The Senate Appropriations Committee this morning approved on a rare 15-14 party-line vote the all-important 302(b) allocations for FY14.  The allocations divide up the $1.058 trillion discretionary spending cap under the Budget Control Act for FY14 that Senate Democrats are using over the objections of Senate Republicans, who prefer to use the $967 billion sequestration level being used by House Republicans.

The Committee provides $50.6 billion for FY14 State-Foreign Operations – $44.1 billion in base funding and $6.5 billion in war-related Overseas Contingency Operations (OCO) funding. For base funding (or non-war related programs), the Senate would restore funding from current sequestered levels by $4.4 billion (11%). When combined with international food aid and very small amounts in other bills, the Senate’s overall International Affairs Budget is $52.2 billion – essentially flat to current levels and similar to the President’s request.

The big difference lies between the Senate and House allocations, with the Senate calling for FY14 base funding nearly 30% ($10 billion) above the House levels for these programs.

The USGLC released a statement from Advisory Council Members former Defense Secretary Frank Carlucci and former Homeland Security Secretary Tom Ridge expressing gratitude that the Senate “recognizes the strong return on investment America receives from our International Affairs Budget.”

International Affairs Budget Snapshot

Next Steps

Thus far the House has approved four appropriations bills in Committee – Agriculture, Defense, Homeland Security, and Military Construction/Veterans Affairs.  Two of those measures, Homeland Security and MilCon/VA, have been approved by the House.

The Senate has only acted on two bills, Agriculture and MilCon/VA. A Senate Subcommittee markup of the State-Foreign Operations Appropriations bill is expected in mid-July. In the House, a subcommittee markup is expected in mid- or late- July.  Neither chamber is likely to act on the State-Foreign Operations Appropriations bill before the start of the fiscal year on October 1.  A Continuing Resolution for FY14 will almost certainly be needed again this year.ions bill.  Barring agreement on a grand bargain budget deal, a Continuing Resolution for FY14 will be needed again this year.

2.    House Defeats Food Aid Reform Measure and Imposes Steep Cuts to Food Aid

By a vote of 203-220, the House yesterday defeated a bipartisan amendment to the Farm bill that would have restructured the Food for Peace Program (also known as P.L. 480/Title II) along the lines of the reforms proposed in the Administration’s FY14 budget request.  Offered by House Foreign Affairs Committee Chairman Ed Royce (R-CA) and Ranking Member Eliot Engel (D-NY), the measure would have:

• Allowed up to 45% of emergency food aid to be used for local purchasing; and
• Allowed agricultural and economic development projects currently funded through monetization to be directly funded and making monetization a permissive authority subject to a 15% limitation.

On the FY14 funding front, appropriations for international food aid fared well in the Senate where the Agriculture bill provides $1.66 billion for P.L.480, $116 million above current sequestered levels and $21m higher than the Administration’s request.  However, the House Agriculture bill provides $1.33 billion for these food aid programs, 13.4% below current levels and 18.4% below the Administration’s request.

3.    USGLC June 25 Conference to Feature Treasury Secretary, World Bank President, and Smart Power Innovations

We hope you, as an important leader in the foreign policy community, will join the USGLC next Tuesday afternoon for our Annual Conference – Smart Power Innovators – from 1:30-6:00 p.m. at the Washington Hilton Hotel.  On the eve of the President’s trip to Africa, we will be joined by The Honorable Jacob J. Lew, Treasury Secretary; World Bank President Jim Yong Kim; current CENTCOM Deputy Vice Admiral Robert Harward; and senior corporate leaders to discuss smart power innovations.  You can see the full agenda here.