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108th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 108-599
======================================================================
FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS
APPROPRIATIONS BILL, 2005
_______
July 13, 2004.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Kolbe, from the Committee on Appropriations, submitted the
following
R E P O R T
[To accompany H.R. 4818]
The Committee on Appropriations submits the following
report in explanation of the accompanying bill making
appropriations for Foreign Operations, Export Financing, and
Related Programs, and for sundry independent agencies and
corporations for the fiscal year ending September 30, 2005, and
for other purposes.
INDEX TO BILL AND REPORT
_______________________________________________________________________
Page
Bill Report
Overview of the Bill.......................................
2
Committee Recommendations..................................
4
Title I--Export and Investment Assistance:
Export-Import Bank of the United States............ 2
4
Overseas Private Investment Corporation............ 4
6
Trade and Development Agency....................... 6
7
Title II--Bilateral Economic Assistance:
Child Survival and Health Programs Fund............ 6
8
Development Assistance............................. 12
16
International Disaster and Famine Assistance....... 13
31
Transition Initiatives............................. 13
32
Development Credit Authority....................... 14
33
Payment to the Foreign Service Retirement and
Disability Fund................................ 16
33
Operating Expenses of the United States Agency for
International Development...................... 16
33
Capital Investment Fund............................ 17
35
Operating Expenses of the Agency for International
Development, Office of the Inspector General... 18
38
Economic Support Fund.............................. 18
38
International Fund for Ireland..................... 22
48
Assistance for Eastern Europe and the Baltic States 22
49
Assistance for the Independent States of the Former
Soviet Union................................... 24
51
Independent Agencies:
Inter-American Foundation.......................... 27
54
African Development Foundation..................... 27
54
Peace Corps........................................ 28
54
Millennium Challenge Corporation................... 28
55
Department of State:
Global HIV/AIDS Initiative......................... 30
57
International Narcotics Control and Law Enforcement 31
63
Andean Counterdrug Initiative...................... 32
65
Migration and Refugee Assistance................... 34
69
Emergency Refugee and Migration Assistance Fund.... 35
70
Nonproliferation, Anti-terrorism, Demining and
Related Programs............................... 35
71
Department of the Treasury:
International Affairs Technical Assistance......... 37
73
Debt Restructuring................................. 37
73
Title III--Military Assistance:
International Military Education and Training...... 41
74
Foreign Military Financing Program................. 42
75
Peacekeeping Operations............................ 45
78
Title IV--Multilateral Economic Assistance:
Global Environment Facility........................ 46
78
International Development Association (IDA)........ 46
79
Multilateral Investment Fund....................... 46
81
Asian Development Fund (ADF)....................... 47
81
African Development Bank........................... 47
81
African Development Fund (AFDF).................... 47
81
European Bank for Reconstruction and Development
(EBRD)......................................... 47
82
International Fund for Agricultural Development
(IFAD)......................................... 48
82
Department of State:
International Organizations and Programs........... 48
82
Title V--General Provisions:............................... 49
83
House of Representatives Reporting Requirements............
87
OVERVIEW
The President's budget request for fiscal year 2005 for the
activities under the jurisdiction of the Subcommittee on
Foreign Operations, Export Financing, and Related Programs is
$21,318,300,000 in new discretionary budget authority. The
section 302(b) allocation for the Subcommittee is
$19,386,000,000, a shortfall of $1,932,300,000.
The Committee recommendation of $19,385,645,000 in
discretionary budget authority reflects three overriding
priorities:
1. Responding to the global HIV/AIDS pandemic;
2. Supporting our allies in the War on Terrorism; and
3. Supporting innovative approaches to foreign
assistance through the Millennium Challenge
Corporation.
GLOBAL HIV/AIDS PANDEMIC
The President's budget request includes an increase of
$593,000,000 to respond to the global HIV/AIDS pandemic and
related diseases. The Committee recommendation includes this
increase and provides a total of $2,198,500,000 to combat HIV/
AIDS and related diseases. As part of this funding,
$400,000,000 is made available as a grant to the Global Fund to
Fight AIDS, Malaria and Tuberculosis, subject to conditions in
section 525 that improve the Global Fund's accountability and
efficiency.
The President's Global AIDS Initiative is making treatment
and care available to a record number of people affected by the
disease. In 2003, only 50,000 people in the developing world
had access to the drugs that dramatically reduce the impacts of
AIDS and extend life for years, allowing parents to see their
children into adulthood. By next summer, 200,000 people will
have access to these drugs, and hundreds of thousands more will
gain access in future years with the funds made available in
the Committee recommendation. Over the next several years,
millions of potential cases of HIV/AIDS will be averted.
GLOBAL WAR ON TERRORISM
The President's budget request for the Foreign Military
Financing Program includes important military assistance
increases for our allies in the global war on terrorism,
including:
An increase of $350,000,000, for a total of
$400,000,000 to train and equip the new Afghan National
Army, and an increase of $90,000,000 elsewhere in the
bill for law enforcement and counter-narcotics programs
in Afghanistan;
A new base program of $300,000,000 for
military assistance for Pakistan as they assist the
United States in hunting terrorists along the Afghan
border;
An increase of $46,000,000, for a total of
$66,000,000 for Poland, a major ally in Operation Iraqi
Freedom; and
An increase of $72,744,000, for a total of
$2,220,000,000 for our closest ally in the Middle East,
the State of Israel.
The Committee recommendation includes full funding for
these increases, both through new budget authority and, in the
case of Pakistan, the use of transfer authority.
MILLENNIUM CHALLENGE CORPORATION
The President's budget includes the second year of funding
for the newly created Millennium Challenge Corporation, which
is designed as a new way to provide assistance to countries
with a commitment to make progress in addressing poverty
reduction through economic growth and focused assistance
programs. The President is requesting a total of $2,500,000,000
for the Corporation for fiscal year 2005, an increase of
$1,505,900,000 over the fiscal year 2004 level. The constraints
of the section 302(b) allocation do not provide the Committee
with the flexibility to fully fund this important initiative.
However, $1,250,000,000 is recommended for the Corporation in
an effort to respond positively to the President's proposal.
FUNDING SUMMARY
The Committee recommendation of $19,385,645,000 in new
discretionary budget authority is $1,932,685,000 below the
President's request; it is $1,905,086,000 above the fiscal year
2004 enacted level excluding supplemental appropriations. If
supplemental appropriations and scorekeeping adjustments are
included in the total for fiscal year 2004, the Committee
recommendation represents a decrease of $19,287,514,000 below
the fiscal year 2004 enacted level.
COMMITTEE RECOMMENDATIONS
For export and investment assistance programs the Committee
has recommended a gross total of $317,285,000 which is offset
by collections and a negative subsidy totaling $311,000,000.
The subsidy appropriation for the Overseas Private Investment
Corporation is $24,000,000 and the Trade and Development Agency
is funded at $51,500,000. Consistent with the President's
budget request, the Committee has provided $125,700,000 in a
subsidy appropriation for the United States Export-Import Bank.
For development and humanitarian assistance, the Committee
has recommended a total of $4,248,800,000 of which
$1,648,500,000 is for child survival and health programs.
Another $1,429,000,000 is for longer-term development
assistance. The Committee has also included $355,500,000 for
disasters and famine relief worldwide and $47,500,000 for
transition initiatives.
The Committee has included a total of $550,000,000 in
assistance to the Independent States of the Former Soviet
Union, and $375,000,000 for Eastern Europe and the Baltic
States.
The Committee has recommended a total of $776,000,000 for
refugee programs.
For economic assistance under the Economic Support Fund,
the Committee has recommended a total of $2,450,000,000,
including $895,000,000 for Egypt and Israel under the multi-
year schedule recommended by the Committee in 1996.
The Committee has recommended $382,000,000 for a
Nonproliferation, Anti-terrorism and Demining account which
includes funding for the Nonproliferation and Disarmament Fund,
anti-terrorism assistance, demining activities, and the United
States voluntary contribution to the International Atomic
Energy Agency (IAEA).
For the Foreign Military Financing program, the Committee
has recommended a grant program of $4,777,500,000, including an
increase of $72,744,000 in assistance for Israel.
The Committee has recommended $1,268,243,000 of the
$1,492,731,000 requested for the international financial
institutions. The overall level is $114,798,000 below the
fiscal year 2004 enacted level and $224,488,000 below the
request.
TITLE I--EXPORT AND INVESTMENT ASSISTANCE
Export-Import Bank of the United States
SUBSIDY APPROPRIATION
Fiscal year 2004 level................................ ................
Fiscal year 2005 request.............................. $125,700,000
Committee recommendation.............................. 125,700,000
ADMINISTRATIVE EXPENSES
Fiscal year 2004 level................................ $72,465,000
Fiscal year 2005 request.............................. 73,200,000
Committee recommendation.............................. 73,200,000
As requested by the President, the Committee is
recommending a subsidy appropriation for the Export-Import Bank
in fiscal year 2005. No funds were appropriated last year for
this purpose. The Committee recommends a level of $125,700,000
for the subsidy appropriation, the same level as the request.
Funding for a subsidy appropriation was neither requested
by the President nor appropriated by the Congress in fiscal
year 2004 due to extraordinarily high balances of carryover
from prior years' appropriations. The Export-Import Bank
estimates that $125,700,000, together with carryover balances,
is needed in fiscal year 2005 to support a projected level of
financing of $12,000,000,000. The Committee directs the
President of the Export-Import Bank to report quarterly to the
Committee on the level of authorizations, subsidy used, and
subsidy balances from current and prior years.
In addition, the Committee provides $73,200,000 for
administrative expenses, the same as the request and $735,000
above the fiscal year 2004 enacted level. The Committee
recommends no appropriation for establishing a new office of
inspector general.
The Committee provides no additional funds for a tied-aid
``war chest''. The estimated $260,500,000 remaining ``war
chest'' balance for tied-aid purposes may be used to support
loans. The Committee still expects that none of the funds
appropriated by prior acts for tied-aid credits or grants may
be used for any other purpose except through the regular
notification procedures of the Committees on Appropriations.
The Committee has continued prior year language limiting
the export of nuclear technology or fuel to certain countries.
Again this year, the Committee recommends a one-year
extension of the Export-Import Bank's dual use authority, which
originally expired on June 14, 2002. Dual use authority allows
the Bank to finance transactions dealing with items that can be
used for both civilian and military purposes, but which must be
non-lethal in nature and shall be used predominantly by
civilian authorities.
BROOKE AMENDMENT PROCEDURES
The Committee is aware of an inter-agency agreement among
the Departments of State and Defense, the Export-Import Bank,
and USAID that establishes reporting procedures regarding
compliance with section 512 of the bill, the so-called Brooke
amendment, and section 620(q) of the Foreign Assistance Act.
The procedures provide a mechanism to share information among
those agencies regarding countries that are either in arrears
on loan repayments owed to the United States or which may soon
become so. Since the provision of foreign assistance to
countries in arrears is restricted by those sections,
information required by these procedures is of great importance
to the administration of foreign assistance funds. The
Committee directs the Export-Import Bank to continue to follow
the inter-agency agreement.
IRAQ
The Export-Import Bank was instrumental in setting up the
Trade Bank of Iraq, although the Bank is designed to use the
Development Fund for Iraq (DFI) as collateral for new issuances
of letters of credit. The Committee directs the President of
the Export-Import Bank to keep the Committee informed about the
Export-Import Bank's role with the Trade Bank now that the DFI
has reverted to Iraqi control.
Additionally, the Committee expects the Export-Import Bank
to continue to comply with language in the Joint Explanatory
Statement of the Committee of Conference accompanying H.R.
3289, the Emergency Supplemental Appropriations Act for Defense
and the Reconstruction of Iraq and Afghanistan, 2004, and
report quarterly to the Committee during fiscal year 2005
regarding the agency's activities in Iraq.
Overseas Private Investment Corporation
NONCREDIT ACCOUNT
Fiscal year 2004 level................................ $41,141,000
Fiscal year 2005 request.............................. 42,885,000
Committee recommendation.............................. 42,885,000
PROGRAM ACCOUNT
Fiscal year 2004 level................................ $23,858,000
Fiscal year 2005 request.............................. 24,000,000
Committee recommendation.............................. 24,000,000
The Committee provides $42,885,000 for the Overseas Private
Investment Corporation's (OPIC) administrative expenses, a
level equal to the request and $1,744,000 higher than the
fiscal year 2004 enacted level. The Committee is recommending a
$24,000,000 subsidy appropriation for the direct and guaranteed
loan credit programs, the same level as the request and
$142,000 more than the fiscal year 2004 level.
The Committee continues prior year language required by the
Federal Credit Reform Act and addressing representation
expenses and availability of funds.
As in prior years, the Committee directs OPIC to continue
to provide on a semi- annual basis written reports including
the following information for each investment fund: the
identity, selection process, and professional background of
current and past managers; the fees and compensation currently
provided to senior management; the amount of OPIC guarantees
and actual investments made at the end of the previous six
months; and any additional observations that OPIC may want to
include. The Committee commends OPIC for its judicious
management of its investment fund portfolio.
The Committee commends the managers of OPIC for exploring
new ways of meeting OPIC's development mandate, but during
times of high political risk and instability in some countries,
OPIC also must fulfill its mandate of facilitating increased
United States direct investment abroad and increased exports
from the United States. The Committee is aware of OPIC's policy
that it only provides insurance for a project after a company
has attempted to access the private market, and this policy has
solidified OPIC's role as insurer of last resort. With global
risk remaining high for foreign direct investment, and
investment's primary role in creating jobs and raising income
levels in the developing world, the Committee expects OPIC to
retain its strong role as insurer of last resort for political
risk insurance, including terrorism insurance, for United
States companies.
Additionally, the Committee remains concerned about OPIC's
coordination with the other United States Government agencies
that operate overseas. To ensure that foreign assistance and
credit is not provided to countries on different terms by
different agencies (including financing that could be
considered debt by the Paris Club), the Committee again expects
OPIC to coordinate with USAID, the Millennium Challenge
Corporation, the Treasury Department, the Office of Management
and Budget and other agencies of the United States Government
with which OPIC may overlap in providing assistance.
The Committee remains concerned about OPIC's local currency
loan guaranty authority and the lack of oversight by Congress
of the use of such authority. Therefore, the Committee directs
OPIC to consult with the Committee on Appropriations before
exercising this authority, and to provide to the Committee
prior to the consultation a justification for the need to
exercise such authority, the use of OPIC subsidy required, the
degree to which the United States would be exposed to
additional risk as a result of such transactions, and which
other United States Government agencies have been consulted.
The Committee directs the President of OPIC to continue
current policy and consult with the Committees on
Appropriations before the approval of any future financing for
nongovernmental organizations or private and voluntary
organizations.
Funds Appropriated to the President
TRADE AND DEVELOPMENT AGENCY
Fiscal year 2004 level................................ $49,705,000
Fiscal year 2005 request.............................. 50,000,000
Committee recommendation.............................. 51,500,000
The Committee is recommending $51,500,000 for the Trade and
Development Agency (TDA), an increase of $1,795,000 above the
2004 level and $1,500,000 above the request. The Committee
commends TDA for its trade capacity activities and its efforts
to keep the Committee informed of its programs.
The Committee commends TDA for its efforts to assist
countries in improving their aviation safety and security
systems, which have had a positive effect on enhancing United
States trade for our aviation and aerospace industries. The
Committee has provided $1,500,000 above the request for TDA to
conduct a development and training program to assist countries
with meeting their obligations for international aviation
security and safety standards. The Committee directs TDA to
consult with the Committee prior to the obligation of funds for
this purpose in fiscal year 2005.
In collaboration with the National Institute of Standards
and Technology, TDA is encouraged to support United States
participation in the development of national technical
standards compatible with American goods and services in key
transition country markets.
Additionally, the Committee expects TDA to continue to
comply with language in the Joint Explanatory Statement of the
Committee of Conference accompanying H.R. 3289, the Emergency
Supplemental Appropriations Act for Defense and the
Reconstruction of Iraq and Afghanistan, 2004 and report
quarterly to the Committee during fiscal year 2005 regarding
the agency's activities in Iraq.
TITLE II--BILATERAL ECONOMIC ASSISTANCE
Funds Appropriated to the President
United States Agency for International Development
STRUCTURE OF DEVELOPMENT ASSISTANCE ACCOUNTS
The Committee appropriates funding for longer-term
development assistance programs managed by the United States
Agency for International Development (USAID) in two accounts.
As in fiscal year 2004, the Act includes an account for child
survival and health programs. It also includes a separate
development assistance account for other program sectors,
including economic growth and trade capacity building
activities, education, environment, and governance. In
addition, for the second year the Committee appropriates
funding for the President's Emergency Plan for AIDS Relief in a
new account, the Global HIV/AIDS Initiative. This funding is
appropriated to the State Department for use in fifteen focus
countries and is addressed under a separate heading.
Three existing regional accounts jointly managed by the
Department of State and the United States Agency for
International Development are included elsewhere in title II.
The Committee utilizes the regional accounts to fund most
economic and political cooperation with Russia, the independent
states of the former Soviet Union as well as the nations of
Central Europe, and several Andean countries.
Finally, authority is provided for the United States to
make contributions from the Child Survival and Health Programs
Fund to two international health funds: the Global Fund to
Fight AIDS, Tuberculosis and Malaria (the ``Global Fund'') and
The Vaccine Fund (associated with the Global Alliance for
Vaccines and Immunizations). Funding for the International AIDS
Vaccine Initiative is included in the Global HIV/AIDS
Initiative account.
Child Survival and Health Programs Fund
(INCLUDING TRANSFER OF FUNDS)
Fiscal year 2004 level................................ $1,824,174,000
Fiscal year 2005 request.............................. 1,420,000,000
Committee recommendation.............................. 1,648,500,000
The Committee recommends $1,648,500,000 for the Child
Survival and Health Programs Fund, an amount that is
$228,500,000 above the request. The recommendation is
$175,674,000 below the amount enacted for fiscal year 2004.
The Committee has made available a total of $2,198,500,000
in this Act for HIV/AIDS, tuberculosis (TB), and malaria, of
which $885,000,000 is funded through the Child Survival and
Health (CSH) Programs Fund and $1,260,000,000 is funded under
the Global HIV/AIDS Initiative account. Another $53,500,000 for
HIV/AIDS, TB, and malaria is provided through other accounts,
such as the Economic Support Fund, International Disaster and
Famine Assistance, and regional accounts for Eastern Europe and
the former Soviet Union. The comparable figures for HIV/AIDS
only, without TB and malaria, are discussed under ``HIV/AIDS:
Summary and Overview''.
ALLOCATION OF CHILD SURVIVAL AND HEALTH PROGRAMS FUND
Unless modifications are subsequently notified and agreed
to by the Committees on Appropriations, fiscal year 2005
appropriations for the Child Survival and Health Programs Fund
are deemed to be allocated as follows:
Category Allocation
Child Survival and Maternal Health...................... $330,000,000
Vulnerable children..................................... 28,000,000
HIV/AIDS (bilateral).................................... 330,000,000
Other Infectious Diseases (including TB and malaria).... 185,000,000
Reproductive Health/Voluntary Family Planning........... 375,500,000
Global Fund to Fight AIDS, TB, and Malaria.............. 400,000,000
--------------------------------------------------------
____________________________________________________
Total in Child Survival and Health Programs Fund.. 1,648,500,000
Other health activities in Global HIV/AIDS Initiative... 1,260,000,000
Other health activities in ESF.......................... 85,000,000
Other health activities in regional accounts............ 86,000,000
--------------------------------------------------------
____________________________________________________
Total in all Foreign Operations accounts.......... 3,079,500,000
A definition of program categories and their components can
be found on pages 9 through 11 of House Report 107-142 and
under the heading ``Family Planning/Reproductive Health'' on
page 12 of Senate Report 107-58. The United States Agency for
International Development has also issued guidance on this
matter.
The Committee is again including language that prohibits
the use of certain funds in this account for nonproject
assistance, or cash grants, to governments. The provision of
cash grants as general budget support for governments is no
longer an appropriate development tool, given current funding
constraints. To the extent that cash grants are necessary for
countries in transition or for specific foreign policy goals,
funds are available through the ``Economic Support Fund''.
CHILD SURVIVAL AND MATERNAL HEALTH: SUMMARY
The Committee directs USAID to allocate $330,000,000 for
child survival and maternal health, $5,000,000 more than
requested.
CHILD SURVIVAL AND MATERNAL HEALTH: MICRONUTRIENTS
The Committee recognizes that Vitamin A deficiency affects
more than 100,000,000 children under age 5 and is responsible
for as many as one in four child deaths in high-impact areas.
Vitamin A deficiency decreases children's resistance to disease
and may also increase maternal deaths. The Committee recommends
that USAID provide $30,000,000 from all accounts for its
overall micronutrient program, including at least $20,000,000
for activities related to Vitamin A deficiency.
The Committee continues its support for programs that
address iodine deficiency disorder (IDD), the leading
preventable cause of mental retardation in children. The
problems associated with iodine deficiency, including increased
chances of miscarriage and stillbirth, are particularly of
concern in the former Soviet republics and southeast Europe and
regions of Africa and South Asia. A diverse group of private
and public groups, including Kiwanis International and UNICEF,
are working to eliminate iodine deficiency through salt
iodization. The Committee recommends that USAID provide at
least $2,000,000 for the Kiwanis/UNICEF IDD partnership from
the Child Survival and Health Programs Fund and at least
$1,000,000 from Europe and Eurasia regional accounts.
CHILD SURVIVAL AND MATERNAL HEALTH: POLIO ERADICATION
The Committee is aware that the global effort to eradicate
polio is in its final, most challenging phase. The Committee
continues its strong support within the child survival and
maternal health allocation and recommends an increase over the
fiscal year 2004 level of $25,000,000 for the program initiated
by the Committee nearly ten years ago, in fiscal year 1996.
CHILD SURVIVAL AND MATERNAL HEALTH: VACCINES AND IMMUNIZATION
The Committee recognizes that ten million children under
age five die each year, of which more than 1.5 million could be
saved if every child received all available vaccines. Vaccines
already save more than 3 million lives each year. The Vaccine
Fund, in support of the Global Alliance for Vaccines and
Immunization (GAVI), is working to expand vaccine coverage.
Since GAVI's launch three years ago, over $1,200,000,000 for 64
countries has been committed from all donors for immunization
and vaccine development programs. The Committee strongly
supports continued funding for this program, and recommends
that $65,000,000 be provided to The Vaccine Fund in fiscal year
2005.
VULNERABLE CHILDREN
The Committee directs USAID to allocate $28,000,000 for
displaced children and orphans and blind children in fiscal
year 2005, $18,000,000 more than requested. The Committee
addresses assistance for children affected by HIV/AIDS
elsewhere.
The Committee is concerned that each year an estimated half
million children go blind, up to 60 percent of whom die in
childhood. One and a half million children are currently blind,
and another 7 million suffer from poor vision. The Committee
recognizes the work done by Helen Keller International and
other organizations to assist these children, who can often be
helped through simple and inexpensive methods of prevention and
low cost care. The Committee recommends that the USAID program
for children's blindness be funded at $1,700,000.
The Committee encourages efforts to provide children
without parents the support and structure they need, such as
through adoption or long-term mentoring. The Committee supports
initiatives, such as the work of Kidsave International in
Colombia, that help children without parents develop such
relationships.
HIV/AIDS: SUMMARY AND OVERVIEW
The Committee directs USAID to allocate $330,000,000 for
HIV/AIDS in fiscal year 2005 in this account. The Committee
appropriates an additional $1,260,000,000 for HIV/AIDS in the
Global HIV/AIDS Initiative account, anticipates that
$36,000,000 for HIV/AIDS will be allocated from other accounts,
and estimates that $240,000,000 of the $400,000,000 made
available by this Act to support the Global Fund would benefit
HIV/AIDS programs. In total, the Committee makes available
$1,866,000,000 for HIV/AIDS. These numbers do not include
bilateral TB or malaria programs, although there may be some
overlap. Additional language addressing United States bilateral
HIV/AIDS funding is found under the heading ``Global HIV/AIDS
Initiative''.
HIV/AIDS: RELATIONSHIP TO THE GLOBAL HIV/AIDS INITIATIVE ACCOUNT
The Committee recommendation represents a different account
structure than that requested by the President. The request
includes $500,000,000 for USAID's bilateral HIV/AIDS funding,
$170,000,000 of which would fund so-called ``baseline''
programs in the 15 focus countries of the Emergency Plan for
AIDS Relief. To simplify budget processes and improve
transparency, the Committee has recommended appropriating
$170,000,000 for the ``focus'' countries directly into the
Global HIV/AIDS Initiative account. No bilateral HIV/AIDS
funding for the ``focus'' countries is included in Child
Survival and Health Programs Fund.
The Committee's recommendation does not include funding for
the United Nations Joint Programme on HIV/AIDS (UNAIDS) or for
the International AIDS Vaccine Initiative, as in previous
years. These activities are now to be funded from the Global
HIV/AIDS Initiative account.
By making this shift, the Committee has made available over
$50,000,000 for use on USAID's bilateral HIV/AIDS activities.
The Committee strongly urges USAID to allocate these additional
funds to its HIV/AIDS programs in the ``non-focus'' countries.
HIV/AIDS: MEDIA EDUCATION
Use of media outlets has proven to be an effective tool to
spread prevention, treatment, and care messages, as well as to
overcome stigma and discrimination against those infected and
affected by HIV/AIDS. The Committee recommends that USAID at a
minimum sustain its current media programs and consider
expanding to other countries, especially to India and other
countries in Africa.
OTHER INFECTIOUS DISEASES: SUMMARY AND OVERVIEW
The Committee directs USAID to allocate $185,000,000 for
other infectious diseases, including tuberculosis (TB) and
malaria, $46,000,000 more than requested. An additional
$17,500,000 for TB and malaria is provided from other accounts,
and the Committee estimates that $68,000,000 and $92,000,000 of
the Global Fund contribution would benefit TB and malaria,
respectively, given historical funding patterns.
OTHER INFECTIOUS DISEASES: MALARIA
The Committee's recommendation includes not less than the
fiscal year 2004 level for malaria. More than 300-500 million
cases of this disease occurred this year, resulting in one
death every 30 seconds, mostly in African children. The
Committee urges USAID to continue a comprehensive approach to
fighting malaria, including its work to strengthen national
drug formularies and distribution systems to ensure that the
most appropriate anti-malarial drugs are utilized. USAID should
fund the Medicines for Malaria Venture, a public/private
partnership leading the effort to develop new, affordable
malaria drugs, at not less than the fiscal year 2004 level, and
continue support for the Malaria Vaccine Initiative. The
Committee requests that USAID report not later than 90 days
following enactment of this Act to the Committee on its support
for indoor residual spraying (IRS), including an evaluation of
the price, and physical and environmental impacts, of different
insecticide options.
OTHER INFECTIOUS DISEASES: TUBERCULOSIS (TB)
The Committee recognizes that the global TB pandemic
continues largely unabated despite widespread international
cooperation against the disease. Each year there are eight
million new TB cases and two million people die from the
disease. Another million die from the combination of AIDS and
TB. The Committee includes not less than the fiscal year 2004
level for TB.
As with HIV/AIDS, malaria, and other diseases, the fight
against TB must take place on many fronts. The Global TB Drug
Facility (GDF) supports expanded access to, and availability
of, high-quality TB drugs to facilitate expanded global
treatment against the disease. The Committee encourages the
increased cooperation between GDF and the Global Fund to Fight
AIDS, TB and Malaria, and urges USAID to provide support to the
GDF of not less than the level provided in fiscal year 2004.
The Committee also urges USAID to consider support for TB
vaccine research and development programs, including public-
private partnerships.
The Committee notes the link between TB and HIV, especially
in sub-Saharan Africa where up to two-thirds of TB patients are
also infected with HIV. TB is the world's leading killer of
people with HIV, and the Committee urges even greater
cooperation between the TB program at USAID and the Office of
the Global AIDS Coordinator. The Committee encourages joint
funding of sites, such as clinics that detect and treat both TB
and HIV. The Committee urges USAID and the Global AIDS
Coordinator to support efforts to develop and deploy improved
approaches for rapid TB testing suitable for use in developing
countries. The Committee also notes the importance of regional
education and awareness-building activities, including the
ongoing work of Stellenbosch University in South Africa.
OTHER INFECTIOUS DISEASES: ANTIMICROBIAL RESISTANCE AND SURVEILLANCE
Public health systems are the first line of warning for
disease outbreaks, an ability that is even more crucial in a
time of potential bioterrorism events. The Committee strongly
supports the efforts of USAID, working with its United States
and international partners, to strengthen the disease
surveillance and response systems in developing countries.
