The U.S. House of Representatives’ Appropriations Committee released its foreign affairs budget bill Tuesday, allocating about $64.6 billion for fiscal year 2023. That is a 15% increase from the previous year.
Global health, humanitarian assistance, and climate — largely through an allocation to the Green Climate Fund — all see significant increases.
The US foreign affairs budget and what comes next
The U.S. foreign affairs budget was raised by only about 1% when the final budget bill was approved, in a disappointing blow to advocates. Here's a look at where the money goes and how advocates are moving forward.
While the top-line number is sure to please development advocates, the final figure may end up being far lower once the appropriations process is completed. Last year, the House proposed a roughly 12% increase in the foreign affairs budget, but the final bill — passed after numerous delays and much partisan back and forth — only included a minimal 1% increase for those accounts.
The legislation also has a number of policy provisions, including some that failed to make it into the final version of last year’s funding bill.
Here’s a look at what the bill includes:
Top-line numbers
• Global health and pandemic prevention. Almost $11 billion, including about $1 billion for global health security, $2 billion for the Global Fund to Fight AIDS, Tuberculosis and Malaria, and about $4.6 billion for the U.S. Agency for International Development’s global health programs, as well as some $4.4 billion for State Department global health programs, not including the Global Fund contribution.
• Humanitarian assistance. Nearly $8.1 billion across various accounts at USAID and the State Department, including about $4.4 billion for the international disaster assistance account at USAID. The total is up more than $1 billion from fiscal year 2022 levels.
• Climate funding. $1.6 billion for bilateral assistance and $1.6 billion for the Green Climate Fund, which has not received funding in recent years.
• USAID. $1.7 billion in operating expenses, nearly $4.8 billion for the development assistance account, and $1.2 billion for food security and agricultural development programs.
• International institutions. The World Bank’s International Development Association will get over $1.4 billion, with the International Bank for Reconstruction and Development getting $206.5 million. Nearly $1.7 billion will go to international organizations, primarily the United Nations, with an additional $1.8 billion to international peacekeeping. The International Monetary Fund’s Poverty Reduction and Growth Trust or Resilience and Sustainability Trust will get $20 million.
• Indo-Pacific and countering China. $1.7 billion to implement the Indo-Pacific strategy, with $350 million for the Countering PRC Influence Fund and at least $40 million for the Pacific islands.
• Countering Russia. $300 million to the Countering Russian Influence Fund.
• Debt. $52 million for the costs of modifying loans and loan guarantees to countries facing debt restructuring under the so-called Common Framework for Debt Treatments beyond the DSSI, an agreement under the G-20 group of nations.
• Millennium Challenge Corporation. $915 million for MCC.
• U.S. International Development Finance Corporation. $813 million for DFC, including $220 million for administrative expenses.
• Peace Corps. $430.5 million for the Peace Corps.
Proposed policy changes
• Removing the so-called Helms amendment, which bars the use of foreign assistance funds to pay for abortion.
• Repealing the Mexico City Policy, which prohibits foreign NGOs that receive U.S. global health funding from engaging in abortion-related activities, including counseling or education.
• The Lautenberg amendment, which protects refugee eligibility for historically persecuted religious minorities.
• Afghan special immigrant visa program authority, which directs the secretary of state to expedite adjudication of SIV cases.
• Diversity and inclusion guidance and authority for the State Department and USAID to increase diversity and inclusion of the workforce.
• A Treasury Department directive telling the Treasury secretary to promote standards and safeguards for vulnerable groups and gender equality at international financial institutions.
Update, June 23, 2022: This article has been updated to clarify that the final figure for the budget bill may end up being lower once the appropriations process is completed.
About the author
Adva Saldinger@AdvaSal
Adva Saldinger is a Senior Reporter at Devex where she covers development finance, as well as U.S. foreign aid policy. Adva explores the role the private sector and private capital play in development and authors the weekly Devex Invested newsletter bringing the latest news on the role of business and finance in addressing global challenges. A journalist with more than 10 years of experience, she has worked at several newspapers in the U.S. and lived in both Ghana and South Africa.
