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Foreign operations and related programs.

FY 2011 FOREIGN OPERATIONS and RELATED ACCOUNTS REQUEST ($000)
                                              FY 2009         FY 2010
                                           Actual (1)    Estimate (2)

FOREIGN OPERATIONS                         34,308,360      32,803,782

U.S Agency for International
    Development                             1,257,959       1,650,300
  USAID Operating Expense (OE)              1,059,184       1,388,800
  Civilian Stabilization Initiative
    (CSI)                                      30,000          30,000
  USAID Capital Investment Fund
    (CIF) (4)                                 122,275         185,000
  USAID Inspector General Operating
    Expenses                                   46,500          46,500

Bilateral Economic Assistance              22,594,401      22,552,232
  Global Health and Child Survival
    (USAID and State) (3)                   7,339,000       7,779,000
  Global Health and Child
    Survival--USAID                       [2,180,000]     [2,420,000]
  Global Health and Child
    Survival--State                       [5,159,000]     [5,359,000]
  Development Assistance (DA)               2,000,000       2,520,000
  International Disaster Assistance
    (IDA)                                     820,000         845,000
  Transition Initiatives (TI)                  50,000          55,000
  Complex Crises Fund (CCF)                        --          50,000
  Development Credit Authority--Subsidy
    (DCA)                                    [54,000]        [25,000]
  Development Credit
    Authority--Administrative Expenses          8,000           8,600
  Economic Support Fund (ESF)               7,116,901       6,344,000
  Democracy Fund                              116,000         120,000
  Assistance for Europe, Eurasia and
    Central Asia (AEECA)                      922,000         741,632
  Migration and Refugee Assistance
    (MRA)                                   1,674,500       1,693,000
  U.S. Emergency Refugee and Migration
    Assistance (ERMA)                          40,000          45,000
  International Narcotics Control and
    Law Enforcement (INCLE) (3)             1,876,500       1,597,000
  Andean Counterdrug Program (ACP)          [315,000]              --
  Nonproliferation, Antiterrorism,
    Demining and Related Programs
    (NADR)                                    631,500         754,000

Independent Agencies                        1,270,000       1,558,000
  Peace Corps                                 340,000         400,000
  Millenium Challenge Corporation             875,000       1,105,000
  Inter-American Foundation                    22,500          23,000
  African Development Foundation               32,500          30,000

Department of Treasury                         85,000          85,000
  Treasury Technical Assistance                25,000          25,000
  Debt Restructuring                           60,000          60,000

International Security Assistance           7,554,700       4,634,500
  Peacekeeping Operations (PKO)               530,200         331,500
  International Military Education and
    Training (IMET)                            93,000         108,000
  Foreign Military Financing (FMF) (3)      6,231,500       4,195,000
  Pakistan Counterinsurgency Capability
    Fund (PCCF)                               700,000              --

Multilateral Economic Assistance            1,845,500       2,437,670

  International Organizations and
    Programs                                  352,500         394,000

International Financial Institutions
    (IFIs)                                  1,493,000       2,043,670
  Global Environment Facility (GEF)            80,000          86,500
  International Clean Technology Fund              --         300,000
  International Strategic Climate Fund             --          75,000
  International Development Association     1,115,000       1,262,500
  Enterprise for the Americas
    Multilateral Investment Fund               25,000          25,000
  Inter-American Investment Corporation            --           4,670
  Asian Development Fund                      105,000         105,000
  African Development Fund                    150,000         155,000
  European Bank of Reconstruction and
    Development (EBRD) Trust Fund                  --              --
  European Bank of Reconstruction and
    Development                                    --              --
  International Fund for Agricultural
    Development                                18,000          30,000
  Multilateral Investment Guarantee
    Agency                                         --              --
  Asian Development Bank                           --              --
  Global Food Security Fund                        --              --

Export & Investment Assistance              (299,200)       (113,920)
  Export-Import Bank                        (177,000)           2,380
  Overseas Private Investment
    Corporation (OPIC)                      (173,000)       (171,500)
  Trade and Development Agency                 50,800          55,200

Related International Affairs Accounts         76,823          84,017
  International Trade Commission               75,000          81,900
  Foreign Claims Settlement Commission          1,823           2,117

Department of Agriculture                   2,420,900       1,889,500
  Food for Peace Act Title II               2,320,900       1,690,000
  McGovern-Dole International Food for
    Education                                 100,000         199,500

                                               FY 2010        FY 2011
                                          Supplemental        Request

FOREIGN OPERATIONS                           2,637,440     39,399,814

U.S Agency for International
    Development                                     --      1,695,506
  USAID Operating Expense (OE)                      --      1,476,006
  Civilian Stabilization Initiative
    (CSI)                                           --             --
  USAID Capital Investment Fund
    (CIF) (4)                                       --        173,000
  USAID Inspector General Operating
    Expenses                                        --         46,500

Bilateral Economic Assistance                2,577,440     25,583,286
  Global Health and Child Survival
    (USAID and State) (3)                           --      8,513,000
  Global Health and Child
    Survival--USAID                                 --    [3,013,000]
  Global Health and Child
    Survival--State                                 --    [5,500,000]
  Development Assistance (DA)                       --      2,980,896
  International Disaster Assistance
    (IDA)                                           --        860,700
  Transition Initiatives (TI)                       --         48,000
  Complex Crises Fund (CCF)                         --        100,000
  Development Credit Authority--Subsidy
    (DCA)                                           --       [35,000]
  Development Credit
    Authority--Administrative Expenses              --          8,300
  Economic Support Fund (ESF)                1,820,000      7,811,982
  Democracy Fund                                    --             --
  Assistance for Europe, Eurasia and
    Central Asia (AEECA)                            --        716,354
  Migration and Refugee Assistance
    (MRA)                                           --      1,605,400
  U.S. Emergency Refugee and Migration
    Assistance (ERMA)                               --         45,000
  International Narcotics Control and
    Law Enforcement (INCLE) (3)                757,440      2,136,041
  Andean Counterdrug Program (ACP)                  --             --
  Nonproliferation, Antiterrorism,
    Demining and Related Programs
    (NADR)                                          --        757,613

Independent Agencies                                --      1,778,610
  Peace Corps                                       --        446,150
  Millenium Challenge Corporation                   --      1,279,700
  Inter-American Foundation                         --         22,760
  African Development Foundation                    --         30,000

Department of Treasury                              --        108,000
  Treasury Technical Assistance                     --         38,000
  Debt Restructuring                                --         70,000

International Security Assistance               60,000      7,069,298
  Peacekeeping Operations (PKO)                     --        285,950
  International Military Education and
    Training (IMET)                                 --        110,000
  Foreign Military Financing (FMF) (3)          60,000      5,473,348
  Pakistan Counterinsurgency Capability
    Fund (PCCF)                                     --      1,200,000

Multilateral Economic Assistance                    --      3,307,726

  International Organizations and
    Programs                                        --        350,550

International Financial Institutions
    (IFIs)                                          --      2,957,176
  Global Environment Facility (GEF)                 --        175,000
  International Clean Technology Fund               --        400,000
  International Strategic Climate Fund              --        235,000
  International Development Association             --      1,285,000
  Enterprise for the Americas
    Multilateral Investment Fund                    --         25,000
  Inter-American Investment Corporation             --         21,000
  Asian Development Fund                            --        115,250
  African Development Fund                          --        155,940
  European Bank of Reconstruction and
    Development (EBRD) Trust Fund                   --             --
  European Bank of Reconstruction and
    Development                                     --             --
  International Fund for Agricultural
    Development                                     --         30,000
  Multilateral Investment Guarantee
    Agency                                          --             --
  Asian Development Bank                            --        106,586
  Global Food Security Fund                         --        408,400

Export & Investment Assistance                      --      (142,612)
  Export-Import Bank                                --        (9,458)
  Overseas Private Investment
    Corporation (OPIC)                              --      (189,354)
  Trade and Development Agency                      --         56,200

Related International Affairs Accounts              --         89,159
  International Trade Commission                    --         87,000
  Foreign Claims Settlement Commission              --          2,159

Department of Agriculture                           --      1,899,500
  Food for Peace Act Title II                       --      1,690,000
  McGovern-Dole International Food for
    Education                                       --        209,500

(1/) The FY 2009 Actual includes funding from the Supplemental
Appropriations Act, 2008 (P.L. 110-252), funding from the
American Recovery and Reinvestment Act of 2009, (P.L. 111-5), the
Omnibus Appropriations Act, 2009 (P.L. 111-8), and the
Supplemental Appropriations Act, 2009 (P.L. 111-32).

(2/) The FY 2010 Estimate includes funding from the Consolidated
Appropriations Act, 2010 (P.L. 111-117).

(3/) $1.8 billion in funding from the Supplemental Appropriations
Act, 2009 (P.L. 111-32) was considered to be forward funding for
FY 2010. This forward funding includes GHCS: $50 million; INCLE:
$94 million; FMF: $1,225 million.

(4/) The FY 2009 USAID Capital Investment Fund level includes $38
million transferred from the Department of State's Capital
Investment Fund under the American Recovery and Reinvestment Act
of 2009 (P.L. 111-5).


USAID Operating Expenses
                   FY 2009     FY 2010     FY 2011      Increase/
($ in thousands)   Actual *    Estimate    Request **   Decrease

USAID Operating
  Expenses         1,059,184   1,388,800   1,476,006    87,206

* The FY 2009 Actual includes bridge funding from the Supplemental
Appropriations Act, 2008 (P.L. 110-252) and the
Supplemental Appropriations Act, 2009 (P.L. 111-32).

* FY 2011 request includes $3.530 million for the Acquisition Workforce
Initiative.


For FY 2011, the $1,476 million request for the U.S. Agency for International Development (USAID) Operating Expenses (OE) will fund the administrative costs of managing USAID programs. The USAID OE budget covers salaries and benefits, overseas and Washington operations, and central support including human capital initiatives, security, and information technology. In addition, USAID expects to have $88.1 million in other funding sources in FY 2011, including carry-forward and trust funds.

This request includes funding for USAID's ongoing Development Leadership Initiative (DLI) to strengthen the U.S. Direct Hire (USDH) overseas workforce, substantially increasing Foreign Service staff to meet U.S. foreign policy objectives and support Presidential initiatives. With FY 2011 resources, USAID will recruit, hire, and train 200 new Foreign Service Officers (FSOs) in critical technical and stewardship backstops.

FY 2011 funds will cover salaries, operational expenses, and capital space expansion costs associated with the DLI, increased Civil Service staff critical to strengthening internal capacity and improving operational efficiency and service delivery, and the full operational costs for the critical priority countries of Afghanistan, Pakistan, and Iraq.

Highlights:

* Development Leadership Initiative ($354.8 million): Funding will support salaries and other operational expenses for the 200 FSOs that will be hired in FY 2011, and annualized, recurring costs of the FSOs hired in FYs 2008-10. These costs include salaries and benefits, support costs, training, facilities, space, and IT reconfiguration.

* Overseas operations ($668.9 million): Funding is included for USDH salaries and benefits for FSOs serving overseas, and costs associated with maintaining mission operations, including salaries of local staff, travel, office and residential space, and security.

* Washington operations ($265.7 million): Funding is included for USDH salaries and benefits for Civil Service and Foreign Service employees working in Washington, general office support, and advisory and assistance services.

* Central support ($231.1 million): Funding will cover information technology, office space, and other mandatory services and USAID costs.
USAID Capital Investment Fund

                   FY 2009    FY 2010    FY 2011   Increase/
($ in thousands)   Actual *   Estimate   Request   Decrease

USAID Capital
  Investment
  Fund             122,275    185,000    173,000   -12,000

* The FY 2009 Actual includes bridge funding from the Supplemental
Appropriations Act, 2008 (P.L. 110-252), the Supplemental
Appropriations Act, 2009 (P.L. 111-32), and $38 million transferred
from the Department of State's Capital Investment Fund under the
American Recovery and Reinvestment Act of 2009 (P.L. 111-5).


The FY 2011 request for the U.S. Agency for International Development (USAID) Capital Investment Fund (CIF) of $173 million will support capital investments of both information technology and facility construction. The USAID Operating Expense account funds the annual operating and maintenance costs of information systems and facilities infrastructure.

Highlights:

* Facility Construction ($122.1 million): Funding will support USAID's full cost of participation in the Capital Security Cost Sharing Program. The Secure Embassy Construction and Counterterrorism Act of 1999 (P.L. 106-113) requires USAID to co-locate on new embassy compounds. The FY 2011 request will support the building of four new embassy compounds in countries with USAID presence.

* Information Technology ($50.9 million): Funding will support investments to modernize antiquated software systems, enhance business infrastructure, participate in E-Government initiatives, and improve USAID's reporting systems. These investments advance USAID's reform efforts to improve operational efficiency.

USAID Inspector General Operating Expenses
                      FY 2009    FY 2010    FY 2011   Increase/
($ in thousands)      Actual *   Estimate   Request   Decrease

USAID Inspector
  General Operating
  Expenses            46,500     46,500     46,500    0

* The FY 2009 Actual includes bridge funding from the Supplemental
Appropriations Act, 2008 (P.L. 110-252) and the
Supplemental Appropriations Act, 2009 (P.L. 111-32).


The FY 2011 request of $46.5 million for the Office of Inspector General (OIG) for the U.S. Agency for International Development (USAID) covers salaries and benefits for Washington and overseas staff, and operating expenses. The funding supports audit and investigative coverage of USAID, the African Development Foundation (ADF), and the Inter-American Foundation (IAF) programs and activities. This mandatory oversight responsibility involves auditing USAID, ADF, and IAF annual financial statements and information security management, and reviewing USAID's implementation of the American Recovery and Reinvestment Act of 2009 (P.L. 111-5).