The Committee continues its support for the efforts of
USAID and the Centers for Disease Control and Prevention to
reduce the spread of antimicrobial resistance. As international
health initiatives, including the Emergency Plan for AIDS
Relief, increase the global use of drugs, fighting drug
resistance will become even more critical.
REPRODUCTIVE HEALTH OVERVIEW
The Committee has restored the fiscal year 2004 funding
level by providing a total of $432,000,000 for reproductive
health/voluntary family planning, $28,600,000 more than
requested by the President. The Committee expects that
$375,500,000 of this total will be derived from the Child
Survival and Health Programs Fund.
REPRODUCTIVE HEALTH/VOLUNTARY FAMILY PLANNING: RESTRICTIONS
The Committee has continued prior year language that
requires that none of the funds appropriated in this Act, or
any unobligated balances, be made available to any organization
or program which, as determined by the President, supports and
participates in the management of a program of coercive
abortion or involuntary sterilization. The language also states
that funds cannot be used to pay for the performance of
abortions as a method of family planning or to motivate or
coerce any person to practice abortion. Further, the language
indicates that in order to reduce reliance on abortions in
developing countries, population funds shall be available only
to voluntary family planning projects that offer, either
directly or through referral, information about access to a
broad range of family planning methods and services. An
additional provision requires that in awarding grants for
natural family planning under section 104 of the Foreign
Assistance Act, no applicant shall be discriminated against
because of such applicant's religious or conscientious
commitment to offer only natural family planning.
The Committee also has continued prior year language that
states that nothing in the Act is to alter any existing
statutory prohibitions against abortion that are included under
section 104 of the Foreign Assistance Act. Further, the
Committee has continued prior year language which states that
project service providers or referral agents cannot implement
or be subject to quotas or other numerical targets of total
number of births, number of family planning acceptors, or
acceptors of a particular method of family planning. The
Committee has continued prior year language requiring that
information on condom use provided by programs supported by
funds made available by this Act shall be medically accurate
and shall include the public health benefits and failure rates
of such use.
VOLUNTARY CONTRIBUTION TO THE GLOBAL FUND TO FIGHT AIDS, TUBERCULOSIS
AND MALARIA
In order to encourage contributions from other donors and
to improve the disbursement of grants approved by the Global
Fund to Fight AIDS, Tuberculosis and Malaria (Global Fund), the
Committee directs that not less than $400,000,000 be provided
from the Child Survival and Health Programs Fund to support the
Global Fund. This funding is subject to provisions in Public
Law 108-25, including the ``matching funding'' provision, and
to additional provisions contained in this Act. Any funding not
released to the Global Fund due to the provisions in this Act
or Public Law 108-25 should be used by the Global AIDS
Coordinator for bilateral activities, including additional
funding to ``non-focus'' countries. The President has requested
$100,000,000 for the Global Fund in this Act and an additional
$100,000,000 for the Global Fund from the Act providing
appropriations for the Department of Health and Human Services.
The Committee has long supported funding for the Global
Fund as a component of the United States strategy for fighting
AIDS, tuberculosis, and malaria. The Committee continues its
support for the Fund this year with additional direction to
improve the Fund's operations. The Committee has included these
recommendations, and backed them with the conditions contained
in section 525, in the belief that they will help to strengthen
the donor, recipient, and civil society support needed to
sustain the Fund over the long-term. Many challenges lie ahead
in the fight against these three diseases, and the world needs
the Global Fund to be the innovative mechanism it was promised
to be.
The Global Fund was designed to be governed by a strong
Board overseeing a Secretariat with responsibility for day-to-
day operations of the grant process. The composition of the
Board as well as its operational structures would represent a
public-private partnership--at the global and country levels--
that would focus on civil society involvement, local ownership,
results, accountability, and additionality with other donor
programs. The Committee is concerned that the Fund is moving
away from this model, particularly by devolving too much
responsibility to the Secretariat, including decisions directly
affecting the amount and purpose of grants.
To date the Global Fund has approved $2,059,000,000 in
grants, of which only $400,000,000 have been disbursed to
countries. Of this $400,000,000, only a fraction has reached
those in need. It is critical for the Fund to show that the
billions of dollars that donors have committed are being used
expeditiously and efficiently. The Committee strongly urges the
United States representation to the Fund's Board to encourage
the Secretariat to shift its priority toward improving the
speed and transparency with which funds are received and
actually spent by principal grant recipients.
The Committee understands that some of the obstacles to
improved disbursements can be overcome through well-designed
and well-implemented technical assistance. For instance,
principal recipients may not have the technical capacity to
manage large sums of money, and implementers may also lack
absorptive capacity to ramp up quickly. To assist in overcoming
these obstacles, the Committee makes available up to
$20,000,000, or 5 percent of its allocation to support the
Global Fund, to USAID to provide technical assistance related
to Global Fund activities. The Committee also urges the office
of the Global AIDS Coordinator to consider grants to other
appropriate entities for such technical assistance.
This technical assistance should be targeted to
strengthening country coordinating mechanisms and improving the
capacity of principal recipients to disburse funding in an
expeditious, effective, transparent and accountable manner. It
is the Committee's intention that this assistance be used to
help the Fund and the recipient countries more effectively use
the assistance already approved by the Board, rather than to
increase the ``pipeline'' of approved grants.
GLOBAL FUND CONDITIONALITY
In section 525, the Committee conditions the release of any
contribution to the Global Fund on a report and certification
by the Secretary of State.
First, the Secretary of State must certify that the Global
Fund is working to establish an office analogous to an
Inspector General, charged with monitoring the integrity of
processes for consideration and approval of grant proposals,
and the implementation, monitoring and evaluation of grants.
This office must be full-time, independent, and report directly
to the Global Fund Board. The Committee considers the current
body charged with internal oversight to be inadequate for
several reasons, including its composition by appointment, its
ad hoc status, and its accountability to the Secretariat rather
than to the Board of the Fund. To ensure unbiased and complete
reporting, this new office must ensure the anonymity and
confidentiality of its sources, including whistleblowers, and
it should receive direct input from country-level entities,
such as country coordinating mechanisms (CCMs) and their
members.
Additionally, the Committee is concerned that the Global
Fund is not comprehensively assessing its needs for technical
assistance, and includes a reporting requirement on steps the
Global Fund is taking to comprehensively assess those needs and
coordinate donors' technical assistance activities.
The Committee also requires reporting on the Global Fund's
efforts to strengthen the participation of civil society in its
country-coordinating mechanisms (CCMs), in response to
criticism that these mechanisms are dominated by international
NGOs and host government agencies. The Committee is concerned
that many CCMs have been criticized for being dominated by host
government agencies, international NGOs, and donor agencies.
Steps should be taken to ensure local NGOs and people living
with one of the diseases assume an appropriate role in these
bodies.
Pressure to show results must not undermine the
accountability of the Fund to its results-driven mandate. The
Committee is aware that the Secretariat has made disbursements
to principal recipients even when previously disbursed funds
have not yet been spent. Section 525 requires a certification
that the Fund has developed clear, consistent progress
indicators to determine under what conditions disbursements may
be released, and that the Fund is releasing disbursements only
once sufficient progress toward those indicators has been made.
In past years the Committee included a two-to-one burden-
sharing arrangement to encourage contributions by other donors
to the Fund. Last year this provision was made permanent and,
as such, is no longer included.
HEALTH CARE IN AFRICA
The Committee continues to be concerned about the
debilitation and ostracism caused by obstetric fistula, which
affects an estimated 3 million women in the developing world.
This condition can often be prevented altogether by trained
birth attendants and improved medical care. Restorative surgery
has a high success rate and relatively low cost, often in the
range of $100-$400. The Committee notes that USAID for the
first time funded programs last year to prevent and repair
obstetric fistula. The Committee urges that agency to increase
its support for these programs to $6,000,000 in fiscal year
2005.
While improving the health of Africans is a long-term
prospect, alleviating human suffering is a pressing imperative.
Groups that combine immediate health services with longer-term
training can make a lasting difference for those in need. One
such group, Mercy Ships, provides obstetric fistula operations,
orthopedic and ophthalmic surgeries, primary healthcare
education, and sanitation and pure water programs. The
Committee understands that Mercy Ships has specific operational
needs of up to $9,500,000, and urges USAID to consider and,
where feasible, provide support to an application from this
organization.
The Committee recognizes the work done by the John F.
Kennedy Memorial Hospital in Monrovia, Liberia, particularly in
light of the recent war in that country and the fact that over
60% of those admitted in 2003 were war-wounded patients. The
Committee recognizes that USAID has made funding available to
this hospital in past fiscal years, and urges it to consider
requests for further funding in fiscal year 2005.
HEALTH CARE IN HAITI AND INDIA
The Committee notes that the hospital Bienfaisance de
Pignon in Pignon, Haiti, a 60-bed facility with four outlying
medical clinics, is providing much needed quality health care
to the people of Haiti. The Committee urges USAID to consider
continued support for this important medical service.
The Committee recognizes that stigma and discrimination
continue to plague many countries and communities affected by
HIV/AIDS. Often, sex workers and their children and orphans
lack access to adequate health services. The Committee notes
the work of Bombay Teen Challenge Hospice of Hope for HIV
Treatment to improve care and treatment for HIV-positive
children, including orphans, and women.
The Committee notes that intestinal worm infestation is a
major contributing factor to poor nutrition for children in the
developing world, and urges USAID to consider support for
programs, such as the World Health Organization's Partnership
for Parasite Control, to address this problem.
GRANT TO THE UNITED NATIONS CHILDREN'S FUND (UNICEF)
As in the fiscal year 2004 Act, the Committee includes a
grant to UNICEF under the heading ``International Organizations
and Programs'' instead of within the Child Survival and Health
Programs Fund.
Development Assistance
Fiscal year 2004 level................................ $1,376,829,000
Fiscal year 2005 request.............................. 1,329,000,000
Committee recommendation.............................. 1,429,000,000
The Committee recommends $1,429,000,000 for the general
account for development assistance for economic growth, trade
and environment. Funding in this account includes worldwide
activities for free market economic development, agriculture,
rural development, literacy and basic education for children
and adults, environment, energy, science and technology and
other programs related to longer-term development.
IMPORTANCE OF RESULTS
The Committee recognizes an effective foreign assistance
program must set transparent goals and measure progress toward
or achievement of those goals in tangible ways. Results rather
than resource levels should be the yardstick for measuring
United States assistance programs. An effective foreign aid
program must take account of the host country context, most
especially those governmental policies that affect sectors in
which United States assistance operates. It must also take into
account the private sector, including foreign capital and trade
flows, as well as assistance provided by other donors, both
official and unofficial. The Committee encourages the State
Department and USAID to continue and improve upon the
analytical work that sets tangible, realistic goals and
measures progress toward those goals.
ECONOMIC GROWTH: OVERVIEW
The Committee considers sustainable economic growth--which
can only happen in the context of free markets--USAID's most
important long-term objective. Without sustained economic
growth, USAID's development programs for health, population,
environment and other purposes, can have only marginal or
transitory benefits in poor countries. Lasting improvement in
social conditions can come only when countries themselves are
able to generate the necessary resources to invest in their
people.
In the near-term, the Committee continues to support
increases in USAID resources for health improvement through the
Child Survival and Health Programs Fund. But improved social
conditions of children matter only if the future economies of
these countries can provide employment for these healthier
citizens. Therefore, the Committee encourages USAID to increase
funding for free market economic development in its development
programs.
The Committee continues to support USAID technical
assistance programs to encourage macro-level economic growth.
These include programs to assist with privatization of state-
run industry and legal and regulatory reform to modify trade
and tax barriers that stifle local entrepreneurs and which
deter foreign United States investment. In addition, USAID
technical help for improving energy, transportation,
telecommunication, and finance sectors is key to directly
improving the economic climate of poor countries. Essential to
this, USAID must continue to search out reform-minded
government leaders without whom these programs cannot succeed.
The Millennium Challenge Corporation is based on this approach.
The Committee supports the efforts of USAID to better
coordinate with the United States Trade Representative and
other concerned agencies the significant amounts of aid already
being committed to assist other countries to strengthen their
trade-related laws and regulatory regimes. It is in the United
States national interest to ensure that relevant economic
growth funds are programmed to complement trade negotiating
objectives.
HUMAN CAPACITY BUILDING: BASIC EDUCATION
Education is part of the foundation for sustained economic
growth and the creation of democratic institutions in
developing countries. Section 579 of Public Law 108-401
required the Secretary of State, in consultation with USAID, to
articulate a strategy for the use of basic education funds,
with particular reference to country strategies, administrative
structures and efforts to increase the administrative capacity
of USAID and the Department of State with respect to basic
education. The report (``Basic Education Report to Congress'')
was compiled by USAID, with input from the Department of State
and other agencies, and submitted to Congress on May 21, 2004.
The Committee appreciates USAID's attempt to be responsive
to the requirements of the legislation. The report notes the
United States Government has endorsed the Monterrey Consensus,
which emphasizes that host countries bear the principal
responsibility for their own development. It also references
the Dakar Framework for Education for All and the United
Nations' Millennium Development Goals, which hope to ensure
that all children will be able to complete a full course of
primary education by 2015. At the Committee's direction, USAID
increased spending on basic education from $103,000,000 in 2001
to $326,500,000 in 2004, with an increase in the number of
country programs from 20 to 43 over the same period. The report
also states each United States Government ``agency focuses on
different areas of need according to its mandate, comparative
advantage, organizational structure, and internal guidelines''
and notes ``a consciously decentralized approach that
emphasizes coordination at the country level.'' The appendices
to the report provide country program information submitted by
USAID, the State Department, the Peace Corps and other
agencies.
While useful, the report does not provide an articulated
strategy on the use of basic education funds nor does it
specifically address how USAID plans to manage increased
funding. Such a strategy would reflect the scope of the
problems (illiteracy and innumeracy) in developing countries,
the efforts of host country governments at all levels to
increase access and quality of education, the efforts of other
donors (the World Bank alone, for example, lent $2,350,000,000
for education in 2003) and more detailed information on the
United States Government's programs. In line with a focus on
results, such a strategy could describe United States
Government financed inputs--scholarships, textbooks, teacher
training programs, curriculum reforms, school buildings and
other physical infrastructure--and how these inputs lead to
desired outcomes, such as increased literacy and gender
equality. To ensure a focus on results and to ensure that all
United States Government funded efforts on education overseas--
including that provided by the World Bank--are included, the
Committee requires the Secretary of State to prepare a report
to Congress within 120 days of enactment. The Department of
State should consult with the Committee on the material to be
included in the report. The Committee also urges the Executive
Office of the President to consider creation of an interagency
task force to develop a comprehensive education strategy, and
to enhance coordination of basic education assistance across
agencies.
The Committee notes governments of many developing
countries require families to pay fees for their children
attending school. The purpose of the fees is to increase
resources available for education. For low income families,
however, these fees become major barriers to school enrollment
among children, and especially girls. While abolishing school
fees would ostensibly solve this problem, it would also reduce
financial resources available for education, which in turn
would reduce the quality or availability of education by
leading to shortages of teachers, supplies and infrastructure.
To facilitate the exploration of innovative ways to address the
issue of school fees, the Committee has set aside $15,000,000
in basic education funding through the Development Assistance
account for a pilot project in holistic school reform. The
Committee directs USAID, in consultation with the Committees on
Appropriations, to design and fund a regional demonstration
program in one country in Africa that abolishes school fees,
provides an incentive to host country governments (federal,
provincial or local) to increase financial resources for local
education on a sustained basis, increases parent and community
involvement in local education, and ensures infrastructure that
meets the needs of both male and female students.
The Committee supports the work of Alfalit International,
an educational nongovernmental organization dedicated to
promotion of literacy, elementary education, and community
development in Africa and Latin America. Alfalit's proven
record during the past three decades has helped significantly
reduce child and adult illiteracy throughout Latin America and
Africa. The Committee also supports the work of ProLiteracy
Worldwide and its Literacy for Global Peace, Freedom and
Security Project, which would empower adults from across the
world to develop basic literary skills. Finally, the Committee
supports the work of the Amanut Society, a non-profit entity
involved with educational development activities.
HUMAN CAPACITY BUILDING: WOMEN'S LEADERSHIP TRAINING
The Committee notes many of the recommendations made to
USAID regarding the Office of Women in Development (WID) over
the course of the last two fiscal years have largely been
ignored. The Committee continues to believe a WID office
empowered to monitor, assess, and make recommendations
regarding the quality of gender integration at USAID could be
of great benefit to the agency.
The Committee is aware of the ``Gender Audit'' tool,
developed by the InterAction Commission on the Advancement of
Women, which helps development organizations assess their
institutional commitment to integrating considerations of
gender into management and field programs. The ``Gender Audit''
aims to ensure participating organizations have the technical
capacity, organizational culture, and accountability structure
to mainstream gender issues effectively in to their activities.
USAID could benefit from a self-assessment based on the
``Gender Audit'' model of its own institutional capacity in
this regard. The Committee directs USAID to report no later
than 60 days after enactment of this Act on its plans with
respect to an assessment.
The Committee also directs not less than $15,000,000 shall
be made available only for programs to improve women's
leadership capacity.
TRADE CAPACITY BUILDING
Trade capacity building (TCB) programs are critical
elements of development assistance because of their large
multiplier effects on economic growth, poverty reduction and
promotion of the rule of law. These programs help developing
countries participate in and benefit from the global trading
system. Economic growth provides much needed resources to
finance social investments in developing countries. Over time,
growth through trade reduces dependency on official aid.
For fiscal year 2005, the Committee provides $194,000,000
for trade capacity building efforts, the same level the House
supported last year in this account. The Committee requests
that USAID prioritize these resources where economic growth can
best be achieved particularly in the context of building
developing country capacity to implement and benefit from
special trade arrangements with the United States. Programs of
particular importance include trade facilitation through
improvements in customs, sanitary and phyto-sanitary measures;
improvements in governance and transparency regarding
government procurement; and related regulatory reforms that may
be necessary for the developing country to benefit fully from
the trading arrangement.
Programs should also include trade policy and related
training for government officials, such as customs officers,
environmental analysts, trade and investment policy officials,
patent and copyright officials, food safety inspectors, and
financial service regulators; technical assistance for
environmental reviews; technical assistance and other
initiatives that foster trade policy coordination among
government agencies to improve effectiveness and transparency,
and to improve outreach to civil society and the private
sector; and technical assistance to improve government
agencies' statistical and analytical capabilities in the areas
of trade, investment and services.
The Committee expects that these resources will be used to
respond to developing country requests for assistance.
Inter-agency coordination is key to the creation and
implementation of practical and effective TCB work plans. The
Committee encourages USAID to continue to exercise leadership
and participation in the interagency process and to be an
active partner in TCB action plans created by developing
countries. Where appropriate and throughout all regions, the
Committee supports USAID's efforts to use these resources in
inter-agency agreements or otherwise to accomplish development
objectives, particularly in the context of labor and
environmental cooperation related to special trading
arrangements with the United States. These efforts do not
specifically need to be related to trade capacity building.
This is particularly true in the context of the African Growth
and Opportunity Act and free trade agreements the United States
is negotiating.
The Committee recognizes that, more than other forms of
development assistance, trade capacity building programs
require increased flexibility because their implementation must
track the ever-changing dynamics at multilateral, regional and
bilateral levels. Therefore, the Committee urges USAID to be
able to account for the shifting nature of developing country
efforts to integrate into the global economy by being able to
make continual adjustments to five-year strategic plans that
run the risk of being outdated.
In resource allocation and programming, USAID should also
consult with the Office of Trade Capacity Building of the
United States Trade Representative. When responding to trade
capacity building proposals or action plans by developing
countries, USAID also should solicit expertise from relevant
federal agencies such as Customs, Department of Commerce's
Commercial Law Development Program, United States Food and Drug
Administration, the Department of Agriculture's Animal and
Plant Health and Inspection Service, and the International
Trade Commission.
The Committee believes a complete and accurate geographic
information system and computer aided mass appraisal should be
initiated to provide the highest possible data sets to agencies
that provide political, economic and defense services to
Central American Free Trade Agreement countries. The committee
strongly encourages USAID to undertake such a project utilizing
existing National Geospatial-Intelligence Agency (NGA) small-
business prime contractors under the NGA Global Geospatial
Intelligence program.
GLOBAL ISSUES: PROPERTY RIGHTS
Property rights, sound regulation of commercial activity
and other components of the rule of law are adversely affected
by inefficient, lengthy and often corrupt systems of
registering small businesses and land titles. The Committee
endorses programs that promote property rights and create
private real estate markets in selected countries where USAID
is active in Latin America, the former Soviet bloc and North
Africa. The Committee has provided sufficient funds for USAID
to continue to fully fund its cooperative agreement with the
Institute for Liberty and Democracy and to expand the
International Real Property Foundation program into a worldwide
effort.
GLOBAL ISSUES: URBAN PROGRAMS
Massive urbanization is occurring throughout the developing
world. Cities that are overcome by the mass migration of those
seeking economic improvements can become centers of
environmental devastation, health epidemics and social unrest.
The Committee is concerned that USAID's focus on urban issues
is diminishing even as urban-specific problems are
accelerating. USAID should study and report to the Committee on
agency-wide use of funds directed toward urban development
programs. The report should discuss the manner, level and
potential results of possible USAID interventions in these
programs. It should also discuss the efforts of other donors
and host governments to address these problems.
GLOBAL ISSUES: CLEANER ENERGY, RELIABLE POWER AND THE ENVIRONMENT
Many environment challenges, from urban pollution to rural
deforestation, result from failures to develop cleaner and more
efficient energy sources. Where lead continues to be used in
gasoline, diesel generators substitute for electricity from
unreliable grids, and areas surrounding towns and villages are
denuded of vegetation in the daily search for cooking fuel,
humans and their environment are degraded. The Committee
welcomes the focus of the President and Secretary of State on
power generation for sustainable development.
The Committee recommends a renewed emphasis on hydropower
with a $3,000,000 grant to a specialized non-governmental
organization representing the United States hydropower industry
to provide project development and implementation services. The
Committee directs USAID to consult with the Committee on its
plans for the allocation of these funds. As with other power
and energy sectors, USAID has a key role in assisting foreign
governments, international financial institutions, and the
local private sector to establish necessary energy and
investment framework and governance practices in emerging
markets.
The Committee continues to support the work of the
Foundation for Environmental Security and Stability to address
critical United States national security interests in the
context of regional instability arising from resource scarcity,
natural hazards and other environmental stresses.
The Committee recommends $2,000,000 for USAID to
participate in Project Atmospheric Brown Cloud, whose objective
is to assess the impact of the air pollution and persistant
brown haze in Asia on the region's agriculture, monsoon rains
and public health.
GLOBAL ISSUES: ACCESS TO CLEAN WATER AND WATER MANAGEMENT
The Committee notes that 2005 is the final year of the
$970,000,000 Presidential Water for the Poor Initiative,
announced in Johannesburg, South Africa, in August 2002. As
noted in previous Committee reports, competition for scarce
fresh water is predicted to be a major source of international
conflict during the twenty-first century, as it is now within
the Middle East. Elsewhere, intra-regional cooperative programs
for water management, from the Indus Water Agreement between
India and Pakistan more than 40 years ago to the new South Asia
Water Resources Program, are notable accomplishments for
international development assistance.
In Africa, especially in communities severely impacted by
HIV/AIDS, ready access to clean water is lacking, resulting in
increasing rates of water-borne diseases and higher infant
mortality rates. The Committee urges the President to direct
not less than $50,000,000 from this Act to build wells in rural
areas and secure water delivery systems in urban areas of
African communities that lack access to fresh water. Up to
$9,000,000 of this amount should be made available for rural
water and sanitation in east Africa.
GLOBAL ISSUES: BIODIVERSITY
The Committee applauds the accomplishments of USAID in
integrating biodiversity and forest management in its economic
and social development programs. The Committee urges USAID to
provide not less than $110,000,000 in fiscal year 2005 for its
biodiversity and related environment programs.
The Committee again recommends that USAID continue to
provide $500,000 to support the Neotropical Raptor Center in
Panama to conserve birds of prey in the Panama Canal watershed
area and throughout the new-tropics. The Committee notes that
the Center receives matching private financing for this
project.
ECONOMIC GROWTH: COLLABORATIVE RESEARCH SUPPORT PROGRAMS
The Committee supports the continuation of the
collaborative research support programs (CRSPs) and urges USAID
to increase funding for the CRSPs in fiscal year 2005 to
$28,000,000. The Committee believes CRSPs are excellent
investments, funding for which should be increased rather than
reduced. The Committee notes that agricultural research and
development has led to greater economic development, increased
income, and a more available food supply for the world's poor.
The Committee supports the creation of a new CRSP to focus on
water issues.
ECONOMIC GROWTH: MICROENTERPRISE
In most developing countries, small, informally organized
businesses--microenterprises--constitute the vast majority of
business enterprises. Microenterprises are the source of
employment and income for hundreds of millions of people in
developing countries. To flourish, microenterprises need a
congenial policy environment and growing markets, as well as
capital and technical assistance. The Committee expects USAID's
programs to reach the largest possible number of
microenterprises, whether through grants to private, non-
governmental organizations that on-lend to microenterprises or
by sponsoring economic policy reforms that directly stimulate
such enterprises. The Committee expects USAID to achieve the
fiscal year 2004 authorization level (enacted as part of Public
Law 108-31) of $200,000,000. Furthermore, in order to maximize
service delivery to poor clients, the Committee directs USAID
to take measures to preserve the viability of the leading
private NGO Microfinance Networks, and to consult with the
Committee on these measures.
CREDIT UNIONS AND COOPERATIVES
The Committee recognizes the important role that United
States credit unions and cooperatives play in overseas
programs. Cooperatives are a means to lift low-income people
out of poverty through their own efforts by mobilizing equity
and savings for community-based economic growth. The Committee
recommends adequate funding for the Office of Private Voluntary
Cooperation for cooperative development organizations.
The Committee notes the role of electrification in rural
and economic development strategies and supports a cooperative
approach, in the context of free markets, to bring reliable
electricity to rural areas around the world. The Committee
urges USAID to consider increases in funding for rural
electrification programs in developing countries.
LATIN AMERICA: OVERVIEW
The Committee is disappointed that USAID has ignored
Committee report language from prior years urging that greater
emphasis be provided for programs in Latin America. The
Committee notes that the President's request for this region
from Development Assistance and the Child Survival and Health
Programs Fund are substantially less than the combined level
for both accounts enacted and allocated in fiscal year 2004.
The Committee is concerned that the Central American nations
received disproportionate reductions in the request and does
not believe that this reflects the priorities of United States
economic, trade, humanitarian and immigration policies with
these neighboring countries. Therefore the Committee directs
the Administrator of USAID to provide assistance to Central
American nations from Development Assistance and the Child
Survival and Health Programs Fund at a combined level not less
than that provided in fiscal year 2004.
The Committee recommends up to $1,000,000 for fire
prevention and suppression activities in connection with annual
spring agricultural fires in Mexico and Guatemala.
The Committee notes with approval that the current
President of Nicaragua has launched a wide-ranging anti-
corruption campaign. His government has indicted a former
President and many high ranking former government officials.
The current President and his administration have worked with
the assistance of United States Department of Justice in regard
to several of these investigations.
The Committee commends the President of Guatemala for his
efforts to combat the endemic corruption and violence that has
impeded Guatemala's development after so many years of civil
strife. The new Government of Guatemala's efforts to reform
democratic institutions and combat corruption have created a
great opportunity for all Guatemalan people at this critical
juncture in Guatemalan recent history.
LATIN AMERICA AND THE CARIBBEAN: SCHOLARSHIP PROGRAM
The Committee commends the Cooperative Association of
States for Scholarships (CASS) for its effective approaches to
providing individuals with the skills that enable them to
contribute effectively to the economic growth of their
communities and nations. The Committee notes that the CASS
program has offered technical education, job training, and
leadership skills to young adults and leaders from communities
of Central America and the Caribbean in fields such as
agriculture, education, business, construction, environmental
science, health care and technology training. The Committee
expects USAID to fully fund the current CASS agreement. The
Committee also notes that the CASS program is undertaking new
activities in Mexico in support of the Administration's efforts
to strengthen the United States-Mexico relationship, and
believes that the program's long history in Haiti could
contribute significantly to USAID efforts in that nation.
