What's in the US budget for foreign aid?

After six years of flat funding levels and reliance on emergency appropriations to fill critical global development needs, the U.S. Congress is finally close to approving an increase for foreign affairs funding that would see more for global health, innovation, and the U.S. International Development Finance Corporation.

The negotiated omnibus bill released by lawmakers on Tuesday includes a roughly 6% increase for the foreign affairs budget for fiscal 2023.

After behind-the-scenes negotiations, lawmakers agreed to a compromise budget ahead of Friday’s deadline to fund the government, which has been operating under a temporary appropriations measure since October.

The final total of $61.7 billion for foreign affairs is lower than the development community was hoping for — it’s less than half the 15% increase proposed in the House and Senate draft budget bills.

Still, the budget package is a “critical step forward to meeting the moment and advancing U.S. interests at a time of growing global instability,” Liz Schrayer, the president & CEO of the U.S. Global Leadership Coalition, said in a statement.

“While sadly there are still growing global threats and needs, it is not lost on any of us that this omnibus is the most significant increase for the non-emergency International Affairs Budget in six years – clearly a big deal.”  

Global health appears to be one winner, with more than $10 billion allocated across diseases and priorities. Global health security funding has a $200 million boost from the previous year and the HIV/AIDS budget is up $445 million. Spending for Malaria, polio, and tuberculosis was also increased.

Innovation received “big wins” in the budget, according to a tweet from Unlock Aid, a coalition working to drive structural change in global development. There is a 33% increase for the U.S. Agency for International Development’s Development Innovation Ventures program, and a more modest boost of nearly 7% for Feed the Future Innovation Labs, which partners with universities to research ways to reduce hunger, poverty, and undernutrition.

There is also some fine print that would allow USAID to issue unlimited innovation incentive awards, which require fewer bureaucratic hurdles and could bolster results-based funding, according to Unlock Aid.

The DFC also received a significant budget increase, with funding for its administrative and program expenses raised to roughly $1 billion from about $700 million last year. The agency’s inspector general’s budget would also be roughly doubled.

There is a combined $6.8 billion for humanitarian assistance through the State Department and USAID, which is meant to address everything from global food insecurity to displacement due to conflict or natural disasters.

There will also be significant allocation — some $2.5 billion — for humanitarian assistance from the $45 billion Ukraine emergency funding bill attached to the budget bill. The money will support international food security programs and address humanitarian needs in Ukraine, for Ukrainian refugees and for other affected populations.

Climate advocates hoping for a major funding boost for adaptation and money for the Green Climate Fund may be disappointed. As with recent years, GCF received no money, and funding for other climate-related programs was mostly held steady. The bill does, however, allow the U.S. to contribute to the Adaptation Fund and the Least Developed Countries Fund to support adaptation efforts.

While the bill is a compromise reached through negotiations it must still pass both the House and the Senate and be signed by President Joe Biden. It would serve as the benchmark in challenging budget debates in a divided Congress in the years ahead.

Here’s a look at some of the key allocations in the bill:

Global health
• $6.725 billion to combat HIV/AIDS including $4.395 billion for the President’s Emergency Plan for AIDS Relief; $2.0 billion for a U.S. contribution to the Global Fund to Fight AIDS, Tuberculosis and Malaria; and $330 million for USAID’s HIV/AIDS programs.
• $900 million global health security.
• $795 million for malaria programs.
• $575 million for bilateral family planning/reproductive health programs to support access to voluntary family planning services and other related health care.
• $394.5 million for tuberculosis programs.

USAID
• $1.74 billion for operations (a roughly $100 million increase from FY22).
• $4.17 billion for global health
• $4.37 billion for the development assistance account.
• $3.91 billion for International Disaster Assistance.

International organizations
• World Bank: $1.43 billion for the International Development Association and $206.5 million for International Bank for Reconstruction and Development.
• African Development Bank: $54.65 million for the bank and $171.3 million for its African Development Fund.
• Asian Development Bank: $43.6 million for the Asian Development Fund.
• $150.2 million Global Environment Facility.
• $125 million Clean Technology Fund.

U.S. International Development Finance Corporation
• $780 million for programs.
• $220 million for administrative costs.
• $5.58 million for its inspector general.

Other agencies and programs
• $930 million for the Millenium Challenge Corporation.
• $430.5 million for Peace Corps.
• $100 million Prosper Africa.
• $100 million Power Africa.
• $87 million for the U.S. Trade and Development Agency.
• $45 million for the U.S. African Development Foundation.