[Congressional Record Volume 151, Number 36 (Monday, April 4, 2005)]
[Senate]
[Pages S3133-S3137]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                        BUDGET ESTIMATE--S. 600

  Mr. LUGAR. Mr. President, when the committee report (109-35) to 
accompany S. 600 was printed, the Congressional Budget Office's cost 
estimate was not yet available. I ask unanimous consent that it now be 
printed in the Congressional Record. Also, the same report contained a 
table with a clerical error. I ask unanimous consent that the corrected 
table be printed in today's Record as well.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

   Congressional Budget Office Cost Estimate for the Foreign Affairs 
             Authorization Act, Fiscal Years 2006 and 2007

                             Cost Estimate

       In accordance with rule XXVI, paragraph 11(a) of the 
     Standing Rules of the Senate, the committee provides the 
     following estimate of the cost of this legislation prepared 
     by the Congressional Budget Office.

                                                    U.S. Congress,


                                  Congressional Budget Office,

                                   Washington, DC, March 18, 2005.
     Hon. Richard G. Lugar, Chairman,
     Committee on Foreign Relations, U.S. Senate, Washington, DC.
       Dear Mr. Chairman: 
       The Congressional Budget Office has prepared the enclosed 
     cost estimate for S. 600, the Foreign Affairs Authorization 
     Act, Fiscal Years 2006 and 2007.
       If you wish further details on this estimate, we will be 
     pleased to provide them. The CBO staff contact is Sunita 
     D'Monte.
           Sincerely,
                                    Douglas Holtz-Eakin, Director.
       Enclosure.
     cc: Hon. Joseph R. Biden, Jr., Ranking Minority Member

               CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

 S. 600--Foreign Affairs Authorization Act, Fiscal Years 2006 and 2007

 As reported by the Senate Committee on Foreign Relations on March 10, 
                                  2005


                                summary

       S. 600 would authorize appropriations of almost $30 billion 
     in 2006 and such sums as may be necessary in 2007 for the 
     Department of State, international assistance programs, and 
     related agencies. The bill also contains provisions that 
     would raise the cost of discretionary programs for famine and 
     reconstruction assistance, debt relief, public diplomacy, 
     personnel, and other programs over the 2007-2010 period. CBO 
     estimates that those provisions and the indefinite 
     authorizations for 2007 would require appropriations of $34 
     billion over those four years. CBO estimates that 
     implementing the bill would cost about $59 billion over the 
     2006-2010 period, assuming the appropriation of the necessary 
     amounts.

[[Page S3134]]

       CBO estimates that S. 600 would raise direct spending by 
     $33 million in 2006 and by $87 million over the 2006-2015 
     period. S. 600 also would increase governmental receipts 
     (i.e., revenues) by an insignificant amount each year by 
     creating new criminal penalties related to law enforcement 
     and protective functions of State Department special agents 
     and guards. Finally, the Joint Committee on Taxation 
     estimates that the bill would lower revenues by less than 
     $500,000 a year by exempting employees of the U.S. Mission to 
     the United Nations in New York City from paying taxes on 
     their housing allowance.
       S. 600 contains no intergovernmental or private-sector 
     mandates as defined in the Unfunded Mandates Reform Act 
     (UMRA) and would not affect the budgets of state, local, or 
     tribal governments.


                estimated cost to the federal government

       The estimated budgetary impact of S. 600 is shown in Table 
     1. The costs of this legislation fall within budget functions 
     150 (international affairs), 300 (natural resources and 
     environment), 600 (income security), 750 (administration of 
     justice), and 800 (general government).

     TABLE 1.--BUDGETARY IMPACT OF S. 600, THE FOREIGN AFFAIRS AUTHORIZATION ACT, FISCAL YEARS 2006 AND 2007
                                    (By fiscal year, in millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                        2005      2006      2007      2008      2009      2010
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION
 
Spending Under Current Law for State Department,
 International Assistance Programs, and Related
 Agencies:
    Estimated Authorization Level \1\ \2\...........    27,264     2,564     2,604     2,655         0         0
    Estimated Outlays...............................    26,805    14,288     7,906     5,492     3,389     1,416
Proposed Changes:
    Estimated Authorization Level \3\...............         0    29,872    30,748     1,035     1,133     1,226
    Estimated Outlays...............................         0    14,690    22,904    11,664     5,994     3,666
Spending Under S. 2144 for State Department,
 International Assistance Programs, and Related
 Agencies:
    Estimated Authorization Level \2\ \3\...........    27,264    32,436    33,352     3,690     1,133     1,226
    Estimated Outlays...............................    26,805    28,978    30,810    17,156     9,383     5,082
 
