2003 request of $310.4 million for IO&P will fund U.S. voluntary contributions to international organizations and programs addressing global challenges through international cooperation.
  • Voluntary contributions from IO&P generally provide core financial support to over 20 international organizations and programs. While other U.S. funds may be available, their use is normally restricted to specific activities and program purposes.
  • The request includes $120 million for the United Nations Children's Fund (UNICEF). In FY 2002, funding for UNICEF was requested and appropriated in Child Survival. This program accounts almost entirely for the increase over the FY 2002 IO&P enacted level.
  • The request includes $100 million for the UN Development Program (UNDP). UNDP has been designated to help lead the multilateral effort for reconstruction in Afghanistan. UNDP coordinates UN assistance for sustainable development in countries around the world, including those where the United States does not have a bilateral program.
  • The request also provides funding for other organizations, including the Montreal Protocol Multilateral Fund ($23 million), UN Environment Program ($10 million), and International Conservation Programs ($6 million).
  • The FY 2003 IO&P request does not include funding for the World Food Program (WFP). This is requested instead in P.L. 480 Title II as part of an overall consolidation of WFP funding.

DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE,
THE JUDICIARY, AND RELATED AGENCIES (CJS)

I. Department of State

A. Administration of Foreign Affairs

State Programs

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

Diplomatic and Consular Programs (D&CP)

     

Ongoing Operations

2,830,522

3,220,783

3,466,023

Worldwide Security Upgrades

409,098

487,735

553,000

Total D&CP, w/ Retirement Costs

3,239,620

3,708,518

4,019,023

Less Retirement Costs - D&CP Ops

(72,446)

(78,506)

(81,844)

Total D&CP, w/out Retirement Costs

3,167,174

3,630,012

3,937,179

       

Capital Investment Fund (CIF)

96,787

203,000

177,000

       

Emergency Response Fund

     

D&CP - Worldwide Security Upgrades

390

135,600

-

CIF

7,500

7,500

-

Overview:

  • The tragic events of September 11 changed the world. The campaign against global terrorism has since engaged the United States - and will continue to do so far into the future. In the context of this campaign, the conduct of the nation's foreign affairs has taken on greater urgency and heightened importance.
  • The Department of State has been at the forefront of the effort to manage the international coalition, while continuing to advance U.S. foreign policy interests worldwide. This has required the application of intense, sustained diplomatic force - and demonstrated the necessity of having a Department with the full capacity to deliver it.
  • The FY 2003 request will build on initiatives to get the right people, adequate security and facilities, and modern information technology to meet the nation's needs in this new world. Requested funding will also provide increases for key components of the State Department's operations and infrastructure and for vigorous engagement through public diplomacy and international organizations.

Diplomatic and Consular Programs (D&CP):

  • The FY 2003 request for D&CP, the State Department's chief operating account, totals $4.019 billion.
  • D&CP supports the diplomatic activities and programs that constitute the first line of offense against threats to the security and prosperity of the American people. Together with Machine Readable Visa and other fees, it funds the operating expenses and infrastructure required to carry out U.S. foreign policy in more than 260 locations around the world.
  • The FY 2003 request provides $3.446 billion in D&CP for ongoing operations. Increased funding will enable the State Department to sustain critical initiatives to improve diplomatic readiness, particularly in human resources.
  • The United States must have the right people in the right place at the right time with the right skills to advance national interests effectively. FY 2002 appropriations provided funding for the first year of a three-year strategic plan - the Diplomatic Readiness Initiative - to recruit, hire, train, and deploy the additional professionals needed around the world. With new D&CP funding in FY 2003 of $100 million, the State Department will add 399 professionals and sustain a work environment that will help attract and retain talent.
  • The request includes $52 million to establish a Center for Anti-terrorism and Security Training (CAST). The center will provide a consolidated tactical training capability, replacing the seven different facilities the State Department must currently use. When fully operational, it will train State Department security personnel and 7,500 law enforcement personnel from coalition partners annually in advanced anti-terrorism and security measures.
  • The request also includes increases of $20 million designated to meet the final year of U.S. obligations under the Pacific Salmon Treaty and $81.8 million for retirement costs that in previous years were charged to central Federal accounts.
  • The FY 2003 request provides $553 million in D&CP for Worldwide Security Upgrades, an increase of $65.3 million over last year. This total includes $418.5 million to sustain worldwide security programs for guard protection, physical security equipment and technical support, information and system security, and security personnel and training (including $30 million for ongoing costs related to additional diplomatic security staff funded in the Emergency Response Fund). The total for Worldwide Security Upgrades also includes $74 million for the perimeter security enhancement program for 243 posts - an increase from the original 232 posts - and $60.5 million for improvements in domestic and overseas protection programs, including 134 additional security professionals.

