*EPF207 11/18/2003
Text: Final Foreign Spending Bill Increases Money to Fight AIDS
(House-Senate compromise slashes Millennium Challenge Account money) (870)

Congressional negotiators are looking to spend about $2.4 billion in the fight against HIV/AIDS in poor countries during the fiscal year that began October 1 (FY04), more than the $2 billion requested by President Bush, according to a U.S. House of Representatives committee.

The negotiators agreed, however, to slash to $650 million the allocation to the Millennium Challenge Account (MCA), half the request Bush made for his new foreign aid initiative aimed at bolstering reforms in developing countries, a House Appropriations Committee press release said.

The press release was issued late November 17 after conferees from the House and Senate appropriations committees wrapped up their work. The full House and Senate must still pass the final bill before it would go to the president for his signature or veto.

Altogether the bill would approve spending $17.2 billion for foreign operations through September 2004, more than the $16.2 billion approved the previous fiscal year but less than the $18.9 billion Bush administration request.

The $1.646 billion approved in this bill plus $754 million expected to be approved in another bill would together provide $2.4 billion in foreign HIV/AIDS spending.

President Bush had requested $1.3 billion for the first year of his MCA initiative. Announcing the initiative in March 2002, Bush said he wanted to increase U.S. foreign aid spending in steps by 50 percent over three years, allocating the additional money to those developing countries that demonstrate a strong commitment to good governance, the health and education of their people, and market-based economics.

Republican leaders in Congress have argued, however, that the administration could not wisely spend the MCA amount requested by the president in the initiative's start-up year.

Also approved in the bill is money for the U.S. Agency for International Development (USAID), the Andean Counterdrug Initiative, and military financing for Israel, Egypt and Jordan.

Following is the text of the press release:

(begin text)

HIGHLIGHTS OF THE FY04 FOREIGN OPERATIONS APPROPRIATIONS CONFERENCE REPORT

November 17th, 2003
FY03 Enacted: $16.2 billion
FY04 President's Request: $18.9 billion
FY04 Bill: $17.2 billion

Major Priorities and Initiatives:

-- Provides a total of $1.646 billion global assistance to combat HIV/AIDS, tuberculosis and malaria, most of which is within the Child Survival and Health Programs Fund. $754 million in global assistance is anticipated in the Labor-HHS [Department of Health and Human Services] appropriations, bringing total funding to $2.4 billion.

-- Increases the Child Survival and Health Programs Fund $118.5 million over last year's level and $340 million over the request. Total FY04 funding is $1.8 billion.

-- Provides $1.4 billion in Development Assistance through USAID, $40 million above the request and $5 million above the last year's level.

-- Provides $255.5 million for international disaster and famine assistance, the same as the President's request and additional $20 million is included for famine relief.

-- Total funding of the Agency for International Development (USAID) is $4.8 billion, $177 million above the request and $297 million above FY03.

-- International Narcotics Control is funded at $242 million, $46 million above last year and $43 million below the request.

-- The Andean Counterdrug Initiative is funded at $731 million, the same as the President's request.

-- Fully funds the President's $2.2 billion request for Foreign Military Financing for Israel. Also fully funds the President's $480 million request for economic assistance to Israel.

-- Fully funds the President's $1.3 billion request for Foreign Military Financing for Egypt, the same as FY03. Also fully funds the President's $575 million request for economic assistance to Egypt.

-- Fully funds the President's $206 million request for Foreign Military Financing for Jordan, $8 million above FY03. Also fully funds the President's request for $250 million for economic assistance to Jordan, $2 million above FY03.

-- Assistance for the Independent States of the former Soviet Union is funded at $587 million, $11 million above the President's request.

-- The International Fund for Ireland, which was eliminated as a separate fund in the President's budget request, is funded at $19 million.

-- Peace Corps is funded at $325 million, $30 million above FY03 and $30 million below the President's request.

Other Items of Interest:

-- The bill provides $650 million for the Millennium Challenge Corporation and includes a comprehensive authorization for this new initiative.

-- The contribution to the International Development Association is funded at $913 million, $63 million below the President's request and $69 million above FY03.

-- The Global Environment Facility (GEF) is funded at $139 million, $46 million below the President's request and $6 million below last year.

-- The total World Bank Group is funded $1.1 billion, $61 million above last year and $112 million below the request.

-- The Trade and Development Agency is funded at $50 million, $10 million less than the President's request and $3 million more than last year's level.

-- Overseas Private Investment Corporation (OPIC) is funded at $65 million, $1 million less than the President's request and the same as FY03.

-- Funds International Military Education Training (IMET) at $92 million, $12 million above FY03 and the same as the President's request.

(end text)

(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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