On July 9, the House and Senate took actions on the FY2010 Foreign Aid Appropriations bill, providing a clearer outline of the final shape of the U.S. global development budget for next year and how ONE priority programs are likely to fare. Of particular importance was the House defeat by wide margins of two cutting amendments that combined, would have slashed over $2.6 billion from the bill, including resources for global health, the International Development Association, and the African Development Fund.

The overall size of the bills is nearly identical — $48.8 billion in the House and $48.7 billion in the Senate – roughly a net cut of $1.35 billion, or 2.5%, from President Obama’s request after taking into account money “forward-funded” in FY2009.

On specific programs, there are similarities as well as major differences.

Global Health: The House and Senate provide $7.8 billion, about 2.5% more than the request, but with slightly different points of emphasis:

• Global Fund – The House appropriates $750 million and the Senate $700 million. Each is higher than the $600 million request.
• Bilateral HIV/AIDS – Both bills are at the requested level of $5 billion.
• Malaria – Both bills are at the requested amount of $585 million.
• Tuberculosis – The House provides $252 million compared to the Senate’s $200 million and the Administration’s $173 million request.
• Maternal and Child Health – The Senate supports $555 million while the House provides $538 million; $523 million is the request.
• Reproductive Health – Each bill includes $520 million, 10% above the request.

Millennium Challenge Corporation: Repeating funding decisions in recent years, the House provides $1.4 billion, only slightly less than the request, while the Senate pares spending back for the MCC to $925 million. Each bill endorses new compacts for Jordan, the Philippines, and Malawi, but the Senate recommends using funds that have been frozen under suspended compacts for Nicaragua and Armenia as sources of added MCC revenue in FY2010.

Food Security/Agriculture Development: House and Senate bills both reduce President Obama’s $1.36 billion Food Security initiative promoted at the G-20 and G-8 Summits. The House provides $1 billion, compared to $1.2 billion in the Senate. Because each bill provides most of the requested funds for Afghanistan and Pakistan, it is likely that cuts in Food Security funding will be absorbed largely by Africa and Latin America.

Basic Education: The House and Senate are far apart on education with the House recommending $1 billion, slightly higher than the request, while the Senate proposes $800 million.

International Development Association (IDA): The Senate backs the Administration’s full $1.32 billion request while the House cuts $85 million of arrearage payments owed to IDA.

-Larry Nowels

This afternoon, I watched a webcast on the global health component of President Obama’s proposed budget for 2010 hosted by the Kaiser Family Foundation. ONE’s Senior Director for U.S. Government Relations, Tom Hart, sat on the panel which included distinguished guests such as Zeke Emanuel from the Office of Management and Budget, Tim Westmoreland from Georgetown Law and the House Committee on Energy and Commerce, and Allen Moore of the Stimson Center.

Here are some highlights:

Zeke Emanuel: President Obama’s commitment of $63 billion to global health over the next six years represents a major mark for what he hopes to accomplish during his Administration. The themes underlying the new Global Health Initiative indicate that health cannot be addressed one disease at a time, especially in the developing world. Thinking holistically about health means that maternal and child health, neglected tropical diseases, and health system infrastructure needs to be considered in an integrated manner parallel to interventions for HIV/AIDS, malaria, and tuberculosis. This does not mean that priority diseases are no longer a concern of the Administration – HIV/AIDS is not disappearing off the map. Nearly 75% of the proposed 2010 budget for global health goes to PEPFAR and as the Global Health Initiative progresses, the PEPFAR program will have 70% of the total. While it is not possible to solve all health problems at once, health problems have effects on the entire system. This must be kept in mind as the response to health crises in developing countries shifts from emergency to sustainability. An inter-agency task force is meeting to discuss how best to coordinate the U.S. agenda on global health, and Congress has requested a strategic plan for PEPFAR which will be released in October.