                                   CHANGES IN DIRECT SPENDING AND REVENUES \4\
 
Estimated Budget Authority..........................         0        81        21        21        21        21
Estimated Outlays...................................         0        33        14        11        11       11
----------------------------------------------------------------------------------------------------------------
\1\ The 2005 level is the amount appropriated for that year.
\2\ The estimated authorization levels over the 2006-2008 period are for international HIV/AIDS programs
  authorized by Public Law 108-25, the U.S. Leadership Against HIV/AIDS, Tuberculosis, and Malaria Act of 2003
  for the Global HIV/AIDS Initiative and Child Survival and Disease and other programs. That act authorized the
  appropriation of $15 billion for the 2004-2008 period for HIV/AIDS programs, including programs administered
  by the Department of Health and Human Services.
\3\ These amounts do not include costs for section 213 of the bill because CBO cannot estimate the timing or
  amounts that may be necessary to implement those provisions.
\4\ In addition to the effects shown for direct spending, CBO estimates that provisions that would increase or
  decrease revenues would have a net effect of less than $500,000 each year over the 2006-2015 period.

                           basis of estimate

       The bill would authorize appropriations for the Department 
     of State and international broadcasting activities for fiscal 
     years 2006 and 2007. It would be the first comprehensive 
     foreign assistance authorization act since the mid-1980s--
     authorizing funding for most existing assistance programs 
     and also several new ones. The bill also would raise 
     direct spending by $33 million in 2006 and by $87 million 
     over the 2006-2015 period. Finally, S. 600 would affect 
     governmental receipts (revenues), but CBO estimates that 
     the net effect would be less than $500,000 a year.
     Spending Subject to Appropriation
       S. 600 would authorize appropriations at the specified 
     level of $29.8 billion in 2006 and for such sums as may be 
     necessary for 2007 for the State Department, international 
     assistance programs, and related agencies. Of the 2006 
     amount, nearly $0.6 billion would be for HIV/AIDS programs 
     that are currently authorized in existing law. The bill would 
     authorize new programs that would affect costs for 
     stabilization and reconstruction activities and assistance, 
     safe water, debt relief, public diplomacy, personnel, and 
     other programs. CBO estimates that implementing those 
     provisions would require additional appropriations of $0.7 
     billion in 2006 and $4.4 billion over the 2007-2010 period. 
     For this estimate, CBO assumes that the authorized amounts 
     will be appropriated near the start of each fiscal year and 
     that outlays will follow historical spending patterns for the 
     existing and similar programs.
       Specified Authorizations. The authorizations of 
     appropriations in this bill cover the operating expenses and 
     programs of the Department of State, the U.S. Agency for 
     International Development, the Broadcasting Board of 
     Governors (BBG), the Peace Corps, and the Millennium 
     Challenge Corporation. The authorization levels for 2006 are 
     equal to the President's request for international affairs 
     spending.
       As shown in Table 2, S. 600 would authorize the 
     appropriation of $10.3 billion for international development 
     and humanitarian assistance programs--not counting HIV/AIDS 
     programs, $8.3 billion for international security assistance 
     programs, $9.2 billion for the State Department for programs 
     related to the administration of foreign affairs, 
     international organizations, and other associated programs, 
     $1.2 billion for international broadcasting and exchange 
     activities, and $0.1 billion for international commissions. 
     Except where otherwise discussed, CBO estimated 
     authorizations for 2007 at the amount specified in 2006 
     adjusted for inflation.

