Statement of Administration Policy: H.R. 3540 - Foreign Operations, Export Financing, and Related Programs Appropriations Bill, FY 1997

(House Floor)
(Sponsors: Livingston (R), Louisiana; Callahan (R), Alabama)

This Statement of Administration Policy provides the Administration's views on H.R. 3540, the Foreign Operations, Export Financing and Related Programs Appropriations Bill, FY 1997 as reported by the House Appropriations Committee. The Administration strongly opposes the bill in its current form.

The House Appropriations Committee has approved a bill that reduces FY 1997 appropriations $.5 billion below FY 1996 appropriations and $1.0. billion below the President's FY 1997 request. These ceilings are inconsistent with the requirements of America's international leadership. The resulting cutbacks in individual programs' in the bill would shortsightedly erode the ability of the President to ensure the security and prosperity of the American people in the international arena.

Because of the magnitude of the funding reductions in the Committee bill, the Administration strongly opposes any further funding reductions on the House floor. Additional funding for our international programs is required, and the Administration will work with the Congress to this end throughout the remainder of the appropriations process.

The Administration strongly opposes the bill's unwarranted restrictions on and disproportionate cut in international family planning programs. The Committee bill contains restrictions that go far beyond those contained in current law. These restrictions would severely undermine U.S. leadership in international population assistance efforts. The result of the bill's provisions would be an increased incidence of unintended pregnancy, maternal and infant death, and abortion. These restrictions would put in jeopardy funding to the most experienced and qualified family planning and maternal-child health care providers working at the grassroots level to meet the growing demand for family planning and other critical health services in developing countries. The language further reduces funding to these organizations if they or their implementing partners -- using non-U.S. government funds -- provide legal abortion services or seek to influence the abortion policy of foreign governments. The bill, in effect, would impose in statute, limitations on international family planning assistance that were rejected by the Administration when it overturned ^the so-called Mexico City policy. The Administration remains adamant in its opposition to both the intent and the effect of this unacceptable provision.

The Administration commends the Committee for providing the requested funding for a number of programs, including humanitarian assistance for refugees and disaster victims, aid to Bosnia and other Central and Eastern European countries, foreign military financing grants, anti-terrorism assistance for Israel, and international military education and training. The Administration also strongly supports the Committee's continuing efforts to minimize the number of funding earmarks and to remove extraneous general provisions from the bill. With the reduction in funding, levels from those of the early 1990's, the absence of earmarks has become particularly critical to effective program management.

Despite these positive actions, the Administration is deeply concerned about the many funding reductions in the Committee bill. Many of the deepest reductions are made in multilateral programs that help meet a number of major U.S. foreign policy goals and provide opportunities for American leadership. These programs also- constitute an important form of assistance burdensharing, an arrangement with other developed countries providing the lion's share of assistance funds in a time of serious budgetary stringency.

The Committee bill would provide no funds for the new Bank for Economic Cooperation and Development in the Middle East and North Africa, the African Development Bank and Fund, or for the Enhanced Structural Adjustment Facility of the International Monetary Fund. The World Bank's Global Environment Facility would be cut by 70 percent from the budget request. Funding for the International Development Association/ particularly critical to the poorest African countries, would be cut by 44 percent. The proposed contribution to the Inter-American Development Bank's fund for the poorest Latin American countries would be reduced by more than two-thirds. Requested funds for participation in the Paris Club multilateral debt reduction for the poorest debtor Countries would be cut by 55 percent, and contributions to United Nations and other international organizations and programs, mainly for grants to developing countries, would also be reduced from the Administration's request.

Relatively small but key programs affecting the security of the United States have also been cut back significantly. The very modest request for funds to further the reduction of North Korea's nuclear weapons capacity, which leverages strong support for this effort, from South Korea and Japan, has been cut in half. Funds for the completion of debt relief for Jordan have been denied, and the major initiative to target better our attack on international narcotics trafficking and crime abroad has been cut by 30 percent. Economic Support Fund financing to promote security objectives outside of the Middle East has also been reduced from the requested amount.

The Committee has reduced the request for USAID bilateral development assistance by $60 million. While the overall reductions are not as severe as for other development programs, development assistance was cut nearly twenty percent in FY 1996 from FY 1995 levels. The FY 1997 Committee bill would impair our efforts in such key development fields as the environment, economic growth and democracy. The agency's operating expenses have been reduced to a level that would seriously disrupt orderly downsizing efforts, and the agency's Housing Investment Guarantee program has been nearly eliminated. Further reductions would be strongly opposed.