In addition to oversight, OIG will focus its FY 2011 resources on USAID's high-priority development programs in Iraq, Afghanistan, Pakistan, and West Bank/Gaza. These programs include promoting economic growth, education, health, good governance, and democracy. This funding will also support OIG's oversight of USAID's programs to combat HIV/AIDS, malaria, and tuberculosis.

OIG assists USAID, ADF, and IAF in implementing their programs by providing information and recommendations to improve program and operational performance and to detect and prevent waste, fraud, and abuse in agency programs. OIG also works with these three agencies to protect and maintain the integrity of their organizations and programs.

Global Health and Child Survival
                                            FY 2009      FY 2010
           ($ in thousands)                Actual *     Estimate

Global Health and Child Survival--USAID   2,180,000    2,420,000
Forward Funding in FY 2009 Supplemental    (50,000)       50,000

Adjusted Global Health and Child          2,130,000    2,470,000
Survival--USAID

Global Health and Child Survival--State   5,159,000    5,359,000
Global Health and Child Survival          7,289,000    7,829,000

                                            FY 2011    Increase/
           ($ in thousands)                 Request     Decrease

Global Health and Child Survival--USAID   3,013,000      593,000
Forward Funding in FY 2009 Supplemental          --           --

Adjusted Global Health and Child          3,013,000      543,000
Survival--USAID

Global Health and Child Survival--State   5,500,000      141,000
Global Health and Child Survival          8,513,000      684,000

* The FY 2009 Actual includes bridge funding from the
Supplemental Appropriations Act, 2008 (P.L. 110-252) and the
Supplemental Appropriations Act, 2009 (P.L. 111-32).


The Global Health and Child Survival account funds health-related foreign assistance managed by the Department of State and the U.S. Agency for International Development (USAID). The request is divided into two sections: USAID-managed and State-managed. The FY 2011 Budget reflects a comprehensive and integrated global health strategy to implement the Administration's Global Health Initiative (GHI) and its overall emphasis on improving health outcomes through the adoption of a woman- and girl-centered approach; increasing impact through strategic coordination and integration; strengthening and leveraging key multilateral organizations and global health partnerships; encouraging country ownership and investing in country-led plans; building sustainability through investments in health systems strengthening improving metrics, monitoring, and evaluation; and promoting research, development, and innovation. In implementing these programs, USAID and State will continue working to enhance the integration of quality interventions with the broader health and development programs of the USG, country partners, multilateral organizations, and other donors. For all programs described below, resources will be targeted toward countries with the highest need, demonstrable commitment to achieve sustainable health impacts, and the greatest potential to leverage USG programs and platforms, as well as those of other partners and donors, and targeted to achieve ambitious outcomes on global health indicators.

Global Health and Child Survival--USAID

The Global Health and Child Survival request for USAID managed programs (GHCS USAID) of $3,013 million reflects the President's commitment to a comprehensive approach for global health programs as outlined in the Global Health Initiative. Expansion of basic health services and strengthening national health systems are key investments that significantly improve people's health, especially that of women, newborns, children, and other vulnerable populations. USAID will continue to focus on scaling-up proven interventions and approaches to assure effective, efficient and sustainable health results.

Highlights:

$700 million for Maternal Health and Child Health programs, focusing on working with country and global partners to increase the wide-spread availability and use of proven life-saving interventions and to strengthen the delivery platforms to ensure the long term sustainability of these programs. Every year in developing countries, 8.8 million children die, two-thirds of which are preventable and 530,000 mothers die from complications related to pregnancy or childbirth. USAID will extend coverage of proven, high-impact interventions to the most-vulnerable populations. Priority interventions include essential newborn care; immunization; polio eradication; oral rehydration; prevention and treatment of diarrhea, pneumonia and newborn infections; and point-of-use water treatment and other interventions to improve household-level water supply, sanitation, and hygiene. The maternal health program will scale up resources to combat maternal mortality with expanded coverage of preventive and life-saving interventions such as prevention and management of post-partum hemorrhage; hypertensive disorders of pregnancy and sepsis; and anemia; with simultaneous investment in building the longer-term human resource and system capability required to provide comprehensive obstetric care. The MCH program will also actively invest in integrating across all health programs, particularly family planning, nutrition and infectious diseases.

$680 million for Malaria programs, to continue the comprehensive strategy, launched in the President's Malaria Initiative (PMI) that combines prevention and treatment approaches and integrates these interventions with other priority health services. Annually, 900,000 people die of malaria and 300 million people are newly infected. USAID will continue to scale up malaria prevention and control activities and invest in strengthening delivery platforms with the goal of reducing the burden of malaria illnesses and deaths by half in up to 22 African countries, including both Nigeria and the Democratic Republic of Congo. PMI will support host countries' national malaria control programs and strengthening local capacity to expand use of four highly effective malaria prevention and treatment measures. These measures include indoor residual spraying, use of long-lasting insecticide-treated bed nets, application of artemisinin-based combination therapies, and implementation of interventions to address malaria in pregnancy. The program will focus on reaching 85% of pregnant women and children under five in the up to 22 countries in which it is active. In addition, the PMI will continue to support the development of malaria vaccine candidates, new malaria drugs and other malaria-related research with multilateral donors.

$590 million for Family Planning and Reproductive Health, focusing on programs that improve and expand access to high-quality voluntary family planning services and information, as well as other reproductive health care and priority health services. Annually, 52 million women experience unintended pregnancies and 22 million women obtain abortions. Family planning (FP) is an essential health intervention for mothers and children, contributing to reduced maternal mortality, healthier children (through breastfeeding), and reduced infant mortality (through better birth spacing). Activities will support the key elements of successful FP programs, including: creating demand for modern family planning services through behavior change communication; commodity supply and logistics; service delivery; policy analysis and planning; biomedical, social science, and program research; knowledge management; and monitoring and evaluation. Priority areas include: FP/MCH and FP/HIV integration; contraceptive security; community-based approaches for family planning and other health services, expanding access to long-acting and permanent prevention methods, especially implants; promoting healthy birth spacing; and cross-cutting issues of gender, youth, and equity.

$350 million to fight the global HIV/AIDS epidemic by supporting USAID field programs, providing critical technical leadership, and conducting essential operational research. Funding will contribute to the President's Emergency Plan for AIDS Relief (PEPFAR) to focus on HIV/AIDS treatment, prevention, and care interventions in over 90 countries worldwide--including support for orphans and vulnerable children affected by the epidemic. USAID collaborates closely with the Office of the U.S. Global AIDS Coordinator and other U.S. government agencies to ensure that activities funded under this account complement and enhance efforts funded through the State Department.

$200 million for Nutrition. More than 200 million children under age five and one of three women in the developing world suffer from undernutrition. Nutrition activities will be linked with the Global Hunger and Food Security Initiative and evidence-based interventions that focus on prevention of undernutrition through integrated services that provide nutrition education to improve maternal diets, nutrition during pregnancy, exclusive breastfeeding, and infant and young child feeding practices; diet quality and diversification through fortified or biofortified staple foods, specialized food products, and community gardens; and delivery of nutrition services including micronutrient supplementation and community management of acute malnutrition.

$230 million for Tuberculosis (TB) programs, which address a disease that is a major cause of death and debilitating illness throughout much of the developing world. Globally, 1.7 million people die from TB and there are 9.2 million new cases of TB each year. Annually, there are approximately 500,000 cases of multi-drug resistant (MDR) TB. Country-level expansion and strengthening of the Stop TB Strategy will continue to be the focal point of USAID's TB program, including increasing and strengthening human resources to support Directly Observed Treatment, Short Course (DOTS) implementation, preventing and treating TB/HIV as well as partnering with the private sector in DOTS. In particular, activities to address MDR and extensively drug resistant TB will continue to be accelerated, including the expansion of diagnosis and treatment, and infection control measures. USAID collaborates with the Office of the U.S. Global AIDS Coordinator and other USG agencies to integrate health services and strengthen delivery platforms to expand coverage of TB/HIV co-infection interventions including HIV testing of TB patients and effective referral, TB screening of HIV patients and implementation of intensified case finding for TB, TB infection control and, where appropriate, Isoniazid Preventive Therapy.

$155 million for Neglected Tropical Diseases (NTDs), every year, 400,000 people die from NTDs; 1 billion suffer from one or more tropical diseases, causing severe disability and hindering cognitive development. The NTD program will work with country partners to strengthen delivery platforms, particularly at the community level and integrate NTD activities with other priority health interventions to deliver treatments for seven of the highly prevalent NTDs through targeted mass drug administration, and training of community-based and professional health care workers. The vast majority of these drugs are centrally negotiated by USAID with the private sector, which provides hundreds of millions of dollars' worth of medication each year to reduce the burden of seven debilitating NTDs, including onchocerciasis (river blindness), trachoma, lymphatic filariasis, schistosomiasis, and three soil-transmitted helminthes. Building on this strong base of scaled-up integrated programs, this request also includes funding to initiate programs to target elimination of one or more of the diseases.

$75 million for Pandemic Influenza and other Emerging Threats programs which will focus on mitigating the possibility that a highly virulent virus such as H5N1 could develop into a pandemic while responding to the current H1N1 influenza pandemic by strengthening countries' ability to detect cases and conduct appropriate control measures. In particular, activities will expand surveillance to address the role of wildlife in the emergence and spread of new pathogens; enhance field epidemiological training of national partners; strengthen laboratory capability to address infectious disease threats; broaden ongoing efforts to prevent H5N1 transmission; and strengthen national capacities to prepare for the emergence and spread of a pandemic.

$18 million for Other Public Health Threats will enable USAID to respond to infectious disease outbreaks, provide improvements in infectious disease surveillance, expand efforts to control antimicrobial resistance, and global and country level activities to monitor the quality of drugs.

$15 million for Vulnerable Children programs for the Displaced Children and Orphans Fund (DCOF) and the Child Blindness program. DCOF supports projects that strengthen the economic capacity of vulnerable families to protect and provide for the needs of their children, strengthen national child protection systems, and facilitate family reunification and social reintegration of children separated during armed conflict, including child soldiers, street children and institutionalized children. The Agency's Child Blindness Program will provide eye health education, comprehensive vision screening, refractive error correction, sight-restoring surgery, and education for blind children.

From within the overall account, a GHI Strategic Reserve Fund will be established for use in up to ten GHI Partner Plus countries in FY 2011. The Fund will be used to supplement and accelerate efforts to improve primary and specialty care health outcomes, with a focus on women, newborns and children, and will provide resources to Partner Plus countries above and beyond the current, growing baseline program allocations from PEPFAR, PMI, Maternal and Child Health, Family Planning, and Nutrition. Partner Plus countries will be selected based on the following criteria: (1) existence of health information system with basic functionality; (2) presence of at least four robust health programs among MCH, Family Planning, Nutrition, HIV/AIDS, Malaria, Neglected Tropical Diseases, and clean water and sanitation; (3) potential to leverage bilateral, multilateral, and foundation investments; (4) potential to leverage other U.S. Government development investments, such as the Global Food Security Initiative; (5) regional diversity to maximize learning opportunities; and (6) a focus on reaching low-income countries.

Resources for the GHI Fund will be drawn from a combination of global health programmatic areas across USAID and PEPFAR programs, totaling $200 million. The resources comprising the GHI Fund will be dedicated to the achievement of a portfolio of outcomes across programmatic areas, and the creation of an integrated platform to develop a full range of health services.

Global Health and Child Survival--State

The Global Health and Child Survival--State managed (GHCS-State) account is the largest source of funding for the President's Emergency Plan for AIDS Relief (PEPFAR), which is overseen and coordinated by the U.S. State Department's Office of the U.S. Global AIDS Coordinator (OGAC). PEPFAR was launched in 2003 as the largest effort by any nation to combat a single disease. In its first phase, PEPFAR focused on establishing and scaling up HIV/AIDS prevention, care and treatment programs. In FY 2009, PEPFAR began to shift to an emphasis on achieving prevention, care, treatment goals while also strengthening health systems, including new health care worker goals, and emphasizing country ownership, in order to build a long-term sustainable response to the epidemic. As part of the overall Global Health Initiative, in FY 2010, FY 2011 and the following years of the program, PEPFAR funding will be used to support partner countries in expanding programmatic successes while increasing capacity of partner countries in managing, overseeing, and operating health systems. PEPFAR will support countries in increasing access to HIV/AIDS services through a comprehensive, multisectoral approach; continue the transition from an emergency response to promoting sustainable programs that are country-owned and -driven; address HIV/AIDS within a broader health and development context; and increase efficiencies in programming.

The FY 2011 GHCS-State request includes funding for country-based HIV/AIDS activities, technical support/strategic information and evaluation, international partners, and oversight and management. The request is for $5,500 million, $141 million above the FY 2010 enacted level. PEPFAR implementation involves the Department of State, USAID, the Peace Corps, and the Departments of Health and Human Services, Defense, Commerce, and Labor, as well as local and international nongovernmental organizations, faith- and community-based organizations, private sector entities, and partner governments.

Highlights:

$4,354 million will support integrated HIV/AIDS prevention, care, and treatment and other health systems strengthening programs in all PEPFAR-supported countries. This request includes support for the ongoing implementation of the "Partnership Framework" model, with the goal of strengthening the commitment and capacity of partner governments in the fight against HIV/AIDS. These frameworks outline expected partner contributions over the life of the arrangement, linking USG, partner country and other multilateral and bilateral resources to achieve long-term results in service delivery, policy reform and financing for HIV/AIDS, and related issues to foster an effective, harmonized and sustainable HIV/AIDS response. Multiyear USG resource plans under the Partnership Frameworks are noted as pending approval through the annual Congressional appropriations process.