 TABLE 2.--ESTIMATED AUTHORIZATIONS IN S. 600, THE FOREIGN AFFAIRS AUTHORIZATION ACT, FISCAL YEARS 2006 AND 2007
----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year, in millions of dollars--
                                                               -------------------------------------------------
                                                                  2006      2007      2008      2009      2010
----------------------------------------------------------------------------------------------------------------
                               Estimated Authorizations for Existing Programs \1\
International Development and Humanitarian Assistance:
    Estimated Authorization Level\2\..........................    10,344    10,518         0         0         0
    Estimated Outlays.........................................     2,930     6,780     5,673     2,750     1,257
International Security Assistance:
    Estimated Authorization Level.............................     8,348     8,491         0         0         0
    Estimated Outlays.........................................     4,890     6,742     2,606     1,251       657
Conduct of Foreign Affairs:
    Estimated Authorization Level.............................     9,237     9,436         0         0         0
    Estimated Outlays.........................................     5,904     7,820     2,356     1,051       737
Foreign Information and Exchange Activities:
    Estimated Authorization Level.............................     1,185     1,209         0         0         0
    Estimated Outlays.........................................       810     1,129       357        67        23
Other Programs:
    Estimated Authorization Level.............................        72        73         0         0         0
    Estimated Outlays.........................................        59        67        12         6         1
Total Authorizations for Existing Programs:
    Estimated Authorization Level.............................    29,186    29,727         0         0         0
    Estimated Outlays.........................................    14,593    22,538    11,004     5,125     2,675
 
                              Estimated Authorizations for New or Expanded Programs
 
Reconstruction & Stabilization Civilian Management Act of
 2005:
    Estimated Authorization Level.............................       124       127       128       131       134
    Estimated Outlays.........................................        57       111       124       128       131
Famine and Reconstruction Assistance:
    Estimated Authorization Level.............................       500       508       517       527       536
    Estimated Outlays.........................................        25       180       328       409       466
Safe Water:
    Estimated Authorization Level.............................        50       135       305       390       470
    Estimated Outlays.........................................         4        31        91       195       292
Debt Relief for the Poorest:
    Estimated Authorization Level.............................         0       155        75        75        75
    Estimated Outlays.........................................         0        15        84        92        83
Office Building for American Institute in Taiwan:
    Estimated Authorization Level.............................         0        78         0         0         0
    Estimated Outlays.........................................         0        12        23        35         8
Personnel Benefits and Other Programs:
    Estimated Authorization Level.............................         4        10        10        10        11

[[Page S3135]]

 
    Estimated Outlays.........................................         3         9        10        10        11
Indefinite Authorizations for Currency Fluctuations:
    Estimated Authorization Level.............................         8         8         0         0         0
    Estimated Outlays.........................................         8         8         0         0         0
        Total Estimated Authorizations:
            Estimated Authorization Level.....................       686     1,021     1,035     1,133     1,226
            Estimated Outlays.................................        97       366       660       869       991
              Total Authorizations:
                Estimated Authorization Level.................    29,872    30,748     1,035     1,133     1,226
                Estimated Outlays.............................    14,690    22,904    11,664     5,994     3,666
----------------------------------------------------------------------------------------------------------------
\1\ The estimated authorization for 2007 is the 2006 authorization level adjusted for inflation.
\2\ The estimated authorization for 2006 does not include $1,970 million for the Global HIV/AIDS Initiative and
  $594 million for HIV/AIDS programs in Child Survival and Disease and other programs that are authorized by
  Public Law 108-25, the U.S. Leadership Against HIV/AIDS, Tuberculosis, and Malaria Act of 2003.