Capital Investment Fund (CIF):

  • The FY 2003 request provides $177 million for the Capital Investment Fund, the State Department's principal central funding for information technology and communications systems enhancements. The decrease of $26 million in the CIF from FY 2002 appropriations reflects non-recurring investments.
  • The CIF will continue to support priority projects, such as the initiative to extend classified connectivity to every post that requires it, adding new posts and replacing obsolete equipment posts are still using for classified operations. Other vital initiatives include expanding desktop access to the Internet for State Department employees around the world and the Department's intranet for sensitive but unclassified content.

Embassy Security, Construction, and Maintenance

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

Worldwide Security Upgrades

     

Capital Security Projects

513,867

665,000

608,550

Compound/Other Security

147,674

150,960

146,450

Subtotal, Worldwide Security Upgrades

661,541

815,960

755,000

Non-security Construction

-

15,000

50,000

Operations

418,923

445,944

503,011

Total ESCM, w/ Retirement Costs

1,080,464

1,276,904

1,308,011

Less Retirement Costs - ESCM Ops

(2,864)

(2,944)

(3,011)

Total ESCM, w/out Retirement Costs

1,077,600

1,273,960

1,305,000

       

Emergency Response Fund

     

ESCM - Worldwide Security Upgrades

-

52,850

-

Embassy Security, Construction, and Maintenance (ESCM):

  • The FY 2003 request for ESCM is $1.308 billion. This total, which represents an increase of $34 million over the FY 2002 level, reflects the Administration's continuing commitment to provide secure, safe, and functional U.S. diplomatic facilities around the world.
  • For ESCM Worldwide Security Upgrades, the Administration is requesting $608.6 million to support the next tranche of urgent, security-driven projects. These include construction of new State office buildings in Astana, Bamako, and Panama City; fitout of newly acquired buildings in Bridgetown, Frankfurt, and Kingston; and design or construction of new annexes in Athens, Moscow, and Tirana. An additional $82 million is requested in the USAID Capital Investment Fund for construction of USAID facilities at high-risk posts. The request for Worldwide Security Upgrades will also provide $146.5 million to continue strengthening compound and perimeter security at vulnerable posts.
  • For non-security construction, the ESCM request includes $50 million to continue design and pre-construction activities for the new office building project in Beijing.
  • For ESCM operations (including headquarters), the Administration is requesting $503 million. This funding covers central planning and development for major overseas facilities; real estate and property management; project execution; facility management and rehabilitation, leaseholds, maintenance, and repairs; information management and support; and domestic facilities, including the renovation of the Harry S Truman Building. The funding also includes $3 million for retirement costs that in previous years were charged to central Federal accounts.

Educational and Cultural Exchange Programs

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

Educational and Cultural Exchange Programs

     

Total ECE, w/ Retirement Costs

233,242

238,718

247,063

Less Retirement Costs

(1,666)

(1,718)

(1,757)

Total ECE, w/out Retirement Costs

231,576

237,000

245,306

Educational and Cultural Exchange Programs (ECE):

  • The FY 2003 request for ECE of $247.1 million will fund some of the U.S. Government's most prominent international exchanges.
  • Authorized by the Mutual Educational and Cultural Exchange Act of 1961 (Fulbright-Hays Act), as amended, these strategic activities build mutual understanding and strengthen relations between the United States and other countries. They establish the trust, confidence, and international cooperation necessary to advance the full range of U.S. national interests.
  • The request provides $141.5 million for Academic Programs. These include the J. William Fulbright Educational Exchange Program for exchange of students, scholars, and teachers and the Hubert H. Humphrey Fellowship Program for academic study and internships in the United States for mid-career professionals from developing countries. They also include programs to promote university partnerships, English teaching abroad, foreign student advising, and the North-South Center.
  • The request provides $73 million for Professional and Cultural Exchanges. These include the International Visitor Program, which supports travel to the United States by current and emerging leaders to obtain firsthand knowledge of American politics and values, and the Citizen Exchange Program, which partners with U.S. non-profit organizations to support professional, cultural, and grassroots community exchanges. They also include the Congress-Bundestag Youth Exchange and the Mike Mansfield Fellowship programs.
  • The ECE request includes $1.8 million for retirement costs that in previous years were charged to central Federal accounts

Other State Programs

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

Office of Inspector General

     

Total OIG, w/ Retirement Costs

29,891

30,503

30,791

Less Retirement Costs

(1,464)

(1,503)

(1,527)

Total OIG, w/out Retirement Costs

28,427

29,000

29,264

       

Representation Allowances

6,485

6,485

9,000

Protection of Foreign Missions and Officials

15,433

9,400

11,000

Emergencies in the Diplomatic and Consular Service

5,465

6,500

15,000

Payment to the American Institute in Taiwan

16,309

17,044

18,817

Repatriation Loans Program Account

1,192

1,219

1,219

Payment to the Foreign Service Retirement
and Disability Fund1

[131,224]

[135,629]

[138,200]

       

Emergency Response Fund

     

EDCS

41,000

10,000

-

Note /1 - Mandatory funding.