PEPFAR programs for HIV/AIDS prevention, treatment, and care support the Administration's overall emphasis on improving health outcomes, increasing program sustainability and integration, and strengthening health systems. Programs work by expanding partnerships with countries and building capacity for effective, innovative, and sustainable services; creating a supportive and enabling policy environment for combating HIV/AIDS; and implementing strong monitoring and evaluation systems to identify effective programs and best practices, determine progress toward goals, and ensure alignment with PEPFAR strategies. PEPFAR programs support scale-up of HIV/AIDS services within the context of strengthened health systems, particularly in terms of human resources for health in nations with severe health worker shortages, in order to effectively implement HIV/AIDS prevention, treatment, and care programs. In implementing these programs, PEPFAR will continue working to enhance the integration of quality interventions with the broader health and development programs of the USG, country partners, multilateral organizations, and other donors. Through activities like co-location of services and expanded training of health sector workers, PEPFAR is increasing access to overall care and support for infected and affected individuals.

Of these funds, $100 million will be allocated through the GHI Partner Plus Strategic Fund, described above. Through this investment, PEPFAR will be further integrated into overall USG efforts to accelerate implementation of GHI principles in several countries, particularly through efforts to expand prevention of mother-to-child transmission of HIV/AIDS, improve early infant diagnosis, and strengthen the ability of country-level health systems to integrate HIV/AIDS care with basic primary and specialty services.

$745 million will support international partnerships, including a $700 million contribution to the Global Fund to Fight AIDS, Tuberculosis and Malaria and a $45 million contribution to UNAIDS. (Separate from this request, the Department of Health and Human Services' National Institutes of Health budget request includes a contribution of $300 million to the Global Fund, for a total FY 2011 contribution of $1 billion.) PEPFAR will continue to expand multilateral engagement with the goal of strengthening these institutions and leveraging their work to maximize the impact of country programs.

$164 million will support oversight and management costs incurred by USG agency headquarters including: supporting administrative and institutional costs; management of staff at headquarters and in the field; management and processing of cooperative agreements and contracts; and the administrative costs of the Office of the U.S. Global AIDS Coordinator.

$237 million for technical support, strategic information and evaluation costs including funding that will support central technical support and programmatic costs and strategic information systems that are used to monitor program performance, track progress, and evaluate the effectiveness of interventions. PEPFAR aims to support the expansion of the evidence base around HIV interventions, as well as broader health systems strengthening, in order to support sustainable, country-led programs. While PEPFAR is not a research organization, the program is working to expand its partnerships with implementers, researchers, and academic organizations to help inform public health and clinical practice. Technical leadership and direct technical assistance activities (including scientific quality assurance) are supported for a variety of program activities, including: antiretroviral treatment, prevention (including sexual transmission, mother-to-child transmission, medical transmission, and testing and counseling), and care (including programs for orphans and vulnerable children and people living with or affected by HIV/AIDS), as well as cross-cutting efforts such as human capacity development, training for health care workers, and supply chain management.

Development Assistance
                         FY 2009     FY 2010     FY 2011     Increase/
($ in thousands)         Actual *    Estimate    Request     Decrease

Development Assistance   2,000,000   2,520,000   2,980,896   460,896

* The FY 2009 Actual includes bridge funding from the Supplemental
Appropriations Act, 2008 (P.L. 110-252) and the
Supplemental Appropriations Act, 2009 (P.L. 111-32).


The FY 2011 request for Development Assistance (DA) of $2,980.9 million will fund programs in countries that face a range of complex, long-term development challenges. DA-funded programs are coordinated with the Millennium Challenge Corporation programs and other international affairs agencies. As a mutually reinforcing array of foreign assistance activities, these programs advance and sustain overall U.S. development goals in targeted countries. DA-funded programs support United States engagement with developing countries on critical global issues such as efforts to improve food security and to address the causes and impacts of climate change. Programs funded through this account represent the core United States contribution to international efforts working to achieve the Millennium Development Goals.

Programs funded under the DA account will support the efforts of host governments and their private sector and non-governmental partners to implement the systemic political and economic changes needed for sustainable development progress. Requests for significant increases in individual bilateral DA programs will be focused on countries that demonstrate commitment to improving transparent, accountable, and responsible governance, where U.S. assistance is most likely to produce significant and sustainable development results.

In FY 2011, the DA request will fund programs in the areas of education, economic growth, and democracy and governance. Economic growth programs promote poverty reduction by opening markets, pursuing ambitious trade and investment agendas, assisting reform-minded governments to build the capacity to implement and sustain economic reforms effectively, and multiplying development efforts through private sector participation and recipient country accountability. DA will also support democracy and governance programs which vary based on the challenges present in each country, but include building political parties and supporting civil society to challenge closed regimes, sustaining the work of human rights defenders, supporting independent media, promoting government that is effective and legitimate, strengthening the rule of law, and advancing anti-corruption measures.

Highlights:

The Administration's principal priorities for increases in DA funding in FY 2011 include:

* Global Hunger and Food Security Initiative (GHFSI): U.S. assistance will support investments that tackle the root causes of hunger, improve food security, and permanently reduce the number of chronically hungry and malnourished by: sustainably increasing agricultural productivity; linking farmers to markets in order to improve availability of food within countries and across regions; increase incomes so the poor can purchase enough food; and reduce under-nutrition through targeted interventions that assist the most vulnerable. Funding will be used to increase the effectiveness of emergency assistance by strengthening the capacity of countries to anticipate and prevent hunger-related emergencies over time. Assistance in the agriculture sector will focus on increasing incomes to producers, in particular the rural poor and women, through expanded agricultural research and development, increased agricultural productivity and improved post-harvest agricultural activities leading to rapid rural economic growth, expanded trade, and improved household nutrition. Assistance will be aligned and tailored to the needs of individual countries through country-led consultative processes and investment plans such as those developed under the Comprehensive African Agriculture Development Program, and coordinated with other donor efforts in accordance with the G-8's L'Aquila commitments and principles. The initiative will deploy both bilateral and multilateral mechanisms to leverage additional resources and deliver them more effectively to recipient countries. This initiative, while funded predominantly out of the DA account, will also be funded through the Economic Support Fund and the Assistance for Europe, Eurasia and Central Asia accounts.

* Helping vulnerable populations adapt to the impacts of climate change while reducing greenhouse gas emissions and other factors that contribute to climate change. Programs will help countries better monitor the effects of climate change, as well as develop and implement effective strategies for mitigating the impact on vulnerable populations. Programs will also support reforms and capacity-building to promote the rapid adoption of renewable and other clean energy technologies, such as reducing greenhouse gas emissions while improving local environmental conditions. Continued support, through funding for sustainable forestry and land use practices, will preserve and expand natural carbon sinks, reduce emissions, and protect biodiversity.

* Education is a powerful vehicle for promoting peace and stability, reducing poverty and inequality, improving health, and laying a foundation for sustained economic growth and participatory democracy. Basic education includes all efforts aimed at improving early childhood development, primary education, and secondary education (delivered in formal or informal settings), as well as training for teachers working at any of these levels. Basic education also includes training in literacy, numeracy, and other basic skills for adults and out-of-school youth. These elements help learners gain the general skills and basic knowledge needed to function effectively in all aspects of life. Higher education activities strengthen the capacities of universities, community colleges, research institutes, and teacher-training colleges to teach, train, conduct research, and provide community service, to contribute to development, and to promote professional development opportunities, institutional linkages, and exchange programs. Priorities for education interventions include programs that support access and equity; quality and relevance of education programming; necessary policy reforms; and accountability, transparency, and measurement of results.

International Disaster Assistance
                         FY 2009     FY 2010     FY 2011     Increase/
($ in thousands)         Actual *    Estimate    Request     Decrease

International Disaster
  Assistance             820,000     845,000     860,700     15,700

* The FY 2009 Actual includes bridge funding from the Supplemental
Appropriations Act, 2008 (P.L. 110-252) and the
Supplemental Appropriations Act, 2009 (P.L. 111-32).


The FY 2011 International Disaster Assistance (IDA) request of $860.7 million will provide humanitarian relief, rehabilitation, and reconstruction in foreign countries affected by natural and man-made disasters, and for activities that manage and reduce the vulnerability to disaster hazards. Natural disasters, civil strife, adverse climate changes, the global economic downturn, food insecurity, and prolonged displacement of populations will continue to hinder the advancement of development and stability. The IDA request will enable the U.S. Government to meet humanitarian needs quickly and support mitigation and preparedness programs to address threats to stability wherever and whenever they arise. The request includes $300 million for emergency food security, which may be used for local and regional purchase of food and other interventions, such as cash voucher and cash transfer programs to facilitate access to food.

With IDA funds, the U.S. Government provides safe drinking water, basic health services, shelter, household commodities, seeds, tools, and livelihoods assistance to millions of people in dozens of countries annually. Beneficiaries include disaster- and conflict-affected individuals, and internally displaced persons. By reducing the impact of disasters, IDA-funded programs alleviate suffering, save lives, and demonstrate the generosity and goodwill of the American people.

In addition, since 2008, when primary Federal responsibility for U.S. disaster assistance under the Compact of Free Association between the United States and the Republic of the Marshall Islands (RMI) and the Federated States of Micronesia (FSM) transferred from the Department of Homeland Security's Federal Emergency Management Agency (FEMA) to USAID, USAID has been responsible for certain necessary recurring and non-recurring costs. (1) Recurring costs are estimated at up to $2 million annually for IDA. (2)

Transition Initiatives
                         FY 2009   FY 2010    FY 2011   Increase/
($ in thousands)         Actual    Estimate   Request   Decrease

Transition Initiatives   50,000   55,000     48,000    -7,000


The FY 2011 request of $48 million for the Transition Initiatives (TI) account will be used to address the opportunities and challenges facing conflict-prone countries and those making the transition from the initial crisis stage of a complex emergency to sustainable development and democracy.

TI funds are focused on advancing peace and stability, including promoting responsiveness of central governments to local needs, civic participation programs, media programs raising awareness of national issues, addressing underlying causes of instability, and conflict resolution measures.

Complex Crises Fund
                         FY 2009   FY 2010    FY 2011   Increase/
($ in thousands)         Actual    Estimate   Request   Decrease

Complex Crises Fund      0         50,000     100,000   50,000


The FY 2011 request for the Complex Crises Fund (CCF) of $100 million will support activities to prevent or respond to emerging or unforeseen crises that address reconstruction, security, or stabilization needs. Funding will target countries or regions that demonstrate a high or escalating risk of conflict or instability, or an unanticipated opportunity for progress in a newly-emerging or fragile democracy. Projects will aim to address and prevent root causes of conflict and instability through a whole-of-government approach and will include host government participation, as well as other partner resources, where possible and appropriate.

CCF funds will be focused on advancing peace and stability and will replace funding formerly provided through the Department of Defense Section 1207 authority.

Development Credit Authority
                                                FY 2009     FY 2010
              ($ in thousands)                 Actual *    Estimate

Development Credit Authority--Administrative
Expenses                                          8,000       8,600

Development Credit Authority--Transfer
Authority                                      [54,000]    [25,000]

                                                FY 2011    Increase/
              ($ in thousands)                  Request     Decrease

Development Credit Authority--Administrative
Expenses                                          8,300         -300

Development Credit Authority--Transfer
Authority                                      [35,000]        5,000

* FY 2009 Actual includes transfer authority provided in the
Supplemental Appropriations Act, 2009 (P.L. 111-32).


The FY 2011 request includes $35 million in Development Credit Authority (DCA) transfer authority to provide loan guarantees in all regions and sectors targeted by the U.S. Agency for International Development (USAID), and $8.3 million for DCA administrative expenses. DCA transfer authority allows field missions to transfer funds from USAID appropriation accounts to the DCA program account to finance the subsidy cost of DCA partial credit guarantees. These projects allow credit to be used as a flexible tool for a wide range of development purposes, and can help to promote broad-based economic growth in developing and transitional economies. DCA guarantees augment grant assistance by mobilizing private capital for sustainable development projects. In coordination with related technical assistance, it supports host countries in financing their own development.

The ability of DCA projects to leverage assistance resources is significant. To date, DCA has been used to mobilize in excess of $1.8 billion in local private financing at a budget cost of $61 million. DCA transfer authority has enabled more than 62 USAID missions to enter into over 220 guarantee agreements in virtually every development sector. DCA projects have proven very effective in channeling resources to microenterprises, small- and medium-scale businesses, farmers, healthcare providers, and certain infrastructure sectors, most notably clean energy. Furthermore, DCA partial guarantees have encouraged commercial banks and other mainstream financial institutions to lend to microfinance institutions, enabling the latter to expand their own lending in the micro-credit environment and thereby reduce their reliance on grants. DCA guarantees have also been targeted toward responding to the global financial crisis by providing guarantees to spur lending to micro-, small-, and medium-sized enterprises.

In FY 2011 DCA will continue to promote the flow of credit to microfinance institutions, small and medium enterprises, agriculture, energy-efficiency projects and municipalities. DCA will support small- and medium-sized enterprises by issuing joint guarantees with the Swedish International Development Cooperation Agency in selected countries. DCA will work with the Japan International Cooperation Agency to support much needed financing of water and sanitation facilities in Indonesia, the Philippines, Vietnam, Jamaica, and Tanzania. DCA will also explore equity/debt funding in partnership with the Gates and Rockefeller Foundations to mobilize private sector funding for food security and smallholder farming in Africa.

In accordance with the Federal Credit Reform Act of 1990 (2 U.S.C. sec. 661), the request for credit administrative expenses will fund the total cost of development, implementation, and financial management of the DCA program, as well as the continued administration of USAID's legacy credit portfolios which amount to more than $20 billion.