     Reconstruction and Stabilization Civilian Management Act of 
         2005
       Title VII of the bill would authorize the President to 
     provide assistance to stabilize and rebuild a country or 
     region that is in, or emerging from, conflict or civil 
     strife. The bill would authorize assistance to respond to 
     international crises through a new emergency fund and it 
     would establish an Office of Reconstruction and Stabilization 
     within the Department of State to provide civilian management 
     of stabilization and reconstruction efforts. The bill would 
     authorize the appropriation of $24 million in 2006 and 
     such sums as may be necessary in 2007 for personnel, 
     education and training, equipment, and travel costs. It 
     would authorize an initial appropriation of $100 million 
     for the emergency fund plus a permanent, indefinite 
     authorization of such sums as may be necessary to 
     replenish funds expended. In addition, it would authorize 
     the President to waive the percentage and aggregate dollar 
     limitations in current law regarding various authorities 
     to draw down or to transfer resources to respond to such 
     crises.
       Office of Reconstruction and Stabilization. Section 706 
     would authorize a new office within the Department of State 
     with responsibility to monitor and assess international 
     crises, to prepare contingency plans for various types of 
     crises, to identify and train personnel with necessary skills 
     for stabilization and reconstruction operations, and to 
     coordinate the U.S. efforts should the President decide to 
     respond to any crisis. The Office of Reconstruction and 
     Stabilization was created in August 2004.
       The bill also would authorize the establishment of a 
     response readiness corps with up to 250 members to staff the 
     office and for deployment on short notice, plus a readiness 
     reserve from current federal employees and up to 500 
     nonfederal personnel to support operations if needed. The 
     costs of activating the corps would be paid from the 
     emergency fund. Based on information from the State 
     Department, CBO estimates that annual costs associated with 
     the office and the response readiness corps would be $24 
     million, adjusted annually for inflation.
       Emergency Fund. Section 705 would authorize $100 million 
     for an emergency stabilization and reconstruction fund. 
     Considering the number of regions in the world in conflict or 
     recovering from conflict and that appropriations for the 
     reconstruction of Iraq and Afghanistan have totaled nearly 
     $24 billion over the 2003-2005 period, reconstruction could 
     require much larger funding levels than the amount 
     authorized. CBO estimates that the emergency fund would be 
     used for an initial response to an international crisis and 
     not for major reconstruction efforts which are discussed 
     below. For this estimate, CBO assumes that the fund would be 
     replenished--through discretionary appropriations--on an 
     annual basis at the $100 million level, adjusted for 
     inflation, and that it would be used for a mix of activities 
     with an aggregate spending pattern similar to the Economic 
     Support Fund.
     Famine and Reconstruction Assistance
       Section 2205 would expand the purposes for which 
     appropriations for international disaster assistance may be 
     provided to include programs of famine relief and 
     reconstruction following manmade or natural disasters abroad. 
     The bill would authorize the appropriation of $656 million in 
     2006 for international disaster and famine assistance, but 
     not reconstruction. Reconstruction following manmade or 
     natural disasters can be very expensive and has often been 
     funded by supplemental appropriations.
       This year the President is requesting supplemental 
     appropriations of $0.7 billion for tsunami relief and 
     reconstruction and nearly $2.0 billion for Afghanistan. Those 
     amounts are in addition to $100 million enacted for Central 
     America and the Caribbean to recover after disastrous 
     hurricanes last fall. While it is impossible to estimate 
     future funding levels on an annual basis, CBO estimates that 
     meeting the expanded purposes could require appropriations of 
     several hundred million dollars to one billion dollars above 
     the level specified by the bill for countries emerging from 
     natural disasters, conflict, or civil strife. For this 
     estimate, based on historical funding for similar activities, 
     CBO assumes the costs for implementing this section would 
     total about $500 million each year over the 2006-2010 period, 