HAITI
The Committee is concerned about the emergency humanitarian
crisis in Haiti and has provided $50,000,000 under the heading
``Economic Support Fund'' to be in addition to the $24,488,000
requested by the President for Haiti in the Development
Assistance and Child Survival and Health Programs Fund accounts
for fiscal year 2005. In the short term, funding will support
the restoration of electricity and clean water, the acquisition
of fuel to run portable generators and facilitate the repair of
the country's infrastructure, including port dredging, water
treatment and supply, and sewage processing. The Committee
expects the Department of the Treasury to support multilateral
development bank projects, provided in the form of grants.
GLOBAL COFFEE STRATEGY
The Committee recognizes the work of USAID in Latin America
to combat the global coffee crisis, including technical
assistance, crop diversification, and public-private
partnerships. The Committee supports an expansion in programs
relating to access to micro-credit for coffee cooperatives and
farmers affected by the global coffee crisis. The Committee
directs USAID and the State Department to implement the
following strategy: support prime coffee areas to improve
productivity and quality, and assist them in gaining access to
premium markets such as fair trade and organic; assist less
competitive coffee farms in crop diversification and other
forms of site-appropriate economic development; and work to
facilitate public-private long term partnerships between
growers and industry.
ASIA: ECONOMIC GROWTH ACTIVITIES
Technical assistance in support of updated commercial
policies and legal structures promotes United States trade
with, and investment in, Asia. This approach to development
assistance should continue to be a high priority, and the
Committee again directs USAID to make available, for a fourth
year, $60,000,000 for these and other economic growth
activities.
AMERICAN SCHOOLS AND HOSPITALS ABROAD
The Committee directs USAID to provide up to $20,000,000
for the American Schools and Hospitals Abroad (ASHA) program in
fiscal year 2005, with the full required amount obligated in
fiscal year 2005. The Committee further expects that support
will be continued, as new resources are needed, for traditional
recipients in the Middle East. The Committee expects USAID to
keep it well informed regarding institutions which have
received ASHA funding in previous years, but which continue to
have significant unexpended balances. In addition, funds should
be made available for other deserving institutions in all
geographical regions, especially in sub-Saharan Africa.
The Committee notes that innovative medical technology such
as haptic medical simulation can help train medical personnel
in medically underserved developing countries. Such technology
can provide a safe alternative to practicing on human subjects
for a variety of procedures, such as intravenous therapy and
endoscopy, and should be considered for use where appropriate.
GLOBAL ISSUES: THE ROLE OF GIRLS AND WOMEN IN DEVELOPMENT
The Committee recognizes the importance of improving the
economic and social situation of women and girls through
respect for legal rights and expanded access to educational
opportunities, adequate health care, and credit. Over the past
year, the Department of State has allocated significant
resources from the Economic Support Fund in order to improve
the economic and social situation of women in the Middle East.
INTERNATIONAL FERTILIZER DEVELOPMENT CENTER
The Committee supports the fertilizer-related research and
development being conducted by the International Fertilizer
Development Center (IFDC) and recommends the Administrator of
USAID make $2,300,000 available for the core grant to IFDC, a
center established to support USAID.
DAIRY DEVELOPMENT
USAID indicates it provided $21,000,000 to development
projects associated with the dairy industry in developing
economies. Many of these projects have provided safe,
nutritious and affordable food to the local populations,
fostered growth of small businesses through reform of local
government policies, and empowered stakeholders in projects,
especially women, through job creation and increased incomes.
Such projects also allow the United States dairy industry to be
more competitive by promoting American technology, equipment,
inputs and industry-based technical assistance abroad. As USAID
continues to develop its priorities in developing agricultural
capacity around the world, the Committee continues to strongly
recommend that USAID support dairy-related programs.
The Committee directs USAID to fund such programs at not
less than $20,000,000 in fiscal year 2005. These projects
should facilitate efforts by United States dairy livestock
businesses and organizations to engage emerging markets in
developing local sustainable enterprises capable of delivering
dairy livestock-related goods and services.
The Committee requests USAID to provide a report not later
than March 31, 2005, outlining its actions in meeting the above
directives, and advises USAID to be more rigorous in its
determination of which projects comply with this directive.
TORTURE TREATMENT CENTERS
The Torture Victims Relief Act of 1998 states that
assistance to foreign treatment centers ``shall be provided in
the form of grants to treatment centers and programs in foreign
countries that are carrying out projects or activities
specifically designed to treat victims of torture for the
physical and psychological effects of the torture.'' The
Committee urges USAID to ensure that this program complies with
the congressional authorization. By so doing, USAID will be
helping to ensure the growth of indigenous institutions
providing culturally appropriate care to their torture victims
and seeking to prevent and eventually eliminate the practice of
torture in their country. The Committee recommends that USAID
devote $12,000,000 for this program in fiscal year 2005. The
Committee requests that USAID report on implementation of these
recommendations not later than 60 days of enactment of this
Act.
VOLUNTEER PROGRAMS
The Committee recognizes the important activities of the
Citizens Development Corps (CDC) and the Financial Services
Volunteer Corps (FSVC) in assisting the growth of emerging and
transitioning economies around the world. The CDC's and FSVC's
thousands of volunteer American businesspeople bring the
benefits of market economies and democratic values to
developing countries and provide unique and continuing value to
United States foreign aid strategies. The Committee urges USAID
to seek ways to maximize the use of CDC and FSVC programs and
volunteers in priority countries.
GLOBAL DEVELOPMENT ALLIANCE
For potential funding from the Global Development Alliance
or other sources, the Committee urges USAID to actively
consider an innovative proposal from Counterpart Communities to
strengthen existing city partnerships and potentially create
new Counterpart Community partnerships. Counterpart Communities
has leveraged successfully the resources made available by the
United States Government through various donations by United
States citizens, companies, and organizations.
AFRICA
The Committee notes with concern the reductions made in the
budget request to a number of countries in Africa. The
Committee has restored the non-HIV/AIDS programs within the
Child Survival and Health Programs Fund to their fiscal year
2004 levels, and has added $100,000,000 to the President's
request for the Development Assistance account. The Committee
expects USAID to restore the cuts in African country
allocations (for countries not eligible for MCC funding) to
their fiscal year 2004 levels, consistent with proper
programmatic considerations. Further, the Committee is
concerned that its requests to USAID to provide an explanation
for its decisions to cut African country levels have gone
unanswered, and expects to be fully consulted prior to the
release of the section 653(a) allocations for fiscal year 2005.
The Committee urges USAID to consider proposals to provide
technical assistance, training, and other types of support to
the community based ``gacaca'' courts in Rwanda. The Committee
also urges USAID to consider a proposal from All Africa Global
Media to conduct training and exchanges for African
journalists.
UNITED STATES UNIVERSITY SUPPORT FOR DEVELOPING COUNTRIES
The Committee continues to receive numerous requests to
fund specific activities at or through American institutions of
higher education. The Committee strongly supports activities
that advance international development and United States
foreign policy goals. The Committee has reviewed the concepts
proposed for funding, and recommends that USAID and/or the
Department of State (as appropriate for the proposed project)
actively consider proposals submitted by the following
organizations.
Unless a proposal demonstrates a unique, innovative, or
proprietary capability, or demonstrates special considerations
that justify limited or non-competitive treatment, the
Committee expects that competitive procedures will be applied
with regard to the proposals on the list that follows. The
Committee also expects USAID to give priority to proposals that
have technical merit, realistic budgets, and achievable
objectives.
No later than March 15, 2005, the Administrator of USAID
shall submit a report to the Committee on the status of each
activity identified below. Such report shall include: (1) the
status of a funding proposal by the organization associated
with each activity; (2) the degree to which the proposal is
consistent with United States development assistance and
foreign policy goals for the country or region in which the
activity would take place; (3) the degree to which matching or
other funds would be provided by the organization to complement
the Federal contribution; (4) to the extent known at the time,
any decision by USAID or the Department of State on funding the
activity, including the proposed funding level; and (5) any
other relevant information deemed important by USAID or the
Department of State. The Committee also expects to receive a
second report on the status of these proposals no later than
September 15, 2005. In addition, the Committee requests that
USAID identify an office or organization within the agency, or
within the Department of State if appropriate, to which
inquiries can be directed on the status of these proposals.
With the foregoing in mind, the Committee recommends the
following proposals for USAID's active consideration:
A project from the University of Arizona and Mexico's
Consejo Nacional de Ciencia Y Technologia (CONACyT) to
support a United States-Mexico binational optics
program with the purpose of establishing a program to
improve Mexico's competitiveness;
A proposal by the University of Arkansas Medical
School to work in partnership with Russian institutions
on critical health problems in Russia;
A proposal by California Western University School of
Law to help Latin American countries reform their
judicial systems;
Proposals by Loma Linda University, California, to
expand its medical education and health care programs
in developing countries;
A proposal by the University of California at Los
Angeles to provide distance education to support the
fight against HIV/AIDS in Africa and to improve the
quality of the African health care delivery system;
A proposal by Barry University, Florida, to provide
quality education to uneducated and untrained women in
developing countries;
A proposal by Florida State University to revitalize
and expand the Caribbean Law Institute and re-establish
linkages with the University of the West Indies;
A proposal by the University of Miami, Florida, to
support the Cuban Transition Project at the Institute
for Cuban and Cuban-American Studies;
A proposal by the University of Georgia's Center for
International Trade and Security to help in efforts to
combat proliferation of weapons of mass destruction;
Proposals by DePaul University, Illinois, to provide
training for diplomats and 30 to 45 police officials,
prosecutors, judges, defense attorneys, prison
officials and members of the media from 15 different
Arabic nations in country specific training sessions;
A proposal by Northwestern University, Illinois, in
association with partner organizations through the
Consortium for Development Partnerships, to respond to
the slow pace of economic development, democratization,
and conflict resolution in many African countries;
A proposal by Kirkwood Community College, Iowa, to
develop graphic, interactive electronic teaching tools
and train educators;
A proposal in support of the Norman E. Borlaug
International Science and Technology Fellows Program;
Proposals by the University of Kentucky to develop a
new center for international studies and to develop
partnerships with three Indonesian universities;
A proposal by the African Technology for Education
and Workforce Development Initiative to establish a
distance learning program between United States and
African universities;
A proposal by Tulane University, Louisiana, and
African institutions to expand multidisciplinary
research centers in malaria-infested regions of Africa
to develop improved responses to the reemergence of
malaria;
A proposal by Tulane University and Xavier
University, Louisiana, to work with the West African
Health Organization to prevent and treat HIV/AIDS in
the militaries of the Economic Community of Western
African States;
A proposal by the Louisiana State University Law
Center to support intra-hemispheric trade through
partnerships with law schools in Latin America;
A proposal by the John Joseph Moakley Center for Law,
Justice, and Human Rights at Boston College,
Massachusetts, to support programs that promote justice
and human rights around the world through the College's
undergraduate and graduate international programs;
Proposals by the University of the Middle East to
facilitate construction of a fully-accredited Graduate
School of Education in Massachusetts;
Proposals by Suffolk University, Massachusetts, to
create a sustainable partnership to provide unique
education opportunities for both American and African
students;
A proposal by Eastern Michigan University's Center
for Middle East Services to develop mutual
understandings with the Middle East;
A proposal by Bemidji State University, Minnesota, to
create a Central Asian Institute to facilitate cross-
cultural understanding and enhance the education of
citizens in Central Asia;
A proposal by New Mexico Tech in Socorro, New Mexico
for anti-terrorism programs;
A proposal by New York University to support the
Afghanistan Digital Library;
A proposal by the University of Nevada Las Vegas to
support the City of Asylum Network that provides
support for writers who are silenced in their home
countries;
A proposal by Drexel University, Pennsylvania, in
partnership with the Caribbean American Mission for
Education Research and Action to improve basic
education delivery services through the Caribbean
Basin;
A proposal by Chestnut Hill College, Pennsylvania,
for a distance learning and exchange program in
Ukraine;
A proposal by Salve Regina University, Rhode Island,
to sustain and develop a series of reconciliation
initiatives for young people in Northern Ireland;
A proposal by Austin Peay State University,
Tennessee, to enhance the international curriculum to
meet the needs of military personnel at Fort Campbell,
Kentucky;
A proposal by University of Texas at Austin, Texas,
to work with the Turkish National Science Foundation
and the Middle East Technical University of Ankara,
Turkey, to conduct earthquake research, to evaluate
existing structures in Turkey, define their seismic
vulnerabilities and develop effective defensive
techniques and measures;
A proposal by Texas A&M University and other Alabama
and Texas institutions of higher learning to expand
research in the United States, Ghana and other
cooperating countries to further refine the technology
for remediating the effects of mycotoxins in food and
feed;
Proposals by Baylor University, Texas, to support
international pediatric healthcare centers to enhance
the treatment and care of children with HIV/AIDS;
A proposal by George Mason University, Virginia, to
support continued operations of the Center for World
Religions, Diplomacy and Conflict Resolution to support
an initiative to reduce violence in the name of
religion;
A proposal by Virginia Commonwealth University to
conduct a baseline database on the health, economic and
social parameters of AIDS patients in South Africa;
A proposal by the University of Richmond, Virginia,
to support the education of future judges in emerging
democracies;
A proposal by Marquette University College of
Nursing, Wisconsin, to participate in partnerships with
community-based HIV ``Centers of Excellence'' in Kenya;
A proposal by the Caribbean American Mission for
Education Research and Action to elevate the condition
of the people of the Caribbean using United States
university expertise in educational methodologies and
delivery systems;
A proposal by the Mrs. Helena Kaushik Women's
College, India, to increase opportunities for women to
receive undergraduate and graduate degrees;
A proposal by Alliant International University and
United States International University--Kenya to
transfer technology skills to Kenyan businesses and to
support USAID's goal of ``Building Human Capacity
through Education and Training'';
A proposal by Georgetown University Hospital to
develop partnerships with healthcare institutions in
South Africa and other regions afflicted by HIV/AIDS,
to provide psychosocial support and other services to
people affected by the disease;
A proposal by the Asian University for Women,
Bangladesh, to educate disadvantaged women from diverse
backgrounds around Asia in a non-sectarian environment;
and
A proposal on behalf of universities in Nigeria to
establish cyber centers and technical training
facilities.
International Disaster and Famine Assistance
Fiscal year 2004 level................................ $253,993,000
Emergency supplemental funding........................ 220,000,000
Fiscal year 2005 request.............................. 385,500,000
Committee recommendation.............................. 355,500,000
The Committee recommends $355,500,000 for the International
Disaster Assistance and Famine Assistance account.
The Committee includes $20,000,000 of funding for early
intervention to prevent or mitigate the effects of famine. The
Committee does not fund the request for the United States
Emergency Fund for Complex International Crises.
The Committee urges the State Department and USAID to
consider the use of microprocessor-controlled mobile factories
with the capability to construct buildings and shelter as part
of reconstruction efforts in Afghanistan and Iraq, and for
relief and security requirements in Jordan and Morocco. This
equipment has multiple potential applications for these and
other programs, such as infrastructure development,
reconstruction, national disaster response, and humanitarian
relief.
The Committee notes that, pursuant to section 594(c) of the
fiscal year 2004 Act, the Department of State has submitted a
report on United States Government efforts to protect women and
children affected by humanitarian emergencies. The report
identifies the Office of Foreign Disaster Assistance, the
Office of Transition Initiatives, and the Department of State's
Bureau of Population, Refugees, and Migration (PRM) as three of
the primary offices responsible for such programs, and makes a
number of recommendations, including: continue to focus and
target assistance for women and children in humanitarian
emergencies; and improve United States Government capacity to
make long-term commitments to protection-oriented reforms. In
order to achieve these goals, the Committee recommends that
$45,000,000 be provided from State Department and USAID
resources in this Act for such activities.
The Committee recognizes the collaboration between USAID
and the United States Geological Survey (USGS)/EROS Data Center
(EDC) Famine Early Warning System Network (FEWS NET) and other
food security programs in sub-Saharan Africa. The Committee
supports the goals of these famine relief initiatives and the
cooperative partnership between USAID and USGS/EDC. The
Committee also recognizes the need to have continuous access to
valuable land remote sensing data and the critical role the
USGS/EDC plays in collecting, managing, and archiving this data
used to monitor vegetation, rainfall, and agricultural
conditions affecting global food security.
SUDAN
The Committee is extremely concerned about the dire
humanitarian situation in Sudan. In the Darfur province of
western Sudan, USAID estimates 300,000 people may die by the
end of the year unless rapid action is taken. In addition to
the unfolding tragedy in Darfur, there are significant
humanitarian requirements in southern Sudan.
The Committee recommendation includes $311,000,000 for
Sudan, of which $140,000,000 has been requested from this
account. This funding is in addition to $95,000,000 pending in
the Act making fiscal year 2005 appropriations for the
Department of Defense.
SUDAN ALLOCATION
Child Survival and Health............................. $16,000,000
Development Assistance................................ 70,000,000
Economic Support Funds................................ 20,000,000
International Disaster and Famine Assistance.......... 140,000,000
Non-Proliferation, Anti-terrorism, Demining and 2,000,000
Related Programs.....................................
Migration and Refugee Assistance...................... 53,000,000
Transition Initiatives................................ 10,000,000
-----------------
Total from this Act............................. 311,000,000
The Committee is deeply concerned about the actions of the
northern Sudanese government in Darfur. That government's
direct and indirect support for the ``Janjaweed'' militia and
repeated delay of international assistance to the millions of
displaced persons in the region must be immediately stopped. In
section 531, the Committee prohibits funding from this Act for
that government or for initiatives to alleviate Khartoum's
$19,000,000,000 debt burden unless the Secretary of State makes
the certification outlined in subsection (c).
Subsection (c) of section 531 describes three steps that
the northern government must take immediately if the deaths in
Darfur are to be lessened, including ending its support for the
Janjaweed and allowing humanitarian assistance unimpeded access
to the region. Once the Secretary of State has certified to the
Committee that these steps are being taken, the restrictions
and instructions provided in subsection (b) will cease to be in
effect. Humanitarian assistance, and assistance provided to the
Darfur region and to the area outside of the control of the
north, are specifically not restricted by section 531.
Funding for Sudan is also explicitly restricted elsewhere
in this Act, including under headings ``Debt Restructuring''
and ``Foreign Military Financing Program''.
Transition Initiatives
Fiscal year 2004 level................................ $54,676,000
Fiscal year 2005 request.............................. 62,800,000
Committee recommendation.............................. 47,500,000
The Committee recommends $47,500,000 for this account. This
is $7,176,000 below the 2004 level and $15,300,000 below the
request. The Committee does not preclude USAID's Office of
Transition Initiatives (OTI) from using resources transferred
from other development accounts in this Act. Also, the
Committee requests that USAID report on a semi-annual basis the
expenditure and specific use of funds by OTI.
Development Credit Authority
(INCLUDING TRANSFER OF FUNDS)
PROGRAM ACCOUNT
Fiscal year 2004 level................................
(by transfer)..................................... ($21,000,000)
Fiscal year 2005 request..............................
(by transfer)..................................... (21,000,000)
Committee recommendation..............................
(by transfer)..................................... (21,000,000)
ADMINISTRATIVE EXPENSES
Fiscal year 2004 level................................ $7,953,000
Fiscal year 2005 request.............................. 8,000,000
Committee recommendation.............................. 8,000,000
The Committee recommends a ceiling of $21,000,000 on the
amount that may be transferred from bilateral economic
assistance accounts for the subsidy cost of loan guarantees
under the Development Credit Authority program.
The Committee recommends $8,000,000 for administrative
expenses, the same as the requested level.
Payment to the Foreign Service Retirement and Disability Fund
Fiscal year 2004 level................................ $43,859,000
Fiscal year 2005 request.............................. 42,500,000
Committee recommendation.............................. 42,500,000
The Committee has provided the budget request for the
mandatory payment to the Foreign Service Retirement and
Disability Fund.
Operating Expenses of the United States Agency for International
Development
Fiscal year 2004 level................................ $600,536,000
Emergency supplemental funding........................ 40,000,000
Fiscal year 2005 request.............................. 623,400,000
Committee recommendation.............................. 618,000,000
The Committee has recommended funding for United States
Agency for International Development operating expenses at a
level of $618,000,000, which is $17,464,000 above the fiscal
year 2004 level. The Committee recommends bill language
providing that $25,000,000 of the fiscal year 2005
appropriation remain available until September 30, 2006. The
Committee also has recommended bill language clarifying that
the Secretary of State may make transfers between accounts for
USAID administrative expenses pursuant to sections 109 and 610
of the Foreign Service Assistance Act of 1961. The Committee
has included a provision requiring USAID to notify the
Committee in advance of opening any new mission overseas and of
any capital construction of missions or purchase or long-term
lease of offices. The reporting requirement also applies to
funds appropriated under the heading ``Capital Investment
Fund''.
HUMAN RESOURCES
The Committee acknowledges the work USAID is doing to
``right size'' its work force and appreciates the hard work
evident in the Workforce Planning Report provided on June 15,
2004. The Committee remains concerned that USAID and the
Department of State are not moving quickly enough to address
future human resource requirements. These requirements will be
all the more challenging because of the expected increase in
USAID staff retirements. By 2007, almost 60 percent of the
United States direct hire foreign service personnel will be
eligible for retirement as will 30 percent of USAID's civil
service personnel.
The Committee remains concerned that staffing in USAID
missions abroad does not reflect current or future workload
realities. The Workforce Planning Report only partially
addresses these problems. For example, some country assistance
levels declined by over 40 percent in past years, yet there was
no significant related decrease in mission personnel. The
Committee therefore requests a second report, to be due on
October 15, 2004, that builds upon the previous Workforce
Planning Report. USAID should consult with the Committee well
in advance on methodology, relevant analysis and other content
to be included in the report.
The Committee supports USAID's comprehensive workforce
analysis and planning review. It looks forward to reviewing the
planned Washington to Overseas Alignment Study. The Committee
urges USAID to integrate the work force metrics into its annual
budget process so that workforce and workload issues--both in
missions and in Washington--can be effectively addressed. USAID
should routinely evaluate the alignment of program resources
and staff in each operating unit's budget justification.
The Committee notes the Congress has supported
Administration proposals with respect to readiness initiatives
at the Department of State. It would welcome similar proposals
by the Administration on behalf of USAID. The Committee also
welcomes constructive proposals to modernize USAID's personnel
systems or improve budget transparency for administrative
expenses.
CONCERNS ABOUT CONTRACTING AMONG PVOS, COOPERATIVES, AND SMALL,
DISADVANTAGED AND MINORITY FIRMS
As USAID's personnel shortfall and major reconstruction
projects in Afghanistan and Iraq prompt USAID to increasingly
rely on large contractors to administer smaller grants and
cooperative agreements, the Committee is aware of the difficult
adjustment facing many of USAID's long-serving and effective
implementing organizations, especially private voluntary
organizations (PVOs), microenterprise networks, cooperatives,
and small, disadvantaged and minority firms. While the
Committee remains supportive of the prudent use of indefinite
quantity contracts and greater competition and accountability,
it seeks to help resolve the perceived crisis among USAID's
existing PVO, cooperative, and small, disadvantaged and
minority implementing agents.
An important component of USAID's ongoing efforts to
improve operations within its Office of Procurement is outreach
to small, disadvantaged and minority contractors and grantees.
The Committee is aware of initiatives to train minority firms
in leading United States export cities to better compete for
USAID awards, and requests that sufficient resources be
allocated over the next two years to train small, minority, and
disadvantaged firms in leading export cities for such purposes.
The Committee further directs USAID to submit to the Committee
a report that provides an accounting of the resources used to
train minority firms, as well as the total number of small
minority firms that receive training. The report should also
include the number of minority firms that are awarded contracts
after receiving training.
The Committee recommends that those entities competing for
the training contract have prior experience in working with
small, minority and disadvantaged firms in increasing their
ability in doing business in the international arena.
The Committee is also aware that USAID maintains a national
database of qualified small, disadvantaged, and minority firms.
This database should be expanded to include firms who benefit
from the outreach initiative. In addition, information from the
database should be disseminated on a regular basis to all USAID
overseas missions, relevant Washington, DC staff, and USAID
prime contractors.
COMPETITIVE CONTRACTS AND AWARDS
The Committee firmly supports full, fair and open
competition as a means of lowering costs and getting better
product. The Committee recognizes that waivers of federal
acquisition rules are sometimes necessary, but it believes such
waivers should be rare and issued in a fully transparent
manner. The Administrator of USAID is requested to provide the
Committee an annual report not later than four months after the
end of the fiscal year, on the extent and detail during the
preceding fiscal year of USAID's sole-source and limited-
competition awards for contracts, cooperative agreements, and
grants in excess of $100,000. USAID should consult with the
Committee before beginning to draft the report.
Capital Investment Fund
Fiscal year 2004 level................................ $81,715,000
Emergency supplemental funding........................ 16,600,000
Fiscal year 2005 request.............................. 64,800,000
Committee recommendation.............................. 64,800,000
The Committee is recommending $64,800,000 for the Capital
Investment Fund for fiscal year 2005, the same as the
President's request. In total, the Committee recommendation
includes $28,700,000 for USAID participation in the Capital
Cost-Sharing Program, under which all agencies with overseas
staff operating under Chief of Mission authority will
contribute toward the costs of constructing secure embassy
compounds. The Committee supports the concept of Capital Cost
Sharing but wants to ensure that all agencies are treated
equitably. It has therefore included language in its bill to
ensure equitable treatment. Funds would remain available until
expended and are in addition to funds otherwise available for
such purposes.
USAID BUSINESS MODEL REVIEW
The Committee commends the Administrator and USAID for
initiating and completing a Business Model Review (BMR). The
Committee believes it vitally important that USAID continue to
evaluate its operational processes in a spirit of continuous
improvement. Effective foreign assistance strategies should
reflect both the diverse challenges and the necessary aid
delivery structures necessary to achieve the intended
development outcome. The Business Model Review is an effective
tool that helped shape management decisions. The Committee
looks forward to frequent updates on the implementation of
decision memos approved by the Administrator.
With respect to strategic management, the Committee
requests that USAID submit the Interim Guidance immediately
after approval and provide a description of the process and
timeline with milestones that USAID will use to restructure
USAID's strategic planning process with the Strategic
Management Framework. The Committee notes that eighty-five
percent of people polled for purposes of the study believe that
USAID's current planning process needs to be streamlined.
With respect to management oversight, the Committee
requests a consultation on the methodology of coordinated
overseas Mission Program Management Reviews. Accompanying this
consultation, the Committee expects a written summary of the
methodology, the target list of priority operational units for
review in the upcoming fiscal year, as well a timeline for the
completion of reviews, the reporting of results, and the
institutionalizing of agency wide practice in the years to
come. The Committee requests that USAID provide the
consultation prior to the start of Pillar Bureau reviews.
The Committee encourages the Administrator to continue to
undertake such fundamental business management reviews of USAID
operations and looks forward to further in depth consultation.
FINANCIAL MANAGEMENT
In October, 2003 the Inspector General issued clean,
unqualified opinions on all five of USAID's fiscal year 2003
financial statements. The Committee recognizes this significant
progress achieved through the hard work of both USAID and
USAID's Inspector General. In fiscal year 2001, three of
USAID's financial statements were given qualified approval, and
two were given a disclaimer; not one received a passing grade.
The Committee remains intensely interested in the roll-out
of USAID's new financial management system known as Phoenix.
The Committee appreciates USAID's commitment to complete
deployment of Phoenix to all of the field missions by the end
of fiscal year 2005. The Committee expects to be kept informed
on a routine basis of major milestones accomplished and
encourages adequate planning in order to avoid any delay in
implementation. As the new system is implemented, the Committee
wishes to emphasize the importance of generating the field
commitment to using the system.
Although clean, unqualified opinions on USAID's annual
financial statements are important, the Committee stresses the
paramount importance of USAID managers having timely, reliable
and complete financial and performance data on foreign
assistance programs on a consistent basis. They will not have
this data as long as there is no world wide, integrated
financial system.
Consistent with the President's request, the Committee
funds $2,700,000 for the information technology enhancements to
the Phoenix system in Washington as well as the $10,600,000 for
Mission Financial System improvements.
PROCUREMENT IMPROVEMENT EFFORTS
Consistent with the President's request, the Committee
provides $9,900,000 as requested in the Capital Investment Fund
to implement the Procurement Systems Improvement Project
(PSIP), an overseas deployment of a web based procurement
system. In the report accompanying the Foreign Operations
Appropriations Act, 2003, the Committee urged USAID to develop
a worldwide procurement tracking system that would allow the
agency to evaluate regularly its procurement process and
ultimately allow data to be integrated into its financial
management system. By the fourth quarter of fiscal year 2005
(the target completion date as identified by USAID), the
Committee believes it essential for managers to possess an
integrated, agency wide, real time system for the acquisition
and award process--inclusive of grants, cooperative agreements,
and contracts. The Committee recognizes USAID-identified PSIP
objectives but also encourages USAID to use the system as a
means to improve the competitiveness of procurement as well as
to measure the continuous opportunity of new entrants as third
party implementers.
