Mr. Chairman, I yield myself such time as I may consume. I am pleased to present to the House today the funding recommendations of the Committee on Appropriations for fiscal year 2005 for foreign…
Mr. Chairman, I yield myself such time as I may consume.
I am pleased to present to the House today the funding recommendations of the Committee on Appropriations for fiscal year 2005 for foreign operations, export financing, and related programs. The bill provides important funding for programs designed to support the global war on terrorism, the battle against HIV/AIDS and other infectious diseases, and to support the national interests of the United States. In the wake of September 11, 2001, such funding for our critical friends and allies is more important than ever.
The committee recommends a total of $19,385,645,000 in new discretionary budget authority for fiscal year 2005. This represents a reduction of $1.932 billion from the President's budget request. On the other hand, the bill before us is $1.905 billion above the fiscal year 2004 enacted level when we exclude the supplemental appropriations. If supplemental appropriations are included, the recommendation represents a decrease of $19.287 billion over the 2004 level.
Having gotten those numbers out of the way, let me just say it is important that we know that this bill was developed in a bipartisan way, and I want to pay special tribute and give credit to the gentlewoman from New York (Mrs. Lowey), my ranking minority member, for the fine work that she has done on this bill and for engaging in a process that resulted in basic agreement on the components of this package, even if funding compromises happen to be found on both sides. Mr. Chairman, I believe this is the way the House of Representatives ought to work, and I think the gentlewoman from New York (Mrs. Lowey) and I have worked in a bipartisan fashion.
In preparing this legislation, we have three overriding priorities: first, supporting our allies on the war on terrorism; second, responding to the global HIV/AIDS pandemic; and, third, supporting innovative approaches to foreign assistance through the Millennium Challenge Corporation.
Let me summarize how this recommendation responds to those challenges. First, the President's budget request included important military assistance and counternarcotics increases for our allies in the global war on terrorism. That includes an increase of $350 million to equip the new Afghan National Army; an increase of $90 million for law enforcement and counternarcotics programs in Afghanistan; a new base program of $300 million for military assistance for Pakistan as they assist us in hunting terrorists along the Afghan border; an increase of $46 million for a total of $66 million for Poland, a major ally in Operation Iraqi Freedom; and an increase of $73 million, for a total of $2.22 billion for the State of Israel, which is our closest ally in the Middle East.
The committee recommendation includes full funding for these increases both through new budget authority and, in the case of Pakistan, use of $150 million of transfer authority.
The second priority in the President's budget request is one that we also met with an increase of $593 million to combat HIV/AIDS and related diseases, for a total of $2.2 billion. The committee recommendation fully meets that funding level. It includes a grant of $400 million for the Global Fund to fight AIDS, tuberculosis, and malaria, subject to conditions that improve the fund's accountability and efficiency. Together with the money that we expect that the House Labor Health and Human Services, Education and Related Agencies Subcommittee will include, that will mean over $2.8 billion will be available for HIV/AIDS programs around the world in fiscal year 2005.
The Global AIDS Initiative is making treatment and care available to a record number of people affected by the disease. In 2003, only 50,000 people in the developing world had access to the drugs that dramatically reduced the impact of AIDS and extend life for years. By next summer, 200,000 people will have access to these drugs; and over the next several years, millions of infected people will be treated through the use of the Nevirapine for pregnant women.
The third priority, of course, in the President's budget was a request for a $1.5 billion increase for the Millennium Challenge Corporation, for a total of $2.5 billion. Mr. Chairman, given our allocation, we could not recommend full funding for this initiative, important though it is and though I am very personally committed to it. However, to demonstrate our commitment to this important foreign assistance reform effort and to respond positively to
the President's proposal, the recommendation does include $1.250 billion for the Millennium Challenge Corporation. That is an increase of $256 million over last year.
As chairman, I have made the MCC a priority in this bill. I believe in the President's vision of a new form of development assistance where a country's commitment to fighting corruption, its commitment to reform, and its commitment to investing in its people is complemented by an assistance package from the United States, negotiated by the country in the form of a signed compact. We included the authorization that created the MCC in last year's appropriation bill, and the President can continue to count on me as a strong supporter.