Tim Westmoreland: This budget year is unlike any other because of the financial crisis. While the total federal budget will be approximately $3.5 trillion, a lot of this is already claimed for mandatory programs like insurance. There is about $1.2 trillion available for discretionary spending programs, and global health might be about one half of one percent of this piece of the budget pie. However, Congress has already called for significant cuts to discretionary spending, so it will be hard to find additional money for global health. The President’s budget proposal calls for growth in the resources available for global health. However, even this will fall behind the growth in diseases, and what is needed to address them. It’s the role of advocates not to accept what has been laid out and to talk about what the need is. Percentage growth over an inadequate base is not a good place to start. “Bankers aren’t censoring themselves and advocates shouldn’t either.”

Tom Hart: While the proposal is not enough, in the context of the financial crisis, President Obama’s announcement of the Global Health Initiative was welcome. Over a six year timeframe, it looks possible to achieve good progress with a more comprehensive global health approach, even though some details have yet to be fleshed out. However, it is more sobering for 2010. ONE is looking forward to working with Congress to improve the funding levels in 2010 for PEPFAR and Global Fund as well as to realize the proposals made for the coming six years. When we do this, we need to be politically shrewd and keep the discussions vibrant, and interesting. PEPFAR focused on real goals (treat 2 million people, prevent 7 million infections, and care for 10 million people infected with HIV). ONE encourages the Administration to do the same with this $63b health initiative because otherwise the funding numbers become the end in themselves. Also, the link to national security is a powerful one, and Secretary Gates has been one of the biggest advocates of this.

Allen Moore: The unique economic environment puts even more pressure than normal on increasing foreign assistance. Members of Congress and Senators have to respond to priorities of people back home – spending overseas appears as not focusing on home priorities. All these factors are exacerbated now. As Congress heads into Appropriations, it is clear there is a relatively small amount of money that will go into subcommittees. These subcommittees will pay attention to Obama’s priorities but also have their own priorities to be responsive to constituents. Advocates have to know the facts to be effective in calling for increases for global health.

-Lisa Fleisher

Yesterday, President Obama released his request for FY2010, which outlined a $2.9 billion increase in global poverty-focused programs.

After reviewing the budget, ONE welcomes the administration’s requests for substantial increases for malaria programs, agricultural development, food security and the Millennium Challenge Account, as well as their overall long-term commitment to global health. We’re disappointed, however, that the budget flat lined support for the Global Fund and made a relatively small increase to the President’s Emergency Plan for AIDS Relief (PEPFAR) for FY2010.

Below, we’ve crafted a report card to make all this information a little easier to follow.

ONE members are now calling on Congress to fully fund these budget requests.

Check out our press release here.

-Virginia Simmons

Two news updates from the Chronicles of Philanthropy sum up much of the reaction to President Obama’s 2010 budget from U.S. international development and advocacy NGOs. The headline from the first, which ran yesterday, reads “Global Health Groups Upset by President’s Budget Proposal.” Today, the second ran. It reads “International Antipoverty Groups Pleased with Budget.” Both articles include comments from ONE partner organizations and people ONE works with regularly.

The reactions in many ways mirror ONE’s analysis of the President’s budget proposal; welcoming and applauding the President’s comprehensive approach to alleviating global poverty and some big increases for agriculture and combating malaria. At the same time, ONE has serious concerns about the flatlining of funding for the Global Fund and small increase for PEPFAR.

Following is a round up of the reactions so far to the 2010 budget proposal from ONE Partners and other organizations we work with regularly. Many organizations are still looking at the numbers before they comment. We’ll update the round up when more come out.

InterAction: PRESIDENT OBAMA FULFILLS PROMISE TO BEGIN REBUILDING HUMANITARIAN AND DEVELOPMENT CAPABILITIES WITH DETAILED 2010 BUDGET REQUEST

Bread for the World: FY 2010 Budget Underscores Obama’s Commitment to Address Hunger and Poverty

Friends of the Global Fight Against AIDS, Tuberculosis and Malaria: President Obama Releases FY2010 Budget: Requests $900 Million for the Global Fund

Physicians for Human Rights: PHR Extremely Disappointed in Administration’s Inaction on Syringe Exchange Funding. Urges Stronger Commitment to Global Health Funding, Including Global AIDS Efforts

Global AIDS Alliance: President Obama’s FY10 Budget Breaks His Campaign Promises on Global Issues

Malaria No More Policy Center: Getting the Funding… One Way or Another.