The Committee recognizes and supports USAID's collaborative
process with the Department of State. The Committee expects to
be informed of any delays resulting for any reason, including
risk or vulnerabilities associated with software development,
technology infrastructure and inter-agency relationships. The
Committee appreciates the report on the PSIP and requests a
followup report by October 8, 2004. This report should include
a more detailed timeline of project milestones in fiscal year
2005 as well as relevant updates on project critical paths and
risks.
The Committee also requests that USAID provide a detailed,
comprehensive, and relevant spend analysis of agency
procurement by November 5, 2004 and a consultation on
methodology prior to the start of the analysis. The analysis
should include differences in procurement across pillar and
regional bureaus, by account, sector, or strategic objectives
and, where appropriate, procurement by commodity type and
purpose, vehicle, and vendor.
To respond to negative perceptions of procurement
practices, the Committee requests a report on metrics USAID
uses to evaluate the competitiveness, efficiency, long term
structural openness to new entrants, and procurement vehicle
consistency with strategic objective. The Committee requests
this report by October 8, 2004. The report should include a
description of the various metrics and illustrate their
application in a detailed review of at least two operating
units' procurement for a recent fiscal year (preferably one
field mission and one regional or pillar bureau).
All funds made available under the Capital Investment Fund,
including the obligation of offsetting collections, and the
capital appropriation in the Economic Support Fund, are subject
to the regular notification procedures of the Committees on
Appropriations. The Committee also has included bill language
under Operating Expenses of the United States Agency for
International Development that requires notification before
USAID commits to new overseas missions that will require
additional capital investments.
Operating Expenses of the United States Agency for International
Development, Office of the Inspector General
Fiscal year 2004 level................................ $34,794,000
Fiscal year 2005 request.............................. 35,000,000
Committee recommendation.............................. 35,000,000
The Committee has recommended $35,000,000 for the Office of
the Inspector General of USAID for fiscal year 2005, which is
the same as the President's request. The Committee again
commends the Inspector General for its cooperation with the
Committee in its oversight of USAID management. Not later than
120 days after the date of the enactment of this Act, the
Inspector General of USAID is requested to prepare and submit
to the Committee a report that describes and evaluates the
extent to which the task ordering process carried out by
mission directors of the Agency affects the Agency's ability to
meet the goals established by the Small Business Administration
relating to contracting with small businesses.
Other Bilateral Economic Assistance
ECONOMIC SUPPORT FUND
Fiscal year 2004 level................................ $2,119,919,000
Emergency supplemental funding........................ 872,000,000
Fiscal year 2005 request.............................. 2,511,500,000
Committee recommendation.............................. 2,450,000,000
The Committee recommends a total of $2,450,000,000 for the
Economic Support Fund (ESF), an amount that is $61,500,000
below the request and $330,081,000 above the amount enacted for
fiscal year 2004, excluding emergency supplemental
appropriations. The increase above the fiscal year 2004 level
is primarily due to the annualization of supplemental funding
for assistance for two key allies in the war on terrorism,
Afghanistan and Pakistan. Funding for Afghanistan is
recommended at the President's request of $225,000,000, which
is $150,442,000 above the funding level for 2004, excluding
supplemental appropriations of $672,000,000. Funding for
Pakistan is recommended at the President's request of
$300,000,000, all of which is above the funding level for 2004,
excluding supplemental appropriations of $200,000,000. The net
increase of $450,442,000 for these two countries is offset by
reductions in other areas.
The Committee recommendation assumes a reduction of
$153,776,000 in economic support for the Camp David countries.
The recommended amount in the Economic Support Fund for Israel
is $360,000,000 and $535,000,000 is recommended for Egypt. The
recommendation includes $250,000,000 for Jordan. These amounts
are the same as the President's fiscal year 2005 request. In
addition, the recommendation reflects a reduction of $8,500,000
associated with the decision to retain a separate
appropriations account for the International Fund for Ireland.
The Committee is also recommending the retention of
language from the fiscal year 2004 appropriations act
specifying that policy and allocation decisions for funds
appropriated under this heading in this Act and in prior acts
shall be made by the Secretary of State or the Deputy Secretary
of State and shall not be delegated. The Committee is concerned
the programs and activities funded through this account
accurately reflect both the priorities of the Secretary of
State and the budget justification material provided to the
Committees on Appropriations, as modified by the Congress. The
managers reiterate the importance of Congressional intent in
the programming of funds appropriated to the Economic Support
Fund and anticipate the continuation of a cooperative approach
during fiscal year 2005 on funding allocations and programming
decisions.
ISRAEL
The Committee is continuing the initiative begun six years
ago for a phased reduction in economic assistance for Israel
that will result in the eventual elimination of Economic
Support Fund assistance. This proposal was originally made by
the Government of Israel in response to new economic realities
in the Middle East. The Committee is also convinced that the
emerging security threats in the Middle East are significant
and warrant increasing military assistance to Israel by
$72,744,000 in fiscal year 2005.
The Committee therefore recommends not less than
$360,000,000 in economic support shall be provided for Israel,
which is $117,168,000 less than the fiscal year 2004 level and
the same as the President's budget request. The Committee also
requires in bill language that these funds be provided to
Israel as a cash grant and that funds be disbursed within 30
days of enactment of the Foreign Operations, Export Financing
and Related Programs Act or by October 31, 2004, whichever
occurs later.
ISRAEL LAND PROJECT
The Committee recognizes the contributions of the African
Hebrew Israelites to Israel, and specifically to the Dimona
area. The Committee understands that the Government of Israel
has agreed to extend permanent residence status to the
community, which will make it eligible for government
assistance with housing programs. The community, working with
the Government of Israel, has identified a site for the
construction of a new housing and community complex, to which
the Government of Israel has pledged 95 million shekels in
mortgage assistance. The Committee urges USAID to explore ways
to help the community complete this project.
EGYPT
As part of the Committee's ongoing review of Middle East
aid levels, and as a result of budget constraints affecting the
international affairs budget, the Committee is recommending
continuation of a policy of reducing economic support for Egypt
in a manner which does not inadvertently undermine the guiding
principles of the Camp David Accords and efforts to enhance
peace in the Middle East.
The Committee therefore includes not less than $535,000,000
in economic support for Egypt on a grant basis, which is
$36,608,000 less than the fiscal year 2004 level and the same
as the President's budget request. A cash transfer may be
provided with the understanding that Egypt will continue to
implement significant economic reforms.
The Committee continues to be concerned about persistent
poverty in Upper Egypt. The Committee appreciates special
efforts that USAID has made to focus on community and economic
development as well as education and women's programs in this
special region. The Committee, however, believes that much more
needs to be done and urges the Department of State and USAID to
place renewed emphasis and allocation of assistance in the
Governorates of Minya, Assiut, and Sohag. The Committee is
disappointed that USAID did not respond promptly to the request
for a report on these activities in fiscal year 2004. Within 60
days of the date of enactment of this Act, the Committee
directs USAID to report specifically to the Committee on the
actions it has taken, and intends to take, to respond to the
needs in this region. The Committee intends that assistance
should be provided to assist all ethnic and religious groups in
the region, but that special attention should be paid to those
ethnic and religious groups that may be economically
disadvantaged. The Committee further directs USAID to consult
with the Committee as it prepares its funding allocation for
activities in this region using funds appropriated by this Act.
CAMP DAVID ACCORDS
The Committee emphasizes once again that the recommended
levels of assistance for Israel and Egypt are based in great
measure upon their continued participation in the Camp David
Accords and the Egyptian-Israeli peace process.
NON-MILITARY EXPORTS
The Committee strongly urges the President to ensure, in
providing cash transfer assistance to Egypt and Israel, that
the level of such assistance does not cause an adverse impact
on the total level of non-military exports from the United
States to each such country.
ECONOMIC BOYCOTT OF ISRAEL
The Committee has once again included language addressing
the Arab League boycott of Israel under section 535 of this
Act. The Committee strongly opposes this boycott and believes
that the Department of State must take strong action to combat
this practice. This recommended bill language includes
modifications first made three years ago to urge that Arab
League members normalize relations with Israel.
JORDAN
The Committee recommendation includes $250,000,000 for
Jordan. The Committee expresses strong appreciation for that
nation's strong support for the United States and our military
forces during the recent conflict in Iraq. Jordan has played a
leadership role in facilitating efforts to bring peace between
Israelis and Palestinians. The Committee notes that this
assistance will help Jordan deal with economic impacts from
increased oil prices, and it will help the Kingdom continue to
modernize information technology investments and education.
WEST BANK AND GAZA PROGRAM
The Committee recommendation for the West Bank and Gaza
program continues language that prohibits funds in this Act
from being obligated or expended directly to the Palestinian
Authority (section 550).
In addition, in order to maintain proper oversight of
grants and contracts issued under the West Bank and Gaza
program, the Committee is recommending the continuation of bill
language requiring annual audits of all contractors and
grantees, and significant subcontractors and subgrantees. In
order to ensure that the taxpayer funds are not used
inappropriately, the Committee recommendation strengthens the
vetting requirements of section 559 of this Act. Prior to the
obligation of funds for the West Bank and Gaza program, the
Secretary of State is required to take all appropriate steps to
ensure that such assistance is not provided through any
individual, private or government entity, or educational
institution, that the Secretary knows or has reason to believe
advocates, plans, sponsors, engages in, of has engaged in,
terrorist activity. New language also requires the Secretary of
State to terminate any assistance to any individual, entity, or
educational institution found to be involved in or advocating
terrorist activity. Finally, the Committee recommends the
continuation of bill language providing up to $1,000,000 for
the Inspector General of the United States Agency for
International Development for audits, inspections, and other
activities in furtherance of this provision.
LEBANON PROGRAM
The Committee has provided $35,000,000 for Lebanon from
Economic Support Fund resources, and expects that not less than
$4,000,000 should be used for scholarships and other direct
support of the American educational institutions in Lebanon.
Providing an American education to the young people of Lebanon
and the region makes a unique contribution to the long-term
development of political and economic stability in that
country. Broadening understanding of American values in the
Middle East is particularly important to United States efforts
to counter violence and terrorism.
The Committee recognizes that Lebanon can never achieve
full independence until all foreign security and military
forces are withdrawn, and control is reasserted by the national
government throughout all of Lebanon, including the south. As
it did last year, the Committee calls upon Lebanon and Syria to
adopt a timetable for the complete withdrawal of all Syrian
forces from Lebanon.
MIDDLE EAST REGIONAL PROGRAMS
The need for fresh water is a reality for all parties in
the Middle East. Fresh water is essential for economic
development, agriculture, health, and improving the quality of
life for everyone in the region. Therefore the Committee
strongly supports the continued efforts of the International
Arid Lands Consortium in addressing the critical issues of
water, energy, and agriculture and land use in the Middle East
and Central Asia, and urges USAID to make available $2,500,000
to the Consortium for this work. These funds are to be
allocated from bilateral, centrally managed or regional
programs either in this account or in other accounts funded by
this Act.
The Committee is aware of proposals to use state-of-the-art
microprocessor-controlled mobile factories that construct metal
buildings on site for infrastructure development in Iraq,
Afghanistan, Jordan, and Morocco, using funds appropriated
under this heading and under the heading ``Foreign Military
Financing Program''. Such buildings could be used for a variety
of purposes in support of economic development and military
assistance programs. The Committee urges the Departments of
State and Defense to review proposals for the integration of
such buildings into country programs funded in this Act.
RELIGIOUS FREEDOM--EGYPT
The Department of State 2003 International Religious
Freedom Report notes that ``. . . there was some improvement
in the Government's respect for religious freedom during the
period covered by this report, such as greater recognition and
tolerance of Coptic Christians; however, the Government
continued to fail to bring to justice those responsible for
killing 21 Christians at Al-Kush, and converts from Islam face
periodic detention and discrimination.'' The Committee remains
concerned about the problems faced by Egypt's Coptic Christian
community and believes the Egyptian Government needs to do
everything possible to provide full opportunity for Coptic
Christians in employment and educational opportunities. The
Committee expects the Department of State to make every effort
to reinforce the importance of actively enforcing the religious
freedoms that are, in fact, provided for in the Egyptian
Constitution.
MIDDLE EAST PARTNERSHIP INITIATIVE/MUSLIM OUTREACH
The recommendation includes $90,000,000 for the Middle East
Partnership Initiative (MEPI) and, to the extent funds are
available, for the activities of the new Muslim Outreach
initiative that are not associated with public diplomacy. The
MEPI supports an array of economic and social reform
initiatives in the Middle East and non-Arab Islamic countries.
In addition, in section 526 language is included similar to
that included in the 2004 appropriations act that authorizes up
to $1,500,000 for making grants to educational, humanitarian,
and nongovernmental organizations and individuals inside Iran
and Syria to support the advancement of democracy and human
rights in Iran and Syria. Such grants may be made through the
National Endowment for Democracy.
The Committee is aware of requests to fund scholarships at
American educational institutions in the Middle East through
the MEPI program. In order to determine the most effective and
efficient way to provide for such a program, if merited, the
Committee directs the Department of State to review this
proposal and to recommend, as part of the President's fiscal
year 2006 budget request, how such a program could be most
effectively funded and managed by the United States Government.
Funding constraints have prevented the Committee from
recommending the budget request of $150,000,000 for MEPI, and
without additional funding above the fiscal year 2004 level,
the Committee is not in a position to recommend the initiation
of a new scholarship program at this time. In addition, the
Committee does not have sufficient information to determine if
such a program should appropriately be funded through MEPI.
IRAQ
United States' assistance to Iraq is well over
$21,000,000,000 and is the single largest assistance program in
the world. The effective implementation of this program is
critical to American efforts to bring peace to the Middle East
and to the successful withdrawal of American troops from Iraq.
With the dissolution of the Coalition Provisional Authority
(CPA) on June 28, 2004, the Secretary of State has
responsibility for the supervision and direction of all United
States assistance for Iraq. Given rapidly evolving events in
Iraq, the Committee believes the Secretary of State will
require flexibility in the allocation of previously
appropriated funds. The Committee urges the Secretary of State
to provide the Committees on Appropriation with a revised
financial plan for American assistance to Iraq as a matter of
urgency so the Committee can consider how best to provide that
flexibility while ensuring effective oversight of the
assistance.
The Committee strongly supports the Administration's
multilateral effort to forgive a significant portion of Iraq's
official debt and has included a general provision (section
569) to enable the debt reduction. As international
negotiations to forgive Iraq's debt move forward and as the
Administration develops more current estimates of the budget
cost of that forgiveness, the provision requires both
consultation and notification.
For purposes of section 402(a)(2) of S. Con. Res. 95 (108th
Congress), as made applicable to the House of Representatives
by H. Res. 649 (108th Congress), funds made available pursuant
to the authorities of section 569 (``Debt Restructuring
Authority'') are provided in response to a situation which
poses a direct threat to life and property, is sudden, is an
urgent and compelling need, is unpredictable, and is not
permanent in nature. The Committee notes that this Act contains
no new budget authority for this purpose. Funds for the costs
of debt restructuring for Iraq are to be made available from
the Iraq Relief and Reconstruction Fund contained in Public Law
108-106, which were designated as an emergency under the terms
of that Act. While the authority provided in section 569 is
consistent with the purposes for which funds were provided for
Iraq reconstruction in Public Law 108-106, budget scorekeeping
conventions require the Committee to recommend language
designating this authority as an emergency requirement as well.
The Coalition Provisional Authority Inspector General was
appointed on January 20, 2004. For the last several months, his
teams of auditors and investigators have been at work. As the
Secretary of State will have responsibility for supervision of
United States assistance to Iraq, it is appropriate for the CPA
Inspector General to now report to the Secretary of State. To
avoid any disruption in this important investigative and
oversight work, the Committee directs the continued existence
of the Inspector General's office for Iraq reconstruction
programs, and has included language in section 573 to ensure
continued operations and funding.
As required by section 2207 of Public Law 108-106, the
Office of Management and Budget submitted reports to Congress
on January 5, 2004 and April 5, 2004 that laid out in detail
the financial plan for this assistance. With the transition of
authority for United States assistance from CPA to the
Secretary of State, the Committee believes it appropriate the
Secretary of State be given responsibility for preparing the
section 2207 reports that will come due in the future and in
section 574 has modified the reporting requirements to reflect
this policy.
AFGHANISTAN
The Committee continues its strong support for the
reconstruction of Afghanistan by providing a total of
$977,000,000 in this Act, including $225,000,000 in this
account, for assistance for that country. As part of this
funding, the Committee urges funding of up to $3,000,000 to
refurbish the existing Wazir Akbar Kahn Hospital with its
American partner and to initiate the start-up program for
managing and providing health care delivery in Kabul. The
Committee requests that the Department of State report on its
progress in addressing this matter no later than March 1, 2005.
In addition, the Committee commends a proposal by World
Compassion to undertake critical humanitarian aid in
Afghanistan, and requests that the State Department review a
proposal from this organization.
The Committee recommendation includes $60,000,000 in fiscal
year 2005 funds to support programs for Afghan women and girls.
Supported by the efforts of the Ministry of Women's
Affairs, Afghan women are beginning to redefine their role and
reclaim their place in public society. The economic empowerment
of Afghan women is critical to improving the economic life of
Afghanistan and is important to access to education for
children, better family health care, reductions in human
trafficking and greater awareness of rights. The carpet
industry presents vulnerable Afghan women with an opportuniy to
build sustainable small businesses that can enjoy long-term
access to United States markets. To this end, the Committee
supports the Arzu initiative to support the production and sale
of handmade carpets made under fair labor conditions by women
weavers in Afghanistan.
PAKISTAN
Of the amounts provided for Pakistan, the Committee has
recommended bill language that allows $200,000,000 to be used
for debt relief, pursuant to the President's budget request.
IRISH VISA PROGRAM
The Committee directs that $3,500,000 be provided for the
Walsh Visa Program for fiscal year 2005, as requested in the
President's budget. This program, authorized since 1998,
assists young people who are residents of Northern Ireland and
the border counties of Ireland with developing job skills and
conflict resolution abilities. Eligible youth receive non-
immigrant visas that enable them to work for up to three years
in the United States.
EAST TIMOR
The Committee recommends $22,000,000 for programs in East
Timor to support income producing projects and other
reconstruction activities.
TIBET
In section 526, the Committee has recommended not less than
$4,000,000 in assistance for programs that preserve cultural
traditions, and promote economic development and environmental
conservation in Tibetan communities. The Committee is aware of
the valuable assistance the Bridge Fund has provided to promote
Tibetan-owned and operated businesses and educational,
cultural, and natural resource conservation projects in Tibet
and recommends that $2,000,000 of these funds should be
provided to the Bridge Fund.
Also in section 526, the Committee recommends that $250,000
be made available through a nongovernmental organization, such
as the National Endowment for Democracy, for the purpose of
providing training and education of Tibetans in democracy
activities, and monitoring the human rights situation in Tibet.
The Committee supports the use of a greater portion of these
funds for activities that have a primary impact inside Tibet,
to the extent practicable. The Committee encourages the Bureau
for Democracy, Human Rights and Labor to work closely with the
Office of the Special Coordinator on Tibetan Issues in carrying
out these programs.
At the same time, the Committee encourages organizations
involved in China rule of law programs to seek out
opportunities to conduct programs that can improve the human
rights situation and the administration of justice in Tibetan
areas, including Tibetan areas outside the Tibetan Autonomous
Region (TAR).
CAMBODIA
The Committee is aware of the need to assist Cambodia in
the preservation of antiquities and historical sites,
particularly at Angkor Wat. The Committee recommends review and
support of a proposal to assist in the preservation of an
important building site at Siem Reap.
CYPRUS
The Committee recommends $13,500,000, the same as the
budget request, for educational and other bicommunal projects
in Cyprus, and recommends language similar to that included in
the fiscal year 2004 Act. These funds provide a basis for
mutual cooperation and preparation for the two communities of
Cyprus to live together harmoniously by increasing inter-
communal contacts. These funds provide funding for Fulbright
scholarships, the Bicommunal Support Program, the United
Nations Office for Project Service, and other related
activities.
CUBA
The Committee fully supports the budget request of
$9,000,000 for the Cuba democracy program and supports its
goals of promoting democratization, respect for human rights,
and the development of a free market economy in that country.
When allocating these funds the Committee expects USAID to
consider proposals at or through institutions of higher
education in the United States and expects that competitive
procedures will be followed with regard to such proposals.
COOPERATION EFFORTS IN THE WESTERN HEMISPHERE
The Committee is recommending a minimum regional allocation
of $20,000,000 for hemispheric cooperation efforts specifically
related to special trade arrangements with the United States in
the context of labor and environmental cooperation, including
trade capacity building. The Committee requests a consultation
on the utilization of these funds among countries and spending
priorities prior to allocations or 90 days after enactment.
The Committee expects these funds to be coordinated with
the Office of Trade Capacity Building of the United States
Trade Representative's Office and other agencies integral to
cooperation in the context of special trading arrangements.
INTER-AGENCY COORDINATION AND CAPACITY BUILDING IN TRADE AND OTHER
AREAS
The Committee supports the utilization of Economic Support
Funds to build capacity in trade, labor and the environment,
and other areas identified by the United States and other
developing countries. Specifically, given the fluid nature of
cooperation related to special trading arrangements with the
United States, the Committee places a premium on interagency
coordination to provide the Department of State the latest
insight into what constitutes the most appropriate cooperation.
For this reason, last year the Committee requested that the
Department of State consult with the Office for Trade Capacity
Building of the Office of the United States Trade
Representative (USTR) in resource allocation and programming.
For this fiscal year, the Committee requests that the
Department of State, in coordination with USTR, report not
later than 120 days after enactment on how this consultative
process worked last year and steps that will be taken to
improve upon it. Regions of interest to the Committee
specifically relate to those where the United States has
entered into or is about to enter into special trading
relationships such as southern Africa, Central America, and the
Andean region. The report should include the identification of
fiscal year 2005 resources used to support these special
trading relationships in the furtherance of United States
foreign policy objectives.
HUMAN RIGHTS AND DEMOCRACY FUND
The Committee has provided the budget request of
$27,000,000 for the Human Rights and Democracy Fund and
recommends that $1,200,000 should be provided to support the
Reagan/Fascell Democracy Fellows Program of the National
Endowment for Democracy to enable activists, scholars,
journalists, and practitioners from around the world to help
make contributions to the strengthening of democracy in their
respective countries. This program was authorized in section
104(a)(2)(B) of H.R. 3427 as enacted into law as part of Public
Law 106-113, and helps keep alive the legacy of our former
President.
The Committee also strongly recommends that funding be made
available in fiscal year 2005, as in fiscal year 2004, for
democracy programs in China through the National Endowment for
Democracy (NED). Finally, the Committee recommends restoration
of up to $500,000 through the National Endowment for Democracy
for funding of private nongovernmental organizations working to
support the development of democracy in North Korea.
PACIFIC TUNA TREATY
The Treaty on Fisheries between the United States and the
governments of certain Pacific Island States, popularly known
as the South Pacific Regional Fisheries Treaty, requires that
$18,000,000 in economic assistance be provided annually to the
South Pacific Islands. Therefore, the Committee recommends that
the treaty obligations be met through the payment of
$18,000,000 in fiscal year 2005, as requested by the President.
CONFLICT RESOLUTION AND RECONCILIATION PROGRAMS
The Committee recognizes the importance of conflict
resolution and reconciliation programs as a tool for creating a
climate of peace in regions of conflict. The Committee is
recommending $12,000,000 to support reconciliation programs and
activities, which bring together individuals of different
ethnic, religious, and political backgrounds from areas of
civil conflict and war. Funding should be made available
through an established process for organizations that provide
such programming. The Committee recommends the Department of
State actively consider proposals submitted by the following
organizations:
Seeds of Peace, a pioneer in this effort, which has
helped young people overcome fear, prejudice, and other
obstacles to peace;
Jerusalem International YMCA;
Interns for Peace;
Foundation for Environmental Security and
Sustainability;
Partners for Democratic Change;
Roots of Peace;
Arava Institute;
Facing History and Ourselves;
Peacemaker Circle International;
Project Children and Cooperation Ireland; and
Interfaith Encounter Association.
The Committee requests that the Department of State
initiate an annual report on the status of applications and
funding for these and other organizations supported through
this program. Such report should be provided to the Committee
not later than May 1 of each year.
LIBERIA
The Committee recognizes the dire but improving situation
in Liberia and the need to provide necessary support to ensure
the success of the disarmament, demobilization, rehabilitation,
and reintegration program underway with the support of the
international community. The Committee supports proposals to
promote democracy and the rule of law through financial support
of non-governmental organizations.
BURMA
The Committee supports the budget request of $7,000,000 for
assistance for Burma, which should be made available for
activities (including media support) among Burmese who have
fled to neighboring countries, especially Thailand. These funds
should continue to be used to support on-going democracy
programs. In addition, funds should be allocated for
humanitarian assistance for displaced Burmese and host
communities in Thailand, and for Thailand-based,
nongovernmental organizations operating along the Thai-Burma
border to provide food, medical and other humanitarian
assistance to internally displaced people in Burma.
ALLOCATION OF FUNDS RELATIVE TO REQUEST
The Committee recommendation assumes the following
adjustments to the President's budget request, not referenced
above:
$3,500,000 for the Safe Skies initiative;
No funding for the new initiative for regional
anticorruption initiatives; these activities are funded
under ``International Narcotics Control and Law
Enforcement'' and ``Nonproliferation, Anti-terrorism,
Demining and Related Programs'';
Without prejudice, a reduction of $50,000,000
associated with assistance for Turkey; the Committee
notes that $1,000,000,000 in grant and loan assistance
was appropriated for Turkey in Public Law 108-11, and
these funds remain unexpended;
No funding for the new line item for trade capacity
building; these activities are subsumed under funding
for Hemispheric Cooperation, which is funded at
$20,000,000;
No additional funding for Muslim Outreach; this new
program would focus on public diplomacy programs, which
are more appropriately funded elsewhere; and
A reduction of $14,000,000, to be assessed against
country-level and programmatic increases identified in
the President's budget request for East Asia and the
Pacific, and the Near East (excluding Israel, Egypt,
and Jordan).
AVAILABILITY OF FUNDS
The Committee has continued language that funds in this
account are to remain available for obligation for two years.
International Fund for Ireland
Fiscal year 2004 level................................ $18,391,000
Fiscal year 2005 request.............................. (8,500,000)
Committee recommendation.............................. 18,500,000
The Committee recommends $18,500,000 for the International
Fund for Ireland in support of the Anglo-Irish Accord. Funding
for this activity is requested through the Economic Support
Fund, but the Committee recommendation would restore a separate
appropriations account for assistance to Ireland. The amount
recommended is $10,000,000 above the President's budget request
and $109,000 above the fiscal year 2004 level.
The Committee strongly urges the International Fund for
Ireland to take every step possible to ensure that all
recipients of Fund support are promoting equality of
opportunity and non-discrimination in employment. The Committee
further urges the Fund to focus on those projects that hold the
greatest potential for job creation and equal opportunity for
the Irish people, regardless of class, creed, gender, or
ethnicity.
Assistance for Eastern Europe and the Baltic States
Fiscal year 2004 level................................ $442,375,000
Fiscal year 2005 request.............................. 410,000,000
Committee recommendation.............................. 375,000,000
The Committee recommends $375,000,000 for Assistance for
Eastern Europe and the Baltic States, an amount that is
$67,375,000 below the level provided in fiscal year 2004 and
$35,000,000 below the budget request. The Committee intends
that funding for democracy programs through the National
Endowment for Democracy continue at a level not less than that
commensurate with the reduction in the account when compared to
funding provided in fiscal year 2004, and be provided as a
transfer of funds pursuant to section 632(a) of the Foreign
Assistance Act.
SERBIA
The Committee recommendation assumes a carryover balance of
$25,000,000 in funding for Serbia, due to the lack of a
certification pursuant to section 563 of the fiscal year 2004
appropriations act. This lack of certification has halted the
obligation of funds for Serbia since March 31, subject to
certain exceptions. In addition, a reduction of $30,000,000 is
assumed in the budget request of $87,000,000 for Serbia. Given
the policies of the current government in Serbia, it is highly
unlikely the certification can be made in fiscal year 2005. In
section 563, the Committee has retained language that requires
the Secretary of State to make a determination and
certification regarding Serbian compliance with certain
policies, including compliance with the International Criminal
Tribunal for the former Yugoslavia, in order for funds to be
available for Serbia after March 31, 2005. In addition, the
Committee has included language that clarifies that
nongovernmental organizations can continue to receive funds for
democracy activities even if a certification cannot be made.