In preparing this bill, we were also faced with decreases in some areas of the budget, including some key non-HIV/AIDS health programs, and in the development assistance account. We have restored those reductions and, in the case of development assistance, added funds for basic education. I believe our development assistance program is a key component of our national security strategy, and it is critical to a positive U.S. image in foreign countries.
Including funding for HIV/AIDS, this bill makes available $3.079 billion for health programs overall, and that is an increase of $600 million over last year's House-passed bill. Of this total, over $332 million will be made available to fight TB and malaria. These funds help to continue the global fight against malaria, which kills one person every 30 seconds, most of them African children. USAID implements a comprehensive approach against this disease supporting the purchase and distribution of malaria medicines, a search for a vaccine, and strong prevention efforts.
Basic education has become a signature issue for the gentlewoman from New York (Mrs. Lowey); so I will let her describe the details of our recommendation in that regard. Suffice it to say that I fully support her efforts to provide more educational opportunities to the impoverished youth of the world, especially women and children. This bill recommends $400 million for basic education activities. That is an increase from $326 million in fiscal year 2004. Report language accompanying the bill requires the Secretary of State to articulate an interagency strategy on the use of those funds so that we have a coherent, coordinated effort that can produce meaningful results in reducing illiteracy.
The bill also supports USAID's work to support microenterprise lending. Report language accompanying the bill references the fiscal year 2004 authorization ceiling of $200 million as the program level the committee expects in fiscal year 2005. It is also important that USAID continue to use the traditional providers of microenterprise lending and not rely excessively on contractors for implementing this program.
We continue an emphasis in our bill on helping developing countries build their capacity to participate in the international trading system. We have $517 million in the bill for trade capacity building, and that is the same amount as the House passed version last year.
Fiscal year 2005 is the final year of the President's Water for the Poor Initiative, announced in August, 2002, in Johannesburg, South Africa. In all likelihood, we will exceed the 3-year goal of spending $970 million on water projects. Report language urges the President to direct $50 million to water programs in Africa with $9 million targeted to programs in East Africa.
The committee continues its strong support for women's programs, provides that not less than $15 million in development assistance shall be made available to improve women's leadership capacity in recipient countries. This is an increase from the $11 million that we provided last year. In addition, from our Afghanistan assistance program, we set a goal of $60 million in fiscal year 2005 for programs for women and girls.
The committee recommendation also responds to emerging needs, such as the provision of an additional $50 million for assistance for Haiti. Following up on my amendment to the Defense appropriation bill that included $95 million in supplemental assistance for the victims of the violence in the Darfur region of Sudan, we recommend $311 million in this bill for humanitarian assistance for Sudan and for the refugees affected by that conflict.
Although there are no funds for Iraq in this bill, we continue our oversight responsibilities by mandating the continuation of an independent inspector general to audit the Iraq Reconstruction program. Without new authority, the inspector general will go out of business on December 28 of this year, 6 months after the Coalition Provisional Authority was disbanded. Section 573 of the bill provides for continued operations of the CPA Inspector General's Office operating under the supervision of the Secretary of State and providing that the $75 million previously appropriated for the IG is to be made available only to the IG for his continued audit and investigative work in Iraq.
We also provide the administration the authority they need to reduce Iraq's debt to our government so that the United States can negotiate an international debt reduction for Iraq. The sooner Iraq has financial stability, the sooner the government of Iraq can fund its own security and reconstruction needs. No new funds are provided for this purpose. Any funding for debt relief will come from previously appropriated funds.
The bill fully funds the President's request for export finance agencies to promote U.S. investment overseas and create jobs in United States export sectors. The bill provides $317 million for those agencies, which include the Export-Import Bank, the Overseas Private Investment Corporation, and the Trade and Development Agency. About $311 million of that $317 million is offset by collections.