U.S. Global Leadership Campaign: FY 2010 International Affairs Budget

Save the Children: Save the Children Commends President Obama’s New Global Health Strategy; Urges Accelerated Funding for Maternal, Child Health

Women Thrive Worldwide: International Women’s Programs and the Obama FY2010 Budget

-Mark Brinkmoeller

Today, President Obama and his Administration released their budget request to Congress for the fiscal year 2010. This gives us a look at the President’s priorities for the year and sets the tone for the Congressional debate about how much money will actually be appropriated. The numbers have just been released and so that is what we have posted here. We will release our reactions and commentary soon. Overall though, a $2.9 billion increase in the key development accounts that ONE monitors.

-Larry Nowels and Josh Lozman

Last week, the Obama Administration sent to Congress an $83.4 billion supplemental appropriation request primarily to fund war operations in Iraq and Afghanistan, and support for Pakistan.  The proposal also includes $7.1 billion for International Affairs programs, some of which targets ONE priority accounts for reducing poverty and addressing humanitarian crises.

Roughly half of the $7.1 billion for International Affairs would support U.S. diplomatic operations, economic aid and law enforcement activities in Afghanistan, Pakistan, and Iraq.  An additional $715 million is for Palestinian assistance and humanitarian relief in Gaza.   Other strategic –related components of the supplemental provide $887 million for U.N. and other peacekeeping missions, $243 million for post-conflict assistance in Georgia, and $98 million in military aid for Lebanon.

Of particular importance to ONE is an additional $1.3 billion included in the supplemental for several development and humanitarian activities.   As he announced at the G-20 meetings in London, President Obama requests $448 million for low and low-middle income countries with vulnerable populations most affected by the global financial crisis.  The aid will target social safety net programs, including cash for work, health, and education interventions, technical assistance for governments and financial institutions, and credit to promote private lending and investment.

The supplemental further seeks nearly $800 million to shore up existing gaps in humanitarian accounts providing food, refugee support, and disaster relief in Africa and elsewhere in the developing world.  Finally, The Administration requests additional assistance for Kenya, Zimbabwe, and Burma in response to political instability, opportunities for transition, and humanitarian needs in these countries.

Congress is expected to consider the supplemental in the coming weeks.  Coming in the wake of passage the past two months of the economic stimulus package, regular FY2009 appropriations, and the FY2010 budget resolution, lawmakers will give close scrutiny to this additional spending proposal.

-Larry Nowels

Yesterday was a good day for the developing world – and for ONE – with several positive outcomes from the G20 meetings in London. What capped off the day really well was a tidbit mentioned by President Obama in his evening remarks. He announced that he will work with Congress to double support for agricultural development to over $1 billion “…so that we are giving people the tools they need to lift themselves out of poverty.”

In details released today, the White House specified that this funding – which will be requested for the FY2010 budget – aims to modernize developing country agriculture in order to increase productivity and rural incomes. Specific assistance areas include increasing the use of technology, linking farmers to markets, increasing access to quality inputs like seeds, tools, fertilizers, irrigation, and rural credit, and encouraging private investment in agriculture. The White House is also committed to reducing dependency on food aid, bringing the poorest into the growth process through social safety net programs, and building/strengthening partnerships with the international community, private sector, NGOs, and U.S. universities.

In 2008, the U.S. provided approximately $450 million to agriculture in the developing world. In our proposal to the Obama Administration earlier this year, ONE requested at least $850 million for the FY2010 budget for agriculture. For the U.S. to reach a funding target of more than $1 billion for agricultural development initiatives in the developing world certainly exceeds our request.