The Department of State has interpreted prior year provisions
as prohibiting assistance for nongovernmental organizations
that promote democracy if they are based in Belgrade. No change
in the scope of the provision is otherwise intended by this
technical correction.
The Committee has recommended the same bill language as in
the fiscal year 2004 Act that requires the written approval of
the Administrator of USAID for loans and projects under the
Economic Reconstruction Program For Bosnia, authorizes the use
of local currency funds generated by the Bosnia assistance
program for programs throughout the region, and authorizes the
President to withhold funds for economic revitalization for
Bosnia if he determines that Bosnia is not in compliance with
the Dayton Accord regarding the presence of foreign forces and
has not terminated intelligence cooperation with Iranian
officials. All funds are subject to the provisions of section
529 of this Act.
MONTENEGRO
The Committee strongly supports assistance for the Republic
of Montenegro, and notes the strong support given by the
Republic to the foreign policy of the United States during the
latter years of the Milosovic regime in Serbia. It urges the
Administration to make every effort to assist the Government of
the Republic. The Committee recommendation for Montenegro
includes $25,000,000, a reduction of $10,000,000 below fiscal
year 2004, rather than a reduction of $20,000,000 as proposed
in the budget request. The Committee has not included 2004
language directing the use of certain assistance for
Montenegro, but expects the Department of State and USAID to
consult with the Committee prior to the programming of funds
for Montenegro for fiscal year 2005.
REGIONAL PROGRAMS
The Committee recommendation includes $59,000,000 for
regional programs, as requested in the President's budget. This
category funds environmental infrastructure, independent media
support, civil society and rule of law, health promotion and
care, economic development and other programs. While specific
amounts are not earmarked for the Baltic States, the Committee
notes that projects and programs are authorized for, and should
continue in, Estonia, Latvia and Lithuania.
ROMANIA
The Committee recognizes that rail modernization could have
a significant impact on the security and economic stability of
Romania, enhancing agricultural, energy and goods distribution
as well as citizen transit safety and efficiency. The Committee
recommends that the Department of State work with the
Government of Romania to consider proposals for the development
of a communications-based train control system.
RULE OF LAW
The Committee views efforts to promote the rule of law
worldwide as a critical component of United States foreign
policy. The Committee strongly supports the public service
projects initiated by the American Bar Association (ABA) to
strengthen democracy through programs that promote the rule of
law in transitional countries. These effective programs rely
predominantly on the volunteer efforts of American lawyers. By
supporting the initiatives of reform-oriented policymakers,
legal scholars, judges, attorneys, and other reformers, these
programs achieve sustainable results.
The first of these programs, the Central European and
Eurasian Law Initiative (CEELI), has proven very successful in
27 countries in Eastern Europe and the former Soviet Union.
Despite the reductions in funding for these regions, the
Committee recommends that best efforts be made to continue
funding for the ABA's CEELI programs at current levels. The ABA
has now expanded their public service project into Asia,
Africa, Latin America and the Middle East, where these valuable
programs are already underway in such countries as Jordan,
Bahrain, Morocco, Iraq, Afghanistan, Liberia, Sierra Leone,
Kenya, China, Indonesia, Afghanistan, Ecuador, and Mexico. The
Committee recommends expanded funding for ABA programs in these
regions.
The Committee strongly supports the USAID-funded program
for distance learning legal education that has been initiated
in the Central and East European region, and recommends funding
for the program in fiscal year 2005.
TRAINING AND EXCHANGES IN THE FORMER SOVIET UNION AND CENTRAL EUROPE
The Committee strongly recommends the Administration
provide funding for the Russian, Eurasian, and East European
Research and Training Program (Title VIII) at the fiscal year
2004 level. The Committee also encourages the use of Title VIII
funds to include comparative research and language training
concerning Eurasian countries critical to the war against
terrorism. The Committee also continues to support the East
Central European Scholarship Program (ECESP) and its important
work.
The Committee notes that the USAID-supported East Central
European Scholarship Program (ECESP) has provided community and
government leaders, administrators, managers, and educators in
East Central Europe with the knowledge and skill base to become
leaders and agents for democratic and free market economic
reforms. The Committee is concerned that its recommendation
last year regarding expansion of the ECESP model into Central
Asia has not, to date, yielded results. The Committee continues
to believe that the new independent states of Central Asia
would greatly benefit from the program, and requests a report
from USAID no later than 90 days after the enactment of this
Act on steps it could take to collaborate with the Center for
Intercultural Education and Development to shift the program
into the Central Asian Republics.
Assistance for the Independent States of the Former Soviet Union
Fiscal year 2004 level................................ $584,531,000
Fiscal year 2005 request.............................. 550,000,000
Committee recommendation.............................. 550,000,000
The Committee recommends $550,000,000 for the Independent
States of the Former Soviet Union. This is the same as the
request and $34,531,000 less than the fiscal year 2004 level.
The Committee has included in subsection (a) prior year
language providing the funds under this heading
``notwithstanding any other provision of law'' and applying the
provisions of section 498B(j) of the Foreign Assistance Act. A
general provision (section 517) also includes long-standing
language on human rights, and non-use of funds for enhancing
military capacities, and providing funds subject to separate
notification.
CHILD SURVIVAL AND HEALTH
The Committee continues to be concerned about adverse
maternal and environmental health conditions and the increasing
incidence of TB/HIV/AIDS in Russia, Ukraine, and the Central
Asian Republics. The positive results achieved with the small
amounts already spent for such programs in recent years have
been dramatic. In order to demonstrate its support for these
high priority activities that directly affect the citizens of
these countries, the Committee has included bill language
allocating not less than $57,000,000 for health and child
survival activities. In that regard, the Committee commends the
work of the Firefly Children's Network in its work to assist
orphaned children.
The Committee is aware of and commends the Birth Defects
Monitoring Program recently instituted in Ukraine to detect the
incidence of birth defects related to the Chernobyl accident,
and urges continued support for this program at the fiscal year
2004 level. The Primary Health Care Initiative of the World
Council of Hellenes is also an important project, and should be
continued in fiscal year 2005 at level funding as well. The
Committee commends the work of the Child Health Demonstration
Program to improve the oral health of Moldovan children. The
Committee urges USAID's Global Development Alliance to consider
supporting a proposal submitted by this program.
The Committee is aware of, and supportive of, the National
Program of Action for the Protection of the Arctic Marine
Environment, which is implemented in part by the Russian
Ministry of Economic Development and Trade. The Committee
supports additional funding for this program, either through
this account or through programs funded under ``Economic
Support Fund''.
INTERNATIONAL AND COMMUNITY PARTNERSHIPS IN EURASIA
The Committee supports partnerships between Russian and
American institutions, such as the Volgograd Russia Health
Partnership and similar medical partnerships.
The Committee also supports the goals of the Ohio-Kharkiv
Initiative, and commends the Department of State, the State of
Ohio, and the Kharkiv Oblast (Ukraine) for working with the
Great Lakes Consortium as the primary facilitator.
RUSSIA-IRAN
The Committee again recommends language dealing with
Russian nuclear and ballistic missile cooperation with Iran.
The language is identical with that contained in existing law.
The Committee remains disturbed by reports that indicate that
Russian entities are extensively engaged with Iran in
cooperative projects that significantly enhance Iran's
ballistic missile capabilities. The ballistic missile
cooperation, combined with Russian nuclear cooperation with
Iran, represent a significant step in Iran's efforts to obtain
a comprehensive, highly sophisticated weapons of mass
destruction capability. The Committee reiterates the language
from the fiscal year 2000 Statement of the Managers ``that
assistance to combat infectious diseases, child survival and
non-proliferation activities, support for regional and
municipal governments, and partnerships between United States
hospitals, universities, judicial training institutions and
environmental organizations and counterparts in Russia should
not be affected by this section.''
UKRAINE
The Committee encourages USAID in Ukraine to coordinate its
agriculture sector activities with the Department of
Agriculture to promote modern agricultural methods through
exchanges and other appropriate means. The Committee also
recommends that all efforts be made to cooperate with public
and private efforts to return confiscated religious property to
their confessions. In addition, the Committee strongly
encourages support for ``Good Governance'' programs and
election-related assistance for Ukraine.
SOUTHERN CAUCASUS REGION: NAGORNO-KARABAKH
The Committee continues to be concerned about the plight of
the victims of the Nagorno-Karabakh conflict, and recommends
that up to $5,000,000 should be made available to address
ongoing humanitarian needs in Nagorno-Karabakh.
SUPPORT OF PEACEFUL RESOLUTION OF SOUTH CAUCASUS CONFLICTS
The Committee reiterates its view that the extent and
timing of United States and multilateral assistance, other than
humanitarian assistance, to the government of any country in
the Caucasus region should be proportional to its willingness
to cooperate with the Minsk Group and other efforts to resolve
regional conflicts.
In furtherance of a peaceful resolution to the Nagorno-
Karabakh conflict, and in support of the confidence building
measures discussed at NATO and OSCE summits, the Committee
strongly supports confidence-building measures among the
parties to the conflict. Such measures include strengthening
compliance with the cease-fire, studying post-conflict regional
development such as landmine removal, water management,
transportation routes and infrastructure, establishing a youth
exchange program and other collaborative and humanitarian
initiatives to foster greater understanding among the parties
and reduce hostilities.
The Committee has included renewed authority for the
President to provide humanitarian assistance to the region,
notwithstanding the restrictions of section 907 of the FREEDOM
Support Act. The bill language is unchanged from last year.
This exemption allows for direct assistance by American NGOs to
refugees and displaced persons throughout the region, including
those in Nagorno-Karabakh. The Committee understands that
humanitarian assistance may include a broad range of activities
and partnerships with United States hospitals and universities
in maternal and children's health, eldercare, basic education
and environmental health.
ARMENIA
The Committee recommends that $65,000,000 be made available
from funding under this heading for Armenia, and has included
this recommendation in bill language. This is $3,000,000 above
the request. Funding for this increase should be derived by
reducing the funding available for regional programs.
The Committee also recommends that the Department of State
review a proposal to fund a Central Diagnostic Laboratory in
the Caucasus, to be located in Armenia.
EXPANDED THREAT REDUCTION
The Committee includes up to $15,000,000 for the bilateral
United States Civilian Research and Development Foundation
(CRDF) in this account.
DEMOCRACY AND HUMAN RIGHTS
The Committee is concerned by the risks to democracy and
human rights in some of the independent republics of the former
Soviet Union, particularly in Russia, Ukraine, and Belarus. The
Committee urges the Administration to commit a greater
proportion of the resources appropriated to this account, both
in bilateral country programs and regional programs, to support
for democracy and human rights nongovernmental organizations.
Organizations such as the Committee of Soldiers' Mothers in
Russia can make an important contribution to civil society in
these countries. Funds should also be provided through the
National Endowment for Democracy and its core institutes. The
Committee requests a report from the Coordinator for Assistance
to Europe and Eurasia on the plans for increasing emphasis on
support for democracy and human rights nongovernmental
organizations as part of a strategy to enhance the prospects
for democracy in Europe and Eurasia. Such report should be
submitted not later than March 1, 2005, and the Committee
expects the Coordinator's office to consult with the Committee
in preparing the report.
Independent Agencies
Inter-American Foundation
Fiscal year 2004 level................................ $16,238,000
Fiscal year 2005 request.............................. 15,185,000
Committee recommendation.............................. 16,238,000
The Committee recommends $16,238,000 for the Inter-American
Foundation, $1,053,000 above the request and the same as the
fiscal year 2004 level.
African Development Foundation
Fiscal year 2004 level................................ $18,579,000
Fiscal year 2005 request.............................. 17,000,000
Committee recommendation.............................. 18,579,000
The Committee recommends funding for the African
Development Foundation at a level of $18,579,000. This is
$1,579,000 above the request and the same level as in fiscal
year 2004.
The Committee recognizes and supports the African
Development Foundation's efforts to identify and leverage non-
appropriated resources. The Committee requests the President of
the Foundation to include in his annual report to the Committee
the amount and use of any non-appropriated funds received, if
applicable.
Peace Corps
Fiscal year 2004 level................................ $308,171,000
Fiscal year 2005 request.............................. 401,000,000
Committee recommendation.............................. 330,000,000
The Committee recommends $330,000,000 for the Peace Corps,
an amount that is $71,000,000 below the budget request and
$21,829,000 above the amount enacted for fiscal year 2004.
Prior year language addressing the purchase of motor vehicles,
abortion, and availability of funds has been continued in this
Act. Last year's language made permanent the Peace Corps'
authority to waive the five-year rule for positions involving
the safety of Peace Corps volunteers and, as such, is not
repeated. The Committee encourages the Peace Corps to utilize
this authority.
The Committee recognizes that the life of a Peace Corps
volunteer is often challenging and risky and notes the
significant improvements the Peace Corps has made in support of
the health and safety of its volunteers. However, the Committee
remains concerned that potential Peace Corps volunteers do not
have enough information available to make informed decisions
about the risks they may face in their new positions. Volunteer
safety and health must remain the top priority of the Peace
Corps.
The Committee notes that the Director of the Peace Corps
has not submitted individual Country Security reports as urged
in House Report 108-222. The Committee directs the Director of
the Peace Corps to submit to the Committee not later than 60
days following enactment of this Act a report containing these
reports and describing how the Peace Corps can make available,
including through its website, country-specific reports
describing the risks volunteers face to their health and
safety.
Millennium Challenge Corporation
Fiscal year 2004 level................................ $994,100,000
Fiscal year 2005 request.............................. 2,500,000,000
Committee recommendation.............................. 1,250,000,000
The Committee recommends $1,250,000,000 for the Millennium
Challenge Corporation (MCC), an amount that is $1,250,000,000
below the request and $255,900,000 more than the 2004 enacted
level. The recommended reduction solely reflects the
constrained budgetary situation in 2005, and more specifically
the Committee's allocation relative to the President's request
and the need to address funding increases for other
Presidential and Congressional priorities for 2005.
The Committee commends the MCC for consulting with the
Committee as it has begun operations and initiated negotiating
compacts with selected countries and urges the MCC to continue
these consultations.
NEAR MISS COUNTRIES
The Committee has included a provision to provide
assistance to certain countries that miss MCC eligibility as
defined in section 616 of the Millennium Challenge Act of 2003.
The Committee has included a limitation of 10 percent of funds
again in 2005 for such activities. While the Committee expects
USAID to be a primary implementer of these funds, the Committee
also expects the Department of State, Department of Treasury
and Department of Justice to implement programs when deemed
relevant and necessary.
COORDINATION WITH THE UNITED STATES AGENCY FOR INTERNATIONAL
DEVELOPMENT
The Committee recognizes the important role of USAID in
preparing countries for MCC eligibility as well as helping the
MCC generate effective partnerships with developing countries.
The Committee believes a strong working relationship is
imperative in order to achieve clarity and a division of
responsibility. The Committee is aware that USAID has field
missions in 13 of the 16 MCC eligible countries. The Committee
expects that in the few countries with compacts in 2004 and
2005, USAID will revise its strategic objectives for said
country given that USAID country assistance will likely be
significantly smaller than the funding levels of the compact,
consistent with the President's vision of the MCC. Therefore,
the Committee directs USAID and the MCC to consult with the
Committee after completion of a compact negotiation on the
impact compact funding will have on the USAID programs,
including any anticipated changes to current and future
assistance programs. The Committee seeks to ensure that finite
resources are used optimally across countries and development
sectors.
CONGRESSIONAL BUDGET JUSTIFICATION
The President requested significant funding for fiscal
years 2004 and 2005 for the MCC but provided little additional
information in the form of a Congressional Budget
Justification. Therefore the Committee has included a provision
requiring such a justification, and the Committee expects that
this document will be submitted within 30 days of the
President's request for 2006. For fiscal years 2004 and 2005,
it should include actual and estimated information regarding
the following: (1) number of employees and detailed estimates
of administrative expenses, (2) number of compacts and details
for each compact at the program, project or activity level
(including level of funding and activity per recipient), (3)
level of funds transferred to other United States Government
agencies, and (4) funds provided for threshold countries by
country and program, project or activity. For the President's
request in 2006, the justification should describe the
opportunity to generate economic growth and reduce poverty in
developing countries consistent with MCC mandates and
processes.
MULTI-YEAR COMPACTS
The Committee is concerned about the possibility the MCC
will enter into multi-year compacts with countries without
obligating full funding of the compact. The Committee opposes
committing future Congresses to funding prior year compacts.
Therefore the Committee directs the MCC to only enter into
compacts for which it has complete funding available from
existing appropriations and has recommended bill language on
this matter.
INITIAL MCC DECISIONS
On February 2, 2004, the MCC published a list of candidate
countries; on March 5, 2004, the MCC published the methodology
and criteria for its first year of operations; on May 11, the
MCC published a list of eligible countries and invited all
eligible countries to submit proposals according to guidelines
issued on May 3, 2004. In the opinion of the Committee, the MCC
followed the authorizing legislation in identifying candidate
countries, methodology and criteria, and eligible countries but
with slight deviations from the legislative intent. The MCC did
not associate the actual data of country performance with the
methodology and criteria until several weeks later and after
the period of allowing for public comment. The Committee
directs the MCC to release future proposed data for evaluating
country performance at the time of releasing the methodology
and criteria for MCC Board determinations. This will allow the
MCC to maximize the reception of public comment during
subsequent Board determinations of eligibility.
MCC OPERATIONS
As stated in the Chief Executive Officer's testimony before
the Committee, the Committee understands and supports how the
MCC will emphasize policy reform, focus exclusively on
sustainable growth, operate in a spirit of partnership, require
its partner countries to incorporate the views of broad
elements of their societies, focus on results and establish
outcome-based standards up front, and establish accountability
as a key operating principle.
Due to budget constraints, the Committee recommends that
compacts be negotiated for three or four years. At the end of
this time period, the MCC should be prepared to allow compacts
to expire unless the MCC decides to extend them under the terms
of the authorization legislation. The Committee presumes this
decision will be merit based. The Committee notes that the
authorization places a fixed cap for the maximum length of a
compact at five years, including extensions or amendments. That
being noted, countries and the MCC still may pursue subsequent
compacts after an initial compact expires.
The Committee recommends that the MCC hold a public comment
period on modifications to country eligibility criteria, and
consult periodically with the appropriate committees of
Congress on possible modifications. During its consideration of
the fiscal year 2005 methodology and criteria, the Board should
thoroughly examine their accuracy and objectivity, and consider
changes to source data if appropriate. After eligibility
criteria and sources have been established for fiscal year
2005, the Board should implement a two-year review cycle to
allow for stability in eligibility incentives, and a greater
focus on compact implementation and results.
Department of State
Global HIV/AIDS Initiative
Fiscal year 2004 level................................ $488,103,000
Fiscal year 2005 request.............................. 1,450,000,000
Committee recommendation.............................. 1,260,000,000
GLOBAL HIV/AIDS INITIATIVE: SUMMARY
The Committee appropriates $1,260,000,000 for the ``Global
HIV/AIDS Initiative'' account, $771,897,000 more than enacted
in fiscal year 2004 and $190,000,000 less than requested by the
President due entirely to a shift in programmatic funding
between this account and the Child Survival and Health Programs
Fund. This account is the central funding for the Emergency
Plan for AIDS Relief, overseen by the Global AIDS Coordinator
at the State Department.
The Committee's recommendation includes $170,000,000 not
included in the President's request for this account. This
$170,000,000, to be used for so-called ``baseline'' programs in
the Emergency Plan's focus countries, was requested in the
Child Survival and Health Programs Fund bilateral HIV/AIDS
earmark. To clarify funding for focus countries and non-focus
countries, the Committee recommends appropriating all funding
for the fifteen focus countries directly into this account. The
Committee emphasizes that the shift should not affect the
implementation of this funding.
In addition to this account, the Committee includes three
other sources of funding for HIV/AIDS: bilateral HIV/AIDS
programs in the Child Survival and Health Programs Fund; the
Global Fund to Fight AIDS, Tuberculosis, and Malaria; and other
accounts, such as regional accounts for the former Soviet Union
and eastern Europe:
Global HIV/AIDS Initiative.............................. $1,260,000,000
Child Survival and Health (bilateral)................... 330,000,000
Global Fund to Fight AIDS, TB, and Malaria (estimated).. 240,000,000
Other accounts.......................................... 36,000,000
--------------------------------------------------------
____________________________________________________
Total............................................. 1,866,000,000
As elsewhere in this report, the amount of the Global Fund
grant estimated to be allocated to HIV/AIDS programs is
determined using historical Global Fund grant approval trends.
The Committee notes that overall funding levels that are
often referenced for the Emergency Plan for AIDS Relief include
amounts for tuberculosis and malaria as well as funding
provided from other appropriations Acts. In addition to the
$1,866,000,000, the Committee's recommendation includes
$148,500,000 for tuberculosis and $184,000,000 for malaria
programs. These amounts are more fully described under the
heading ``Child Survival and Health Programs Fund''. This Act
would thus provide in total $2,198,500,000 to fight AIDS, TB,
and malaria, slightly more than requested by the President and
$593,000,000 more than enacted in fiscal year 2004.
GLOBAL HIV/AIDS INITIATIVE: GLOBAL AIDS COORDINATOR
The Committee considers the central goals of the Global
HIV/AIDS Initiative to be the ``2-7-10'' goals, signifying the
millions of infections averted and people receiving treatment,
care, and support by the end of five years. The Committee also
notes that the percentage allocations included in Public Law
108-25 were developed before the price of AIDS drugs and other
commodities dropped significantly. The office of the Global
AIDS Coordinator should ensure that it is meeting the 2-7-10
goals in the most expeditious, efficient manner.
Much progress has already been made. As of June, 2004, the
Office of the Global AIDS Coordinator had approved
$770,000,000, not including administrative costs, to
dramatically increase treatment, prevention, care and support
programs in the fifteen focus countries. As a result of these
funds, 200,000 people will receive life-extending treatment,
and more than 1,000,000 people affected by the disease will
receive care and support. Orphans and vulnerable children will
receive the benefits of nearly 10 percent of the fiscal year
2004 funds overseen by the Global AIDS Coordinator. The
Committee urges the Office of the Global AIDS Coordinator to
maintain this level of support for orphans and vulnerable
children in the coming year.
A primary component of the Global AIDS Coordinator's
approach is and should continue to be building and
strengthening the indigenous and local health care institutions
that provide HIV/AIDS treatment, care, and support, and prevent
future HIV/AIDS infections. The fight against HIV/AIDS is a
long-term battle very different than fighting polio. Instead of
temporary systems to deliver a few drops of vaccine, long-term
infrastructure must be designed and built, incorporating goals
of sustainability and providing incentives for greater civil
society participation and national political commitment in
fighting the disease.
The United States has committed itself to a historic
undertaking, one that will take the combined efforts of many
partners. It must also work with the international community to
coordinate projects, leverage funding, and develop a stronger
international coalition to build these long-term systems. In
April, 2004, the Global AIDS Coordinator took a significant
step forward in this regard by signing an agreement with the
United Kingdom, UNAIDS, Australia, Belgium, Canada, Denmark,
Finland, France, Germany, Ireland, Italy, Japan, Luxembourg,
the Netherlands, Norway and Sweden to pursue the so-called
``Three Ones'': one HIV/AIDS action framework to coordinate the
work of all involved parties; one national AIDS authority; and
one country-level system to monitor and evaluate programs. The
Committee notes this promising development and will closely
follow its implementation. The Committee urges the Coordinator
to continue to place importance on coalition building in
multilateral fora and on donor coordination at the field level.
The Committee requests that the Coordinator submit a report 120
days after enactment identifying by focus country the depth and
breadth of United States coordination with the host country and
other bilateral and multilateral donors, including the Global
Fund.
While building healthcare systems and delivering
prevention, treatment, care and support lie at the core of the
Global HIV/AIDS Initiative's mandate, the Office of the Global
AIDS Coordinator should consider how to efficiently build on
expertise and programs that fall outside of its responsibility.
Opportunities exist for it to advance the fight against the
disease by nurturing such expertise and programs. The Office of
the Global AIDS Coordinator should consider jointly funding
such programs. Multisectoral approaches should be pursued,
especially in countries where the disease has spread into the
general public. Agricultural practices must adapt to take into
account fewer farmers and to meet the higher nutrition needs of
HIV-positive patients. Activities and services that lead to
enhanced agricultural productivity and increased rural
employment will help fight the spread of HIV/AIDS and increase
the effectiveness of prevention, treatment, care and support
programs. Access to potable water must increase so HIV-positive
mothers can safely give their babies formula.
For instance, the Committee notes that approximately 80
percent of new HIV cases are transmitted sexually and another
10 percent perinatally or during breastfeeding. It is clear
that HIV/AIDS prevention and treatment have a strong
reproductive health component. Therefore, the Committee urges
the Office of the Global AIDS Coordinator to foster greater
linkages and coordination between family planning and maternal
health programs and Emergency Plan activities.
Programs which address TB/HIV coinfection are another
example. In some areas of Africa, up to 80 percent of TB
patients also test positive for HIV, making TB clinics a highly
effective location to deliver HIV prevention, treatment, and
care messages. The Office of the Global AIDS Coordinator should
consider increasing joint funding for TB/HIV programs, working
in conjunction with USAID.
While the Committee values its strong relationship with the
Global AIDS Coordinator, the Committee also notes that this
office has had considerable difficulty in submitting its
reports to Congress in a timely manner. The Committee requests
the Office of the Global AIDS Coordinator to continue to submit
quarterly obligation and transfer reports as requested in the
fiscal year 2004 conference report.
GLOBAL HIV/AIDS INITIATIVE: NON-FOCUS COUNTRIES
The Committee reaffirms that the Office of the Global AIDS
Coordinator bears the ultimate responsibility for maximizing
the effectiveness of United States Government HIV/AIDS funding
in all countries, both ``focus'' and ``non-focus''. The
Committee notes the value of prioritizing a limited number of
heavily-impacted countries, recognizing that the United States
will still provide leadership in countries where other donors
will exercise a greater role. To facilitate this approach, the
Committee has restructured the request to include all funding
for focus countries from this account. However, it repeats its
concern that the Office of the Global AIDS Coordinator and the
implementing agencies will miss opportunities to keep the
disease from erupting in other countries if strategic direction
from the office does not include attention to the pandemic's
threats in other countries.
Some progress was made in 2004 to increase funding to a
priority set of non-focus countries, with the understanding
that a regularized system would be established for fiscal year
2005. While the Committee has included additional resources in
the ``Child Survival and Health Programs Fund'' for these non-
focus countries, it expects the Office of the Global AIDS
Coordinator to consider further requests for funding from its
implementing agencies.
The Committee requests the Office of the Global AIDS
Coordinator to submit to the Committee within 30 days of
enactment a description of the process it intends to use,
beginning in fiscal year 2005, to determine funding levels for
the non-focus countries. The Committee requests that the Office
of the Global AIDS Coordinator submit to the Committee within
60 days of enactment a list of the non-focus countries that
will receive additional ``Global HIV/AIDS Initiative'' funding
in fiscal year 2005. The Committee expects that for fiscal year
2006 this information will be incorporated into the Office of
the Global AIDS Coordinator's congressional budget
justification for that year, as well as the report required by
section 653(a) of the Foreign Assistance Act.
GLOBAL HIV/AIDS INITIATIVE: UNAIDS
In the fiscal year 2004 House report, the Committee made
clear its assumption that the Office of the Global AIDS
Coordinator would take over the United States contribution to
the United Nations Joint Program on HIV/AIDS (UNAIDS). This
funding would logically fall within the scope of the office's
authority, yet it has yet to assume responsibility for this
funding. The Committee has therefore shifted it in the
recommendations for this Act, and expects that the Office of
the Global AIDS Coordinator will use existing institutional
relationships with this organization.
GLOBAL HIV/AIDS INITIATIVE: PREVENTION EFFORTS
While treatment will greatly ease the human suffering
caused by the AIDS epidemic, it will not prevent new
infections. Support for effective prevention efforts today,
coupled with an aggressive search for a vaccine and a cure, is
the cornerstone of defeating this scourge. Efforts to reduce
and halt new infections must be aggressively pursued in order
to avoid ever-greater human suffering and burdens on national
budgets, health care systems, and foreign assistance.