Economic Support Fund
($ in        FY 2009     FY 2010     FY 2010     FY 2011     Increase/
thousands)   Actual *    Estimate    Supp        Request     Decrease

Economic
  Support
  Fund       7,116,901   6,344,000   1,820,000   7,811,982   1,467,982


The FY 2011 Economic Support Fund (ESF) request of $7,811.9 million advances U.S. interests by helping countries meet short- and long-term political, economic, and security needs. These needs are addressed through a range of activities, from countering terrorism and extremist ideology to increasing the role of the private sector in the economy; assisting in the development of effective, accessible, independent legal systems; supporting transparent and accountable governance; and the empowerment of citizens.

Highlights:

The Administration's strategic priorities for ESF funding in FY 2011 include:

Sub-Saharan Africa ($594.3 million): The FY 2011 request includes funding for programs that support conflict mitigation and reconciliation, improved governance, basic education, and economic growth in key African countries. The focus countries in Africa include:

* Sudan ($270.2 million): The FY 2011 request will continue to support the Comprehensive Peace Agreement (CPA), post-referendum and post-CPA priorities, and peace processes in Darfur. Funds will mainly support conflict mitigation and reconciliation, consensus building between leaders and constituencies, good governance, anti-corruption efforts, basic education, and rebuilding of infrastructure.

* Liberia ($137.3 million): The FY 2011 request focuses on improving governance, expanding basic and higher education, increasing food security, developing the private sector, rehabilitating market roads, conserving biodiversity, and providing clean water.

* Democratic Republic of the Congo ($64.2 million): The request will support conflict mitigation, basic education, agriculture, decentralization reforms, legislature capacity building, and rule of law and human rights programs to support a democratic Congo that provides for the basic needs of its citizens.

* Zimbabwe ($50.2 million): The FY 2011 request will contribute to strengthening the rule of law and human rights, improving governance, strengthening civil society, improving food security, and supporting the private sector and economic recovery. Support for Zimbabwe assumes that there will continue to be progress in reforming the political system under a reform-minded transitional government.

East Asia and the Pacific ($61.3 million): The FY 2011 request includes funding to strengthen democracy and economic development in the region.

* Burma ($34.8 million): The request will focus on U.S. assistance inside and outside of the country to increase human rights, civic participation, and access to information; aid displaced persons, refugees, and migrants who have been driven from their homes; and address the need for humanitarian assistance and educational opportunities inside and outside Burma.

* East Asia and Pacific Regional ($14.1 million): The FY 2011 request will support partnerships with key regional multilateral organizations such as the Asia-Pacific Economic Cooperation (APEC) Forum, the Association of Southeast Asian Nations (ASEAN), and the ASEAN Regional Forum. These programs will help fulfill the President's commitments to APEC during the U.S. host year in 2011, as well as the United States-ASEAN Enhanced Partnership.

Europe and Eurasia ($11.0 million): The FY 2011 request for Europe and Eurasia is for Cyprus and is focused on encouraging the eventual reunification of the island by building support for the peace process, increasing the capacity of civil society to advocate for reconciliation and reunification, and furthering the economic integration of the island.

Near East ($1,671 million): The FY 2011 request includes funding to support democratic reform and political institution building in the Middle East, and to help address the economic despair and lack of opportunity exploited by extremists.

* West Bank and Gaza ($400.4 million): The FY 2011 request will strengthen the Palestinian Authority (PA) as a credible partner in Middle Eastern peace and continue to respond to humanitarian needs in Gaza. Assistance will provide significant resources to support the stability of the PA, economic development of the West Bank, and increase the capacity of the PA to meet the needs of its people.

* Iraq ($383.0 million): The FY 2011 request will support the President's goal of a sovereign, stable, and self-reliant Iraq. This request will support capacity-building efforts in the central and provincial governments, assist with reintegration of Iraqis returning to their communities, fund anti-corruption programs, provide technical assistance and election support, and promote broad-based economic growth and diversification, including through developing Iraq's agriculture sector and strengthening Iraq's private sector economy.

* Jordan ($360.0 million): The FY 2011 request will advance political reforms; build technical capacity of the local and national governments; and support improvements in basic education, health, youth and water, and sanitation services in Jordanian communities.

* Egypt ($250.0 million): The FY 2011 request will support development objectives in Egypt, as well as political and economic reforms. Funds will improve coverage of primary health care among underserved populations, build sustainable systems to expand and enhance education, and support Egypt's transition to a market-oriented, private-sector led economy. Funding will also support increased public participation, while promoting human rights, civic education, and administration of and access to justice.

* Lebanon ($109.0 million): The FY 2011 request supports Lebanon's democracy by fostering credible, transparent institutions at all levels; strengthening the role of an active civil society; supporting the independence and efficiency of the judicial system; and promoting tolerance and rejecting extremism. Funds will also be used to educate youth, create employment opportunities, and expand access to microfinance.

South Asia ($4,677 million): The FY 2011 request includes funding for economic reconstruction and development, democracy building, good governance, and stabilization initiatives.

* Afghanistan ($3,316 million): The FY 2011 request will build the capacity of the Afghan government to deliver services to its people and promote economic opportunities within Afghanistan to counter the threats posed by extremists. These resources will deliver high impact economic assistance--with a particular focus on the agriculture sector--to create jobs, improve livelihoods, reduce the funding that the Taliban receives from poppy cultivation, and draw insurgents off the battlefield.

* Pakistan ($1,321 million): Funding will support programs that help build a secure, stable, and prosperous Pakistan. This assistance will enhance the Government of Pakistan's ability to provide immediate social services and economic assistance, particularly in areas most vulnerable to extremist influence and activities. High-impact infrastructure efforts, particularly in energy and water, will help Pakistan recover from its energy and water crisis, improve the daily lives of the Pakistani people and increase opportunities for economic advancement.

Western Hemisphere ($456.3 million): The FY 2011 request will enhance security, strengthen democratic institutions, invest in people, and promote prosperity.

* Colombia ($203.0 million): The FY 2011 request will help consolidate the gains made to date by the Government of Colombia in its fight against illegal armed groups and narcotics trafficking by strengthening its institutional capacity to provide security, economic, and social development. U.S. assistance will focus on alternative development, enhance the capabilities of justice personnel, strengthen the criminal justice system, support internally displaced persons and vulnerable populations, and expand economic opportunity for populations at risk, all in carefully identified strategic geographic zones in which violence, illicit crop cultivation, and drug trafficking converge.

* Haiti ($146.3 million): On January 12, 2010 an immense earthquake struck Haiti with devastating impact, creating unforeseen program and resource needs. The Administration is evaluating current and future needs in Haiti in the aftermath of this disaster. Prior to the earthquake, funding in the FY 2011 request was intended to catalyze economic growth by investing in agriculture and energy development and to ensure long-term stability by building capacity and effectiveness of public health and security institutions.

* Cuba ($20.0 million): The FY 2011 request will continue to promote self-determined democracy in Cuba. Funds will be used to provide humanitarian assistance to political prisoners, their families, and other victims of repression; advance human rights; strengthen independent civil society organizations; and support information sharing into and out of Cuba.

Global Programs ($340.7 million): The FY 2011 ESF request funds programs that are implemented worldwide.

* Human Rights and Democracy Fund ($70.0 million): The FY 2011 request will promote democracy in priority countries in which egregious human rights violations occur, democracy and human rights advocates are under pressure, governments are not democratic or are in transition, and the demand for respect for human rights and democracy is growing.

* Global Engagement ($100.0 million): Funding under Global Engagement will support programs of cooperation with governments and the private sector to find sustainable solutions to a broad array of issues. Many initial activities will focus on countries with significant Muslim populations to support the President's objective of forging a new beginning with Muslims around the world. Program activities will expand economic opportunity by supporting job creation, entrepreneurship, and other paths to economic progress; help build the capacity to develop and apply new scientific technologies for innovation, progress, growth, and cooperation; and advance human development by empowering both women and youth to participate in and contribute to the economic and social progress of their communities. Programs will emphasize collaboration and partnership with local stake-holders as well as integrated and cross-cutting approaches to development challenges.

Economic Growth, Agriculture and Trade ($42.1 million): The FY 2011 request will support critical Research and Development (R&D) under the Global Hunger and Food Security Initiative (GHFSI). Demand- and market-driven R&D will help to increase agricultural productivity and raise the incomes of poor rural households. This request also supports the Administration's export promotion efforts. Funds will assist the governments of key emerging markets to streamline customs and other import procedures in order to reduce trade transactions costs in those markets. Some funding may be transferred to other specialized technical agencies, such as U.S. Customs and Border Protection.

Assistance for Europe, Eurasia and Central Asia
                         FY 2009    FY 2010    FY 2011   Increase/
($ in thousands)         Actual *   Estimate   Request   Decrease

Assistance for Europe,
  Eurasia and Central
  Asia                   922,000    741,632    716,354   -25,278

* The FY 2009 Actual includes funding from the Supplemental
Appropriations Act, 2009 (P.L. 111-32).


The FY 2011 budget request for Assistance for Europe, Eurasia and Central Asia (AEECA) of $716.4 million supports the United States' efforts to stabilize and transition Southeastern Europe and the independent states of the former Soviet Union to become stable, pluralistic, and prosperous countries.

Europe

For Southeastern Europe, the FY 2011 request supports efforts to promote peace and stability in the region and further Euro-Atlantic integration through efforts to bolster democratic institutions, strengthen the rule of law, encourage tolerance, and promote economic development through enhanced trade, investment, and job creation. The FY 2011 request includes additional resources for Bosnia and Herzegovina to help improve its uneven progress on reform and support international efforts to shore up stability. Programs supported by this funding will foster more effective government structures and help expand economic opportunity by bolstering the capacity of the private sector to produce jobs and economic growth. While ensuring the success of Kosovo's emergence as an independent state in 2008 remains a top priority, the FY 2011 request level reflects a normalization of the U.S. bilateral assistance program and a return to a more appropriate steady-state level for Kosovo. Other priorities include funding to strengthen reforms in Serbia and consolidate and secure progress achieved in Macedonia, Albania, and Montenegro.

Eurasia

U.S. assistance programs in Eurasia focus on encouraging the emergence of democratic countries with market-based economies, and the FY 2011 request prioritizes funding to support reform-oriented countries in the region as they continue moving toward European integration. Because Georgia's major infrastructure and immediate recovery needs in the wake of the August 2008 conflict with Russia will have been met in FY 2011, the FY 2011 funding for Georgia will focus on sustaining the longer-term efforts begun with supplemental funding in FY 2008 and FY 2009 to build solid democratic institutions, provide the tools for broad-based economic growth, and complete a comprehensive overhaul of the health care and education systems. Another key focus in FY 2011 is on helping Ukraine and Moldova diversify export markets, lessen their energy dependence, and improve democratic governance. For Russia, the FY 2011 request focuses on programs to promote democracy and rule of law, but also includes funding for programs that will promote cooperation with Moscow in areas of mutual interest, such as health, counternarcotics, and nonproliferation.

Central Asia

Central Asia remains alarmingly fragile; a lack of economic opportunity and weak democratic institutions foster conditions where corruption is endemic, and where Islamic extremism and drug trafficking can thrive. Because good relations with the United States in this region play an important role in supporting our military and civilian efforts to stabilize Afghanistan, the FY 2011 request prioritizes assistance for the Kyrgyz Republic and Tajikistan.

Highlights:

* Ukraine ($88.0 million): Funding aims to promote the development of a democratic, prosperous, and secure Ukraine, fully integrated into the Euro-Atlantic community in the face of the major challenges of the global financial crisis and a factionalized political environment. U.S. programs will promote sound economic policy to deal with ongoing financial challenges; strengthen energy safety and security; strengthen democratic institutions and accountable governance; support civil society, justice sector reform, and anti-corruption efforts; and improve Ukraine's health care system.

* Kosovo ($79.0 million): After several years of heightened assistance levels to help Kosovo during its transition to independence, the FY 2011 request represents a normalized assistance budget. Funding will help nascent institutions adjust to the challenges of governance; support international bodies assisting the Government of Kosovo; develop judicial and law enforcement structures; drive economic growth through policy reform and support to key sectors, the energy sector in particular; strengthen democratic institutions; and mitigate conflict by building tolerance.

* Georgia ($68.7 million): The increased FY 2011 request level will continue longer-term efforts to support Georgia's stability and recovery from the August 2008 conflict with Russia. U.S. programs will help strengthen the separation of powers, develop a more vibrant civil society and political plurality, bolster independent media and public access to information, enable economic recovery, increase energy security, and continue to improve social sector reforms.

* Russia ($55.6 million): U.S. assistance efforts will continue to address democratic development and security concerns. AEECA programs will provide strong support for civil society, independent media, the rule of law, human rights, and certain health threats such as tuberculosis. Funding will also support programs to work with the Russian Government to combat trafficking in persons and other transnational threats. Conflict mitigation programs in the North Caucasus region will help foster development and stem the spread of instability.

* Serbia ($48.0 million): U.S. assistance focuses on maintaining Serbia's progress toward Euro-Atlantic integration, particularly in the wake of Kosovo's emergence as an independent state. Given the importance of continuing democratic reforms to Serbia and to the region, funding is prioritized to strengthen the rule of law and civil society; programs will also support the reform of Serbia's agricultural and financial sectors.

* Bosnia and Herzegovina ($44.8 million): Funding is focused to help Bosnia and Herzegovina regain momentum towards Euro-Atlantic integration and to remedy uneven progress on reform. U.S. assistance will help Bosnia develop its state-level institutions, strengthen the rule of law, foster a sound financial and business regulatory environment friendly to investment, improve the competitiveness of small and medium enterprises in targeted sectors, build the capacity of local government and civil society, and address ethnic tensions.

