President Obama's FY2010 Budget Request - May 7, 2009

On May 7, 2009, President Obama sent his FY2010 Budget request to Congress. In total, the FY2010 request includes $53.9 billion for International Affairs (the 150 Account), which is $4.1 billion more than the total appropriated in FY2009, or an 8.2% increase.[1] Since the FY2010 request includes all FY2010 funding for Iraq, Afghanistan and Pakistan and humanitarian needs (i.e. P.L. 480 food aid), this analysis compares the FY2010 request with the total FY2009 spending including both the base appropriation, emergency supplementals, and a pending FY2009 supplemental. The FY2010 Budget request for international affairs is organized around three themes: capacity building at USAID and the State Department, global issues (including global health, agriculture, climate change and education), and funding for Pakistan and Afghanistan.  

ONE tracks a subset of this account in order to best measure the funds that will most directly impact the lives of poor people. The total request includes approximately $27.2 billion for these accounts,[2] a total net increase of nearly $2.9 billion over the FY2009 total, or an 11.8% increase.

The $2.9 billion increase in poverty-focused development assistance in the Foreign Operations Account is comprised of some increases to core accounts:

• a $406 million increase (5.6%) for global health and child survival[3]

-          of which, a $100 million (2.5%) increase for global HIV/AIDS and tuberculosis[4]

-          of which, a $200 million (36%) increase for global malaria[5]

-          of which, a $20 million increase (4%) for reproductive health

• a $550 million increase (63%) for the Millennium Challenge Account
• a $700 million increase (34%) for Development Assistance, largely to fund agricultural development and climate change initiatives
• a $205 million increase (18%) for the World Bank's International Development Association (IDA)[6]
• a $43 million increase (11%) for multilateral development banks other than IDA including fully funding commitments to the African Development Fund and the International Fund for Agricultural Development (IFAD)
• a $408 million increase (40%) for USAID operating expenses[7] and an $91 million increase (75%) for USAID capital investment fund
• a $51 million (85%) increase for debt cancellation
• a $384 million increase (7%) for the Economic Support Fund
• a $100 million increase (100%) in McGovern-Dole Food for Education and Child Nutrition
• a $130 million increase (17%) for International Disaster Assistance; the FY2010 request includes $300 million for locally and regionally purchased emergency food aid

The following accounts were flatlined:

• The Global Fund to Fight AIDS, Tuberculosis and Malaria remains at the FY2009 level of $900 million
• Funding for UNFPA remains at the FY2009 level of $50 million

However these increases are tempered by cuts to the following accounts:

• A $231m cut (12%) to P.L. 480 food aid

The above proposed increases for poverty-focused development assistance make up approximately 73% of the total increases in the 150 Account. The remainder of the 150 Account (those accounts that ONE does not track as part of poverty-focused development assistance) increased by $1.1 billion primarily due to increases for Department of State operations and climate investment funds.

[1] FY2010 Request does not include $300 million for the Global Fund to Fight AIDS, Tuberculosis and Malaria appropriated in the HHS spending bill. The CBO may rescore this $300 million as part of the International Affairs budget as it has done in recent years. If they do, the increase will then be $4.4 billion, or 8.8%, over FY2009 appropriations.

[2] Place holder for poverty focused accounts

[3] The net $406 million increase does not include funding from the HHS and DoD budgets. This increase is that from the International Affairs budget alone.

[4] The net $100 million increase does not include funding from the HHS and DoD budgets. Adding the increase from the International Affairs budget with increases in the HHS and DoD budgets brings the increase over FY2009 levels to $165 million.

[5] The net $200 million increase does not include funding from the HHS and DoD budgets. Adding the increase from the International Affairs budget with increases in the HHS and DoD budgets brings the increase over FY2009 levels to $201 million.

[6] This increase covers the full commitment and partial payment of arrears.

[7] The FY2010 request includes an unspecified amount for USAID Iraq operations. Until the Congressional Budget Justification is released, we do not have details on this component of the request.