Until a vaccine or cure is found, treatment can only help
to alleviate the suffering of those infected and affected by
the disease. Once again, the Committee includes as part of the
$26,000,000 recommended for the International AIDS Vaccine
Initiative, $10,000,000 to be used to undertake cooperative
projects coordinated with the European Union's ``AIDS Vaccine
Integrated Project,'' (AVIP) and the Partnership for AIDS
Vaccine Evaluation (PAVE). The Committee urges the Office of
the Global AIDS Coordinator to support efforts to develop a
vaccine against AIDS in addition to this $26,000,000.
The Committee notes that the face of HIV/AIDS is
increasingly female, with over 60 percent of new infections
occurring in women. All too often men insist on sex either
concealing or not knowing their HIV status, adding urgency to
finding woman-controlled methods of HIV prevention such as
topical microbicides. The Committee urges the office of the
Global AIDS Coordinator to work with USAID to continue the
United States government's strong support for microbicide
research and development, and has provided $30,000,000 in this
Act for such efforts.
The Committee notes that even in the hardest-hit countries,
the vast majority of children are uninfected with the virus.
The Committee supports effective prevention efforts to keep
them uninfected, and supports the efforts of the Silver Ring
Thing to promote preventative messages in Ugandan schools.
GLOBAL HIV/AIDS INITIATIVE: MOTHER-TO-CHILD TRANSMISSION
The Committee continues to strongly support funding for
programs to prevent mother-to-child transmission (MTCT) of HIV
as an integral component of a comprehensive approach to
fighting HIV/AIDS. Programs to address MTCT have aspects of
prevention, treatment, care and support, and the Committee
urges the Office of the Global AIDS Coordinator to provide the
resources necessary to expand MTCT programs.
GLOBAL HIV/AIDS INITIATIVE: PEDIATRIC HIV/AIDS TREATMENT AND PREVENTION
Given that 2,500,000 children under the age of 15 are
infected with HIV/AIDS, the Committee urges the Office of the
Global AIDS Coordinator to provide the necessary resources as
part of comprehensive country plans to support care and
treatment for children with HIV/AIDS. Components of addressing
pediatric HIV/AIDS could include the development and purchase
of high-quality, low-cost pediatric formulations of ARVs and
other medicines, pediatric-specific training to appropriate
personnel, and the purchase of pediatric-appropriate
technologies.
GLOBAL HIV/AIDS INITIATIVE: REFUGEES AND INTERNALLY DISPLACED PERSONS
The Committee notes that refugees and internally displaced
persons (IDPs) are especially vulnerable to HIV/AIDS, due to
fragmentation of families, frequent movement, increased sexual
violence, and socio-economic vulnerability. Many countries in
Africa face a double burden of HIV/AIDS and large numbers of
refugees or IDPs. Nine such countries--Cote D'Ivoire, Ethiopia,
Kenya, Namibia, Rwanda, South Africa, Tanzania, Uganda, and
Zambia--are also Emergency Plan focus countries. The Committee
urges the Office of the Global AIDS Coordinator, in
coordination with others in the State Department and USAID with
special expertise on refugees, to develop a comprehensive
approach to addressing the special HIV/AIDS needs of refugees
and IDPs.
GLOBAL HIV/AIDS INITIATIVE: RAPID BLOOD TESTING PROGRAMS
The Committee is encouraged that the Office of the Global
AIDS Coordinator has made support for safe blood programs a
central part of its strategy and recommends expanded funding in
fiscal year 2005 for such programs.
GLOBAL HIV/AIDS INITIATIVE: AIDS AND THE MILITARY
Peacekeeping forces in regions hard-hit by HIV/AIDS face
unique challenges. In Africa, some militaries are nearly 60
percent infected with the virus, with some units reporting
nearly 90 percent infected. The Committee strongly supports
efforts to develop and implement AIDS education, prevention,
and treatment programs focused on peacekeeping personnel in
Africa, especially in West African states.
GLOBAL HIV/AIDS INITIATIVE: COMMUNITY AND FAITH-BASED ORGANIZATIONS
The Committee commends the Office of the AIDS Coordinator
and USAID for making the involvement of community and faith-
based organizations, such as Lott Carey International, a
central part of the United States strategy for fighting HIV/
AIDS. The Committee urges the Office of the Global AIDS
Coordinator to continue its support for such organizations and
to report to the Committee no later than 120 days after the
date of enactment of this Act on its achievements.
International Narcotics Control and Law Enforcement
Fiscal year 2004 level................................ $240,274,000
Emergency supplemental funding........................ 170,000,000
Fiscal year 2005 request.............................. 358,820,000
Committee recommendation.............................. 328,820,000
The Committee recommends $328,820,000 for programs under
the heading ``International Narcotics Control and Law
Enforcement''. This is $30,000,000 less than the budget request
and $88,546,000 above the fiscal year 2004 level, excluding the
emergency supplemental appropriations act. A limitation of
$26,117,000 is recommended for administrative expenses.
The President's request for fiscal year 2005 includes
significant increases for Mexico, Pakistan, and anti-crime
programs, and new funding for Indonesia, Liberia, and Morocco.
Because of budgetary pressures in 2005, the Committee is unable
to fund most new programs in this account or the President's
requested increases for existing programs. Of the $88,546,000
increase the Committee has provided, the Committee supports and
expects full funding of the request for Mexico given the direct
positive impact that narcotics eradication, drug interdiction,
and border security in Mexico has on the national interest of
the United States. It also recommends full funding for
Afghanistan given the urgent need to counter the influence of
the opium trade on the stability of the new Afghan government.
The Committee assumes funding for Indonesian police
training will remain in the Economic Support Fund as it has in
previous years.
NARCOTICS AND TERRORISM
Organized crime and terrorist groups throughout the world
have long used narcotics as a means to generate revenues to
support armed conflict and the means to spread turmoil. The
Committee continues to support a strong United States
counternarcotics assistance program in order to protect United
States communities from the ravages of drugs, but increasingly
to deny drug profits that are often used to finance terrorist
activities.
AFGHANISTAN
The Committee notes that $50,000,000 was provided to the
Department of State and $73,000,000 to the Department of
Defense in the fiscal year 2004 emergency supplemental
appropriations act for opium poppy eradication, heroin
interdiction, law enforcement, and alternative development
activities in Afghanistan. Additionally the United Kingdom, the
designated lead country on Afghan opium eradication, has
committed to provide 70 million pounds sterling over the 2002
to 2005 period. For fiscal year 2005, the Committee recommends
$90,000,000, the same level as the request for Afghanistan
under this heading.
The 2003 opium poppy crop was 61,000 hectares, the second
largest crop on record. With an earlier than expected harvest,
the 2004 crop may be even larger as Afghan farmers are
replanting poppy at greater rates and in more remote areas of
Afghanistan. The Committee notes that increased security,
government presence in rural areas, and rural economic
development in Afghanistan are the only long-term solutions for
significant reduction of poppy production in Afghanistan.
Additionally, the Committee expects funds under this heading
will be used for alternative agriculture development in
Afghanistan.
The Committee directs the Secretary of State to consult
with the Committee before participating in any renewed opium
farmer compensation program in Afghanistan.
The Committee commends the President of the Transitional
Islamic State of Afghanistan and notes that in his address to
the United States Congress, he stated that ``drug profits
finance private militias, terrorists and extremists. Drug
profits undermine our efforts to build a healthy and legitimate
national economy.'' The Committee directs the Secretary of
State to consult quarterly in 2005 with the Committee on
collaborative efforts between the Departments of State and
Defense, and on details of the eradication, interdiction, and
alternative development strategy as it evolves.
DEMAND REDUCTION
The Committee includes a provision that up to $10,000,000
of the funds under this heading should be made available for
demand reduction programs. As escalating drug use and abuse
continue to take a devastating toll on the health, welfare,
security, and economic stability of all nations, the importance
of drug demand reduction has grown. The Committee expects that
these funds would be used to contribute to the preservation of
the stability of societies threatened by increasing drug abuse
and minimizing the impact of international crime.
CUBA
The Committee has again included a general provision,
section 572, prohibiting counternarcotics assistance to the
Government of Cuba. Full reporting and transparency by the
Cuban Government and United States monitoring of the use of
counternarcotics assistance in Cuba would be difficult if not
impossible, according to the State Department, given Cuban
general hostility toward the United States Government.
Additionally, provision of assistance to the maritime drug
interdiction force (the TGF) would, according to both Amnesty
International and the State Department's Country Reports on
Human Rights Practices, violate section 551 of this Act, the
so-called Leahy amendment.
ANTI-CORRUPTION COMPACTS
According to the Department of State, the concept of anti-
corruption compacts was developed as a multilateral form of
assistance at the G-8 Evian Summit in June 2003, yet funding
for these compacts is requested in 2005 as a bilateral program.
While fighting corruption is integral to promoting economic
growth overseas, the Committee is concerned that the anti-
corruption compact concept was developed outside of the context
of the Millennium Challenge Corporation (MCC). Given that a
primary focus of MCC is anti-corruption, the Committee would
expect the anti-corruption compacts to fit easily into the
MCC's threshold country assistance programs. Therefore the
Committee expects anti-corruption compacts to be closely
coordinated with the MCC, and the Committee directs the
Secretary of State to consult with the Committees before any
such compacts are signed.
TERRORIST FINANCING
The Committee notes that this Act supports efforts to
combat terrorist financing through three accounts--
International Narcotics and Law Enforcement, Nonproliferation,
Anti-terrorism, Demining, and Related Programs, and Treasury
International Affairs Technical Assistance. While each office
has specific purposes and core competencies, the Committee
expects that they are working in tandem, along with other
relevant Federal agencies and offices, toward the common goal
of stemming the flow of funds to terrorists and terrorist
organizations.
The Committee notes that a recent Council on Foreign
Relations report on terrorist financing recommended, among
other things, that the National Security Council and the Office
of Management and Budget should conduct a cross-cutting
analysis of the budgets and activities of all United States
government agencies as they relate to terrorist financing, in
order to ensure efforts are coordinated most effectively. The
Committee directs the Office of Management and Budget, not less
than 90 days after the enactment of this Act, to transmit a
report to Congress summarizing this information, with a
classified annex if necessary.
UNITED NATIONS DRUG CONTROL PROGRAM
The Committee is concerned that the United States
contribution to the United Nations Drug Control Program has
approached 40 percent in recent years, while the average United
States contribution to most United Nations organizations
averages about 25 percent. The Committee recognizes the
important role the UNODC played in Afghanistan in past years.
Therefore the Committee does not expect a lower United States
contribution to the UNODC, but urges the Secretary of State to
work with other nations to increase their contributions,
especially countries that are the recipients of the largest
percentages of Afghan heroin.
Andean Counterdrug Initiative
Fiscal year 2004 level................................ $726,687,000
Fiscal year 2005 request.............................. 731,000,000
Committee recommendation.............................. 731,000,000
The Committee recommends $731,000,000 for the Andean
Counterdrug Initiative, an amount equal to the request and
$4,313,000 above the 2004 level. The Andean Counterdrug
Initiative is the continuation of the Administration's multi-
year counterdrug assistance efforts designed to sustain and
expand programs initially funded by Plan Colombia in the fiscal
year 2000 emergency supplemental appropriations act. A
limitation of $16,285,000 is recommended for administrative
expenses for the Department of State and $4,500,000 for USAID.
The Committee notes the requirement in the bill that the
Secretary of State, in consultation with the Administrator of
USAID, shall provide to the Committees on Appropriations not
later than 45 days after the date of the enactment of this Act
and prior to the initial obligation of funds appropriated under
this heading, a report on the proposed uses of all funds under
this heading on a country-by-country basis for each proposed
program, project, or activity.
The Committee requests that the Secretary of State submit
to the Appropriations Committees a semi-annual report with
respect to the Andean Counterdrug Initiative. Each report shall
include an accounting of all aircraft, vehicles, boats and
lethal equipment (other than ammunition) transferred to the
militaries or police of any nation with funds made available
under this heading. Additionally, the Committee requires that
the personnel cap and Plan Colombia reports as required in the
fiscal year 2000 emergency supplemental appropriations act also
be submitted to the Committees on Appropriations.
The Committee notes that the caps on personnel in Public
Law 106-246, as amended by Public Law 107-115, remain
applicable in 2005. The Committee has not recommended amending
the caps as requested by the President, but notes that they are
addressed in the Department of Defense authorization act, 2005.
COLOMBIA
The Committee notes that the people of Colombia have shown
a long-term resilience and tolerance for difficult and violent
conditions, and the Committee supports the President of
Colombia and the Colombian government's efforts to collect the
additional resources needed to invest in the military, police,
and social programs to restore order and to give Colombians
better access to services.
The Committee notes the progress in coca eradication that
the Andean Counterdrug Initiative has been able to achieve.
Coca cultivation dropped 21 percent in Colombia in 2003, from
144,450 hectares in 2002 to 113,850 hectares in 2003. This
decrease in Colombian cultivation has not been offset by
increased production elsewhere; the Andean regional coca
cultivation was reduced by 18 percent overall in 2003.
Plan Colombia was proposed and implemented as a 5-year
program, and its objectives were to be met by the end of 2005.
While many of its objectives have been met, the Committee is
concerned that the level of resources provided by the United
States Government to Colombia is increasing in 2005, including
increased funding for a costly air bridge denial program.
Therefore, the Committee anticipates a decrease in the
President's budget request for 2006 for the Andean Counterdrug
Initiative for Colombia.
AVAILABILITY OF ASSISTANCE
The Committee again has extended the availability of funds
provided for assistance for Colombia to support a unified
campaign against narcotics trafficking, against activities by
organizations designated as terrorist organizations, and to
take actions to protect health and human welfare. The Committee
is supportive of the Colombian government in its attempts to
provide security for the Colombian people and has provided
these authorities in recognition that the narcotics industry is
invariably linked to the terrorist groups, including the
paramilitary organizations, in Colombia. As in prior years, the
expanded authority is not a signal from the Committee for the
United States to become more deeply involved in assisting the
Colombian Armed Forces in fighting the terrorist groups,
especially not at the expense of the counternarcotics programs,
but to provide the means for more effective intelligence
gathering and fusion, and to provide the flexibility to the
Department of State when the distinction between
counternarcotics and counterterrorism is not clear cut. The
Committee directs the Secretary of State to consult with the
Committee if the implementation of the expanded authorities
changes from that described in the May 2003 report to Congress.
INTERNALLY DISPLACED PERSONS
The Committee directs the Department of State to provide
$5,000,000 to the Department of State's Bureau for Population,
Refugees, and Migration (PRM) from funds made available under
this heading to continue programs benefiting internally
displaced persons programs in Colombia.
ALTERNATIVE DEVELOPMENT AND SECURITY IN COLOMBIA
The Committee strongly supports USAID's continuing
alternative development strategy that focuses on the historic
underdevelopment of Colombia's outlying regions. The programs
concentrate on local infrastructure needs (roads, electricity,
water) and delivery of services at the community level. This
focus on an entire community increases the social pressure for
eradication and also helps organize the community to identify
and prioritize local needs. To date, communities receiving
alternative development assistance have voluntarily manually
eradicated over 16,500 hectares of coca. The Committee hopes
USAID partners can continue building on their good working
relationships with mayors and local leaders.
Additionally, the Committee recognizes that without public
security and law enforcement, no level of alternative
development funding by this Committee or the Colombian
government can result in development that is sustainable.
Additionally, the Committee is aware of the security threats
facing program implementers on a daily basis. The Committee
continues to support the so-called ``carabinieros'' police
program for establishing law enforcement in rural and remote
areas and encourages continuing United States assistance for
the program. With assistance made available under this heading
in prior years' appropriations acts, the Colombian National
Police (CNP) have successfully re-established a presence in 158
municipality capitals that had no police presence as recently
as August 2002.
It is the Committee's view that alternative development
integrated with the presence of the state and the presence of
law enforcement and security are fundamentally the key to long
term peace and security in Colombia. The Committee expects the
allocation of resources in 2005 and the 2006 request will
reflect those priorities.
HUMAN RIGHTS
The Committee calls on the Department of State to ensure
that all United States laws regarding human rights, including
section 551 of this Act, are strictly applied in Colombia and
each of the Andean nations. The Committee includes a general
provision from the 2004 appropriations Act requiring that the
Secretary of State certify that certain human rights conditions
have been met before 25 percent of funds may be made available
for assistance for the Colombian Armed Forces.
PERU
Peru is the second largest recipient of counternarcotics
and alternative development assistance from the United States.
The Committee was skeptical in the past about United States
support for ``autoeradication'', a pilot policy of voluntary
eradication combined with the use of community development
projects as an incentive for cooperation. However, the
Committee notes that even with the current political
environment in Peru, Peruvian communities have responded
positively to this voluntary eradication program, and in 2003
40 percent of eradicated coca was as a result of
autoeradication. Subsequently, the Committee is concerned that
the Administration's request for Peru seriously underfunds
these alternative development programs in order to fund forced
eradication resources managed by the Department of State.
Therefore the Committee directs the Department of State to
consult with the Committee prior to deciding the allocation of
2005 funds, to ensure that Peru's alternative development
program is adequately funded.
The Committee urges USAID to continue working with The
Field Museum of Chicago on the Cordillera Azul National Park
project in central Peru. This project has tremendous potential
to prevent coca from entering more than 5,000 square miles of
the Huallaga Valley and to improve the quality of life for
local residents.
BOLIVIA
While the Committee takes special note of the progress that
Bolivia made in the war against drugs under the Bolivian
Government's Dignity Plan, this progress could be erased
quickly if the commitment by either the Bolivian government or
the United States were to falter. The Committee is concerned
about the political climate in Bolivia associated with
alternative development programs funded by the United States.
Alternative development programs in the Chapare and the Yungas
areas of Bolivia need local ownership and local participation,
and if possible, need contributions from the central Bolivian
government to combat the isolation of these regions from a
state interest and presence.
EUROPEAN CONTRIBUTIONS
The Committee notes that demand for Colombian coca is
rising in Europe and approaching United States consumption
levels of approximately 300 tons a year. European nations and
the European Union have contributed very little to eradication
of coca or alternative development programs in the Andean
region, and often their development programs are funded with no
view toward eradication policies. The Committee again urges the
Secretary of State to negotiate with our European allies in
order to persuade them to contribute additional funds to
counter-narcotics efforts, alternative development, and
judicial reform in the Andean region. The Committee directs the
Secretary of State to submit a report to the Committee not
later than 120 days after enactment of this Act that details by
dollar level and fiscal year, multilateral and bilateral
projects and programs supported by the European Union and by
individual countries in Europe. Additionally, the report shall
include a summary of the Department's efforts to persuade the
EU to contribute additional resources and the results of these
discussions.
Migration and Refugee Assistance
Fiscal year 2004 level................................ $755,712,000
Fiscal year 2005 request.............................. 729,789,000
Committee recommendation.............................. 756,000,000
The Committee recommends $756,000,000 for Migration and
Refugee Assistance, an amount that is $26,211,000 above the
request and $288,000 more than the amount enacted for fiscal
year 2004. A limitation of $21,000,000 is recommended for
administrative expenses.
The Committee is aware that the Bureau of Population,
Refugees, and Migration intends to provide 90 percent of its
overseas assistance funds to international organizations,
primarily the Office of the United Nations High Commissioner
for Refugees (UNHCR) and the International Committee of the Red
Cross, while providing only ten percent to nongovernmental
organizations. The Committee notes that such a ratio is not
required by law and urges the Department of State to consult
with the Committee prior to the allocation of funds in 2005 to
ensure that funding decisions are based on specific assistance
needs, not a static formula. The Committee notes that during
times of conflict and at the beginning of a crisis,
nongovernmental organizations often are quicker to respond and
more flexible in meeting the initial and immediate humanitarian
needs of refugees.
The Committee notes that, in fiscal year 2004, the
Department of State provided $2,000,000 for nongovernmental
organization activities to combat gender-based violence in
humanitarian and refugee settings. The Committee recognizes
that there are widespread reports of gender-based violence in
areas such as the eastern Congo and the Darfur region of Sudan,
and urges the Bureau of Population, Refugees, and Migration
(PRM) to support programs to combat this trend and encourage
efforts to integrate gender-based violence programs with other
humanitarian relief activities.
TIBETAN REFUGEES
The Committee recommends that not less than $2,000,000
should be provided for Tibetan refugees in Nepal and India. The
Committee remains concerned about the situation of Tibetan
refugees transiting through Nepal en route to resettlement in
India. A disorganized Nepalese government, a virulent Maoist
insurgency, and increasingly warm Nepal-China relations have
led to an environment where Tibetan refugees face difficulties
in securing safe passage through Nepal. The Committee welcomes
the Royal Nepalese Government's recent decision to put in
writing its long-standing agreement that Nepalese authorities
will hand Tibetans over to the Office of the United Nations
High Commissioner for Refugees for processing as ``persons of
concern.'' As United States security cooperation with Nepal
continues to grow, the Committee urges the Nepalese government
to take seriously the implementation of its commitments to
provide safe passage to Tibetans fleeing repression in their
homeland.
RESETTLEMENT IN ISRAEL
The Committee supports $50,000,000 for humanitarian
migrants from the former Soviet Union and other countries of
distress resettling in Israel. Since 1989, Israel has accepted
more than one million refugees. The Committee remains strongly
committed to assisting the resettlement of Russian, Eastern
European, Ethiopian and other humanitarian migrants in Israel.
The funds provided in this Act assist in the transportation and
initial absorption costs for humanitarian migrants each year.
The Committee notes there has been a decline in the numbers
arriving from the former Soviet Union in the last year. The
decline in costs associated with this decrease has been offset
by a significant increase in the cost of providing
transportation and especially resettlement of a larger number
of refugees from Ethiopia. However, should the number of
migrants continue to decline the Committee expects the
Administration to recommend $40,000,000 for fiscal year 2006.
MAGEN DAVID ADOM SOCIETY
The Committee is disappointed again this year that the
International Committee of the Red Cross (ICRC) has not taken
action to admit the Magen David Adom Society of Israel to the
International Red Cross and Red Crescent Movement. The American
Red Cross has promoted the membership of the Society in the
Movement, but little positive action has been forthcoming. As a
result, the American Red Cross has withheld its headquarters
contribution to the ICRC for the past few years. Therefore the
Committee is recommending a continuation of bill language that
would also withhold the annual headquarters contribution made
by the Department of State unless the Magen David Adom Society
is given the opportunity to participate in the activities of
the International Red Cross and Red Crescent Movement. This
limitation will not, and is not intended to, restrict funding
for humanitarian assistance programs that may be programmed
through the ICRC using other funds provided in this account. It
is only intended to affect the funding the United States
provides on an annual basis to the ICRC bureaucracy in Geneva.
United States Emergency Refugee and Migration Assistance Fund
Fiscal year 2004 level................................ $29,823,000
Fiscal year 2005 request.............................. 20,000,000
Committee recommendation.............................. 20,000,000
The Committee recommends $20,000,000 for the Emergency
Refugee and Migration Assistance (ERMA) Fund, which is
$9,823,000 less than the 2004 enacted level and the same level
as the request.
Nonproliferation, Anti-Terrorism, Demining and Related Programs
Fiscal year 2004 level................................ $351,414,000
Emergency supplemental appropriations................. 35,000,000
Fiscal year 2005 request.............................. 415,200,000
Committee recommendation.............................. 382,000,000
The Committee recommends a total appropriation of
$382,000,000 for programs under the heading ``Nonproliferation,
Anti-terrorism, Demining and Related Programs'', an amount that
is $33,200,000 below the request and $30,586,000 above the
fiscal year 2004 enacted level, excluding emergency
supplemental appropriations.
The following table compares fiscal year 2004 funding for
the programs covered by this account, as well as the
President's request for fiscal year 2005 and the Committee
recommendation:
Non-Proliferation, Anti-Terrorism, Demining and Related Programs
----------------------------------------------------------------------------------------------------------------
Fiscal year 2005
Fiscal year 2004 Fiscal year 2005 committee
enacted request recommendation
----------------------------------------------------------------------------------------------------------------
Nonproliferation Programs:
Nonproliferation and Disarmament Fund................. 29,823,000 34,500,000 30,000,000
Export Control & Border Security...................... 35,788,000 38,000,000 38,000,000
Science Centers/Nonproliferation of WMD............... 50,202,000 50,500,000 50,000,000
IAEA Voluntary Contribution........................... 52,687,000 53,000,000 53,000,000
International Monitoring System....................... 18,888,000 19,000,000 19,000,000
-----------------------------------------------------
Subtotal Nonproliferation........................... 187,388,000 195,000,000 190,000,000
=====================================================
Anti-Terrorism Programs:
Anti-terrorism Assistance............................. 96,428,000 128,300,000 111,000,000
Counterterrorism Financing............................ ................ 7,500,000 7,500,000
Terrorist Interdiction Program........................ 4,971,000 5,000,000 5,000,000
CT Engagement w/Allies................................ ................ 500,000 500,000
-----------------------------------------------------
Subtotal Anti-Terrorism............................. 101,399,000 141,300,000 124,000,000
=====================================================
Regional Stability and Humanitarian Assistance:
Humanitarian Demining................................. 49,705,000 59,900,000 55,000,000
International Trust Fund.............................. 9,941,000 10,000,000 10,000,000
Small Arms/Light Weapons Destruction.................. 2,982,000 9,000,000 3,000,000
-----------------------------------------------------
Subtotal Regional Stability/Humanitarian Assistance: 62,628,000 78,900,000 68,000,000
=====================================================
Total............................................... \1\ 351,414,000 415,200,000 382,000,000
----------------------------------------------------------------------------------------------------------------
\1\ In addition, $35,000,000 in emergency wartime appropriations and a $10,000,000 transfer from the Emergency
Response Fund were provided for this account.
ANTI-TERRORISM ASSISTANCE
The Committee recommends $111,000,000 for anti-terrorism
assistance, an increase of $14,572,000 over the fiscal year
2004 enacted level. This program, run by the State Department's
Diplomatic Security officials under the policy direction of the
Coordinator for Counterterrorism, provides training and skills,
technical assistance, and equipment to improve professionalism
and capability in the War on Terrorism. Training is in areas
such as crisis management, cyber terrorism, dignitary
protection and kidnap intervention, border control, airport
security, bomb detection, investigating terrorist financing,
and response to incidents involving weapons of mass
destruction. The recommended increase will allow for
maintenance of all on-going programs, as well as new in-country
training programs in Colombia, Malaysia, Kenya, the
Philippines, and the Tri-border area of South America. In
addition, funding is approved for the ATA Alumni Information
and Coordination Network, and the Senior Policy Engagement
Workshop. The Committee directs that the Department of State
clearly identify the administrative costs for the program, and
budget for such costs as a separate line item as part of the
fiscal year 2006 budget justification material for this
program.
DEMINING
The Committee recommends $68,000,000 for regional stability
and humanitarian assistance programs. The recommendation
includes $10,000,000 for the Slovenian International Trust Fund
(ITF), the same as the budget request. The Committee continues
to support the work of the International Trust Fund for
Demining and Mine Victim Assistance to make the Balkans mine-
safe. The ITF has made Kosovo mine-safe, will complete demining
in Macedonia this year, and anticipates making Serbia and
Albania mine-safe within the next two years. In addition, ITF
has provided medical care and rehabilitation to over 830 mine
victims in the Balkans and mine safety and awareness training
throughout the Balkans. The Committee directs that such amounts
may be deposited into that fund only to the extent matching
amounts are deposited by other governments, entities, or
persons. In addition, these funds should only be expended by
the fund in consultation with the United States Government.
The Committee recognizes the need to remove the landmines
that separate the two communities on Cyprus in order to
facilitate a peace on the island. While such demining should be
accomplished primarily by the parties involved, the Committee
recommends that up to $500,000 of the funds appropriated for
humanitarian demining assistance may be provided to the
International Trust Fund to remove existing landmines and help
make Cyprus mine-safe.
The Committee is concerned about the ongoing threat to
civilians and to lasting peace posed by landmines in Armenia,
Azerbaijan, and Georgia. Funds appropriated for humanitarian
demining in this account, or funds allocated for assistance to
these countries under the account ``Assistance for the
Independent States of the Former Soviet Union'' may be provided
to the International Trust Fund for Demining and Victims
Assistance to implement a regional demining and victim
assistance program. The Committee also directs that these funds
must be matched by other governments or private donors before
they will be released to ITF. Prior to the initiation of such a
program, the Committee requests that the Department of State
consult with the Committee.
