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WH/OMB Releases FY2018 Budget Blueprint – @StateDept/@USAID Hit With 28% Funding Cuts

Posted: 2:14 am ET

 

WaPo posted a copy of President Trump’s budget proposal for FY2018 which OMB calls “America First: A Budget Blueprint to Make America Great Again”. Important to note that this is a proposal and that Congress has ultimate control over government funding. We’ll have to wait and see what Congress will do with this request and which cabinet secretary will decline the funds if the Hill insists on the agency/agencies getting more money than the Trump request. We’ve extracted the 2-page relevant to the State Department below:

The Department of State, the U.S. Agency for International Development (USAID), and the Department of the Treasury’s International Programs help to advance the national security interests of the United States by building a more democratic, secure, and prosperous world. The Budget for the Department of State and USAID diplomatic and development activities is being refocused on priority strategic objectives and renewed attention is being placed on the appropriate U.S. share of international spending. In addition, the Budget seeks to reduce or end direct funding for international organizations whose missions do not substantially advance U.S. foreign policy interests, are duplicative, or are not well—managed. Additional steps will be taken to make the Department and USAID leaner, more efficient, and more effective. These steps to reduce foreign assistance free up funding for critical priorities here at home and put America first.

The President’s 2018 Budget requests $25.6 billion in base funding for the Department of State and USAID, a $10.1 billion or 28 percent reduction from the 2017 annualized CR level. The Budget also requests $12.0 billion as Overseas Contingency Operations funding for extraordinary costs, primarily in war areas like Syria, Iraq, and Afghanistan, for an agency total of $37.6 billion. The 2018 Budget also requests $1.5 billion for Treasury International Programs, an $803 million or 35 percent reduction from the 2017 annualized CR level.

The President’s 2018 Budget:

➡ Maintains robust funding levels for embassy security and other core diplomatic activities while implementing efficiencies. Consistent with the Benghazi Accountability Review Board recommendation, the Budget applies $2.2 billion toward new embassy construction and maintenance in 2018. Maintaining adequate embassy security levels requires the efficient and effective use of available resources to keep embassy employees safe.

➡ Provides $3.1 billion to meet the security assistance commitment to Israel, currently at an all-time high; ensuring that Israel has the ability to defend itself from threats and maintain its Qualitative Military Edge.

➡ Eliminates the Global Climate Change Initiative and fulfills the President’s pledge to cease payments to the United Nations’ (UN) climate change programs by eliminating U.S. funding related to the Green Climate Fund and its two precursor Climate Investment Funds.

➡ Provides sufficient resources on a path to fulfill the $1 billion U.S. pledge to Gavi, the Vaccine Alliance. This commitment helps support Gavi to vaccinate hundreds of millions of children in low-resource countries and save millions of lives.

➡ Provides sufficient resources to maintain current commitments and all current patient levels on HIV/AIDS treatment under the President’s Emergency Plan for AIDS Relief (PEPFAR) and maintains funding for malaria programs. The Budget also meets U.S. commitments to the Global Fund for AIDS, Tuberculosis, and Malaria by providing 33 percent of projected contributions from all donors, consistent with the limit currently in law.

➡ Shifts some foreign military assistance from grants to loans in order to reduce costs for the U.S. taxpayer, while potentially allowing recipients to purchase more American-made weaponry with U.S. assistance, but on a repayable basis.

➡ Reduces funding to the UN and affiliated agencies, including UN peacekeeping and other international organizations, by setting the expectation that these organizations rein in costs and that the funding burden be shared more fairly among members. The amount the U.S. would contribute to the UN budget would be reduced and the U.S. would not contribute more than 25 percent for UN peacekeeping costs.

➡ Refocuses economic and development assistance to countries of greatest strategic importance to the U.S. and ensures the effectiveness of U.S. taxpayer investments by rightsizing funding across countries and sectors.

➡ Allows for significant funding of humanitarian assistance, including food aid, disaster, and refugee program funding. This would focus funding on the highest priority areas while asking the rest of the world to pay their fair share. The Budget eliminates the Emergency Refugee and Migration Assistance account, a duplicative and stovepiped account, and challenges international and non-governmental relief organizations to become more efficient and effective.

➡Reduces funding for the Department of State’s Educational and Cultural Exchange (ECE) Programs. ECE resources would focus on sustaining the flagship Fulbright Program, which forges lasting connections between Americans and emerging leaders around the globe.

➡ Improves efficiency by eliminating overlapping peacekeeping and security capacity building efforts and duplicative contingency programs, such as the Complex Crises Fund. The Budget also eliminates direct appropriations to small organizations that receive funding from other sources and can continue to operate without direct Federal funds, such as the East-West Center.

➡ Recognizes the need for State and USAID to pursue greater efficiencies through reorganization and consolidation in order to enable effective diplomacy and development.

➡ Reduces funding for multilateral development banks, including the World Bank, by approximately $650 million over three years compared to commitments made by the previous administration. Even with the proposed decreases, the U.S. would retain its current status as a top donor while saving taxpayer dollars.

Read the document in full:

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Lonesome Rex to Make Inaugural Trip to Asia Without His Traveling Press?

Posted: 2:37 am ET

 

Secretary Tillerson knew when he took this job that he would be the face and the voice of America to the world. That includes talking to the press, and more importantly answering questions from the press corps. We get that he’s new at this but he better get it together fast; he’s now one of our most prominent public servants, and he cannot continue to evade the press and avoid answering questions without running afoul of one of his three core principles.

