U.S. Foreign Aid Appropriations Update

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