June 25, 2010

International Affairs Budget Update, 6/25/10

1.     Congress to Move Budget “Deeming Resolution” for FY 11
2.     FY 11 Appropriations Process Getting Underway




1.     Congress to Move Budget “Deeming Resolution” for FY 11

After several weeks of budgetary limbo on Capitol Hill, action is expected to finally occur next week on the FY 11 budget.  Congressional leaders confirmed earlier this week what USGLC has been speculating for some time: there will be no formal budget resolution this year.  This would be the first time since 1974 that the House has not passed an annual budget resolution.  Instead, the House will move a budget “deeming resolution” that sets an overall discretionary spending cap – the 302(a) allocation — for the FY 11 appropriation bills.  Indications are that the House budget measure, also being called a “budget enforcement bill,” will provide $7 billion less than the President’s total FY 11 spending request.  Given that the President’s request already freezes total domestic discretionary spending, this spending level places significant pressure on funding for the International Affairs Budget.  In the Senate, leadership has indicated that their budget measure would provide a higher spending cap than the House but still be below the President’s funding request.

2.     FY 11 Appropriations Process Getting Underway

Passage of the budget deeming resolution will trigger the all-important 302(b) appropriation allocations for the 12 individual appropriations bills.  These allocations could be announced in both the House and Senate next week.  Even without these allocations, however, the House has already begun the annual appropriation process with yesterday’s markup of the $43.9 billion Homeland Security appropriations bill.  Additional markups may occur next week, including the House State-Foreign Operations Subcommittee, which provides about 95 percent of funding for the International Affairs Budget.

With critical funding decisions imminent, USGLC has been continuing to make the case on the Hill for fully funding the International Affairs Budget. An ad in Tuesday’s Politico highlighted the bipartisan and diverse drumbeat of support for a strong International Affairs Budget – including all living former Secretaries of State, more than 50 military leaders, a “Who’s Who” of 51 American businesses­­, 59 Senators, and more than 200 Representatives. Secretary Clinton has also been reaching out to key lawmakers on Capitol Hill.