Latest Budget Development in U.S. House Threatens Progress on Global Poverty

The House Appropriations subcommittee on State and Foreign Operations (SFOPs) today approved their proposed  fiscal year 2014 spending plan for the Department of State and the U.S. Agency for International Development (USAID). SFOPs-watchers knew well beforehand that the House numbers would be hard to swallow because the spending cap that had been set was so low: at $40.6 billion, it is 22% below even historically low postsequestration spending levels. With a much lower cap, they knew it would be difficult to fund some of our nation’s most important priorities around the globe, from peacekeeping activities and the Peace Corps to poverty-focused development and humanitarian work. There just isn’t enough money to go around, no matter how you slice a pie that small.

In such a constrained environment, the appropriators writing the bill were left with difficult choices and in releasing the bill, its lead author, Rep. Kay Granger (R-TX) stated clearly that “in order to promote American interests abroad, the bill prioritizes funding on overseas security efforts.” The bill has therefore fully funded embassy security, as well as “assistance to key foreign allies, programs to promote democracy abroad, and help for refugees and other humanitarian efforts.”

The key line comes next: “To meet these priorities, the bill eliminates or reduces funding to lower-priority international programs.” What are those lower-priority international programs?  The list is long, but here are some of the lowlights (and a few highlights) of the poverty-focused development and humanitarian accounts:

• Development Assistance – the bedrock of U.S. global leadership in education, clean water, agriculture, environmental protection, economic development, good governance and democracy – would take a large hit under the House plan, at funding 26% below fiscal year 2013 levels. This comes despite increasing food prices, environmental challenges, and tumult in the Arab world.
• United Nations programs would also take a large cut under the House bill, with a 58 percent reduction in UN contributions that includes eliminating funding for the Intergovernmental Panel on Climate Change and the UN Population Fund.
• Total funding for multilateral assistance dropped from $3 billion to $1.2 billion, a 61 percent cut.
• A 22 percent cut in funding for the Millennium Challenge Corporation to $702 million from $898 million.

One ray of sunshine continues to be global health, and specifically the fight against HIV/AIDS. With total funding levels of $8.175 billion – an estimated 1.4% bump from last year’s levels, after sequestration – global health appears to have been spared the cuts that others are seeing.  Another bright spot is basic education, at $800 million. While it would take a 4% cut from last year’s estimated levels, it is nearly $300 million above the President’s $501 million request.

Overall, there is a tough road ahead for those who care about the world’s poorest. While health programs and some refugee programs would survive, many long-term development accounts could take a severe hit if the House’s plan becomes law, which could slow progress down around the world and make it harder for people to pull themselves out of poverty. This is a crucial time for supporters of these programs to make their voices heard and tell Congress that we need to protect these critical programs and fight for the world’s most vulnerable citizens.  

Jeremy Kadden is the senior legislative manager at InterAction.