The Committee is aware of a proposal involving the Landmine
Survivors Network to utilize employment-training models to
address the challenges of unemployment and underemployment in
the Middle East region. The Committee recommends that the
Department of State consider a proposal to establish a program
in Jordan which would employ an integrated approach,
incorporating the training of individuals who have sustained
disabling conditions as a result of landmines.
The Committee recommends $3,000,000 for small arms/light
weapons destruction, approximately the same level as that
provided in fiscal year 2004 but $6,000,000 below the budget
request. The Committee notes that similar demilitarization
programs are funded under other appropriation accounts in this
Act.
Department of the Treasury
International Affairs Technical Assistance
Fiscal year 2004 level................................ $18,888,000
Fiscal year 2005 request.............................. 17,500,000
Committee recommendation.............................. 19,000,000
The Committee recommends $19,000,000 under this heading for
international technical assistance by the Department of the
Treasury, an amount that is $1,500,000 above the request and
$112,000 above last year's level. The Committee has provided
the additional $1,500,000 for enhancing the Department of
Treasury's efforts to combat terrorist financing. In operation
since 1991, Treasury's Office of Technical Assistance provides
expert fiscal and monetary policy advisors to countries of the
former Soviet Union and Eastern Europe. Beginning in fiscal
year 1999, Treasury created the Treasury International Affairs
Technical Assistance (TIATA) program and expanded the countries
to Asia, Africa and Latin America. The Committee directs the
Office of Technical Assistance (OTA) to notify the Committee
prior to the obligation of funds for the compensation or travel
expenses of any individual who is not an employee of the
Department of Treasury.
Debt Restructuring
Fiscal year 2004 level................................ $94,440,000
Fiscal year 2005 request.............................. 200,000,000
Committee recommendation.............................. 105,000,000
The Committee recommends $105,000,000 under this heading
for international debt restructuring by the Department of the
Treasury, an amount that is $95,000,000 less than the request
and $10,560,000 above last year's level. Funds in this account
are subject to the regular notification procedures of
Committees on Appropriations.
The Committee recommends $20,000,000 as requested for the
Tropical Forest Conservation Act (TFCA) programs, up to
$75,000,000 as requested for a contribution to the Heavily
Indebted Poor Countries (HIPC) Trust Fund, and at least
$10,000,000 for bilateral debt relief to the Democratic
Republic of the Congo (DRC). The Committee has provided the
Department of the Treasury $85,000,000 for a combination of
HIPC and the DRC debt relief funding.
TROPICAL FOREST CONSERVATION ACT PROGRAMS
The Committee commends the Department of the Treasury for
fully consulting on a periodic basis, as required by law, to
review the countries eligible for benefits from the Tropical
Forest Conservation Act (TFCA) programs. The Committee expects
the Department of the Treasury to consult with the Committee 15
days prior to the determination that additional countries are
found eligible for TFCA.
HEAVILY INDEBTED POOR COUNTRIES DEBT RELIEF
In fiscal years 2000, 2001 and 2002, Congress appropriated
$600,000,000 to the Heavily Indebted Poor Countries (HIPC) debt
relief program. At the time, the Committee was informed that
this completed the United States commitment to the multilateral
HIPC Trust Fund. In the fiscal year 2004 and in the fiscal year
2005 request, an additional $150,000,000 is committed to the
HIPC Trust Fund for ``topping up'' of HIPC resources. The
Committee has fulfilled that commitment if amounts in this Act
are included.
The Committee is concerned that fiscal year 2005 is not the
last year of the HIPC initiative and that the Department of the
Treasury is unable to curb the future costs of the program. Of
greatest concern to the Committee are two HIPC assumptions that
could have great effects on future funding requirements for
HIPC debt relief by future Congresses. First, debt relief is
based on a net present value (NPV) of debt payments, but
because interest rates have fallen so drastically in recent
years, the NPVs have risen. The result is that more debt relief
is calculated as needed as a result of this external factor
that has no bearing on a country's cash flow. The Committee
directs the Secretary of the Treasury to consult with the
Committee before the Department agrees to calculating debt
relief in this manner. Secondly, a HIPC country may borrow from
the World Bank and other international financial institutions
between its decision point and completion point for
consideration of debt relief, and those loans would increase
the debt relief required under HIPC. Therefore the Committee
has included a provision limiting the availability of funds so
as not to create a moral hazard in the allocation of resources
by the multilateral development banks.
CONGO
Since 1996, HIPC has been justified to the Committee as a
strategy to place debt relief within an overall framework of
poverty reduction. The Committee is concerned that given the
level of debt service payments the Democratic Republic of the
Congo (DRC) is making to the United States, bilateral debt
relief may not be of the immediate greatest benefit to the
poorest people in that country. Given budgetary constraints,
the Committee recommends at least $10,000,000 in funds under
this heading for bilateral debt relief for the DRC. The
Committee notes that the DRC is a possible recipient of debt
relief from the HIPC Trust Fund.
TITLE III--MILITARY ASSISTANCE
Funds Appropriated to the President
International Military Education and Training
Fiscal year 2004 level................................ $91,159,000
Fiscal year 2005 request.............................. 89,730,000
Committee recommendation.............................. 89,730,000
The Committee recommends $89,730,000 for the International
Military Education and Training (IMET) program, which
represents a decrease of $1,429,000 below the fiscal year 2004
level and is the same as the budget request. IMET is part of
the overall United States security assistance program, and
through it the United States Government provides training to
predominantly military students from allied and friendly
nations. The IMET program exposes students to the United States
professional military establishment and the American way of
life, including democratic values and rule of law, respect for
individual and human rights. In 1990, Congress directed the
Department of Defense to establish a program within IMET--
called Expanded-IMET or ``E-IMET'' focused on training foreign
civilian and military officials in three areas: managing and
administering military establishments and budgets; creating and
maintaining effective military judicial systems and military
codes of conduct, and fostering greater respect for the
principle of civilian control of the military.
GREECE
The Committee recognizes the country of Greece as a friend
and ally and urges up to $2,000,000 in funding for assistance
for that country from the funds appropriated under this
heading.
GUATEMALA
The Committee includes prior year bill language limiting
Guatemala to Expanded-IMET only, subject to notification.
Funding for Nigeria is also subject to notification.
IMET AVAILABILITY
The Committee again recommends that $3,000,000 of IMET
appropriations remain available until expended.
Foreign Military Financing Program
INCLUDING TRANSFER OF FUNDS
Fiscal year 2004 level................................ $4,268,665,000
Emergency supplemental funding........................ 287,000,000
Fiscal year 2005 request.............................. 4,957,500,000
Committee recommendation.............................. 4,777,500,000
(by transfer)..................................... (150,000,000)
The Committee recommends $4,777,500,000 in Foreign Military
Financing assistance. This program provides grants for the
acquisition of United States defense equipment, services and
training. The Foreign Military Financing (FMF) program enables
key allies and friendly nations to improve defensive
capabilities, and fosters bilateral military relationships with
the United States and interoperability with United States
forces. The recommended fiscal year 2005 program level is
$508,835,000 above the fiscal year 2004 level, excluding
emergency wartime supplemental appropriations, and $180,000,000
below the budget request.
The recommended increase above the fiscal year 2004 level
is primarily due to four factors: $400,000,000 for assistance
to Afghanistan, an increase of over $350,000,000 primarily to
help train and equip the new Afghan National Army (ANA);
$150,000,000 in new budget authority and $150,000,000 in
transfer authority for assistance for Pakistan, a key ally in
the war on terrorism; an increase of $72,744,000 for military
assistance for Israel; and $66,000,000 for assistance to
Poland, an increase of $46,000,000 for a major ally
participating in Operation Iraqi Freedom.
The Committee expects the programmatic reduction of
$30,000,000 associated with this funding recommendation will be
offset in part by recoveries of prior year funds. Any funding
decrease that cannot be offset by recoveries should be assessed
against proposed country and program allocations not directly
affecting Operation Iraqi Freedom and assistance for South
Asia.
ISRAEL
The Committee recommends a total Foreign Military Financing
(FMF) program of not less than $2,220,000,000 in grants for
Israel, which shall be available within 30 days of enactment of
this Act or by October 31, 2004, whichever occurs later.
The Committee remains committed to helping Israel maintain
security. Therefore, the Committee is convinced the United
States must make every effort to carry out its long-standing
policy of ensuring that Israel's technological edge is
maintained. As a result, the Committee has provided an increase
of $72,744,000 above the fiscal year 2004 level. The Committee
also believes that a sustained military improvement program
will be required over the next four years, at an annual rate of
approximately $60,000,000, to assist Israel in responding to
emerging security challenges. However, with respect to this
recommended increase in military assistance, the Committee must
be very clear that it cannot commit future Congresses to the
future appropriation of funds. Therefore, future increases in
military assistance will require the annual review of the
Congress and will necessarily be based upon an assessment of
the security situation at the time.
The Committee also recommends that, to the extent that the
Government of Israel requests that FMF grant funds for Israel
be used for such purposes, and as agreed by Israel and the
United States, funds may be made available for advanced weapons
systems of which $580,000,000 shall be available for the
procurement in Israel of defense articles and defense services,
including research and development. This increase is consistent
with the understanding that $15,000,000 of the $60,000,000
increase on an annual basis would be used for these activities.
It also reflects a recognition by the Committee of Israel's
need for similar annual increases over the next few years in
order to provide Israel with increased flexibility in meeting
the emerging security challenges in the Middle East.
The Committee supports continued investigation of unique
United States-developed, centrifuge-based authentic flight
simulation technology. The Committee believes this technology
could significantly benefit Israeli Air Force readiness and
reduce costs and risk associated with traditional training
methods.
JORDAN
The Committee strongly supports the Administration's
efforts to improve Jordanian security and therefore recommends
full funding of the President's request of $206,000,000 for
Jordan. Under the leadership of King Abdullah, Jordan plays a
critical role in supporting peace and security in the Middle
East. The Committee is well aware that Jordan's security
requirements are extensive, particularly in the areas of ground
force modernization and border security.
EGYPT
The Committee recommends a total of $1,300,000,000 in
Foreign Military Financing grants for Egypt. Pursuant to the
President's budget request bill language is recommended that
would require that funds estimated to be outlayed for Egypt
during fiscal year 2005 shall be transferred to an interest
bearing account for Egypt in the Federal Reserve Bank of New
York within 30 days of enactment of this Act. The Committee is
convinced that continued military cooperation between Egypt and
the United States remains in the national security interests of
both countries.
THE BALTIC STATES
The Committee strongly supports at least the President's
budget request of $15,500,000 for Estonia, Latvia, and
Lithuania. Previous years' funding has significantly supported
the commendable efforts of these countries to attain Western
military standards and to improve their capacities to
contribute to international security through the provision of
peacekeepers to international peacekeeping missions. These
democratic nations also strongly supported the international
coalition in Operation Iraqi Freedom.
ARMENIA AND AZERBAIJAN
The Committee is concerned about the funding disparity in
the President's budget request for Armenia and Azerbaijan. The
Committee directs that $5,000,000 be provided for each country,
the same levels as allocated in fiscal year 2003. In addition,
the Committee supports IMET assistance levels of $750,000 for
both countries as requested by the President. With regard to
funding for Armenia, the Committee expects the Department of
Defense will be provided with the opportunity to perform a
needs assessment of Armenia's armed services in order to ensure
an effective military assistance program and recommends that
such an assessment be initiated prior to the obligation of
funds for fiscal year 2005. The Committee requests that the
Department of State and the Department of Defense consult with
the Committees on Appropriations as they develop future funding
needs for Armenia and Azerbaijan.
ADMINISTRATIVE EXPENSES
The Committee has recommended a limitation on
administrative expenses of $40,500,000. This level is
consistent with the budget request for the Defense Security
Cooperation Agency (DSCA).
FOREIGN MILITARY FINANCING SURCHARGE
The Committee has included a limitation on Foreign Military
Financing operating costs of $367,000,000. This limitation may
be waived pursuant to the regular notification procedures of
the Committees on Appropriations. This is $6,000,000 more than
the fiscal year 2004 level and the same as the request.
FMF EXPENDITURE RATE
The Committee continues prior year language that requires
that Foreign Military Financing funds be expended at the
minimum rate necessary to make timely payments for defense
articles and services. In addition, it continues language
providing that such funds shall be obligated upon apportionment
in order to allow for the orderly execution of program funds.
PROCUREMENT AGREEMENTS
The Committee has continued prior year language requiring
recipients of Foreign Military Financing grants to sign
agreements with the United States prior to using FMF funds to
finance the procurement of any item not sold by the United
States under the Arms Export Control Act.
PROHIBITIONS
The Committee has included bill language prohibiting
military assistance to Indonesia, Guatemala, and Sudan. The
Administration did not request FMF appropriations for these
nations for fiscal year 2005.
UGANDA
As in fiscal year 2004, the Committee recommends that up to
$2,000,000 in FMF funds be used to assist the Government of
Uganda with counter-terrorism efforts. This assistance would be
used to provide surveillance capabilities and border security.
This recommendation assumes continued cooperation with United
Nations effort to end conflicts in the Democratic Republic of
Congo.
Peacekeeping Operations
Fiscal year 2004 level................................ $74,458,000
Emergency supplemental funding........................ 50,000,000
Fiscal year 2005 request.............................. 104,000,000
Committee recommendation.............................. 104,000,000
The Committee recommends $104,000,000 for voluntary
contributions for international peacekeeping operations. This
amount is $29,542,000 above the level provided in fiscal year
2004, excluding emergency wartime supplemental appropriations,
and is the same as the President's request.
TITLE IV--MULTILATERAL ECONOMIC ASSISTANCE
International Financial Institutions
Global Environment Facility
Fiscal year 2004 level................................ $138,418,484
Fiscal year 2005 request.............................. 120,677,734
Committee recommendation.............................. 107,500,000
The Committee recommends $107,500,000 for the Global
Environment Facility (GEF), administered by the World Bank for
the entire scheduled United States annual payment to the third
replenishment of GEF. The recommendation is $13,177,734 below
the request and $30,918,484 less than the amount enacted for
2004.
Contribution to the International Development Association
Fiscal year 2004 level................................ $907,812,120
Fiscal year 2005 request.............................. 1,061,309,801
Committee recommendation.............................. 850,000,000
The Committee is providing $850,000,000 for the entire
regularly scheduled United States contribution to the
International Development Association (IDA), $211,309,801 less
than the request and a $57,812,120 decrease from the 2004
enacted level. The recommended level is intended for the second
of three payments under the United States commitment to the
thirteenth replenishment of IDA.
Due to the Committee's restricted budget allocation,
combined with the significant funding increases for the
Administration's other priorities, the Committee is unable to
provide an additional $200,000,000 for the IDA incentive
contribution, albeit without prejudice. The Board of the World
Bank has approved an external audit of IDA's results in meeting
its performance benchmarks, as included in the 2004
appropriations act.
General Concerns About the World Bank Group
EXTRACTIVE INDUSTRIES REVIEW
The Committee is concerned about possible implications of
the World Bank's Extractive Industries Review that recommends
the Bank cease funding oil and coal projects in the developing
world. The Committee is concerned that the review may
unnecessarily downgrade the role that extractive industries can
play in increasing global economic growth, poverty reduction,
and creating revenues for government programs, and directs the
Secretary of Treasury to consult with the Committee before the
World Bank adopts any of the findings of the review.
GRANTS
The Committee support the President's goal to designated 50
percent of IDA resources for grants to the poorest nations for
critical needs such as health and education spending. Given the
unending cycle of unsustainable debt levels in the poorest
countries, the Committee supports the Secretary of Treasury's
position in the negotiations for the fourteenth replenishment
of IDA. Grants programs are well-established in IDA and the
African Development Fund (AfDF), and the Committee is
encouraged by the new grant program in the Asian Development
Fund (AsDF).
OBJECTIVES
The Committee remains concerned about the expansion of the
Bank's focus from development functions to humanitarian
lending, health activities, cultural projects, disarmament
activities, and post-conflict reconstruction. Without a focus,
the Bank risks losing any comparative advantage in the
developing world, will duplicate bilateral donor assistance,
and reduce its effectiveness. The Committee continues to
believe that the World Bank and other multilateral development
banks should have a clear set of objectives with the top
priority to raise the standard of living of people throughout
the world. The Committee supports the Treasury Department's
attempts to focus the World Bank's core objective on raising
per capita income and economic growth.
AVAILABILITY OF INFORMATION
The Committee again requests copies of all annual reports
and information about the basic functions of each institution
as they come available, including the European Bank for
Reconstruction and Development and the International Fund for
Agricultural Development. Future and continued support for the
banks cannot be guaranteed unless future requests are justified
by the Department of Treasury as well as the management of each
individual institution.
ANTI-TERRORISM CERTIFICATION
The Committee notes that USAID has recently begun to
require all grantees to sign an Anti-Terrorism Certification
(ATC), which requires grantees to certify that they have not
and will not provide material support or resources to
individuals or entities involved in terrorism. The Committee
notes that the United States provides a significant portion of
its foreign assistance through the World Bank and other
International Financial Institutions, and urges the Treasury
Department to explore the possibility of instituting a similar
certification requirement for assistance provided by these
institutions. The Committee directs the Secretary of the
Treasury to report back no later than 90 days after the
enactment of this Act on the progress made toward establishing
such a requirement.
WORLD BANK IN IRAQ
The Committee understands the World Bank Group pledged a
large part of the total international assistance funds
committed for Iraq. The Committee understands that of the
amount pledged at the international donors' conference in
Madrid last year, most of these funds remain to be disbursed.
The Committee notes that in previous conflicts, the World
Bank provided assistance at a faster rate. The Committee notes
that the Coalition Provisional Authority has stationed hundreds
of international staff in Iraq. It notes that despite one year
and a large project pipeline for Iraq, the World Bank Group has
yet to station a single full-time international staff member in
Iraq. The Committee notes that the Bank took volunteers and
stationed staff in many conflicts, including the siege of
Sarajevo in Bosnia. The Committee expresses its disappointment
at the slow pace of World Bank project disbursement in Iraq and
the lack of deploying staff volunteers who in the past
successfully led some of the Bank's most important country
missions.
The Committee directs the Secretary of the Treasury to
report by January 1, 2005 on the disbursement of World Bank
project loans and the deployment of international volunteer
staff to man the bank's offices in Iraq.
Contribution to the Enterprise for the Americas Multilateral Investment
Fund
Fiscal year 2004 level................................ $24,852,500
Fiscal year 2005 request.............................. 25,000,000
Committee recommendation.............................. 25,000,000
The Committee recommends an appropriation of $25,000,000
for past due payments for the Multilateral Investment Fund
(MIF). The recommendation is the same as the request and
$147,500 above the 2004 enacted level.
The Multilateral Investment Fund (MIF) is the major source
of multilateral technical assistance grants for micro and small
business development in Latin America and the Caribbean.
Contribution to the Asian Development Fund
Fiscal year 2004 level................................ $143,568,916
Fiscal year 2005 request.............................. 112,212,465
Committee recommendation.............................. 112,212,465
The Committee recommends an appropriation of $112,212,465
for the concessional Asian Development Fund, an amount that is
the same as the level requested and $31,356,451 less than the
fiscal year 2004 enacted level. The Committee recommends that
$103,000,000 be made available for the scheduled payment to the
Asian Development Fund and $9,212,465 for past payments due.
The Committee is providing the entire amount requested for
the Asian Development Fund in light of United States efforts to
reform the operations of the Asian Development Bank (AsDB). The
Committee supports the continuing focus by the United States
Executive Director on issues relating to personnel,
procurement, host country contracting, inspection,
transparency, and performance based allocation of concessional
loans at the AsDB. The Committee commends the regular contact
by the United States Executive Director and his efforts to keep
the Committee members informed of AsDB issues.
Contribution to the African Development Bank
Fiscal year 2004 level................................ $5,074,811
Fiscal year 2005 request.............................. 5,100,000
Committee recommendation.............................. 5,100,000
(LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS)
Fiscal year 2004 level................................ ($79,609,817)
Fiscal year 2005 request.............................. (79,532,933)
Committee recommendation.............................. (79,532,933)
The Committee recommends an appropriation of $5,100,000 for
the African Development Bank for the scheduled United States
contribution to the African Development Bank, an amount that is
$25,189 above the amount provided in fiscal year 2004 and the
same as the amount requested.
Contribution to the African Development Fund
Fiscal year 2004 level................................ $112,059,923
Fiscal year 2005 request.............................. 118,000,000
Committee recommendation.............................. 118,000,000
The recommendation for the concessional African Development
Fund is $118,000,000, an amount that is $5,940,077 more than
the amount provided in fiscal year 2004 and the same level as
the request.
Contribution to the European Bank for Reconstruction and Development
Fiscal year 2004 level................................ $35,222,068
Fiscal year 2005 request.............................. 35,431,111
Committee recommendation.............................. 35,431,111
(LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS)
Fiscal year 2004 level................................ ($122,085,497)
Fiscal year 2005 request.............................. (121,996,662)
Committee recommendation.............................. (121,996,662)
The Committee is recommending $35,431,111 for the European
Bank for Reconstruction and Development (EBRD). This amount is
the same as the President's request and $209,043 more than the
appropriation provided in fiscal year 2004.
The Committee recommendation includes a provision requiring
that funds for the European Bank for Reconstruction and
Development are subject to notification. The Committee directs
the Secretary of the Treasury and the United States Executive
Director to the EBRD to consult with the Committee as required
by section 581 of the 2004 appropriations act.
Contribution to the International Fund for Agricultural Development
Fiscal year 2004 level................................ $14,915,518
Fiscal year 2005 request.............................. 15,000,000
Committee recommendation.............................. 15,000,000
The fiscal year 2005 recommendation for the International
Fund for Reconstruction and Development (IFAD) is $15,004,042,
the same as the request and $84,482 above the amount provided
in fiscal year 2004.
International Organizations and Programs
Fiscal year 2004 level................................ $319,752,000
Fiscal year 2005 request.............................. 304,450,000
Committee recommendation.............................. 323,450,000
The Committee has recommended $323,450,000 for
International Organizations and Programs. This is $3,698,000
above the fiscal year 2004 level and $19,000,000 above the
President's request. As in fiscal year 2004, funding for a
grant to UNICEF is provided under this heading, and as in
fiscal year 2004, funding for the World Food Program is
provided from program funds. The United Nations Population Fund
(UNFPA) is discussed in section 560.
The Committee recommendation also continues prior year bill
language prohibiting the use of funds for the International
Atomic Energy Agency (IAEA). Funding for the IAEA is addressed
elsewhere.
UNITED NATIONS DEVELOPMENT PROGRAM
The Committee recommends a level not less than $107,000,000
in International Organizations and Programs funding be set
aside to support the United Nations Development Program (UNDP),
$17,000,000 more than the request and $5,602,000 more than
provided in 2004.
UNITED NATIONS VOLUNTARY FUND FOR VICTIMS OF TORTURE
The Committee supports not less than $7,000,000 for the
United States contribution to the United Nations Voluntary Fund
for Victims of Torture as authorized in the Torture Victims
Relief Reauthorization Act of 2003. The Committee urges the
Department of State to encourage other governments to increase
their contributions to the Fund and report on implementation of
this recommendation not later than 60 days after enactment of
this Act.
UNITED NATIONS CHILDREN'S FUND
The Committee recommends a level not less than $125,000,000
in funds provided under this heading for the United Nation's
Children's Fund (UNICEF), a level $5,000,000 more than the
request and $5,708,000 more than the level provided in 2004.
UNITED NATIONS DEVELOPMENT FUND FOR WOMEN
The Committee supports a total of $3,000,000 for the United
Nations Development Fund for Women (UNIFEM) including a
$2,000,000 contribution to the Fund and a $1,000,000 first time
contribution to the Trust Fund in Support of Actions to
Eliminate Violence Against Women. This level is $2,000,000
above the request and $2,006,000 above the level provided in
the 2004 act.
TITLE V--GENERAL PROVISIONS
The Committee recommends that 33 of the general provisions
carried in the fiscal year 2004 Act be deleted. These
provisions (sections 502, 525, 531, 536, 555, 556, 557, 558,
560, 568, 569, 576, 577, 578, 580, 581, 582, 583, 584, 586,
587, 589, 590, 591, 592, 593, 594, 595, 596, 598, 599A, 599B,
and 599C) are either addressed elsewhere in permanent law, have
been considered by the appropriate authorizing committee, or
are no longer necessary.
The Committee recommends the following new and revised
general provisions.
Sec. 505, ``Limitation on Representational Allowances'' is
the same as the 2004 Act but is modified by increasing the
levels of entertainment expenses and representation allowances
under the heading ``Foreign Military Financing Program'',
``International Military Education and Training'', the ``Inter-
American Foundation'', and the ``Trade and Development
Agency''.
Sec. 506, ``Prohibition on Taxation of United States
Assistance'' is modified by deleting subsection (h) of the 2004
Act. This subsection was a one-time provision pertaining to a
prior year appropriations act.
Sec. 511, ``Availability of Funds'' is revised to extend
the availability of funds under chapter 6, 8, and 9 of part II
of the Foreign Assistance Act of 1961.
Sec. 517, ``Independent States of the Former Soviet Union''
is modified by moving subsection (f) to section 530 of this
Act.
Sec. 520, ``Special Notification Requirements'' is modified
to delete Pakistan, Cambodia and the Democratic Republic of
Congo.
Sec. 522, ``Child Survival and Health Activities'' is
revised by deleting the requirement that $432,000,000 shall be
made available for family planning/reproductive health.
Sec. 523, ``Afghanistan'' is modified by deleting the
entire section except the amount specified for Afghanistan;
limiting the scope of the provision to titles II and III of
this Act; and by adding new language that specifies that
$60,000,000 of the funds appropriated for Afghanistan for
fiscal year 2005 should be made available for programs for
women and girls.
Sec. 525, ``The Global Fund to Fight AIDS, Tuberculosis and
Malaria'' is a new general provision conditioning a
contribution to the Global Fund on a certification by the
Secretary of State that the Global Fund is taking certain steps
to improve and strengthen its operations. Further explanation
on this section is included under the heading ``Child Survival
and Health Programs Fund''.
Sec. 526, ``Democracy Programs'' is modified by retaining
language from the 2004 Act referring to the support United
States Executive Directors to each international financial
institution should provide for projects in Tibet; by including
modified language recommending $4,000,000 for activities in
Tibet through nongovernmental organizations; by recommending
$250,000 for human rights and democracy programs for Tibetans;
and by recommending up to $27,000,000 for the Human Rights and
Democracy Fund, including language similar to the 2004 Act that
authorizes up to $1,500,000 for grants through nongovernmental
organizations and individuals to support the advancement of
democracy and human rights in Iran and Syria, which may be
provided through the National Endowment for Democracy.
Sec. 528, ``Debt-For-Development'' is modified to make
interest earned subject to notification.
Sec. 530, ``Enterprise Fund Restrictions'' is the same as
the 2004 Act but includes a new subsection (b) that is similar
to subsection (f) of section 517 of the 2004 Act but is
modified by applying the provision to funds to those made
available in this Act.
Sec. 531, ``Sudan'' is a new general provision that makes
available $311,000,000 for Sudan and prohibits this funding
from being used to support the government in Khartoum until it
takes specific steps to resolve the ongoing crisis in Darfur.
Sec. 534, ``Special Authorities'' is revised by: in
subsection (a) deleting Lebanon; deleting subsection (f) of the
2004 Act, ``Shipment of Humanitarian Assistance''; deleting
subsection (j) of the 2004 Act, ``Sudan''; and deleting
subsection (k) of the 2004 Act, ``Programs''.
Sec. 554, ``Cambodia'' is modified by deleting all after
the first subsection in the 2004 Act.
Sec. 559, ``West Bank and Gaza Program'' is modified by: in
subsection (b) including a specification that entities referred
to in the 2004 Act as private, government, or educational; and
in subsection (b) directing the Secretary of State to terminate
assistance to any individual, entity, or educational
institution found to be involved in or advocating terrorist
activity.
Sec. 560, ``Contributions to the United Nations Population
Fund'' is modified to include only funds from under the heading
``International Organizations and Programs''.
Sec. 563, ``Funding for Serbia'' is modified in subsection
(d) to include a waiver for assistance to promote democracy
through nongovernmental organizations.
Sec. 567, ``Basic Education'' is modified to establish a
minimum level within title II of this Act for basic education
programs of $400,000,000.
Sec. 568, ``Reconciliation Programs'' is modified by
changing the level of assistance provided to $12,000,000.
Sec. 569, ``Debt Restructuring Authority'' is a new general
provision that enables the United States to lead a multilateral
effort to forgive a significant portion of Iraq's official
debt, subject to consultation and notification.