Mr. Chairman, the United States leads the international fight against coca and poppy cultivation overseas. The narcotics industry has become a source of funding for terrorists, as well as, of course, a source of drugs worldwide. As part of the war on terror, the committee fully funds the President's request for the Andean Counterdrug Initiative at a level of $731 million for antinarcotics, interdiction, for development programs, and rule-of-law and institution-building programs in Colombia, Bolivia, Peru, and Ecuador.
Under the general anti-narcotics account, the bill fully funds anti- narcotics and law enforcement programs in Afghanistan at a level of $90 million, in Mexico at $40 million, and supports an existing program in Pakistan at $32 million.
To support continuing United States leadership in the world for humanitarian responses to refugee crises, we include $776 million for refugee programs, and that is $26 million more than the President requested.
We have $19 million, $1.5 million more than the request, for the Department of Treasury, to provide technical advisors to developing countries throughout the world.
The committee includes full funding of $20 million for the President's request for debt relief for countries who qualify under the Tropical Forestry Conservation Act and $75 million for multilateral debt relief for the poorest nations that receive assistance from the Heavily Indebted Poor Countries, or the HIPC, trust fund.
The committee supports contributions to the Multilateral Development Bank and includes $1.3 billion for such contributions. While the committee was not able to fund the World Bank incentive fund or all the arrears requested by the budget because of the budgetary restraints I mentioned earlier, we have provided full funding of the regularly scheduled contributions to these banks.
Finally, the committee has provided $323 million for voluntary contributions to international organizations and programs, a level $19 million more than the request. It includes $125 million to the United Nations Childrens Fund, or UNICEF, an increase of $5 million for this important organization.
We also have $107 million for the United Nations Development Program, or UNDP, and $7 million for the Fund for Victims of Torture. A total of $25 million is available through the United Nations Population Fund, or UNFPA, under the same ``Kemp-Kasten'' restrictions as exist in current law.
We have had to reduce this bill by $1.9 billion from the President's request, as I mentioned, Mr. Chairman.
Therefore, we did not or could not provide funding for a number of new and expanded initiatives requested by the President or brought to the committee's attention by committee members, other Members of Congress and outside groups.
The major reductions to the President's budget include, as I have already mentioned, a cut of $1.25 billion to the request for the Millennium Challenge Corporation; a reduction of $224 million for the World Bank Group, including the International Development Association; and a cut of $95 million in debt relief. There are other reductions to the President's request, but we tried to retain the base funding for most of the programs.
I believe this balanced bill provides important support for our most critical national security needs, while substantially increasing funding to respond to the global HIV/AIDS pandemic. It enhances our support for overseas development assistance and humanitarian assistance. It meets the high priorities of the President in these areas and accommodates congressional concerns as well.
As I have said, this bill was developed in a very bipartisan manner and should have broad support in the House. I urge a yes vote on this bill.
Before I yield the floor, I want to call the attention of the House to two matters that were inadvertently left out of the committee report. One matter involves the Surgical Implant Generation Network, based in Richland, Washington, which is the only organization in the world that provides, free of charge, an ongoing supply of training and orthopedic materials to surgeons in developing countries who repair fractures of the very poor.
The second matter involves the Vishnevskaya Rostropovich Foundation, a charitable organization based in Washington, D.C., that conducts a mass children's vaccination initiative in the Russian Federation.
I would urge the United States Agency for International Development to give strong consideration to funding proposals for these funding organizations.
Mr. Chairman, I include the following charts for the Record.
[GRAPHIC] [TIFF OMITTED] TH15JY04.001
[GRAPHIC] [TIFF OMITTED] TH15JY04.002
[GRAPHIC] [TIFF OMITTED] TH15JY04.003
[GRAPHIC] [TIFF OMITTED] TH15JY04.004
[GRAPHIC] [TIFF OMITTED] TH15JY04.005
[GRAPHIC] [TIFF OMITTED] TH15JY04.006
[GRAPHIC] [TIFF OMITTED] TH15JY04.007
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I am pleased to yield 4 minutes to the gentleman from Michigan (Mr. Knollenberg), one of the very distinguished members of the subcommittee who has
made some very significant contributions to this bill and has been one of our most valuable members through the years.