* Tajikistan ($41.5 million): Funding will emphasize increasing the stability of Tajikistan because it is situated on the frontline of ongoing U.S. efforts in Afghanistan. U.S. programs will help strengthen the country's border security and counter-narcotics efforts, promote democratic and economic reform, combat extremism, and improve education. Funding for Tajikistan will also be used in support of the Global Hunger and Food Security Initiative (GHFSI). Programs will focus on solving systemic problems that contribute to food shortages which could threaten Tajikistan's stability, such as water shortages, inadequate supplies of seeds and fertilizer, a lack of modern technologies, and poor livestock care.

* Kyrgyz Republic ($37.0 million): Similar to efforts in Tajikistan, U.S. assistance will work to improve security, combat drug trafficking and other transnational threats, and address social issues such as education and health. U.S. programs will also focus on areas where progress has stalled, in particular supporting programs to strengthen democratic institutions and combat corruption. Kyrgyz Republic is a 'strategic partner country' under the GHFSI, in recognition of its potential impact on regional food security through significantly increased agricultural productivity and trade. Programs will focus on improved land usage, increased access to inputs, rationalized irrigation, and facilitation of the use of modern technologies.

Migration and Refugee Assistance
                   FY 2009     FY 2010     FY 2011     Increase/
($ in thousands)   Actual *    Estimate    Request     Decrease

Migration and
  Refugee
  Assistance       1,674,500   1,693,000   1,605,400   -87,600

* The FY 2009 Actual includes bridge funding from the Supplemental
Appropriations Act, 2008 (P.L. 110-252) and the
Supplemental Appropriations Act, 2009 (P.L. 111-32).


The United States Government's commitment to providing humanitarian assistance and resettlement opportunities for refugees and conflict victims around the globe is an essential component of U.S. foreign policy and reflects the American people's dedication to assisting those in need. The FY 2011 request for the Migration and Refugee Assistance (MRA) account of $1,605.4 million will fund contributions to key international humanitarian organizations as well as to nongovernmental organizations to address pressing humanitarian needs overseas and to resettle refugees in the United States. These funds support programs that meet basic needs to sustain life; protect refugees, stateless persons, internally displaced persons, and other conflict victims; assist refugees with voluntary repatriation, local integration, or permanent resettlement in a third country; and foster the humane and effective management of international migration.

Highlights:

* Overseas Assistance ($1,175.4 million): A key component of helping refugees and conflict victims is the assistance provided to these populations overseas. This support will include the provision of life-sustaining services, including water and sanitation, shelter, and healthcare, as well as programs that provide physical and legal protection to vulnerable beneficiaries and assist refugees to return to their homes in safety and dignity, or integrate into their host communities as appropriate.

* Refugee Admissions ($377 million): The United States admits more refugees for resettlement than any other country in the world. These funds will support an increasingly diverse U.S. resettlement program.

* Humanitarian Migrants to Israel ($25 million): This funding will maintain longstanding U.S. Government support for relocation and integration of Jewish migrants to Israel.

* Administrative Expenses ($28 million): The Bureau of Population, Refugees, and Migration is responsible for the oversight of all projects funded through the MRA appropriation. These funds will cover costs associated with the management and monitoring of these critical humanitarian programs. The largest portion of Administrative Expenses will cover the salary, benefits, and travel costs of 140 U.S. direct hire staff, including 29 regional refugee coordinators stationed at U.S. embassies around the world. Funding also covers the costs of approximately 54 eligible family members and locally employed staff overseas.

U.S. Emergency Refugee & Migration Assistance
                   FY 2009   FY 2010    FY 2011   Increase/
($ in thousands)   Actual    Estimate   Request   Decrease

U.S. Emergency
  Refugee &
  Migration
  Assistance       40,000    45,000     45,000    0


The Emergency Refugee and Migration Assistance Fund (ERMA) serves as a contingency fund from which the President can draw down in order to respond effectively to humanitarian crises in an ever-changing international environment. The FY 2011 request of $45.0 million will maintain the ability of the United States to respond quickly to future urgent and unexpected refugee and migration needs.

In FY 2009 $42.6 million was provided from ERMA to address various humanitarian emergencies, including assisting persons affected by conflict in Pakistan, Georgia, the Democratic Republic of the Congo, and Gaza. Similar levels of drawdowns can be expected in FY 2010 and FY 2011.

International Narcotics Control and Law Enforcement
                                         FY 2009      FY 2010
          ($ in thousands)              Actual *     Estimate

International Narcotics Control /Law
Enforcement Appropriation              1,876,500    1,597,000

Forward Funding in FY 2009
Supplemental                            (94,000)       94,000

Adjusted International Narcotics
Control/Law Enforcement                1,782,500    1,691,000

                                       FY 2010      FY 2011
          ($ in thousands)                Supp      Request

International Narcotics Control /Law
Enforcement Appropriation              757,440    2,136,041

Forward Funding in FY 2009
Supplemental                                --           --

Adjusted International Narcotics
Control/Law Enforcement                757,440    2,136,041

                                       Increase/
          ($ in thousands)              Decrease

International Narcotics Control /Law
Enforcement Appropriation                539,041

Forward Funding in FY 2009
Supplemental

Adjusted International Narcotics
Control/Law Enforcement                  445,041

* 2009 Actual includes $315 million appropriated under the Andean
Counterdrug Program account. The FY 2009 Actual also includes
bridge funding from the Supplemental Appropriations Act, 2008
(P.L. 110-252) and the Supplemental Appropriations Act, 2009
(P.L. 111-32).


The International Narcotics Control and Law Enforcement (INCLE) request of $2,136 million will continue to support country and global programs critical to combating transnational crime and illicit threats, including efforts against terrorist networks in the illegal drug trade and illicit enterprises. Programs supported with INCLE funds seek to close the gaps between law enforcement jurisdictions and to strengthen law enforcement institutions that are weak or corrupt.

Many INCLE funds are focused where security situations are most dire, and where U.S. resources are used in tandem with host country government strategies in order to maximize impact. Resources are also focused in countries that have specific challenges to overcome, where those resources can help to establish a stable and secure environment, including in Mexico, Afghanistan, Iraq, the Democratic Republic of the Congo, Haiti, Indonesia, and Liberia.

The FY 2011 request will also support counterdrug programs previously funded with the Andean Counterdrug Program (ACP) account. The main focus centers on the three source countries for cocaine--Colombia, Peru, and Bolivia. Support will reduce the flow of drugs to the United States; address instability in the Andean region; and strengthen the ability of both source and transit countries to investigate and prosecute major drug trafficking organizations and their leaders, and to block and seize the organizations' assets.

Highlights:

Africa

* Sudan ($53.9 million): Funding will support implementation of the Comprehensive Peace Agreement and assist programs that contribute toward stabilizing Darfur. Funds will provide technical assistance and training for Southern Sudan's criminal justice sector and law enforcement institutions, as well as contribute toward UN civilian police and formed police units in Southern Sudan and Darfur.

* Liberia ($17.0 million): Liberia's police and justice institutions require much greater levels of support to continue the country's transition to peace and security, as the United Nations Mission in Liberia (UNMIL) will be undergoing a drawdown in FY 2011. Assistance will continue to fund a civilian police contribution to UNMIL and increase support to critical bilateral police and justice reform projects. Advisors and material assistance such as infrastructure support, communications equipment, and legal supplies will be provided to the police, the judiciary, the corrections system, and the justice ministry throughout the country.

Near East

* Iraq ($314.6 million): In combination with funds requested in the FY 2010 Supplemental, FY 2011 funds will enable the Department of State to assume full responsibility for the Iraqi police development program at the beginning of FY 2012, currently managed by the Department of Defense. Funds will support start-up requirements such as facilities upgrades, security infrastructure, and procurement of aircraft, as well as costs associated with recruiting; hiring; training; deploying; and supporting key program, support, and security personnel.

FY 2011 funds for Iraq also will support programs that continue to build the capacity of the criminal justice sector. This critical assistance will continue training, advice, and technical assistance to the Iraqi courts and judiciary; support the development of the Iraqi Corrections Service (ICS) as a professional corrections service; and transition prison operations to full ICS control. Funds will also develop programs designed to reduce the demand for narcotics and other harmful substances in Iraq through targeted, culturally appropriate initiatives.

* West Bank/Gaza ($150.0 million): Funding will support efforts to reform the security sector by training and equipping Palestinian Authority Security Forces and by providing the Ministry of Interior with technical assistance and program support to improve its ability to manage the security forces. Additional training, equipment, and technical assistance will be provided for the justice and corrections sectors to ensure their development keeps pace with the increased performance of the security forces.

South Asia

Afghanistan ($450.0 million): All funding requested is in direct support of the Administration's top national security priorities in Afghanistan. Funding will focus on accelerating and expanding efforts in the justice sector by increasing direct assistance to select Afghan ministries; broadening support and engagement at the provincial and district levels to enhance the visibility, effectiveness, and accountability of the institutions; and providing economic opportunities that increase stability while reducing the strength of the insurgency. Justice and rule of law programs will focus on expanding regional efforts to incorporate more trainees and reaching more prosecutors; creating alternative dispute resolution mechanisms; and developing more responsive, visible, and accountable institutions in Kabul and at the provincial, district, and local level. An increase in the number of civilian technical advisers will increase the availability of training in the regional centers and in Kabul, and emphasize Afghan efforts to reduce corruption. Other initiatives will include partnering with the Ministry of Justice and the Attorney General's Office to raise the profile of justice efforts among the Afghan district and village level constituents, and building and improving corrections institutions, to be supported by a model prisons initiative.

Continued focus on counternarcotics efforts will reduce the drug trade by interdicting drug traffickers and disrupting their networks. Programs such as the Good Performers Initiative will complement the agriculture redevelopment strategy to drain the income of the insurgency from the narcotics trade. Drug demand reduction efforts will increase the number of rehabilitation, treatment, and outreach efforts aimed at directly benefitting Afghans; and public information efforts will focus on improving access to mobile phones, radio, and television.

* Pakistan ($140.0 million): In support of the Administration's top national security priorities, funding will expand civilian law enforcement assistance throughout Pakistan and support an expanded border security aviation fleet. This critical support will provide training, equipment, infrastructure, and aviation assistance to civilian law enforcement and border security agencies that are responsible for maintaining peace and security following military operations. Funds will also continue current border security, law enforcement, and judicial system reform; and counternarcotics programs.

Western Hemisphere

* Mexico ($292.0 million): In moving beyond the initial Merida Initiative commitment, the United States and Mexican Governments will focus on four pillars of cooperation: disrupting and dismantling criminal organizations, institutionalizing the rule of law, building a 21st Century border, and building strong and resilient communities. In implementing this new program, support will shift from providing aircraft, equipment, and other high-cost items to institutional development, training, and technical assistance. Federal level programs will support the four pillars by providing assistance to criminal justice sector institutions, including law enforcement, prosecutorial and judicial institutions, and corrections institutions. Funding will support critical efforts to implement specialized assistance in one or two Mexican border cities with an aim of synthesizing the four pillars into a positive demonstration of local effectiveness, which can then be replicated elsewhere by the Government of Mexico. This effort would also highlight increased emphasis on expanding assistance from the federal level to state and municipal levels.

* Colombia ($195.0 million): Funding will continue to improve the interdiction and eradication of illegal drugs before traversing Mexico and Central America and entering the United States in order to assist the Government of Colombia to consolidate and advance the security and counternarcotics progress achieved under Plan Colombia. U.S. assistance in FY 2011 will help improve Colombia's judicial institutions, including enhancing the protection of human rights and developing local capacity to address sensitive criminal cases. INCLE resources in Colombia will primarily aid the Colombian National Police, but will also fund important programs such as maritime interdiction and Army aviation. Coordinated efforts to nationalize planned financial and operational responsibilities in a sustainable manner will require FY 2011 funding for successful completion.

* Peru ($40.0 million): Funding will be used to support efforts by the Peruvian Government to eliminate the illicit drug industry, which includes extending state presence in the Apurimac and Ene River Valleys in order to oppose drug traffickers aligned with the Shining Path terrorist group. The program will intensify interdiction and eradication operations, increase precursor chemical seizures, improve controls at ports and airports, modernize and refurbish police stations and bases, and maintain and replace communications equipment and vehicles.

* Bolivia ($26.0 million): To counter increased production of cocaine in Bolivia due to expansion of coca cultivation, funding will shift assistance to interdiction, including training for police, while continuing to support the Bolivian Government's eradication program to avoid unchecked cultivation. Funding will continue extensive training programs for counternarcotics and other police, and will highlight public diplomacy efforts that focus on the damage caused to Bolivian society by drug trafficking and consumption.

* Haiti ($19.4 million): On January 12, 2010 an immense earthquake struck Haiti with devastating impact, creating unforeseen program and resource needs. The Administration is evaluating current and future needs in Haiti in the aftermath of this disaster. Prior to the earthquake, funds in the FY 2011 request were intended to support the UN stabilization mission (MINUSTAH) efforts to transform the Haitian National Police (HNP) into a law enforcement institution capable of providing security for Haitians and enforcing the rule of law; rebuild operational capacity of the HNP with infrastructure improvements and specialized equipment and training; and support bilateral counterdrug programs.

Global Programs

* These programs target challenges to transnational crime and counternarcotics efforts worldwide. Key components include:

* Inter-regional Aviation Support ($60.4 million): Funding will provide centralized core services for counternarcotics and border security aviation programs. These programs involve fixed- and rotary-wing aircraft deployed worldwide.

