2673 , the Consolidated Appropriations Act, 2004. This represents a $1.4 billion, or a 7.4% reduction from the President'srequest, but $1.3 billion, or 7.9% higher than approved in regular Foreign Operationsspending for FY2003. Introduction

The annual Foreign Operations appropriations bill is the primary legislativevehicle through which Congress reviews and votes on the U.S. foreign assistancebudget and influences major aspects of executive branch foreign policy makinggenerally. (1) It contains the largest share -- abouttwo-thirds -- of total internationalaffairs spending by the United States (see Figure 1 ). 2800 . Foreign Operations Appropriations Request for FY2004 and Congressional Consideration

		Request Overview

On February 3, 2003, President Bush asked Congress to appropriate $18.89 billion for FY2004 Foreign Operations. The budget proposal was $2.7 billion, or16.7% higher than regular Foreign Operations appropriations for FY2003, as enactedin P.L. If enacted, the President's recommendation would have resulted inone of the largest increases of regular (non-supplemental) Foreign Operationsfunding in several decades. Congress subsequently approved in mid-April anadditional $7.5 billion FY2003 supplemental foreign aid spending in P.L. 108-11 , forIraq reconstruction, assistance to coalition partners, and other activities supportingthe global war on terrorism. Including the supplemental brought Foreign Operationsappropriations in FY2003 to $23.67 billion. The FY2004 budget blueprint continued to highlight foreign aid in support of the war on terrorism as the highest priority. But a notable characteristic of thesubmission was the request for funding four new foreign aid initiatives whichtogether accounted for most of the $2.7 billion increase over regular FY2003 levels. Combined, the Millennium Challenge Account (a new structure for delivering foreignaid), the State Department's Global AIDS Initiative, and two new contingency funds(Famine and Complex Crises), totaled $2.05 billion. Other Foreign Operationsprograms were left with a more modest 4% increase. Fighting the War on Terrorism. New Initiative: The Global AIDS Initiative. House Consideration

On July 23, the House passed (370-50) a $17.12 billion spending bill -- H.R. For overall "core" bilateral development programs, including HIV/AIDS, other non-health activities, and UNICEF contributions, the Senate measure was about $550million higher than the President's request and $415 million above the House bill.Besides increasing health programs, the Senate bill also added to the request for otherdevelopment activities, providing about $80 million more than requested and over$100 million more than the House. 2673 , with theSenate following on January 22, 2004. 2673 provides $17.48 billion for Foreign Operations, a figure that includes a 0.59% across-the-board rescissionand additional amounts for the Millennium Challenge Account specified in DivisionH of the bill. If Congress fully funds the President's MCA request and assuming that FY2003 will be the baseline from which to compare growth in foreign aid spending duringimplementation of the MCA, a $5 billion increase by FY2006, combined with otherannounced foreign aid initiatives, would result in a $19.3 billion foreign aid budget. International HIV/AIDS. International Family Planning and UNFPA Funding

U.S. population assistance and family planning programs overseas have sparked continuous controversy during Foreign Operations debates for nearly two decades. (The Senate, on October 30, subsequently passed the legislation,approving the House bill, H.R. 2. 4. 7. 8. 10. 16. 18.
The annual Foreign Operations appropriations bill is the primary legislative vehicle through which Congress reviews the U.S. foreign aid budget and influences executive branch foreign policymaking generally. It contains the largest share -- about two-thirds -- of total U.S. internationalaffairs spending.
President Bush asked Congress to appropriate $18.89 billion for FY2004 Foreign Operations. The budget proposal was $2.7 billion, or 16.7% higher than regular (non-supplemental) ForeignOperations appropriations for FY2003. If enacted, the President's recommendation would haveresulted in one of the largest increases of regular Foreign Operations funding in at least two decades. Congress subsequently approved in mid-April an additional $7.5 billion FY2003 supplementalforeign aid spending in P.L. 108-11 , for Iraq reconstruction, assistance to coalition partners, andother activities supporting the global war on terrorism. Including the supplemental, ForeignOperations appropriations totaled $23.67 billion in FY2003.
The FY2004 budget blueprint continued to make funding in support of the war on terrorism as the highest priority, with about $4.7 billion recommended. The submission also sought funding forfour new aid initiatives which together accounted for most of the $2.7 billion increase over regular FY2003 levels. Combined, the Millennium Challenge Account, a new foreign aid concept, the StateDepartment's Global AIDS Initiative, and two new contingency funds, totaled $2.05 billion. OtherForeign Operations programs were left with a more modest 4% increase.
In total, the request included $1.2 billion for HIV/AIDS, about $350 million more than enacted for FY2003, and $7.1 billion for military and security-related economic aid, up nearly $650 millionor 10% from regular FY2003 appropriations. "Core" bilateral development assistance funding,however, would have fallen by 8%, although recipients of these accounts would be expected tobenefit significantly from the new Millennium Challenge Account (MCA) and Global AIDSInitiative.
On July 23, the House passed H.R. 2800 , appropriating $17.12 billion. The Senate passed the legislation on October 30, providing $18.4 billion. Foreign Operations was merged into H.R. 2673 , the Consolidated Appropriations Act, 2004, a bill that passed the House onDecember 8 and the Senate on January 22, 2004. The enacted measure provides $17.48 billion, atotal that includes a 0.59% across-the-board rescission. This is about $1.4 billion, or 7.4% less thanthe President requested. The enacted measure increases resources for international HIV/AIDS byabout $400 million and cuts the request for the MCA by $300 million.
The FY2004 Foreign Operations debate has included discussion of several significant policy issues, including foreign aid as a tool in the global war on terrorism, the Millennium ChallengeAccount, programs to combat HIV/AIDS, international family planning programs, and Afghanreconstruction.
Key Policy Staff