	Introduction

With a campaign to significantly reduce the budget deficit, some in the 112 th Congress see foreign affairs funds, particularly for foreign aid programs, as expenditures that can be cut in order to reduce the deficit. Foreign affairs spending typically amounts to about 1% of the total budget. Others, including some Members of Congress in both political parties and former Secretary of Defense Robert Gates, view a robust foreign affairs budget as essential to promoting U.S. national security and foreign policy interests, perhaps even saving long-term spending by preventing the much costlier use of troops overseas. The bill does not align perfectly with the international affairs budget, however. This report focuses on only the accounts funded through the State-Foreign Operations appropriations bill, but provides appropriations figures for the entire international affairs (Function 150) budget in Appendix E .

	Recent Developments

Recent events and congressional activity related to the State-Foreign Operations appropriations include the following:
Congress passed the Consolidated Appropriations Act, 2012 ( H.R. 112-25 ). 95 ( P.L. 2017 ( P.L. On September 22, the Senate Appropriations Committee reported out its State-Foreign Operations bill ( S. 1601 ; S.Rept. This is 14% more than the House funding level. Congress approved and the President signed into law the Budget Control Act of 2011 ( S. 365 / P.L. These figures exclude funds for overseas contingency operations, which do not count toward the 302(b) allocation. 34 ) recommending $36.6 billion in new budget authority for the International Affairs account, and an additional $8.7 billion in overseas contingency funds for State Department and foreign operations programs accounted for under a separate "Global War on Terrorism" budget function. The FY2012 Request

On February 14, 2011, the Obama Administration sent its FY2012 budget request to Congress, with a total of $59.65 billion requested for the Department of State, Foreign Operations, and Related Programs. The Administration's priorities on foreign affairs funding for FY2012 as compared with those in FY2011 would have State Department Administration of Foreign Affairs funding increase from 22% in the FY2011 request to 25%, Bilateral Economic Aid funding decrease from 46% in the FY2011 request to 39%, and Security Aid funding increase from 12% in the FY2011 request to 19%. FY2012 Budget Request: State Department and Related Agencies

The Administration's FY2012 budget request for the Department of State, international broadcasting, and related agencies is $19.52 billion, a nearly 10.8% increase over the FY2010 enacted level of $17.62 billion (which includes $1.52 billion in supplemental funds) and 22.4% more than the FY2011 enacted level of $15.95 billion. In addition, the Administration's FY2012 request proposed a cut of 13.2%, compared to FY2010 funding levels, for the U.S. Institute of Peace; however, the budget request of $42.7 million is 8.4% more than Congress appropriated for FY2011. FY2012 Budget Request: Foreign Operations

The Foreign Operations budget comprises the majority of U.S. foreign assistance programs, both bilateral and multilateral. The request was released in February, before final FY2011 appropriations were enacted and before the current emphasis on budget reductions developed in Congress.
Some in the 112th Congress view the foreign affairs budget as a place to cut funds in order to reduce the budget deficit. Foreign affairs expenditures typically amount to about 1% of the annual budget. Others, including Members of Congress of both political parties, view a robust foreign affairs budget as essential for America's national security and foreign policy interests.
The State Department, Foreign Operations, and Related Agencies appropriations bills, in addition to funding U.S. diplomatic and foreign aid activities, have been the primary legislative vehicle through which Congress reviews the U.S. international affairs budget and influences executive branch foreign policy making in recent years. (Congress has not amended foreign policy issues through a complete authorization process for State Department diplomatic activities since 2003 and for foreign aid programs since 1985.) After a period of general decline in the late 1980s and 1990s, funding for State Department operations, international broadcasting, and foreign aid rose steadily from FY2002 to FY2010, largely because of ongoing assistance to Iraq and Afghanistan, new global health programs, and increasing assistance to Pakistan. It declined again in FY2011 when Congress passed a continuing resolution (P.L. 112-10) significantly reducing U.S. government-wide expenditures, including foreign affairs.
On February 14, 2011, the Obama Administration submitted its FY2012 budget proposal before enactment of the final FY2011 appropriations and the current congressional emphasis on budget reductions. The FY2012 request sought $61.5 billion for the international affairs budget, including a core State-Foreign Operations budget of $59.65 billion plus $8.70 billion for extraordinary Overseas Contingency Operations in frontline states. The total request represented an increase of 21.8% over the enacted FY2011 funding level for State Department and Foreign Operations accounts and sought significant increases for State Department's administration of foreign affairs accounts, security assistance, and various multilateral environmental accounts.
Funding for international affairs programs was expected by many to decline in FY2012 as the 112th Congress focuses on budget reduction measures to meet objectives in the Budget Control Act of 2011 (P.L. 112-25). The House subcommittee mark of the FY2012 State-Foreign Operations appropriation recommended $47.58 billion in total funding, and the Senate committee-passed bill (S. 1601) recommended $53.97 billion. The enacted total funding level of $53.88 billion is nearly 10% less than the Administration's request, but is 10% more than the enacted total for FY2011. However, $11.20 billion of the FY2012 enacted total is designated for Overseas Contingency Operations (more than the $8.70 billion requested by the Administration) and does not count toward enacted discretionary spending caps.
This report analyzes the FY2012 request and congressional action related to FY2012 State-Foreign Operations legislation. The Summary, "Introduction" and "Recent Developments" sections, and appendix tables in this version of the report have been updated to reflect enactment of P.L. 112-74, the Consolidated Appropriations Act, FY2012.