* International Law Enforcement Academy (ILEA) ($36.7 million): Funds will support existing ILEAs in Bangkok, Budapest, Gaborone, Roswell, San Salvador, and the Regional Training Center (RTC) in Lima. Additionally, funds made available to support the Shared Security Partnership (SSP) initiative will further develop a Regional Security Training Center for West Africa and contribute to new training efforts to support SSP efforts in other strategic regions worldwide with ties to terrorism, corruption and other transnational criminal activities. Funds will also support continued transition of the Lima RTC into a permanent ILEA for the Southern Cone and Andean regions; further develop an internet-based ILEA Alumni Global Network to encourage bilateral and regional cooperation; provide equipment and technical support for ILEA participating countries; and continue to fund Washington-based administrative activities.

* Program Development and Support ($28.5 million): Funding will provide for annual costs of direct hires, contractors, travel and transportation, equipment rentals, communications and utilities, and other support services.

* Demand Reduction ($12.5 million): Funding will support programs designed to reduce drug use, related crime and violence, and high-risk injecting drug use behavior. Funds will support sub-regional demand reduction training centers, regional and global knowledge exchange forums, development of national and regional drug-free community coalitions, and research and demonstration program development, with emphasis on specialized initiatives for drug addicted women and children.

* Office to Monitor and Combat Trafficking in Persons ($20.4 million): This includes funding requested in prior years under the Economic Support Fund. These funds will assist committed governments of countries ranked as Tier 3, Tier 2 Watch List and some Tier 2 of the 2009 annual Trafficking in Persons Report to improve their capacity to combat trafficking in persons through rule of law and criminal justice sector improvements.

Nonproliferation, Anti-Terrorism, Demining, and Related Programs
                    FY 2009    FY 2010    FY 2011   Increase/
($ in thousands)    Actual *   Estimate   Request   Decrease

Nonproliferation,
Anti-Terrorism,
Demining            631,500    754,000    757,613   3,613

* The FY 2009 Actual includes bridge funding from the Supplemental
Appropriations Act, 2008 (P.L. 110-252) and the
Supplemental Appropriations Act, 2009 (P.L. 111-32).


The FY 2011 Nonproliferation, Anti-Terrorism, Demining and Related Programs (NADR) request of $757.6 million will support critical security and humanitarian-related priority interventions. The request includes increases for the voluntary contribution to the International Atomic Energy Agency to demonstrate robust U.S. support for the agency, and for the Global Threat Reduction Program to strengthen biosecurity. Also funded are two new programs, one in support of verification for the Comprehensive Nuclear Test-Ban Treaty, and one in support of U.N. Security Council Resolution 1540 on worldwide nonproliferation controls.

Highlights:

Nonproliferation Activities

* The Nonproliferation and Disarmament Fund (NDF) ($57 million) supports programs to halt the proliferation of weapons of mass destruction (WMD), their delivery systems, and advanced conventional weapons systems, with particular emphasis on denying such weapons to terrorists. The NDF's special authorities allow it to undertake rapid-response threat reduction work around the globe and can be used to support multinational exercises under the Proliferation Security Initiative. NDF funds also support the destruction of existing weapons.

* The Global Threat Reduction program ($71.9 million) supports specialized activities aimed at reducing the threat of terrorist or proliferant state acquisition of WMD materials and expertise, through such activities as scientist redirection and engagement, security upgrades at biological and chemical agent laboratories and facilities, and the prevention of nuclear smuggling.

* The voluntary contribution to the International Atomic Energy Agency (IAEA) ($79.5 million) supports programs in nuclear safeguards, safety and security, nuclear energy, and the peaceful use of nuclear science technologies. This request represents a significant increase of the U.S. contribution to the IAEA, continuing the effort to eventually double U.S. financial support to the agency. This request includes $1.5 million in support of an IAEA-coordinated international program to decontaminate former nuclear sites in Iraq.

* The worldwide Export Control and Related Border Security (EXBS) program ($61.5 million) seeks to prevent states and terrorist organizations from acquiring WMDs, their delivery systems, and destabilizing conventional weapons by helping partner countries to develop comprehensive export and border control systems. The program builds capacity to ensure transfer authorizations support only legitimate trade and to detect and interdict illicit transfers at borders.

* The voluntary contribution to the Preparatory Commission of the Comprehensive Nuclear-Test-Ban Treaty Organization ($33 million) helps to fund the establishment, operation, and maintenance of the worldwide International Monitoring System.

* New for FY 2011, a voluntary contribution to the Preparatory Commission of the Comprehensive Nuclear-Test-Ban Treaty Organization ($10 million) will fund specific projects to increase the effectiveness and efficiency of the Treaty's verification regime.

* The WMD Terrorism program ($2 million) will continue to undertake specialized, targeted projects to improve international capacities to prepare for and respond to a terrorist attack involving weapons of mass destruction. This program will advance the Global Initiative to Combat Nuclear Terrorism and help develop capacity among our international partners to deter, detect, and respond to WMD terrorism.

* New for FY 2011, a U.S. voluntary contribution ($3 million) will support international implementation of U.N. Security Council Resolution 1540, which requires that all U.N. member states establish domestic controls to stem the proliferation of WMD. This funding will help establish a new funding mechanism under the auspices of the U.N. Security Council's 1540 Committee.

Anti -Terrorism Programs

* The Anti-Terrorism Assistance program ($205.1 million) includes funding for critical partner countries, supports the Regional Strategic Initiative (RSI) by providing advanced anti-terrorism training that addresses regional challenges, and permits the continuation of programs in critical non-RSI countries where terrorist activity threatens vital U.S. interests and homeland security. Funding for Central and South America enhances border control and provides fraudulent document training, which diminishes the likelihood of terrorist transit through the hemisphere and into the United States. Programs in Central Asia and the Balkans guard against the movement of terrorists that could pose new threats to stability throughout Europe and Asia.

* The new Countering Violent Extremism program ($15.0 million) funds targeted counter-radicalization interventions in high priority countries, community policing initiatives, youth sports engagement and livelihood programs, and activities promoting alternatives to violence.

* Terrorist Interdiction Program/Personal Identification, Secure Comparison, & Evaluation System (TIP/PISCES) program ($43.1 million) provides computerized watch-listing systems to partner nations that enable immigration and border control officials to quickly identify suspect persons attempting to enter or leave their countries. The request provides critical biometrics enhancements to assist 18 partner nations and supports continued system expansion into critical partner nations vulnerable to terrorist travel (such as Iraq, Pakistan, Afghanistan, Yemen, Thailand and Kenya), allows development of expanded capabilities to address U.S. requirements regarding biometric data collection, and ensures the PISCES system maintains standards in accord with international norms.

* The Counterterrorism Financing (CTF) program ($20.9 million) assists frontline partners in detecting, isolating, and dismantling terrorist financial networks; in depriving terrorists of funding for their operations; and in cash courier training in priority nations, which has been identified as a key U.S. initiative. In addition, CTF funding supports Resident Legal Advisors in the Horn of Africa, East Asia, the Middle East, and South Asia to undertake essential capacity building activities and to foster cooperation on legal and regulatory reform initiatives. CTF funds will also be used to support regional efforts through the RSI.

* Counterterrorism Engagement ($10 million) supports key bilateral, multilateral, and regional efforts, including the RSI, to build political will at senior levels in partner nations for shared counterterrorism challenges.

Regional Stability and Humanitarian Assistance

* The Conventional Weapons Destruction (CWD) program ($145.6 million) advances peace and security interests by responding to the security threat and risk to indigenous populations posed by landmines and unexploded ordnance, and from excess, loosely-secured, or otherwise-at-risk small arms and light weapons, Man Portable Air-Defense Systems, and ammunition. The program also enhances stockpile security, increases local capabilities through training programs, and provides limited funding for victims' assistance. Included in this request is $7 million for the International Trust Fund for Demining.

Peace Corps
                   FY 2009   FY 2010    FY 2011   Increase/
($ in thousands)   Actual    Estimate   Request   Decrease

Peace Corps        340,000   400,000    446,150   46,150


The FY 2011 budget request of $446.2 million for the Peace Corps will support increased volunteer numbers, recruitment efforts, and the entry of the Peace Corps into approximately three new countries. These measures aim to have 9,400 Americans enrolled in the Peace Corps by 2012, and 11,000 enrolled by 2016.

Through their service, Peace Corps volunteers make lasting contributions to the United States and the international community by promoting mutual understanding between the peoples of the United States and the developing world, responding to humanitarian crises and natural disasters, developing leadership and technical skills among host country nationals, and equipping America's work force with overseas experience.

Currently, volunteers in 76 countries assist host countries and local communities to improve education of students, encourage economic development, protect and restore the environment, increase the agricultural capabilities of farming communities, expand access to basic health care for families, and address HIV/AIDS prevention and care.

Millennium Challenge Corporation
                       FY 2009   FY 2010     FY 2011     Increase/
($ in thousands)       Actual    Estimate    Request     Decrease

Millennium Challenge
  Corporation          875,000   1,105,000   1,279,700   174,700


The FY 2011 request for the Millennium Challenge Corporation (MCC) of $1,280 million will help reduce poverty through increased economic growth in developing countries that govern justly, support economic freedom, and invest in their people.

Since its creation in 2004, MCC has been recognized as a leader in the development community for its country-led and results-focused approach to development assistance. MCC fights poverty and builds country capacity through five-year compacts with partner countries that practice good governance, control corruption, invest in healthcare and education, and promote competitiveness through investments in priority areas such as infrastructure and agriculture. MCC-funded programs are designed to maximize sustainable poverty reduction by fostering economic growth. MCC coordinates with other U.S. Government and international donors to avoid costly duplication, and considers the role of gender and the impact on the environment as integral components of its compact programs.

MCC assistance recognizes sound policy performance. MCC evaluates a country's performance on 17 independent and transparent policy indicators in three categories: ruling justly, investing in people, and economic freedom. Under the MCC model, countries are principally responsible for identifying and prioritizing their own barriers to poverty reduction and economic growth through extensive public consultation. Such engagement bolsters democratic practices and transparency as well as the country's ownership of its development progress. Placing countries in charge of their development can be difficult in light of capacity constraints, but MCC believes it is the best way to achieve sustainable results.

MCC emphasizes results and transparency throughout compact development and implementation. Economic rate of return (ERR) estimates are developed for all projects and MCC posts them on its website. MCC also works with partner countries to develop detailed monitoring and evaluation plans for compacts, and tracks the progress of its compact programs against defined benchmarks and outcomes, also available on MCC's website.

By the end of FY 2009, MCC signed 20 compacts and 21 threshold agreements, committing nearly $7.5 billion to poverty reduction through results-driven programs built on measureable and transparent objectives. MCC development programs have trained more than 102,000 farmers to boost productivity and food security, and have supported the ongoing construction of more than 1,200 kilometers of roads to facilitate access to markets, schools, and health clinics.

In FY 2010, MCC projects that it will sign compacts with Moldova, Jordan, and the Philippines. The MCC budget request for FY 2011 is based on a projection of signing new compacts with Malawi, Indonesia, and Zambia and a second compact with Cape Verde. These investments are supported by a forthcoming legislative proposal that will include changes to MCC's authorizing statute to allow for compacts to be entered into concurrently and, in certain cases, contain some projects that last longer than five years.

Inter-American Foundation
                   FY 2009   FY 2010    FY 2011   Increase/
($ in thousands)   Actual    Estimate   Request   Decrease

Inter-American
  Foundation       22,500    23,000     22,760    -240


The FY 2011 request of $22.8 million for the Inter-American Foundation (IAF) will enable the agency to provide grassroots development assistance for programs that support micro-entrepreneurship, self-reliance, and democratic governance as a way to foster economic progress for the poor, especially marginalized populations such as women, indigenous peoples, persons with disabilities, and African-descendant communities.

The IAF's approach to sustainable development is:

* Direct to the grassroots: The IAF provides foreign assistance dollars directly to organizations and communities of the marginalized poor. The IAF approach to foreign assistance is interpersonal and transparent.

* Responsive: The IAF responds to the demands of the local poor, ensuring that community members, who are most acutely aware of the challenges and changing conditions in their communities, take the lead in determining the most effective use of resources.

* Community-driven: Instead of establishing funding priorities based on external perceptions of community needs, the projects funded by the IAF are designed and implemented by the poor themselves, enhancing community ownership of its project's success and sustainability.

In FY 2011, the IAF will support U.S. Government priorities in Latin America and the Caribbean to reduce poverty and foster better economic development by supporting projects that provide loans to small businesses; create jobs; increase incomes; improve food security; promote sustainable agricultural practices; preserve the environment; and improve access to water, utilities, and basic housing. Additionally, the IAF's projects will engage and strengthen civil society, promote stronger foundations for democracy, help create a culture of accountability, and increase the participation of the poor in the development process so that they can enjoy greater civic and economic prosperity.

The IAF has increased its focus on leveraging development resources into long-term, strategic benefits for the poor in order to maximize the impact of U.S. Government contributions. The agency understands the necessity for its partners to mobilize resources in order to attain long-term sustainability and further their own advancement after IAF support ends. In FY 2011, the IAF will leverage additional resources for its grant program from a wide range of partners that includes local governments, the private sector, beneficiary populations, and other international donors. The IAF will also work with Latin American corporate foundations to direct an additional two dollars for every dollar invested by the IAF into grassroots development through the RedEAmerica initiative.

African Development Foundation
                      FY 2009   FY 2010    FY 2011   Increase/
($ in thousands)      Actual    Estimate   Request   Decrease

African Development
  Foundation          32,500    30,000     30,000    0


The FY 2011 request of $30 million will permit the African Development Foundation (ADF) to provide funding to Africa's most often marginalized and under-served communities situated in more than 20 countries. The grant funds are provided directly to community groups to improve local food production and processing capabilities, and address other locally identified development needs.