The commitment to exceed $1 billion for agriculture in the developing world also aligns well with the Senators Richard Lugar (R-Ind.) and Robert Casey (D-Penn.)’s proposed Global Food Security Act, which was introduced in the 111th Congress and cleared the Senate Foreign Affairs committee on Tuesday by unanimous vote. The bill requests almost $1.5 billion in FY2010 for agricultural development initiatives, research and technological innovation, training, and emergency food assistance.

As the White House noted, “…We can directly improve the lives of poor populations by growing rural economies through broad-based agriculture growth.” This funding comes at a crucial time for developing countries where food prices remain high and families are facing decreased incomes and remittances due to the global financial crisis. Investing in agriculture will not only bolster food security in the developing world, but it will enable families and communities to increase their incomes through agriculture-driven economic productivity.

The funding will be targeted in 25 countries and 8 regions; in Africa this includes Kenya, Uganda, Zambia, Malawi, and Eastern and Southern Africa. Other targeted areas are South and East Asia, Latin America, and the Near East. We applaud President Obama and urge him to follow through speedily with meeting this commitment. ONE will be following this topic closely and will be sure to keep you updated.

-Beth Adler

The Senate just passed the Kerry-Lugar Amendment by voice vote restoring all $4 billion to the International Affairs Budget!

Once again, ONE members’ hard work, solid organization, and tireless efforts have helped create real change and political will. Thank you for all you do, and take a minute to give yourselves a big pat on the back.

While today’s victory was huge, the fight against poverty continues:

• We’re on the ground in London at the G20 Summit which officially kicks off tomorrow. Be sure to check out our live blogging with analysis, reactions, and breaking developments at our London G20 Summit Featured Series page.
• And learn more about President Obama’s 2010 Budget at our Hot Topic page where we’ll keep you posted on further developements- like the Kerry-Lugar Amendment- as they occur.

-Chris Scott

In just a few minutes, senators will be voting on the Kerry-Lugar Amendment to restore $4 billion in devastating cuts to the foreign affairs budget – cuts that would severely restrict our ability to fight poverty and disease around the world.

Tune in to CSPAN2 to watch the vote and if you haven’t called and asked your senators to vote for the Kerry-Lugar Amendment, visit our call action page now.

ONE members have made thousands of calls asking their senators to vote for the Kerry-Lugar budget amendment, which would restore $4 billion cut from the foreign affairs budget – the part of the budget that contains almost all the funding for the fight against global poverty.

And with the vote expected sometime today or tomorrow, we’re seeing important signs of progress. The Kerry-Lugar Amendment has picked up 11 new co-sponsors – Democrats, Independents, and a Republican – since it was introduced, a sign of growing momentum.

Here’s the current list of co-sponsors and their phone numbers, so you can call their offices and thank them for their support for this critical amendment:

Bernie Sanders – 202-224-5141
Ted Kennedy – 202-224-4543
Joe Lieberman – 202-224-4041
Jeff Bingaman – 202-224-5521
Barbara Boxer – 202-224-3553
Sherrod Brown – 202-22402315
Bob Casey – 202-224-6324
Bob Corker – 202-224-3344
Chris Dodd – 202-224-2823
Dick Durbin -202-224-2152
Dianne Feinstein 202-224-2235
Ted Kaufman – 202-224-5042
John Kerry – 202-224-2742
Patrick Leahy – 202-224-4242
Richard Lugar – 202-224-4814
Robert Menendez – 2-2-224-4744
George Voinovich – 202-224-3353

If you don’t see your senators on this list, go to our call action page to get information on calling your senators.

These cuts would be devastating to millions of people and would force freezes in all of the effective, poverty-fighting work we’ve supported from AIDS treatment to ending the global hunger crisis. Together, we can convince our senators that America must keep its promise to work with the world’s poorest people to banish poverty and preventable disease.

-Aaron Banks