     assuming the appropriation of the necessary funds. Spending 
     of such funding would likely occur over a period of years so 
     that annual outlays would start well below that level, and 
     grow gradually.
     Safe Water
       Title XXVI would authorize the President to furnish 
     assistance to improve the safety of water supplies in 
     developing countries, to expand access to safe water and 
     sanitation, and to promote sound water management. In 
     addition to grant assistance to local governments and 
     nongovernmental organizations, it would authorize the 
     President to create a pilot program with the authority to 
     issue investment insurance, investment guarantees, and loan 
     guarantees; to provide direct investment or investment 
     encouragement; and to carry out special projects and programs 
     for eligible investors to assist in the development of safe 
     drinking water and sanitation infrastructure. It would 
     authorize the appropriation of such sums as may be necessary 
     over the 2006-2011 period to carry out the title.
       The bill would, to the extent provided for in advance in 
     appropriation acts, authorize the President to create such 
     legal mechanisms as may be necessary for implementing the 
     authorities under the pilot program and to deem such legal 
     mechanisms to be nonfederal borrowers for purposes of the 
     Federal Credit Reform Act. It would, notwithstanding any 
     other provision of law, authorize the President to provide 
     assistance under the pilot program in the form of partial 
     loan guarantees of up to 75 percent of the total amount of 
     the loan.
       It is unclear whether the pilot program would be entirely 
     new or would be an augmentation of the existing credit 
     programs of the U.S. Agency for International Development and 
     Overseas Private Investment Corporation. It is also unclear 
     whether this new program would create federal or nonfederal 
     entities (legal mechanisms) or whether credit reform 
     treatment would apply. However, it is clear that the bill 
     would intend that resources devoted to providing safe water 
     be increased. For the purpose of the estimate, CBO assumes 
     the bill would double the assistance for safe water provided 
     to Sub-Saharan Africa in 2004, or an increase in 2006 of $50 
     million over the amounts otherwise authorized in the bill, 
     and that amount would increase over the next five years to 
     $470 million, or the amount spent in 2004 for water programs 
     including those in Iraq. Because the cost recovery of water 
     investments projects would be in local currencies, CBO 
     assumes that investments relying on hard-currency credits 
     would remain unattractive and would be little used.
     Debt Relief for the Poorest
       Section 2114 would authorize the appropriation of $100 
     million in 2006 for the cost, as defined by the Federal 
     Credit Reform Act, of restructuring bilateral debts, for debt 
     relief under the Tropical Forest Conservation Initiative, and 
     for a contribution to the Heavily Indebted Poor Countries 
     Trust Fund administered by the World Bank. In addition, 
     section 2221 would authorize the President to reduce the U.S. 
     bilateral debt of low-income countries as part of 
     multilateral debt-relief agreements, commonly referred to as 
     the Paris Club, limited to such extent or in such amounts as 
     may be provided in advance in an appropriation act. That 
     authorization is the same as the authorization contained in 
     general provisions of annual appropriation acts for nearly a 
     decade.
       The U.S. government has forgiven the bilateral debt that it 
     once held for most of the world's poorest countries; however, 
     it still holds the debt of some of the world's poorest 
     countries such as the Democratic Republic of the Congo, 
     Afghanistan, Sudan, Somalia, and Liberia. Congo has been 
     offered multilateral debt relief by the Paris Club. At some 
     point after 2006, the other poor countries may meet the 
     minimum requirements for multilateral debt relief as 
     stipulated by the bill. We cannot project the exact timing of 
     such action, but given the experience of other countries 
     emerging from internal conflict, we estimate that it would 
     take at least two to three years after a reconstituted 
     civilian government is established in those countries before 
     any multilateral debt agreement would be negotiated. While 
     the bill does not specifically authorize the appropriation of 
     any funds, CBO estimates that the present value of all debt 
     of low-income countries held by the U.S. government to be 
     between $550 million and $600 million. CBO estimates