Office of Inspector General (OIG):

  • The FY 2003 request of $30.8 million will support OIG activities, including audits, investigations, and inspections of worldwide operations and programs of the Department of State and the Broadcasting Board of Governors. OIG activities assist in improving the economy, efficiency, and effectiveness of operations, as well as detecting and preventing fraud, waste, and mismanagement. This request includes $1.5 million for retirement costs that in previous years were charged to central Federal accounts

Representation Allowances:

  • The FY 2003 request of $9 million will reimburse diplomatic and consular personnel in part for officially representing the United States abroad and before international organizations. The increase of $2.5 million over the FY 2002 level will partially restore the buying power that has been lost in this account during the last 13 years.

Protection of Foreign Missions and Officials:

  • The FY 2003 request of $11 million in two-year funds will provide extraordinary protection for international organizations and foreign missions and officials in the United States.
  • The increase of $1.6 million in this account over last year's level reflects new protection needs across the country following the terrorist attacks of September 11. They include additional fixed guard posts and increased staffing requirements.

Emergencies in the Diplomatic and Consular Service (EDCS):

  • The FY 2003 request of $15 million increases support for the EDCS account by $8.5 million over the FY 2002 level to help meet emergency requirements in the conduct of foreign affairs.
  • The request will allow for reimbursements for hostage rescue contingencies. This account also covers the evacuation of American officials and their families from areas of political unrest or natural disaster, and other activities.

Payment to the American Institute in Taiwan (AIT):

  • At $18.8 million, the FY 2003 request will fund the contract with AIT for economic and commercial services, cultural and information programs, and travel documents and services for Americans and the people on Taiwan.

Repatriation Loans Program Account:

  • The requested funding of $1.2 million will help provide emergency loans to assist destitute Americans abroad who have no other source of funds to return to the United States. They include travelers without money because of theft, illness, or accident, as well as Americans residing abroad caught in disasters or needing to escape abusive situations.

B. International Organizations

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

Contributions for International Peacekeeping
Activities (CIPA)

844,139

844,139

725,981

Contributions to International Organizations (CIO)

868,917

850,000

891,378

Contributions for International Peacekeeping Activities (CIPA):

  • The FY 2003 request for CIPA totals $726 million. This funding level will pay the U.S. share of assessed United Nations peacekeeping budgets.
  • The request reflects lower UN peacekeeping assessment rates, projected termination of operations in Bosnia, anticipated reduction of operations in East Timor and Sierra Leone, and the assumption that the statutory 25 percent peacekeeping cap will be eliminated.
  • CIPA supports U.S. interests where UN peacekeeping missions assist in ending conflicts, restoring peace, and strengthening regional stability. Funding is requested in FY 2003 to support peacekeeping missions in Kosovo, Cyprus, Georgia, East Timor, Africa (Western Sahara, Sierra Leone, Ethiopia/Eritrea, and Democratic Republic of Congo), and the Middle East (Golan Heights, Lebanon, and Iraq/Kuwait). In addition, funds are requested to support the activities of the War Crimes Tribunals for Yugoslavia and Rwanda.
  • Acting through the United Nations allows the United States to share the risks and costs of responding to international crises. Funding the full U.S. share of assessed UN peacekeeping budgets ensures continued American leadership in shaping the international community's response to developments that threaten international peace and security.
  • The Administration requests that 15 percent of these funds be appropriated as "two-year funds" because of the unpredictability of requirements in this account and the nature of multi-year operations with mandates overlapping U.S. fiscal years.