Mr. Chairman, I yield 4 minutes to the very distinguished vice chairman of the committee, the gentleman from Mississippi (Mr. Wicker), who has also been a great member of this committee. I have had the opportunity to travel with him on a number of occasions and he has contributed greatly to the drafting of this bill.
Mr. Chairman, I yield 2 minutes to the gentleman from Florida (Mr. Crenshaw), another distinguished member of our subcommittee.
Mr. Chairman, I yield 30 seconds to the gentlewoman from California (Ms. Millender-McDonald).
Mr. Chairman, will the gentlewoman yield?
I thank the gentlewoman for her attention to this important issue. Children that are affected by HIV/AIDS are a group that tugs at the heart strings of all people. I have worked closely with USAID and the Global AIDS coordinator to develop an integrated, comprehensive approach to fighting this disease, and pediatric AIDS is a core component of that approach.
While I applaud the gentlewoman's intentions, I believe that in some circumstances, integrated treatment and care centers where both adults and children can receive attention would be more appropriate. However, I will be happy to work with the gentlewoman, the Global AIDS coordinator, USAID, and other concerned parties to ensure that orphans and vulnerable children receive proper treatment, care and support, as part of a comprehensive approach to fighting this disease.
Mr. Chairman, I yield the balance of my time to the gentlewoman from Texas (Ms. Granger).
Mr. Chairman, I ask unanimous consent that debate on this amendment and any amendments thereto be limited to 20 minutes, to be equally divided and controlled by the proponent and myself as the opponent.
Mr. Chairman, I am pleased to yield 2 minutes to the distinguished gentlewoman from New York (Mrs. Lowey), the ranking member.
Mr. Chairman, I am the only other speaker I have, if the gentleman is prepared to yield back the balance of his time.
Mr. Chairman, I yield myself the balance of my time.
The Sherman amendment is really not about Iran. It is about depriving the poorest countries in the world of development assistance for basic education, for health care, for HIV/AIDS prevention and treatment, and for environmental protection programs. It is about blocking the path towards achieving the Millennium Development Goals. I do not think this Congress wants to be remembered for this.
I know that Iran is a politically sensitive issue, and none of us believe that the World Bank should be making loans in Iran, but the funding contained in the foreign operations bill is for IDA, the concessional lending program of the World Bank which is designed to help the poorest countries of the world, with per capita incomes of $1 to $2 per day.
Mr. Chairman, Iran is not eligible to use the resources of IDA. The projects approved for Iran were funded by the IBRD, which is the market rate lending program of the bank. IBRD does not receive appropriated funds. There is no fungibility between IDA and IBRD resources.
So, Mr. Chairman, restricting the appropriations of funds to IDA will not affect Iran in any way. However, it will cut funding that supports development and health programs in sub-Saharan Africa and the poorest countries of Asia and Latin America. Over half of IDA resources are programmed for sub-Saharan Africa, and many of the programs would be supported on a grant basis, no longer just loans.
Diverting these funds into bilateral programs would deny six times, that is, again, six times, as much funding as the gentleman's cut. For every $1 of U.S. taxpayer money that goes into IDA, other donors and resources provide $6 of support. So if we cut this, we cut out six times as much of the money that goes to sub-Saharan Africa and other of the poorest countries of the world.
Mr. Chairman, I have already made what I think is a difficult decision to cut World Bank funding by $211 million below the request. Another $359 million cut would probably put U.S. leadership at risk at the bank, in addition to putting at risk billions of dollars of assistance for poor countries in Africa, Asia and Latin America.
To reiterate, Mr. Chairman, Iran is not eligible for IDA finances. IDA funding, which is the subject of this bill, the only source of funding that is in this bill for the World Bank, Iran is not eligible for any of those sources, and Iran would not be affected by a cut in funding to the IDA.
I urge my colleagues to oppose this amendment.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I move that the Committee do now rise.