[[Page S3136]]

     that forgiving bilateral loans to Congo would cost about $235 
     million in 2007, an increase of $155 million over the amount 
     authorized for 2006. CBO estimates that forgiving the 
     bilateral loans to other poor countries would cost about $75 
     million a year over the 2008-2010 period, assuming 
     appropriation of the necessary amounts.
     Office Building for American Institute in Taiwan (AIT)
       Section 211 would amend current law to authorize such sums 
     as may be necessary for the construction of a new office 
     building for the AIT in Taipei, Taiwan. Public Law 106-212 
     authorized the appropriation of $75 million for the facility 
     without fiscal year limitation. According to the Department 
     of State, the projected cost of the building is now $153 
     million, and roughly $20 million has been spent on site 
     acquisition and design. CBO estimates a net increase in 
     authorization of $78 million and assumes that construction 
     would begin in 2007 and end in 2010.
     Personnel Benefits
       S. 600 contains several provisions that would provide 
     benefits to State Department personnel that would increase 
     costs by up to $10 million each year, assuming the 
     appropriation of the necessary funds.
       Hardship and Danger Pay Allowances. Section 303 would 
     increase the cap on hardship allowances and danger pay 
     allowances from 25 percent to 35 percent of basic pay for 
     employees serving overseas. Based on information from the 
     Department of State, CBO estimates implementing this section 
     would cost about $6 million a year, assuming the 
     appropriation of the necessary funds.
       Educational Expenses of Dependent Children. Section 301 
     would authorize payments for certain educational expenses of 
     dependent children of Foreign Service employees posted 
     overseas. Section 506 would allow the BBG to pay for the 
     educational expenses of certain dependents of employees in 
     the Commonwealth of the Northern Mariana Islands. Based on 
     information from the Department of State and the BBG, CBO 
     estimates implementing these provisions would cost about $3 
     million annually.
       Housing for Employees. Section 318 would allow the 
     department to provide housing to 10 more employees of the 
     U.S. Mission to the United Nations in New York City. Based on 
     information from the State Department, CBO estimates the 
     additional housing would cost between $500,000 and $1 million 
     a year, assuming the availability of appropriated funds.
     Indefinite Authorizations for Currency Fluctuations
       Section 102(c) would authorize the appropriation of such 
     sums as may be necessary in 2006 and 2007 to compensate for 
     adverse fluctuations in exchange rates that might affect 
     contributions to international organizations. Any funds 
     appropriated for this purpose would be obligated and expended 
     subject to certification by the Office of Management and 
     Budget. CBO estimates that the dollar will decline rougly 2 
     percent in 2006 and that the Department of State would 
     require an additional $8 million that year to fully pay 
     assessed contributions to international organizations. 
     Currency fluctuations over the longer term are extremely 
     difficult to project, and they could result in spending 
     either higher or lower than the amounts specifically 
     authorized in the bill for contributions to international 
     organizations and programs. Therefore, this estimate assumes 
     no additional currency fluctuations in 2007.
     Miscellaneous Provisions
       S. 600 would authorize several new or expanded programs. In 
     general, the bill would fund these programs through earmarks 
     of funds otherwise authorized or the provisions would have an 
     insignificant impact on spending subject to appropriation, 
     CBO estimates.
       Section 213 would create a Victims of Crime Office within 
     the Department of State and authorize the department to 
     provide services and financial assistance from its emergency 
     fund to U.S. nationals who become crime victims overseas. CBO 
     cannot estimate the budgetary impact of this provision given 
     the uncertainties associated with estimating how many 
     individuals may be victimized and whether victims of 
     terrorist acts would also be covered under this provision.
       Title XXIII would authorize assistance to reduce the threat 
     to diplomatic missions abroad from an attack using 
     radioactive materials. In particular, it would authorize 
     assistance to foreign countries to develop appropriate 
     response plans and to train foreign personnel who would be 
     the first to respond to such an attack. The bill would 
     earmark $2 million from the amount authorized elsewhere in 
     the bill for Nonproliferation, Anti-Terrorism, Demining 
     and Related (NADR) programs to fund these activities.
       Title XXIV would authorize a program of global pathogen 
     surveillance to assist in the monitoring and response to 
     bioterrorism and outbreaks of infectious disease. The bill 
     would earmark $35 million from the amount authorized for NADR 
     to fund these activities.
       Title XXVIII would authorize a program for safeguarding and 
     eliminating man-portable air-defense systems and other 
     conventional arms. It would earmark $20 million from amounts 
     otherwise authorized in the bill.
       Section 2224 would authorize the Secretary to designate a 
     nonprofit organization as the Middle East Foundation and to 
     fund the organization through grants. While the provision is 
     silent on the level of funding, the President is requesting 
     $25 million for the foundation.
       Section 2211 would authorize appropriations for educating 
     children in Afghanistan about the dangers of land mines.
       The bill includes numerous provisions that would expand or 
     introduce new reporting requirements and other provisions 
     that would eliminate or consolidate existing reporting 
     requirements.
     Direct Spending and Revenues
       CBO estimates that S. 600 would raise direct spending by 
     $33 million in 2006 and by $87 million over the 2006-2015 
     period (see Table 3). The bill also contains provisions that 
     would increase and decrease governmental receipts (revenues), 
     but CBO estimates that the net effect of these provisions 
     would be less than $500,000 a year.

 TABLE 3. ESTIMATED DIRECT SPENDING AND REVENUES IN THE FOREIGN AFFAIRS AUTHORIZATION ACT, FISCAL YEARS 2006 AND
                                                      2007
                                    [By fiscal year, in millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                      2005   2006   2007   2008   2009   2010   2011   2012   2013   2014   2015
----------------------------------------------------------------------------------------------------------------
Changes in Outlays.................      0     33     14     11     11     11      3      1      1      1      1
Changes in Revenues................      0    (*)    (*)    (*)    (*)    (*)    (*)    (*)    (*)    (*)    (*)
----------------------------------------------------------------------------------------------------------------
Note: (*) = less than $500,000.