Sec. 570, ``Trade Capacity Building'' is modified to
establish a minimum level of $517,000,000 from certain accounts
of this Act.
Sec. 571, ``Excess Defense Articles for Central and South
European Countries and Certain Other Countries'' is a new
general provision but the same as the 2003 Act and authorizes
excess defense articles for Central and South European
Countries.
Sec. 572, ``Cuba'' is the same general provision as
included in the House-Reported Foreign Operations, Export
Financing and Related Programs Bill, 2004 (H.R. 2800) and
prohibits counternarcotics assistance in this Act to the
Government of Cuba.
Sec. 573, ``Office of the Inspector General of the
Coalition Provisional Authority'' is a new general provision
that reconstitutes the Coalition Provisional Authority
Inspector General as a separate office, the Inspector General
for Iraq Reconstruction Programs, under the authority of the
Secretary of State. Funding previously appropriated to the CPA
Inspector General remains available only to the reconstituted
Inspector General.
Sec. 574, ``Oversight of Iraq Reconstruction'' is a new
general provision that modifies reporting and notification
requirements for the Iraq Reconstruction Program.
Sec. 575, ``Indonesia'' is modified to condition the
availability of funds under the heading ``International
Military Education and Training'' for Indonesia.
PROVISIONS RETAINED FROM FISCAL YEAR 2004
The following general provisions from the fiscal year 2004
Act are retained in the fiscal year 2005 Act unchanged except
for technical corrections, references to fiscal year 2005, and
new section numbers where appropriate:
Sec. 501. Compensation for United States Executive
Directors to International Financial Institutions.
Sec. 502. Restrictions on Voluntary Contributions to United
Nations Agencies.
Sec. 503. Limitation on Residence Expenses.
Sec. 504. Limitation on Expenses.
Sec. 507. Prohibition Against Direct Funding for Certain
Countries.
Sec. 508. Military Coups.
Sec. 509. Transfers.
Sec. 510. Commercial Leasing of Defense Articles.
Sec. 512. Limitation on Assistance to Countries in Default.
Sec. 513. Commerce and Trade.
Sec. 514. Surplus Commodities.
Sec. 515. Notification Requirements.
Sec. 516. Limitation on Availability of Funds for
International Organizations and Programs.
Sec. 518. Prohibition on Funding for Abortions and
Involuntary Sterilization.
Sec. 519. Export Financing Transfer Authorities.
Sec. 521. Definition of Program, Project, and Activity.
Sec. 524. Notification of Excess Defense Equipment.
Sec. 527. Prohibition on Bilateral Assistance to Terrorist
Countries.
Sec. 529. Separate Accounts.
Sec. 532. Authorities for the Peace Corps, Inter-American
Foundation and African Development Foundation.
Sec. 533. Impact on Jobs in the United States.
Sec. 535. Arab League Boycott of Israel.
Sec. 536. Eligibility for Assistance.
Sec. 537. Reservations of Funds.
Sec. 538. Ceilings and Earmarks.
Sec. 539. Prohibition on Publicity and Propaganda.
Sec. 540. Prohibition of Payments to United Nations
Members.
Sec. 541. Nongovernmental Organizations--Documentation.
Sec. 542. Prohibition on Assistance to Foreign Governments
that Export Lethal Military Equipment to Countries Supporting
International Terrorism.
Sec. 543. Withholding of Assistance for Parking Fines Owed
by Foreign Governments.
Sec. 544. Limitation on Assistance for the PLO for the West
Bank and Gaza.
Sec. 545. War Crimes Tribunals Drawdown.
Sec. 546. Landmines.
Sec. 547. Restrictions Concerning the Palestinian
Authority.
Sec. 548. Prohibition of Payment of Certain Expenses.
Sec. 549. Haiti.
Sec. 550. Limitation on Assistance to the Palestinian
Authority.
Sec. 551. Limitation on Assistance to Security Forces.
Sec. 552. Foreign Military Training Report.
Sec. 553. Authorization Requirement.
Sec. 555. Palestinian Statehood.
Sec. 556. Colombia.
Sec. 557. Illegal Armed Groups.
Sec. 558. Prohibition on Assistance to the Palestinian
Broadcasting Corporation.
Sec. 561. War Criminals.
Sec. 562. User Fees.
Sec. 564. Community Based Police Assistance.
Sec. 565. Special Debt Relief for the Poorest.
Sec. 566. Authority to Engage in Debt Buybacks or Sales.
House of Representatives Report Requirements
Transfer of Funds
Pursuant to clause 3(f)(2) of rule XIII of the Rules of the
House of Representatives, the following is submitted describing
the transfer of funds provided in the accompanying bill.
Under ``Child Survival and Health Programs'' up to
$6,000,000 may be transferred to and merged with funds under
the heading ``Operating Expenses of the United States Agency
for International Development.''
Under ``Development Credit Authority'' up to $21,000,000 is
authorized to be transferred to the account from a variety of
sources. In addition, $8,000,000 may be transferred to and
merged with funds appropriated under the heading ``Operating
Expenses of the United States Agency for International
Development''.
Under ``Foreign Military Financing'', up to $150,000,000
for assistance for Pakistan may be derived by transfer from
unobligated balances of funds appropriated under the headings
``Economic Support Fund'' and ``Foreign Military Financing'' in
prior appropriations Acts and not otherwise designated in those
Acts for a specific country, use, or purpose.
RESCISSIONS
Clause 3(f)(2) of rule XIII of the Rules of the House of
Representatives requires a separate listing of rescissions.
There are no rescissions recommended in the accompanying bill.
Constitutional Authority
Clause 3(d)(1) of rule XIII of the Rules of the House of
Representatives states that:
Each report of a committee on a bill or joint
resolution of a public character, shall include a
statement citing the specific powers granted to the
Congress in the Constitution to enact the law proposed
by the bill or joint resolution.
The Committee on Appropriations bases its authority to
report this legislation from Clause 7 of Section 9 of Article I
of the Constitution of the United States of America which
states:
No money shall be drawn from the Treasury but in
consequence of Appropriations made by law * * *
Appropriations contained in this Act are made pursuant to
this specific power granted by the Constitution.
Changes in the Application of Existing Law
Pursuant to clause 3(f), rule XIII of the Rules of the
House of Representatives, the following statements are
submitted describing the effects of provisions in the
accompanying bill which directly or indirectly change the
application of existing law. Most of the language has been
provided in previous measures including supplementals for the
departments and agencies carried in the accompanying bill.
1. The bill contains appropriations for a number of items
for which authorizations for fiscal year 2005 have not yet been
enacted. The bill allows funds appropriated in the bill to be
obligated in the absence of a prior authorization of
appropriations.
2. The bill provides that a few of the appropriations shall
remain available for obligation beyond the current fiscal year.
In all cases it is deemed desirable to carry such language in
order to provide for orderly administration of such programs
and effective use of funds.
3. The bill contains a number of general provisions and
other language that have been carried in the bill in past
years.
4. Under ``Export-Import Bank of the United States'',
authority is provided for subsection (a) of section 117 to
remain in effect until October 1, 2005.
5. Under ``Overseas Private Investment Corporation, Program
Account'', funds are appropriated for the cost of direct and
guaranteed loans, to be derived by transfer from the Overseas
Private Investment Corporation Noncredit Account. Such costs
shall be as defined in section 502 of the Congressional Budget
Act of 1974 and may be used for direct loan and loan guaranty
commitments incurred or made during fiscal years 2005 and 2006.
These funds are available for obligation until 2013 and 2014,
depending on the initial date of obligation.
6. Under ``Child Survival and Health Programs Fund''
language is provided that indicates how the funds should be
allocated among various activities; not to exceed $250,000, in
addition to funds otherwise available for such purposes, may be
used to monitor and provide oversight of programs for child
survival, maternal and family planning/reproductive health, and
infectious disease; up to $65,000,000 is authorized to be made
available for a contribution to The Vaccine Fund; and language
is included that provides that not less than $400,000,000 shall
be made available for a contribution to the Global Fund to
Fight AIDS, Tuberculosis and Malaria, and shall be expended at
the minimum rate necessary to make timely payments for projects
and activities.
7. Under ``Development Assistance'', language is provided
that indicates how the funds should be allocated among various
activities, including $194,000,000 for trade capacity building
and $300,000,000 for basic education and language is included
that provides not less than $15,000,000 shall be available for
women's leadership programs; and not to exceed $32,500, in
addition to other funds made available, may be used for
oversight of programs for orphaned children and victims of war.
8. Under ``Development Credit Authority'', authorized
transfers, when added to the funds transferred pursuant to the
authority contained under this heading in Public Law 107-115,
shall not exceed $21,000,000.
9. Under ``Capital Investment Fund'', funds may be made
available for USAID's contribution to the Capital Cost Sharing
Program only if all other agencies who have agreed to
participate are making contributions.
10. Under ``Economic Support Fund'', not less than
$360,000,000 is made available only for Israel and is required
to be disbursed as a cash grant within 30 days of enactment of
this Act; and not less than $535,000,000 is made available only
for Egypt; $250,000,000 should be made available only for
assistance for Jordan; not less than $35,000,000 should be
available for Lebanon of which not less than $4,000,000 should
be available for American educational institutions for
scholarships and other programs; $22,000,000 should be made
available for Timor/Leste; $50,000,000 should be made available
for Haiti; and not less than $13,500,000 should be available
for Cyprus; and not to exceed $200,000,000 may be used for debt
relief for Pakistan.
11. Under ``Assistance for the Independent States of the
Former Soviet Union'', not less than $57,000,000 should be made
available for assistance for child survival and health
activities and not less than $65,000,000 should be made
available for Armenia.
12. Under ``Millennium Challenge Corporation'', not more
than $30,000,000 may be made available for administrative
expenses; funds may be available only after the submission of a
Congressional Budget Justification; funding for countries under
section 616 of the authorization act (the so-called ``threshold
countries'') may only be available after subsequent information
is provided to the Committee about the type of assistance
provided; and funding for MCC compacts may only be made
available if the compact is fully funded at the time of
obligation.
13. Under ``Global HIV/AIDS Initiative'', not more than
$8,818,000 may be made available for administrative expenses;
and not less than $26,000,000 of funds under this heading
should be made available as a contribution to the International
AIDS Vaccine Initiative.
14. Under ``International Narcotics Control and Law
Enforcement'', up to $10,000,000 should be made available for
demand reduction programs; and a limitation of $26,117,000 is
placed on administrative expenses.
15. Under ``Andean Counterdrug Initiative'', section 482(b)
of the Foreign Assistance Act is waived, subject to
notification; in addition, a limitation of $16,285,000 is
placed on administrative expenses of the Department of State,
and not more than $4,500,000 may be available for
administrative expenses of USAID.
16. Under ``Nonproliferation, Anti-terrorism, Demining, and
Related Programs'', a limitation of $30,000,000 is placed on
funding for the Nonproliferation and Disarmament Fund.
17. Under ``Debt Restructuring'' funds may not be paid to
the Heavily Indebted Poor Countries Trust Fund for the benefit
of any country accepting new loans from the international
financial institutions between its decision point and
completion point.
18. Under ``Foreign Military Financing Program'', not less
than $2,220,000,000 is appropriated for Israel, of which not
less than $580,000,000 shall be available for the procurement
in Israel of defense articles and defense services and that all
funds for Israel must be disbursed within 30 days of enactment
of this Act; $1,300,000,000 shall be made available for grants
only for Egypt; up to $150,000,000 for Pakistan may be derived
from unobligated balances from prior appropriations acts; a
limitation of $40,500,000 is provided for administrative
expenses; and a limitation of $567,000,000 from certain other
funds may be obligated for expenses incurred pursuant to
section 43(b) of the Arms Export Control Act.
19. Under ``General Provisions'':
Sec. 505, ``Limitation on Representational Allowances'' is
modified by increasing the levels of entertainment expenses and
representation allowances under the heading ``Foreign Military
Financing Program'', ``International Military Education and
Training'', the ``Inter-American Foundation'', and the ``Trade
and Development Agency''.
Sec. 506, ``Prohibition on Taxation of United States
Assistance'' is modified by deleting subsection (h) of the 2004
Act. This subsection was a one-time provision pertaining to a
prior year appropriations act.
Sec. 511, ``Availability of Funds'' is revised to extend
the availability of funds under chapter 6, 8, and 9 of part II
of the Foreign Assistance Act of 1961.
Sec. 517, ``Independent States of the Former Soviet Union''
is modified by moving subsection (f) to section 530,
``Enterprise Fund Restrictions''.
Sec. 520, ``Special Notification Requirements'' is modified
to delete Pakistan, Cambodia and the Democratic Republic of
Congo.
Sec. 522, ``Child Survival and Health Activities'' is
revised by deleting the requirement that $432,000,000 shall be
made available for family planning/reproductive health.
Sec. 523, ``Afghanistan'' is modified by deleting the
entire section except the amount specified for Afghanistan
($977,000,000); limiting the scope of the provision to titles
II and III of this Act; and specifying that $60,000,000 should
be available in fiscal year 2005 for Afghan women and girls.
Sec. 525, ``The Global Fund to Fight AIDS, Tuberculosis and
Malaria'' is a new general provision conditioning a
contribution to the Global Fund.
Sec. 526, ``Democracy Programs'' is modified by retaining
language from the 2004 Act referring to the support United
States Executive Directors to each international financial
institution should provide for projects in Tibet; by including
modified language recommending $4,000,000 for activities in
Tibet through nongovernmental organizations; by recommending
$250,000 for human rights and democracy programs for Tibetans;
and by recommending up to $27,000,000 for the Human Rights and
Democracy Fund, including up to $1,200,000 for Reagan/Fascell
Fellows and including language similar to the 2004 Act that
authorizes up to $1,500,000 for grants through nongovernmental
organizations and individuals to support the advancement of
democracy and human rights in Iran and Syria, which may be
provided through the National Endowment for Democracy.
Sec. 528, ``Debt-For-Development'' is modified to make
interest earned subject to notification.
Sec. 530, ``Enterprise Fund Restrictions'' is the same as
the 2004 Act but includes a new subsection (b) that is similar
to subsection (f) of section 517 of the 2004 Act but is
modified by limiting funds to those made available in this Act.
Sec. 531, ``Sudan'' is a new general provision that
designates $311,000,000 for Sudan and prohibits this funding
from being used to support the government in Khartoum until it
takes specific steps to resolve the ongoing crisis in Darfur.
Sec. 534, ``Special Authorities'' is revised by: in
subsection (a) deleting Lebanon; deleting subsection (f) of the
2004 Act, ``Shipment of Humanitarian Assistance''; deleting
subsection (j) of the 2004 Act, ``Sudan''; and deleting
subsection (k) of the 2004 Act, ``Programs''.
Sec. 554, ``Cambodia'' is modified by deleting all after
the first subsection in the 2004 Act.
Sec. 559, ``West Bank and Gaza Program'' is modified by: in
subsection (b) including a specification that broadens the
entities referred to in the 2004 Act to include private,
government, or educational institutions; and in subsection (b)
directing the Secretary of State to terminate assistance to any
individual, entity, or educational institution found to be
involved in or advocating terrorist activity.
Sec. 560, ``Contributions to the United Nations Population
Fund'' is similar to that in the 2004 Act, but specifies the
level of funds ($25,000,000) from under the heading
``International Organizations and Programs''.
Sec. 563, ``Funding for Serbia'' is modified in subsection
(d) to include a waiver for assistance to promote democracy
through nongovernmental organizations.
Sec. 567, ``Basic Education'' states that not less than
$400,000,000 shall be made available for basic education.
Sec. 568, ``Reconciliation Programs'' is modified by
changing the level of assistance provided to $12,000,000.
Sec. 569, ``Debt Restructuring Authority'' is a new general
provision that enables the U.S. to lead a multilateral effort
to forgive a significant portion of Iraq's official debt,
subject to consultation and notification.
Sec. 570, ``Trade Capacity Building'' is modified to
establish a minimum level of $517,000,000 from certain accounts
of this Act.
Sec. 571, ``Excess Defense Articles for Central and South
European Countries and Certain Other Countries'' is a new
general provision but similar to a provision in the 2003 Act
and authorizes excess defense articles for Central and South
European Countries.
Sec. 572, ``Cuba'' is the same general provision as
included in the House-reported Foreign Operations, Export
Financing and Related Programs Bill, 2004 (H.R. 2800) and
prohibits counternarcotics assistance in this Act to the
Government of Cuba.
Sec. 573, ``Office of the Inspector General of the
Coalition Provisional Authority'' is a new general provision
that reconstitutes the Coalition Provisional Authority
Inspector General as a separate office, the Inspector General
for Iraq Reconstruction, within the State Department, under the
authority of the Secretary of State.
Sec. 574, ``Oversight of Iraq Reconstruction'' is a new
general provision that modifies reporting and notification
requirements for the Iraq Reconstruction program.
Sec. 575, ``Indonesia'' is modified to condition the
availability of funds under the heading ``International
Military Education and Training'' for Indonesia.
Appropriations Not Authorized by Law
Pursuant to clause 3(f)(1) of rule XIII of the Rules of the
House of Representatives, the following table lists the
appropriations in the accompanying bill which, in whole or in
part, are not authorized by law:
----------------------------------------------------------------------------------------------------------------
Appropriations in
Last year Authorization last year of Appropriations in
authorized level authorization this bill
----------------------------------------------------------------------------------------------------------------
Child Survival and Health Population (1987); Population Population $1,648,500,000
Programs Fund (See note below). Health and ($290,000,000); ($234,625,000); (includes
Disease Health and Health and $375,500,000 for
Prevention Disease Disease population).
(1987); Child Prevention Prevention
Survival Fund ($180,000,000); ($166,762,500);
(1987). Child Survival Child Survival
Fund Fund
($75,000,000). ($75,000,000).
Development Assistance (See note Agriculture Agriculture Agriculture $1,429,000,000
below). (1987); Education ($760,000,000); ($639,613,000); (includes
(1987); Energy Education Education $300,000,000 for
and selected ($180,000,000); ($155,000,000); basic education;
development Energy and Energy and other programs
activities (1987). selected selected difficult to
development development determine due to
activities activities changing
($207,000,000). ($149,990,000). definitions of
programs since
last authorized).
International Disaster and 1987.............. $25,000,000....... $70,000,000....... $355,500,000.
Famine Assistance.
Transition initiatives.......... None (same ................ ................ $47,500,000.
authorities as
international
disaster
assistance).
Development credit authority.... None.............. .................. .................. ($21,000,000).
Development credit authority None.............. .................. .................. $8,000,000.
administrative expenses.
Payment to the Foreign Service None; mandatory .................. .................. $42,500,000.
Retirement and Disability Fund. item.
Operating expenses of the United 1987.............. $387,000,000...... $340,600,000...... $618,000,000.
States Agency for International
Development.
Capital Investment Fund......... None.............. .................. .................. $64,800,000.
Operating Expenses of the United 1987.............. $21,750,000....... $21,000,000....... $35,000,000.
States Agency for International
Development Inspector General.
Economic Support Fund........... 1987.............. $3,800,000,000.... $3,555,000,000.... $2,450,000,000.
International Fund for Ireland.. 1988.............. $35,000,000....... $35,000,000....... $18,500,000.
Assistance for Eastern Europe None.............. .................. .................. $375,000,000.
and the Baltic States (See note
below).
Assistance for the Independent 1993.............. $410,000,000...... $417,000,000...... $550,000,000.
States of the Former Soviet
Union.
Inter-American Foundation....... 1987.............. $11,969,000....... $11,800,000....... $16,238,000.
African Development Foundation.. 1987.............. $3,872,000........ $6,500,000........ $18,579,000.
Peace Corps..................... 2003.............. $365,000,000...... $295,069,000...... $330,000,000.
International Narcotics Control 1994.............. $171,500,000...... $100,000,000...... $328,820,000.
and Law Enforcement.
Andean Counterdrug Initiative... None.............. .................. .................. $731,000,000.
Migration and Refugee Assistance 2001.............. $750,000,000...... $700,000,000...... $756,000,000.
Nonproliferation, Anti- None.............. .................. .................. $382,000,000.
terrorism, demining and related
programs (See note below).
International Affairs Technical 1999.............. $5,000,000........ $1,500,000........ $19,000,000.
Assistance.
Debt restructuring.............. 2001.............. $435,000,000...... $448,000,000 $105,000,000
(included up to (Note: section
$435,000,000 for 581 includes
Heavily Indebted additional
Poor Countries authorization for
(HIPC) debt HIPC debt relief,
relief; consistent with
additional sums appropriations
for unauthorized recommendation
bilateral debt for this
relief). account).
International Military Education 2003.............. $85,000,000....... $79,480,000....... $89,730,000.
and Training.
Foreign Military Financing 2003.............. $4,107,000,000.... $6,104,632,000.... $4,777,500,000.
Program.
Peacekeeping operations......... 1999.............. $83,000,000....... $76,500,000....... $104,000,000.
International Organizations and 2001.............. Such sums as may $186,000,000...... $323,450,000.
Programs. be necessary.
----------------------------------------------------------------------------------------------------------------
Note.--Programs recommended herein under ``Child Survival and Health Programs Fund'' and ``Development
Assistance'' were last authorized under a different account structure than that recommended in this bill; the
account structure included a number of functional accounts, as described above.
Note.--Programs recommended herein under ``Support for Eastern Europe and the Baltic States'' were last
authorized in the Support for East European Democracy (SEED) Act of 1989; however, these funds were authorized
for discrete programs and not for the account as a whole. In fiscal year 1991, the first general
appropriations act after enactment of the SEED Act included $369,675,000 for this account.
Note.--Programs recommended herein under ``Nonproliferation, Anti-terrorism, Demining, and Related Programs''
include some major programs for which authorizations of appropriations were provided for fiscal year 2002;
these programs include $73,000,000 authorized for anti-terrorism assistance and $142,000,000 authorized for
nonproliferation activities. In addition, some programs now in this account were previously in accounts which
had authorizations of appropriations in prior years.
Comparison With Budget Resolution
Clause 3(c)(2) of rule XIII of the Rules of the House of
Representatives requires an explanation of compliance with
section 308(a)(1)(A) of the Congressional Budget and
Impoundment Control Act of 1974 (Public Law 93-344), as
amended, which requires that the report accompanying a bill
providing new budget authority contain a statement detailing
how the authority compares with the reports submitted under
section 302 of the Act for the most recently agreed to
concurrent resolution on the budget for the fiscal year from
the Committee's section 302(a) allocation.
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
302(b) allocation-- This bill--
---------------------------------------------------
Budget Budget
authority Outlays authority Outlays
----------------------------------------------------------------------------------------------------------------
Discretionary............................................... 19,386 26,735 19,386 26,699
Mandatory................................................... 43 43 43 43
----------------------------------------------------------------------------------------------------------------
Five-Year Outlay Projections
In compliance with section 308(a)(1)(B) of the
Congressional Budget and Impoundment Control Act of 1974
(Public Law 93-344), as amended, the following table contains
five-year projections, in millions of dollars, associated with
the budget authority provided in the accompanying bill:
Fiscal year 2004...................................... $6,929
Fiscal year 2005...................................... 6,683
Fiscal year 2006...................................... 3,006
Fiscal year 2007...................................... 1,339
Fiscal year 2008 and future years..................... 1,148
Statement of General Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the following is a statement of
general performance goals and objectives for which this measure
authorizes funding:
The Committee on Appropriations considers program
performance, including a program's success in developing and
attaining outcome-related goals and objectives, in developing
funding recommendations.
Assistance to State and Local Governments
In accordance with section 308(a)(1)(C) of the
Congressional Budget and Impoundment Control Act of 1974
(Public Law 93-344), as amended, the financing assistance to
State and local governments is as follows:
The amounts recommended in the accompanying bill contain no
budget authority or budget outlays for State or local
governments.
Compliance With Rule XIII, Cl. 3(e) (Ramseyer Rule)
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
ACT OF OCTOBER 27, 2001
(Public Law 107-57)
AN ACT To authorize the President to exercise waivers of foreign
assistance restrictions with respect to Pakistan through September 30,
2003, and for other purposes.
* * * * * * *
SECTION 1. EXEMPTIONS AND WAIVER OF APPROPRIATIONS ACT
PROHIBITIONS WITH RESPECT TO PAKISTAN.
(a) * * *
* * * * * * *
(b) Fiscal Year [2004] 2005.--
(1) Waiver.--The President is authorized to waive,
with respect to Pakistan, any provision of the foreign
operations, export financing, and related programs
appropriations Act for fiscal year [2004] 2005 that
prohibits direct assistance to a country whose duly
elected head of government was deposed by decree or
military coup, if the President determines and
certifies to the appropriate congressional committees
that such waiver--
(A) * * *
* * * * * * *
SEC. 3. EXEMPTION OF PAKISTAN FROM FOREIGN ASSISTANCE
PROHIBITIONS RELATING TO FOREIGN COUNTRY
LOAN DEFAULTS.
The following provisions of law shall not apply with respect
to Pakistan:
(1) * * *
(2) Such provision of the annual foreign operations,
export financing, and related programs appropriations
Acts for fiscal years 2002, 2003, [and 2004] 2004, and
2005, as are comparable to section 512 of the Foreign
Operations, Export Financing, and Related Programs
Appropriations Act, 2001 (Public Law 106-429; 114 Stat.
1900A-25).
* * * * * * *
SEC. 6. TERMINATION DATE.
Except as otherwise provided in section 1 or 3, the
provisions of this Act shall terminate on October 1, [2004]
2005.
* * * * * * *
SECTION 2207 OF THE EMERGENCY SUPPLEMENTAL APPROPRIATIONS ACT FOR
DEFENSE AND FOR THE RECONSTRUCTION OF IRAQ AND AFGHANISTAN, 2004
Sec. 2207. (a) [The Director of the Office of Management
and Budget, in consultation with the Administrator of the
Coalition Provisional Authority (CPA) and the Committees on
Appropriations,] The Secretary of State shall submit to the
Committees on Appropriations not later than January 5, 2004 and
prior to the initial obligation of funds appropriated by this
Act under the heading ``Iraq Relief and Reconstruction Fund'' a
report on the proposed uses of all funds under this heading on
a project-by-project basis, for which the obligation of funds
is anticipated during the 3 month period from such date,
including estimates by the CPA of the costs required to
complete each such project: Provided, That up to 20 percent of
funds appropriated under such heading may be obligated before
the submission of the report: Provided further, That in
addition such report shall include the following:
(1) * * *
* * * * * * *
Full Committee Votes
Pursuant to the provisions of clause 3(b) of rule XIII of
the House of Representatives, the results of each rollcall vote
on an amendment or on the motion to report, together with the
names of those voting for and those voting against, are printed
below:
ROLLCALL NO. 1
Date: July 9, 2004.
Measure: Foreign Operations, Export Financing, and Related
Programs Appropriations Bill, FY 2005.
Motion by: Mrs. Lowey.
Description of motion: To allow the use of $25,000,000 for
the United Nations Population Fund (UNFPA) for country programs
in Afghanistan, Iraq, Jordan, Kenya, Pakistan, or Tanzania
irrespective of a specified provision of the Act, which would
otherwise make such funds unavailable, if such country programs
were not found in violation of that provision of the Act.
Results: Rejected; yeas 26, nays 32.
Members Voting Yea Members Voting Nay
Mr. Bishop Mr. Aderholt
Mr. Boyd Mr. Berry
Mr. Clyburn Mr. Bonilla
Mr. Cramer Mr. Crenshaw
Ms. DeLauro Mr. Cunningham
Mr. Dicks Mr. Doolittle
Mr. Edwards Mrs. Emerson
Mr. Farr Mr. Goode
Mr. Frelinghuysen Ms. Granger
Mr. Hoyer Mr. Hobson
Mr. Jackson Mr. Istook
Ms. Kaptur Mr. Kingston
Mr. Kennedy Mr. Knollenberg
Ms. Kilpatrick Mr. Kolbe
Mr. Kirk Mr. Latham
Mrs. Lowey Mr. Lewis
Mr. Moran Mr. Mollohan
Mr. Obey Mr. Nethercutt
Mr. Olver Mrs. Northup
Mr. Pastor Mr. Peterson
Mr. Price Mr. Regula
Mr. Rothman Mr. Rogers
Ms. Roybal-Allard Mr. Sherwood
Mr. Sabo Mr. Simpson
Mr. Serrano Mr. Tiahrt
Mr. Visclosky Mr. Vitter
Mr. Walsh
Mr. Wamp
Mr. Weldon
Mr. Wicker
Mr. Wolf
Mr. Young