As an independent federal agency, the ADF was established to respond quickly and in a cost-effective manner to African-designed and -managed development solutions at the grassroots level. ADF provides grants of up to $250,000 directly to community groups, agricultural cooperatives, and small enterprises in Africa. These grants help organizations increase the number of jobs in African communities, improve family income levels, and address social development needs. ADF also funds African nongovernmental organizations in each country to provide technical assistance to grantees. This approach improves the outcome of each project grant.

Department of the Treasury
                                FY 2009     FY 2010
      ($ in thousands)           Actual    Estimate

Treasury Technical Assistance    25,000      25,000
Debt Restructuring               60,000      60,000
Department of the Treasury       85,000      85,000

                                FY 2011    Increase/
      ($ in thousands)          Request     Decrease

Treasury Technical Assistance    38,000       13,000
Debt Restructuring               70,000       10,000
Department of the Treasury      108,000       23,000


Treasury Technical Assistance

The FY 2011 request of $38 million for the Department of Treasury's International Affairs Technical Assistance Program provides highly experienced financial advisors to reform-minded developing countries, transitional economies, and nations recovering from conflict. The program supports economic policy and financial management reforms, focusing on five core areas: revenue policy and administration, government debt issuance and management, budget and financial accountability, banking and financial institutions, and economic crimes. The request will support approximately 80 technical assistance projects worldwide. The proposed investment will allow the Office of Technical Assistance (OTA) to pursue several important objectives in FY 2011. It will broaden and deepen its engagements in support of U.S. Government priorities and continue building capacity to counter terrorist finance and financial crimes; encourage investment, growth, and job creation through development of capital markets and infrastructure finance; and promote increased access to finance for small and medium sized enterprises. The proposed budget supports OTA's work to strengthen financial infrastructure and to combat terrorist financing in Iraq and national security priority countries, where long term stability will depend on strong financial governance. By providing increased funding directly to Treasury, OTA will be well-positioned to continue this effort, and to respond to new and emerging national security challenges.

Debt Restructuring

The FY 2011 request of $70 million is for the cost of debt restructuring programs, including bilateral Heavily Indebted Poor Countries Initiative (HIPC) debt reduction, the HIPC Trust Fund, and the Tropical Forest Conservation Act (TFCA). The enhanced HIPC Initiative was launched to provide deeper, broader, and faster debt reduction for the poor, heavily-indebted countries that have made a real commitment to economic reform and poverty reduction. For the poorest and most heavily indebted countries, the United States will continue support for bilateral debt relief through the Paris Club of official creditors and the enhanced HIPC Initiative. The request includes $50 million in funding for the cost of debt restructuring programs, including bilateral HIPC and poorest-country debt reduction, and the HIPC Trust Fund for relief on debt owed to participating multilateral institutions. Under the enhanced HIPC Initiative, funding is currently needed to help satisfy the $75.4 million outstanding U.S. pledge to the HIPC Trust Fund to support debt relief from the regional development banks. The TFCA request of $20 million will be used to authorize debt relief for low and middle income countries to support conservation of tropical forests. Under the program, treated debt is "redirected" to enable a forest fund in the beneficiary country to make grants to local nongovernmental organizations and other entities engaged in forest conservation. The United States uses appropriated funds to pay for the budget cost of this debt reduction and redirection.

Peacekeeping Operations
                   FY 2009    FY 2010    FY 2011   Increase/
($ in thousands)   Actual *   Estimate   Request   Decrease

Peacekeeping
  Operations       530,200    331,500    285,950   -45,550

* The FY 2009 Actual includes bridge funding from the Supplemental
Appropriations Act, 2008 (P.L. 110-252) and the
Supplemental Appropriations Act, 2009 (P.L. 111-32).


The FY 2011 request for Peacekeeping Operations (PKO) of $285.9 million will help diminish and resolve conflict, enhance the ability of states to participate in peacekeeping and stability operations, address counter-terrorism threats, and reform military establishments into professional military forces with respect for the rule of law in the aftermath of conflict.

The request supports two ongoing regional peacekeeping missions--the African Union Mission in Somalia and the Multinational Force and Observers mission in the Sinai. The request also supports the ability of states to participate in peacekeeping operations through the Global Peace Operations Initiative (GPOI); enhances the ability of states to address counterterrorism threats through the Trans-Sahara Counterterrorism Partnership (TSCTP) and the East Africa Regional Strategic Initiative (EARSI); supports reforms to military forces in the aftermath of conflict into professional military forces with respect for the rule of law, including those in Southern Sudan, Liberia, the Democratic Republic of the Congo, and Somalia; and addresses regional conflict stabilization and border security issues in Africa.

Some of the PKO funding for TSCTP and EARSI is included under the umbrella of the Shared Security Partnership (SSP) initiative, a multi-account, multi-year effort which will forge strategic partnerships for confronting common global extremist threats. The SSP utilizes an integrated approach aimed at reaching global and regional partnerships, while also providing bilateral support to further enable the capacity of partner nations to cooperate and coordinate on regional and global criminal and terrorism concerns.

Highlights:

* The Global Peace Operations Initiative ($101.8 million): From FY 2005 through FY 2009, GPOI funds trained over 100,000 peacekeepers, well beyond its goal of 75,000 worldwide. The program emphasis for the second year of Phase II will continue the shift begun in FY 2010 from the direct training of peacekeepers to a focus on building a sustainable indigenous peacekeeping capacity. While FY 2011 funds will continue to provide training, equipment, and sustainment of peacekeeping troops, activities will focus on strengthening partner country capabilities to train their own peacekeeping units by supporting the development of indigenous peacekeeping trainer cadres, peacekeeping training centers, and other self-sufficiency oriented programs, events, and activities. Funds will also enable the United States to continue to enhance and contribute to the lift and sustainment of troops to peacekeeping operations worldwide. Some FY 2011 funds will be used to continue GPOI support for collaboration with the Center for Excellence in Stability Police Operations (CoESPU). Finally, PKO funds will continue to underwrite an evaluation and metrics mechanism, including measures of effectiveness, to ensure GPOI is achieving its goals.

* Somalia ($53.6 million): FY 2011 funds will be used to continue support to the African Union-led peacekeeping effort in Somalia, including training, equipment, and transportation of current and new troop contributing countries. Funds to pay the United States portion of the UN assessment for support the UN Support Office for the African Union Mission in Somalia (AMISOM) are being requested in the Contributions to International Peacekeeping Activities account. Funds will also be used to professionalize and provide operational support to Somali security forces, to ensure their capability in contributing to national peace and security in support of the Djibouti Peace Process, and as part of a multi-sectoral approach to post-conflict security sector reform.

* Sudan ($42 million): FY 2011 funds will be used to continue to build and transform the Sudan People's Liberation Army in Southern Sudan from a guerilla army to a professional military force. Funds will provide for the refurbishment, operations, and maintenance of divisional and sector headquarters, strategic and operational advisory assistance, unit and individual professional training, and communications and other equipment for the military.

* Multinational Force and Observers ($26 million): The FY 2011 request includes funds to continue the U.S. contribution to the Multinational Force and Observers mission in the Sinai.

* Democratic Republic of the Congo (DRC) ($22 million): FY 2011 funds will be used to continue efforts to reform the military in the DRC into a force capable of maintaining peace and security, to include supporting and sustaining a rapid reaction force to stabilize eastern DRC. Funds will support advisory assistance at strategic and operational levels, training, equipment, and infrastructure improvement.

* Trans-Sahara Counterterrorism Partnership (TSCTP) ($20 million): The FY 2011 request continues support for the TSCTP, a multi-disciplinary counterterrorism initiative designed to counter terrorist threats, strengthen regional capacity, promote interoperability, and facilitate coordination between countries. Funds will support advisory assistance, modest infrastructure improvement, and training and equipping of counterterrorist military units in the West and North African regions.

* Africa Conflict Stabilization and Border Security ($5.6 million): The FY 2011 request continues efforts to address and stabilize regional crises on the African continent. In particular, funds will support areas such as the Great Lakes region in Central Africa, the Mano River region in West Africa, the Horn of Africa, and spillover from the conflict in Sudan into neighboring Chad and the Central African Republic. Funds will support monitoring teams, advisory assistance, training, logistical support, infrastructure enhancements, and equipment.

* East Africa Regional Strategic Initiative (EARSI) ($10 million): The FY 2011 request continues support for EARSI, a multi-disciplinary counterterrorism initiative in East Africa that is based upon best practices of the TSCTP. Funds will support the training and equipping of counterterrorist military units in the East Africa region.

* Liberia ($5 million): The FY 2011 request funds the remaining requirements to transform the Liberian military into a professional, 2,000-member-strong armed force that respects the rule of law and has the capacity to protect Liberia's borders and maintain adequate security in the country. Funds will primarily provide for operational support of existing infrastructure of the new military during the first full year in which those facilities are under the control of the Government of Liberia. Completion of this program will help facilitate the eventual departure of the United Nations Mission in Liberia.

International Military Education & Training
                         FY 2009    FY 2010    FY 2011   Increase/
($ in thousands)         Actual *   Estimate   Request   Decrease

International Military
  Education & Training   93,000     108,000    110,000   2,000

* The FY 2009 Actual includes funding from the Supplemental
Appropriations Act, 2009 (P.L. 111-32).


The FY 2011 request for the International Military Education and Training (IMET) program is $110 million. It is a key component of U.S. security assistance which promotes regional stability and defense capabilities through professional military training and education. Through professional and technical courses and specialized instruction, the program provides students from allied and friendly nations with valuable training and education on U.S. military practices and standards, including exposure to democratic values and respect for internationally recognized standards of human rights. IMET serves as an effective means to strengthen military alliances and international coalitions critical to U.S. national security goals. IMET also helps to develop a common understanding of shared international challenges, including terrorism, and fosters the relationships necessary to counter those challenges in a collaborative manner.

Highlights:

* Africa ($16 million): IMET programs focus on professionalizing the defense forces to support efforts to respond to regional crises and provide for long-term stability on the continent. Major IMET programs are focused on Ethiopia, Kenya, Nigeria, Senegal, and South Africa--states critical to long-term regional peace and stability.

* East Asia and the Pacific ($9.3 million): IMET programs focus on professionalizing the defense forces of regional partners and developing their skills in fighting terror. Priority recipients will include Indonesia, Malaysia, the Philippines, and Thailand.

* Europe ($30.5 million): IMET programs enhance regional security and integration among United States, NATO, and European armed forces. The largest programs are those in Bulgaria, the Czech Republic, Georgia, Poland, Romania, Turkey, and Ukraine.

* Near East ($18.6 million): IMET programs focus on Egypt, Iraq, Jordan, Lebanon, Morocco, Oman, and Tunisia with the purpose of enhancing professionalism, providing the technical training necessary to maintain equipment of United States origin, and increasing awareness of international norms of human rights and civilian control of the military.

* South and Central Asia ($13.1 million): IMET includes major programs in India and Pakistan, as well as support for training military officers in the Afghan National Army.

* Western Hemisphere ($17.2 million): IMET programs focus on professionalizing defense forces, including those of Colombia, El Salvador, and Mexico, and enhancing their ability to respond to regional security challenges.

Foreign Military Financing
                                 FY 2009      FY 2010    FY 2010
     ($ in thousands)           Actual *     Estimate       Supp

Foreign Military Financing     6,231,500    4,195,000     60,000
Appropriation

Forward-Funding in FY 2009   (1,225,000)    1,225,000         --
Supplemental

Adjusted Foreign Military       5,006,500    5,420,000    60,000
Financing

                               FY 2011    Increase/
     ($ in thousands)          Request     Decrease

Foreign Military Financing   5,473,348    1,278,348
Appropriation

Forward-Funding in FY 2009          --           --
Supplemental

Adjusted Foreign Military     5,473,348       53,348
Financing

* The FY 2009 Actual includes bridge funding from the
Supplemental Appropriations Act, 2008 (P.L. 110-252) and the
Supplemental Appropriations Act, 2009 (P.L. 111-32).


The FY 2011 request for Foreign Military Financing (FMF) of $5,473.3 million furthers U.S. interests around the world by ensuring that coalition partners and friendly foreign governments are equipped and trained to work toward common security goals and share burdens in joint missions. FMF promotes U.S. national security by contributing to regional and global stability, strengthening military support for democratically-elected governments, and containing transnational threats including terrorism and trafficking in narcotics, weapons, and persons. Increased military capabilities establish and strengthen multilateral coalitions with the United States, and enable friends and allies to be increasingly interoperable with U.S., regional, and international military forces. FMF assistance will also support ongoing efforts to incorporate the most recent North Atlantic Treaty Organization (NATO) members into the organization, support prospective NATO members and coalition partners, and assist critical coalition partners in Afghanistan.

The FY 2011 FMF request includes an increase in assistance for Israel. In addition, the request supports funding for coalition partners and allies, and is consistent with other requirements to promote U.S. national security, fight extremists, and secure Middle East peace.

Highlights:

* Near East region ($4,782 million): The majority of FMF funding will provide continued assistance to the Near East region, including increased support for Israel; funding for Egypt to foster a modern, well-trained military; support for Jordan's force modernization, border surveillance, and counterterrorism efforts; support for Lebanon's efforts to control its territory and enhance its counterterrorism capabilities; and support for Bahrain and Oman as part of the Gulf Security Dialogue.

* Pakistan ($26.0 million): Funding will support Pakistan's security forces by providing equipment and training to enhance their counterterrorism and counterinsurgency capabilities.

