[Senate Report 109-35]
[From the U.S. Government Publishing Office]
[ERRATA]
Calendar No. 48
109th Congress Report
SENATE
1st Session 109-35
======================================================================
[ERRATA] FOREIGN AFFAIRS AUTHORIZATION ACT,
FISCAL YEARS 2006 AND 2007
_______
March 10, 2005.--Ordered to be printed
_______
Mr. Lugar, from the Committee on Foreign Relations,
submitted the following
REPORT
[To accompany S. 600]
The Committee on Foreign Relations, having had under
consideration an original bill (S. 600) to authorize
appropriations for the Department of State and international
broadcasting activities for fiscal years 2006 and 2007, for the
Peace Corps for fiscal years 2006 and 2007, for foreign
assistance programs for fiscal years 2006 and 2007, and for
other purposes, reports favorably thereon with amendments and
recommends that the bill as amended do pass.
ERRATA
This errata contains the Congressional Budget Office's Cost
Estimate which was not available when the report was originally
filed.
In addition, this errata contains a revision to the table
on page 25 of the original report (V. Division B--Foreign
Assistance Authorization Act, Fiscal Year 2006--(A) Summary of
Funds). That table incorrectly stated that dollar amounts
within the table were expressed in thousands of dollars. The
dollar amounts within the table are expressed in millions of
dollars. This errata contains the corrected table.
CONTENTS
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Page
Cost Estimate
Congressional Budget Office Cost Estimate for the Foreign
Affairs Authorization Act, Fiscal Years 2006 and 2007...... 1
Division B--Foreign Assistance Authorization Act, Fiscal Year
2006
(A) Summary of Funds......................................... 12
(iii)
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.
United States Congress,
Congressional Budget Office,
Washington, DC, March 18, 2005.
Hon. Richard G. Lugar, Chairman
Committee on Foreign Relations,
United States 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.
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
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 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 roughly 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 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
estimate FY 2006 request Committee mark
----------------------------------------------------------------------------------------------------------------
Child Survival & Health Programs Fund (CSH)............... 1,538 1,252 1,252
Global Fund to Fight AIDS, Tuberculosis, and Malaria\1\... (248) (100) (100)
Development Assistance (DA)............................... 1,448 1,103 1,103
International Disaster and Famine Assistance.............. 485 656 656
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 Expenses (IG)........... 35 36 36
Economic Support Fund (ESF)............................... 2,481 3,036 3,036
Assistance for Eastern Europe and the Baltic States (SEED) 393 382 382
Assistance for the Independent States of the Former Soviet 556 482 482
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 Enforcement 326 524 524
(INCLE)..................................................
Andean Counterdrug Initiative (ACI)....................... 725 735 735
Nonproliferation, Anti-Terrorism, Demining (NADR)......... 399 440 440
Treasury Technical Assistance............................. 19 20 20
Debt Relief............................................... 99 100 100
International Military Education & Training (IMET)........ 89 87 87
Foreign Military Financing (FMF).......................... 4,745 4,589 4,589
Peacekeeping Operations (PKO)............................. 178 196 196
International Organizations & Programs (IO&P)............. 326 282 282
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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).