     Buying Power Maintenance Account
       The State Department may maintain an approved level of 
     program activity in the face of currency fluctuations through 
     a Buying Power Maintenance Account. Under current law, the 
     Secretary of State may transfer any current funds in excess 
     of needs that result from an increase in the purchasing power 
     of the dollar from accounts under ``Administration of Foreign 
     Affairs'' to the Buying Power Maintenance Account. The funds 
     in the account are available for transfer back to those 
     accounts only to offset future adverse fluctuations in 
     exchange rates or overseas wage or price levels. The 
     Secretary may also transfer unavailable balances into the 
     Buying Power Maintenance Account, but only to the extent and 
     in such amounts as specifically provided in advance in 
     appropriation acts. No appropriation act has ever provided 
     that authority. Section 207 of the bill would strike the 
     requirement for appropriation action, thus allowing the 
     Secretary to transfer lapsed funds into the Buying Power 
     Maintenance Account and making them available to offset 
     future adverse currency fluctuations.
       According to the Treasury Combined Statement on Receipts, 
     Outlays, and Balances, 2004, the Department of State had $80 
     million in unobligated, unavailable balances in various 
     accounts in the Administration of Foreign Affairs bureau at 
     the start of 2005. Under the bill, such balances could be 
     transferred into the Buying Power Maintenance account upon 
     enactment and made available to meet adverse exchange rate 
     fluctuations. In addition, CBO estimates approximately 0.5 
     percent of obligated balances, or about $20 million, would be 
     deobligated each year and reappropriated under the bill. 
     Because we estimate the dollar will decline in value over the 
     next year, we estimate that about half of the funds would be 
     transferred out of the Buying Power Maintenance Account and 
     spent. In total, we estimate direct spending of about $80 
     million over the 2006-2015 period.
     Medical Reimbursements
       Section 206 would provide the State Department greater 
     flexibility in retaining reimbursements for funding medical 
     care provided to employees and eligible family members 
     overseas. Based on information from the department, CBO 
     estimates that it would collect and spend between $500,000 
     and $1 million a year.
     Other Provisions
       CBO estimates that several provisions in the bill would 
     affect direct spending and revenues by less than $500,000 
     annually.
       Section 318 would exempt, for federal income tax purposes, 
     housing allowances paid to employees of the U.S. Mission to 
     the United Nations in New York City. The Joint Committee on 
     Taxation estimates that the provision would reduce tax 
     receipts by less than $500,000 each year, assuming it would 
     be effective for allowances paid on or after October 1, 2005.
       Sections 201 and 203 would raise governmental receipts 
     (revenues) by establishing new criminal penalties that would 
     be assessed against persons interfering with the law 
     enforcement and protective functions of State Department 
     special agents and guards. CBO estimates that the increase in 
     revenues would not be significant in any year. Collections of 
     criminal fines are deposited in the Crime Victims Fund and 
     are later spent. CBO estimates that the criminal penalties

[[Page S3137]]

     that would be established under the bill would increase 
     direct spending from the Crime Victims Fund by less than 
     $500,000 per year.
       Section 205 would allow the State Department's 
     International Litigation Fund to retain awards of costs and 
     attorneys' fees as a result of a decision by an international 
     tribunal. Based on information from the department, CBO 
     estimates that the Department of State would collect and 
     spend less than $500,000 a year.
       Section 214 would authorize the Secretary to provide museum 
     visitor and educational outreach services and to sell, trade, 
     or transfer documents and articles that are displayed at the 
     United States Diplomacy Center. Any proceeds generated from 
     these services or sales would be retained and spent by the 
     center, and CBO estimates that this provision would have an 
     insignificant net effect on direct spending.
       Several sections in title III of the bill would amend 
     retirement benefits for State Department personnel by 
     slightly broadening the authority of the department to 
     temporarily rehire Foreign Service retirees without 
     terminating their pension benefits; changing personnel review 
     and termination procedures for each Foreign Service class; 
     establishing a 60-day deadline for the Office of Personnel 
     Management to issue regulations in accordance with a 
     previously enacted change in pension benefits for certain 
     spouses of Foreign Service workers; and allowing employees of 
     Office of Coordination for Reconstruction and Stabilization 
     to continue collecting full retirement annuities provided by 
     the Foreign Service retirement system. Under current law, 
     Foreign Service retirement benefits are temporarily suspended 
     during any period of reemployment by the federal government. 
     CBO estimates that enacting the provisions would increase 
     direct spending by less than $500,000 annually over the 2005-
     2015 period.
       Section 2207 would authorize the President to waive the 
     requirement that a foreign government pay to the United 
     States the net proceeds from the sale of any military 
     equipment it has received from the United States on a grant 
     basis. CBO estimates the forgone offsetting receipts would 
     not be significant.


              INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

       S. 600 contains no intergovernmental or private-sector 
     mandates as defined in UMRA and would not affect the budgets 
     of state, local, or tribal governments.
     Estimate Prepared By:
       Federal Costs--State Department: Sunita D'Monte; Foreign 
     Aid: Joseph C. Whitehill; Foreign Service Retirement: 
     Geoffrey Gerhardt; Law Enforcement: Mark Grabowicz; Revenue 
     Effects: Annabelle Bartsch.
       Impact on State, Local, and Tribal Governments: Melissa 
     Merrell.
       Impact on the Private Sector: Paige Piper/Bach.
     Estimate Approved By:
       Peter H. Fontaine, Deputy Assistant Director for Budget 
     Analysis.

   Division B--Foreign Assistance Authorization Act, Fiscal Year 2006

                          (A) Summary of Funds

                        [In millions of dollars]
------------------------------------------------------------------------
                                          FY 2005    FY 2006   Committee
                                          estimate   request      mark
------------------------------------------------------------------------
Child Survival & Health Programs Fund        1,538      1,252      1,252
 (CSH).................................
Global Fund to Fight AIDS,                   (248)      (100)      (100)
 Tuberculosis, and Malaria \1\.........
Development Assistance (DA)............      1,448      1,103      1,103
International Disaster and Famine              485        656        656
 Assistance............................
Transition Initiatives.................         49        325        325
Development Credit Authority (DCA).....          8          8          8
USAID Operating Expenses (OE)..........        613        681        681
USAID Capital Investment Fund..........         59         78         78
USAID Inspector General Operating               35         36         36
 Expenses (IG).........................
Economic Support Fund (ESF)............      2,481      3,036      3,036
Assistance for Eastern Europe and the          393        382        382
 Baltic States (SEED)..................
Assistance for the Independent States          556        482        482
 of the Former Soviet Union (FSA)......
Peace Corps............................        317        345        345
Inter-American Foundation..............         18         18         18
African Development Foundation.........         19         19         19
Millenium Challenge Corporation........      1,488      3,000      3,000
International Narcotics Control and Law        326        524        524
 Enforcement (INCLE)...................
Andean Counterdrug Initiative (ACI)....        725        735        735
Nonproliferation, Anti-Terrorism,              399        440        440
 Demining (NADR).......................
Treasury Technical Assistance..........         19         20         20
Debt Relief............................         99        100        100
International Military Education &              89         87
 Training (IMET).......................
Foreign Military Financing (FMF).......      4,745      4,589      4,589
Peacekeeping Operations (PKO)..........        178        196        196
International Organizations & Programs         326        282        282
 (IO&P)................................
                                        --------------------------------
      Total............................     16,413     18,394    18,394
------------------------------------------------------------------------
\1\ The administration requested $3.16 billion for international HIV/
  AIDS, tuberculosis, and malaria programs in FY2006, a 9 percent
  increase over the estimated amount to be provided in FY2005. The
  request included $2.564 billion to be appropriated through the Foreign
  Operations appropriations and $596 million through appropriations for
  the Departments of Labor and Health and Human Services.
This bill authorizes part of this request through the Child Survival and
  Health (CSH) account which includes the President's request of $439
  million for HIV/AIDS, tuberculosis, and malaria programs. The
  authorized amount for the CSH account also includes $100 million for
  the Global Fund to Fight AIDS, Tuberculosis, and Malaria. (The
  President requested $300 million to be appropriated for contributions
  to the Global Fund; the other $200 million is divided between the
  Global HIV/AIDS Initiative ($100 million) and NIH/HHS ($100 million).
  The GHAI account, for which the President requested $1.87 billion, is
  not authorized in this bill because it is already authorized in the
  United States Leadership Against HIV/AIDS, Tuberculosis, and Malaria
  Act of 2003 (P.L. 108-25).

  

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