Contributions to International Organizations (CIO):

  • The FY 2003 request for CIO totals $891.4 million. It provides full funding, consistent with statutory restrictions, of U.S. assessed contributions to 43 international organizations.
  • The request recognizes U.S. international obligations and reflects the President's commitment to maintain the financial stability of the United Nations and other international organizations.
  • The international organizations funded by the CIO appropriation further U.S. economic, political, social, and cultural interests. In addition to the United Nations, they include the World Health Organization, the North Atlantic Treaty Organization, the International Atomic Energy Agency, and the Organization for Economic Cooperation and Development (OECD).
  • Membership in international organizations benefits the United States by building coalitions and pursuing multilateral programs that advance U.S. interests. These include promoting economic growth through market economies; settling disputes peacefully; encouraging non-proliferation, nuclear safeguards, arms control, and disarmament; adopting international standards to facilitate international trade, telecommunications, transportation, environmental protection, and scientific exchange; and strengthening international cooperation in agriculture and health.
  • In addition to funds to pay U.S. assessments, the request includes $8 million for the U.S. share of estimated costs of the detailed design phase of the UN Capital Master Plan and $7.7 million to fund the U.S. share of 2003 costs of the OECD headquarters renovation project.

C. Related Appropriations

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

The Asia Foundation

9,230

9,250

9,444

East-West Center

13,470

14,000

14,280

National Endowment for Democracy

30,931

33,500

36,000

Eisenhower/Israeli Arab Exchange Programs

873

875

875

The Asia Foundation:

  • The Asia Foundation is a non-governmental grant-making organization with a sustained presence in Asia and the Pacific. Its programs complement official efforts to advance U.S. interests in the region.
  • The FY 2003 request of $9.4 million will enable The Asia Foundation to support local groups and hands-on programs that strengthen democratic institutions and leadership, develop non-governmental and regional organizations, and advance the rule of law and human rights. In response to the attacks of September 11, the foundation will expand activities that contribute to the stability of key Asian countries and reduce the threat of extremism.

East-West Center:

  • The Center for Cultural and Technical Interchange Between East and West was established by Congress in 1960. Located in Hawaii, it promotes better relations and understanding between the United States and nearly 60 nations of Asia and the Pacific.
  • The FY 2003 request of $14.3 million will help support the center's programs of cooperative study, training, and research - programs directed toward a region with more than 50 percent of the world's population. These advance long-term U.S. interests and multilateral needs, including strengthening democracy and human rights and encouraging economic growth and security.

National Endowment for Democracy (NED):

  • The National Endowment for Democracy is a private non-profit organization created in 1983 to strengthen democratic institutions and processes around the world. NED makes grants to numerous U.S. organizations for programs in such areas as labor, open markets, political party development, human rights, rule of law, and independent media.
  • The FY 2003 budget request for NED of $36 million represents an increase of $2.5 million over last year's level. The additional funding will be used to enhance programs in the Muslim world.
  • NED's democracy-building programs in Africa, Asia, Central and Eastern Europe, the NIS, and Latin America - as well as the Middle East - will support countries in transition, strengthen civil society, assist democratic activists in authoritarian countries, encourage free market reforms, and develop regional networks.

Eisenhower/Israeli Arab Exchange Programs:

  • The Eisenhower Exchange Fellowship Program promotes international understanding by bringing rising leaders to the United States, and sending their American counterparts abroad, on custom-designed professional programs.
  • The Israeli Arab Scholarship Program fosters mutual understanding by enabling Arab citizens of Israel to study and conduct research in the United States.
  • Interest and earnings from respective trust funds - estimated for FY 2003 at $500,000 and $375,000 - support these two programs.

II. Broadcasting Board of Governors

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

International Broadcasting Operations (IBO)

413,233

437,579

477,823

Broadcasting to Cuba (OCB)

22,531

25,398

25,923

Broadcasting Capital Improvements (BCI)

23,863

25,900

13,740

Total BBG, w/ Retirement Costs

459,627

488,877

517,486

Less Retirement Costs - IBO

(8,712)

(9,345)

(9,925)

Less Retirement Costs - OCB

(485)

(526)

(561)

Total BBG, w/out Retirement Costs

450,430

479,006

507,000

       

Emergency Response Fund

     

IBO

-

21,450

-

BCI

-

26,400

-

International Broadcasting Operations (IBO):

  • The FY 2003 request includes $477.8 million for U.S. Government non-military international broadcasting operations. Through the IBO account, the Broadcasting Board of Governors (BBG) funds operations of the Voice of America (VOA), Radio Free Europe/Radio Liberty (RFE/RL), Radio Free Asia (RFA), and all related program delivery and support activities.
  • The IBO request fully funds the continuation costs of the emergency supplemental funding received in 2002 to surge broadcasts to South/Central Asia and the Middle East and to build AM transmitting facilities in Egypt and Djibouti. In addition, the request includes funding for the first full year of operation of the BBG's Middle East Radio Network (MERN).

