Saturday, May 20, 2006

Overseas Aid: House Subcommittee approves $21 Billion in U.S. Foreign Aid

Source: The Washington File The Washington File is a product of the Bureau of International Information Programs, U.S. Department of State

A House of Representatives subcommittee has approved $21.3 billion in foreign aid spending for the fiscal year that begins October 1, an increase of roughly 3 percent over 2006 levels, but almost 10 percent less than President Bush had requested.

The Foreign Operations Subcommittee of the House Appropriations Committee approved the measure May 19. The bill will go to the full committee in the coming weeks and then to the House floor. The Senate will follow a similar process, after which differences will be ironed out before a final vote.

The subcommittee agreed to the president's requested levels of aid to Israel ($2.3 billion) and Egypt ($1.7 billion), both in line with 2006 spending.

The spending level for Egypt will be revisited in full committee. A State Department statement issued May 18 says the United States is "deeply troubled" by the ongoing detention of opposition leader Ayman Nour by the Egyptian government. It also criticizes police violence against peaceful protestors.

The amount approved for Afghanistan ($962 million) would be an increase of $85 million above 2006 -- meant to support counternarcotic efforts, democracy building and economic self-sufficiency programs. The bill also includes $522 million for reconstruction in Iraq, $227 million below what the president requested.

The subcommittee did not provide the $150 million requested by the administration for economic assistance for the West Bank and Gaza region in the Palestinian Territories. Instead, it approved $80 million in humanitarian assistance, funds that could not be used to support Hamas, which won Palestinian parliamentary elections earlier in 2006.

The subcommittee approved just $2 billion for the Millennium Challenge Corporation (MCC), rather than the $3 billion the president sought. The MCC provides economic-development aid to poor countries that show results in ruling justly and promoting economic freedom. The approved amount still would be an increase of $248 million over 2006 funding, and a subcommittee statement calls it a "responsible budget increase in a very tight budget." An MCC spokeswoman said she is "hopeful" that as the budget process continues, the level will increase.The subcommittee approved $3.4 billion to combat HIV/AIDS, tuberculosis and malaria around the world, a $752 million increase above 2006 levels and the same as the president's request.

The bill also would provide $522 million for a new Trade Capacity Enhancement Fund to help countries to embrace free trade policies.A statement on the spending bill is available on the House Appropriations Committee Web site.