* Western Hemisphere: ($96.1 million): In the Western Hemisphere, FMF funding will support the Government of Colombia's efforts to sustain the gains made by its military in regaining and maintaining control of its national territory, and will enhance the military's capacity to maintain its forces and operations. Assistance for Mexico will further cooperation between the United States and Mexican militaries, which is critical to U.S. homeland defense and counternarcotics efforts. FMF funding will support Caribbean regional security objectives under the umbrella of the Caribbean Basin Security Initiative, the multiyear, multifaceted effort by the U.S. Government and Caribbean partners to develop a joint regional citizen safety strategy to tackle the full range of security and criminal threats to the Caribbean Basin.

* Africa and East Asia and the Pacific ($70.3 million): In Africa and the East Asia and Pacific regions, assistance will support defense reform, enhance counterterrorism capabilities, promote interoperability, and expand countries' capacity to participate in peacekeeping operations.

Pakistan Counterinsurgency Capability Fund
                      FY 2009     FY 2010    FY 2011     Increase/
($ in thousands)      Actual *    Estimate   Request     Decrease

Pakistan
  Counterinsurgency
  Capability Fund     700,000     0          1,200,000   1,200,000

* Funds appropriated in the Supplemental Appropriations Act, 2009
(P.L. 111-32), only to become available on  September 30, 2009.


The Pakistan Counterinsurgency Capability Fund (PCCF) assists the Government of Pakistan (GOP) in building and maintaining the capability of its security forces to conduct counterinsurgency operations in support of United States efforts in Operation Enduring Freedom, and to clear and hold terrain in contested areas throughout the Federally Administered Tribal Areas (FATA) and other areas. A more capable Pakistani military will diminish extremist access to safe havens from which attacks on Pakistan and on United States and international forces operating in Afghanistan are planned and executed. Additionally, a better trained and equipped security force will facilitate the GOP's efforts to improve basic government services in areas vulnerable to extremists, supported by a robust U.S. civilian assistance strategy.

The second year of PCCF funding will continue to accelerate the development of the GOP's capacity to secure its borders, deny safe haven to extremists, fight insurgents, and provide security for the indigenous population. As such, the FY 2011 PCCF request includes a $500 million increase over FY 2009 funding to expand the following counterinsurgency training and equipment programs with the Pakistan Army, the Pakistan Special Forces, and the Frontier Corps: air mobility and air assault; night operations; counter-improvised explosive devices; command and control; intelligence; surveillance and reconnaissance; close air support and joint fires; individual and unit level combat equipment; and counterinsurgency training.

Highlights:

* Training will be provided for the Pakistan Army's aviators and maintenance technicians in helicopter combat operations, resupply, and maintenance procedures, which will dramatically increase their ability to conduct and sustain combat operations with their helicopters in the FATA and other areas in Pakistan.

* Funding will be used to complete construction of one Border Coordination Center along the Afghanistan-Pakistan border, one Frontier Corps sector headquarters to coordinate Frontier Corps patrolling and monitoring of operations, and one Frontier Corps training facility to build and maintain proficiency on counterinsurgency tactics, techniques, and procedures.

* Equipment will be provided to enhance and modernize the communications, logistical support, night vision, air mobility, and air support infrastructure of Pakistan's security forces, leading to more effective counterinsurgency operations and the prevention of collateral damage.

* Training will be provided for the Pakistan military in counterinsurgency doctrine synchronized with civil-military operations, that will result in a more judicious use of force, which when followed by the application of humanitarian relief, will increase the legitimacy of government security forces and alleviate hardship inflicted on the civilian population.

Multilateral Economic Assistance
                                               FY 2009      FY 2010
($ in thousands)                                Actual     Estimate

International Organizations and Programs       352,500      394,000

Subtotal, International Organizations and
Programs                                       352,500      394,000

  International Financial Institutions
  International Development Association      1,115,000    1,262,500
  Global Environment Facility                   80,000       86,500
  Asian Development Bank                             0            0

  Asian Development Fund                       105,000      105,000
  African Development Fund                     150,000      155,000

  Enterprise for the Americas Multilateral      25,000       25,000
Investment Fund

  Inter-American Investment Corporation              0        4,670
  International Fund for Agricultural           18,000       30,000
Development
  Climate Investment Funds                           0      375,000
  Food Security Fund                                 0            0

Subtotal, International Financial            1,493,000    2,043,670
Institutions *
  Multilateral Economic Assistance            1,845,500    2,437,670

                                               FY 2011    Increase/
($ in thousands)                               Request     Decrease

International Organizations and Programs       350,550      -43,450

Subtotal, International Organizations and
Programs                                       350,550      -43,450

  International Financial Institutions
  International Development Association      1,285,000       22,500
  Global Environment Facility                  175,000       88,500
  Asian Development Bank                       106,586      106,586

  Asian Development Fund                       115,250       10,250
  African Development Fund                     155,940          940

  Enterprise for the Americas Multilateral      25,000            0
Investment Fund

  Inter-American Investment Corporation         21,000       16,330
  International Fund for Agricultural           30,000            0
Development
  Climate Investment Funds                     635,000      260,000
  Food Security Fund                           408,400      408,400

Subtotal, International Financial            2,957,176      913,506
Institutions *
  Multilateral Economic Assistance            3,307,726      870,056


International Organizations and Programs (IO&P)

The FY 2011 request for International Organizations and Programs (IO&P) voluntary contributions of $350.6 million will advance U.S. strategic goals by supporting and enhancing international consultation and coordination. This approach is required to accomplish transnational goals, such as protecting the ozone layer or safeguarding international air traffic, where solutions to problems can best be addressed globally. In other areas, such as in development programs, the United States can multiply the influence and effectiveness of its own assistance through support for international programs.

Highlights:

* United Nations Population Fund ($50 million): The United States resumed funding support for the United Nations Population Fund (UNFPA) in FY 2009 after an eight-year absence. Contributions to UNFPA will bolster the fund's continued efforts to reduce poverty, improve the health of women and children, prevent HIV/AIDS, and provide family planning assistance to women in over 150 countries.

* United Nations Children's Fund ($128 million): U.S. voluntary contributions support the core budget of the United Nations Children's Fund (UNICEF), which provides core administrative funding, goods and services directly to the world's neediest children, and contributes to the development of local institutional capacity. UNICEF's development work is closely coordinated with U.S. Government and international development agencies.

* United Nations Development Program ($75.3 million): U.S. voluntary contributions are provided for the United Nations Development Program (UNDP)'s regular budget, which supports its core administrative functions, development goals, and specific trust funds targeted in the areas of democratic governance, and crisis prevention and recovery.

International Financial Institutions

International Financial Institutions (IFIs) provide loans, grants, and investments to developing and transitioning economies to promote growth and poverty reduction through their support of public and private projects, programs, and policy reforms. They also coordinate development programs with developing country governments as well as other donors, and provide professional advice and technical support designed to address impediments to economic growth. The IFIs target countries in which risks are too high for private financing alone, and where leverage is needed to encourage private financing. The work of the IFIs includes activities such as supporting the development of physical infrastructure with environmental and social safeguards, improving the functioning of governmental institutions, and investing in programs to increase human capital including health and education systems.

United States leadership in the IFIs promotes effective and efficient operations at these institutions with sufficient resources to fulfill their core missions. The FY 2011 request for the IFIs of $2,957 million is comprised of $1,838 million for scheduled annual commitments to the IFIs and $76 million to pay a portion of outstanding U.S. arrears, which total just under $1 billion. The budget also includes $635 million for the Climate Investment Funds, comprised of the Clean Technology Fund and the Strategic Climate Fund, which help combat global climate change, help the most vulnerable countries prepare for and respond to its impacts, and demonstrate United States commitment to leadership in forging a global solution to the climate crisis. The budget also provides $408 million for the Global Agriculture and Food Security Program (GAFSP), a new multi-donor facility administered by the World Bank that will provide financial assistance to poor countries that make policy and financial commitments to address their internal food security needs. The multi-donor facility will complement and reinforce the food security investments made through U.S. bilateral programs.

Export-Import Bank
                                            FY 2009     FY 2010
           ($ in thousands)                  Actual    Estimate

Export-Import Bank of the United States   (179,500)           0
Inspector General                             2,500       2,380

Total Export-Import Bank                  (177,000)       2,380

                                           FY 2011    Increase/
           ($ in thousands)                Request     Decrease

Export-Import Bank of the United States   (12,458)       12,458
Inspector General                            3,000          620

Total Export-Import Bank                   (9,458)           --


The FY 2011 request for the Export-Import Bank of the United States (Ex-Im Bank) of $3 million supports the expenses of the Inspector General. The FY 2011 budget estimates that the Ex-Im Bank's export credit support will total $19.4 billion in lending activity, and will be funded entirely by receipts collected from the Ex-Im Bank's customers. These receipts are expected to total $260.8 million in excess of estimated losses in FY 2011. These funds will be used to cover the $92.7 million in costs for loan programs, $105.6 million for administrative expenses, and $50.0 million in estimated carryover expenses. The administrative expenses estimate includes funding for significant improvements to outreach and business development initiatives to increase the number of small business that export, and to increase export opportunities for current small businesses exporters. The Bank forecasts a net return of $9.5 million to the U.S. Treasury as receipts in excess of expenses.

The Ex-Im Bank is an independent, self-sustaining executive agency, and a wholly-owned U.S. Government corporation. As the official export credit agency of the United States, the mission of the Ex-Im Bank is to support U.S. exports by providing export financing through its loan, guarantee, and insurance programs. These programs are implemented in cases where the private sector is unable or unwilling to provide financing, and to ensure equitable competition in export sales between U.S. exporters and foreign exporters financed by their respective governments. By facilitating the financing of U.S. exports, Ex-Im Bank helps companies create and maintain U.S. jobs. The Ex-Im Bank actively assists small and medium sized businesses.

Overseas Private Investment Corporation
                   FY 2009   FY 2010    FY 2011   Increase/
($ in thousands)   Actual    Estimate   Request   Decrease

Overseas Private
  Investment
  Corporation      173,000   171,500    189,354   17,854


The Overseas Private Investment Corporation (OPIC) FY 2011 budget is fully self-funded. From its estimated offsetting collections of $272.3 million in FY 2011, OPIC is requesting $53.9 million for administrative expenses and $29 million for credit funding. This amount will support an estimated $2.650 billion in new direct loans and loan guarantees.

OPIC mobilizes American private investment by providing political risk insurance and financing in support of U.S. foreign policy in 156 developing nations and emerging markets around the world. OPIC helps to shape overseas investment to promote economic growth in a way that respects labor, human rights, and the environment. Through OPIC's loans, guarantees, insurance, and investment funds, OPIC catalyzes many improvements that have effects far beyond its small budget. Private sector investment support provided by OPIC is market-driven; as a result, it efficiently aligns government resources with projects that are most likely to drive economic growth. For many countries that have moved beyond basic humanitarian assistance, OPIC is an effective and efficient way to promote private sector growth. OPIC's goal is to generate "additionality" on each transaction it conducts, meaning that OPIC is able to add value to every investment it supports.

OPIC will focus its efforts on quality projects that are highly developmental, based on both sector and geographic location. Based on U.S. development and foreign policy priorities, OPIC will continue to support private sector investment in emerging markets and transitioning economies. In doing so, OPIC will place special emphasis on small business and microfinance (particularly U.S. small and medium enterprises seeking to invest overseas), and renewable energy and clean technology, as well as on the regions of Sub-Saharan Africa, the broader Middle East and North Africa, and Asia.

Trade and Development Agency
                        FY 2009   FY 2010    FY 2011   Increase/
($ in thousands)        Actual    Estimate   Request   Decrease

Trade and Development
  Agency                50,800    55,200     56,200    1,000


The FY 2011 request maintains the ability of the U.S. Trade and Development Agency (USTDA) to spur economic development and advance U.S. commercial interests in developing and middle-income countries, while creating and retaining jobs in the United States. USTDA's FY 2011 budget request will support key foreign policy objectives of the United States, including promoting clean energy development to mitigate the effects of climate change, achieving the President's vision of broadening economic engagement with Muslim-majority countries, and advancing the Millennium Development Goals in Africa.

USTDA has a demonstrated capability to respond rapidly and effectively to U.S. foreign policy priorities and promote economic development overseas, while creating export opportunities for U.S. manufacturing and service companies. USTDA's strategic use of foreign assistance funds to support sound investment decisions in host countries creates a supportive environment for sustainable economic development. Specifically, USTDA's programs help to identify and prepare projects for implementation that will establish the infrastructure necessary for emerging economies to expand. In carrying out its mission, USTDA places particular emphasis on activities where there is a high likelihood for the export of U.S.-manufactured goods and services during project implementation. As such, USTDA plays an important role in the creation of jobs in the United States by providing immediate opportunities for U.S. businesses, particularly small businesses, and longer term employment and export opportunities for the U.S. manufacturing, research and development, and service sectors. The Agency uses various tools to facilitate U.S. business opportunities in the international marketplace. This support comes in the form of feasibility studies, technical assistance, orientation visits, training grants, and conferences.

USTDA programs have a proven record of success. To date, USTDA has generated over $33.5 billion in exports of U.S.-manufactured goods and services that are directly attributable to USTDA activities, resulting in over $40 in U.S. exports for every $1 invested by the Agency.

(1) Under the statutory framework of P.L. 108-188, as amended, and P.L. 110-229, FEMA is unable to provide funding for USAID unless threshold damage for a Presidential Disaster Declaration occurs and a declaration is made. USAID is responsible for costs incurred in anticipation of and/or in response to an event that does not result in a declaration as well as for necessary recurring costs not attributable to a declaration.

(2) The USAID request includes additional recurring costs in Development Assistance for the Asia Bureau (see country entries for RMI and FSM).
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Date:Jan 1, 2011
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