Broadcasting to Cuba (OCB):

  • The FY 2003 request of $25.9 million provides for continuing Radio Marti and TV Marti operations, including salary and inflation increases. The request includes full funding to support OCB transmission.

Broadcasting Capital Improvements (BCI):

  • The FY 2003 request of $13.7 million for Broadcasting Capital Improvements will maintain program delivery technical support and fund maintenance repairs and minor improvements to the BBG's worldwide transmission network.

III. Other Programs

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

International Trade Commission

     

Total ITC, w/ Retirement Costs

50,129

53,705

56,290

Less Retirement Costs

(2,135)

(2,265)

(2,290)

Total ITC, w/out Retirement

47,994

51,440

54,000

       

Foreign Claims Settlement Commission

     

Total FCSC, w/ Retirement Costs

1,157

1,191

1,194

Less Retirement Costs

(52)

(55)

(58)

Total FCSC, w/out Retirement

1,105

1,136

1,136

       

Pacific Charter Commission

-

1,500

-

International Trade Commission (ITC):

  • The International Trade Commission is an independent, nonpartisan, Federal agency with a wide range of trade-related mandates. The ITC makes determinations with respect to unfair trade practices in import trade, as well as import injury and intellectual property-based investigations. It also exercises broad investigative powers on matters of trade, conducts economic research and fact-finding investigations of trade issues, and provides technical information and advice on trade matters to Congress and the Administration.
  • At $56 million, the FY 2003 request for the ITC will fund activities related to these mandates.

Foreign Claims Settlement Commission:

  • The Foreign Claims Settlement Commission adjudicates the claims of American nationals (individuals and corporations) arising out of the nationalization, expropriation, or other taking of their property by foreign governments, pursuant to the International Claims Settlement Act of 1949 and other statutes.
  • The FY 2003 budget request of $1.1 million will enable the commission to continue this function, while also providing technical assistance to the Departments of State and the Treasury and to the public in connection with international and war claims programs.

AGRICULTURE, RURAL DEVELOPMENT,
FOOD AND DRUG ADMINISTRATION,
AND RELATED AGENCIES

Department of Agriculture

P.L. 480 Title II

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

P.L. 480 Title II

835,159

850,000

1,185,000

       

Emergency Response Fund

     

P.L. 480 Title II

-

95,000

-

P.L. 480 Title II:

  • Title II of the Agricultural Trade Development and Assistance Act of 1954 (Public Law 480) is requested by the Department of Agriculture and administered by USAID.
  • The FY 2003 request for Title II is $1.185 billion. This includes a 39 percent increase in USAID-managed food assistance resources that are no longer dependent on surplus commodities.
  • Through this title, the United States provides resources to private voluntary organizations and the World Food Program to help improve the food security of needy people through the direct distribution of agricultural commodities or the use of local currencies generated by the sale of these commodities in the recipient country.
  • Title II also provides U.S. food assistance in response to emergencies and disasters around the world.

DEPARTMENTS OF LABOR,
HEALTH AND HUMAN SERVICES, AND EDUCATION,
AND RELATED AGENCIES

United States Institute of Peace

 

(BA in thousands of dollars)

FY 2001

Actual

FY 2002

Estimate

FY 2003

Request

United States Institute of Peace

15,000

15,104

16,200

United States Institute of Peace (USIP):

  • USIP was created by Congress in 1984 to strengthen the nation's capabilities to promote peaceful resolution of international conflicts.
  • The FY 2003 request of $16.2 million will enable the institute to implement a series of inter-faith dialogues in the Middle East and South Asia and to maintain its current programs, including its emphasis on reconciliation in the Balkans and elsewhere.
  • USIP program activity includes policy assessments for the executive and legislative branches, rule of law projects and interfaith dialogues in zones of conflict, conflict resolution training for foreign affairs professionals, summer institutes and educational materials for teachers at high school and undergraduate levels, grants and fellowships, publications, a research library, a national student essay contest, and other programs to increase public understanding of the nature of international conflicts.

ACCOUNT TABLES

Development Assistance / Child Survival and Health Programs
Economic Support Fund (ESF)
Assistance for Eastern Europe and the Baltic States (SEED)
Assistance for the Independent States of the Former Soviet Union (FREEDOM Support Act, or FSA)
International Narcotics Control and Law Enforcement (INCLE)
Nonproliferation, Anti-terrorism, Demining, and Related Programs (NADR)
International Military Education and Training (IMET)
Foreign Military Financing (FMF)
Peacekeeping Operations (PKO)
International Organizations and Programs (IO&P)
Contributions for International Peacekeeping Activities (CIPA)
Contributions to International Organizations (CIO)

[end]



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