NBC’s Andrea Mitchell  has now been escorted twice out of a State Department presser. Reporters were also previously escorted out during the Lavrov-Tillerson meeting in Germany. We betcha when Secretary Tillerson starts talking to the press, reporters would not have to shout their questions during every 30-second photo-op. And now, we’re hearing that Secretary Tillerson is making his inaugural trip to Asia next week. He will be traveling with the new Acting Assistant Secretary of State for the EAP Bureau Susan Thornton who assumed post after Danny Russel’s recent departure.  According to the State Department, Secretary Tillerson will arrive in Tokyo on March 15, continue on to Seoul on March 17, and travel to Beijing on March 18 —  apparently without his traveling press.

Here is the official word on this according to the acting @StateDept spox, Mark Toner:

[W]ith respect to the trip to Asia, we’re still working out the logistics, so I really can’t say specifically or speak definitively, I guess, as to whether we will be able to accommodate any press on the Secretary’s plane. I think we’re all aware that it is a smaller plane for this particular trip. There will, as you know, going to – there will be some U.S. media who will be traveling to the destinations, each destination, and of course, we will do our utmost to support them at those destinations and provide whatever access we can.  And I think going forward, the State Department is doing everything it can to – and will do everything it can to accommodate a contingent of traveling media on board the Secretary’s plane.

Wait, Secretary Tillerson’s minders did not purposely select a smaller plane, did they?  The smaller plane excuse would only really work had Secretary Tillerson traveled with the full press during his trips to Mexico and Germany, then say, hey, can’t this time because we’re forced to use a smaller plane. But in Mexico, Secretary Tillerson reportedly only traveled with press pools, took a small plane and had one writer and one photographer. So this is starting to look like this could be the new normal.  If he can get away with not taking his traveling press this time, are we looking at our top diplomat ditching the press for good in the future?  This is, of course, worrisome coz how are we going to Make America Great Again if we can’t even provide a good size plane for our chief diplomat and his traveling press?

Folks, this doesn’t look good. You need to make this right. And hey, about the milkbox, does he have a favorite color?

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In Disaster News, Trump Budget Seeks 37% Funding Cut For @StateDept and @USAID

Posted: 2:25 am  ET

 

 

Ex-CIA Sabrina de Sousa Granted Partial Pardon by Italian President Mattarella

Posted: 2:19 am  ET

 

We’ve followed the case of Sabrina de Sousa in this blog since 2009. She previously worked as an FSO for the State Department from 1998 to 2009. In a July 2013 interview with McClatchyDC, Ms. De Sousa confirmed that she worked under cover for the CIA in Milan, Italy.

 

According to the Guardian, the office of Italian President Sergio Mattarella issued a statement late Tuesday saying that De Sousa had been granted a partial pardon. It means a reduction of her four-year sentence of detention by one year.  The statement cited by media reports indicate that De Sousa “would be able to serve her sentence with “alternative measures” to detention, meaning that she could avoid spending any time in jail.”

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“America First” Budget Targets @StateDept Funding ( Just 1% of Total Federal Budget)

Posted: 3:13 am  ET

 

We recently posted about the Trump budget for FY2018 that will reportedly proposed funding cuts of up to 30% for the State Department (see  With @StateDept Facing a 30% Funding Cut, 121 Generals Urge Congress to Fully Fund Diplomacy and Foreign Aid@StateDept Budget Could Be Cut By As Much as 30% in Trump’s First Budget Proposal?@StateDeptbudge Special Envoy Positions Could Be in Trump’s Chopping Block — Which Ones?). We understand that this number could actually be closer to 40%, which is simply bananas, by the way.  It would be ‘must-see’ teevee if Secretary Tillerson appears before the House and Senate committees to justify the deep cuts in programs, foreign aid, diplomatic/consular posts, embassy security, staffing, training, or why we’re keeping just half the kitchen sink. Just a backgrounder, below is the budget request composition for FY2016:

fy2016-sfops-budget-request

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Previous posts on FS funding:

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On February 27, OMB Director Mick Mulvaney showed up at the WH Press Briefing to talk about President Trump’s budget.  Before you are all up in arms, he said that what we’re talking about right now is “not a full-blown budget” which apparently will not come until May.  So this “blueprint” does not include mandatory spending, entitlement reforms, tax policies, revenue projections, or the infrastructure plan and he called this a “topline number only.” Agencies are given 48 hours to respond to OMB (holy camarba!). Excerpt below from his talk at the James S. Brady Briefing Room:

As for what it is, these are the President’s policies, as reflected in topline discretionary spending.  To that end, it is a true America-first budget.  It will show the President is keeping his promises and doing exactly what he said he was going to do when he ran for office.  It prioritizes rebuilding the military, including restoring our nuclear capabilities; protecting the nation and securing the border; enforcing the laws currently on the books; taking care of vets; and increasing school choice.  And it does all of that without adding to the currently projected FY 2018 deficit.

The top line defense discretionary number is $603 billion.  That’s a $54-billion increase — it’s one of the largest increases in history.  It’s also the number that allows the President to keep his promise to undo the military sequester.  The topline nondefense number will be $462 billion.  That’s a $54-billion savings.  It’s the largest-proposed reduction since the early years of the Reagan administration.

The reductions in nondefense spending follow the same model — it’s the President keeping his promises and doing exactly what he said he was going to do.  It reduces money that we give to other nations, it reduces duplicative programs, and it eliminates programs that simply don’t work.

The bottom line is this:  The President is going to protect the country and do so in exactly the same way that every American family has had to do over the last couple years, and that’s prioritize spending.

The schedule from here — these numbers will go out to the agencies today in a process that we describe as passback.  Review from agencies are due back to OMB over the course of the next couple days, and we’ll spend the next week or so working on a final budget blueprint.  We expect to have that number to Congress by March 16th.  That puts us on schedule for a full budget — including all the things I mentioned, this one does not include — with all the larger policy issues in the first part of May.

[…]

Q    But we’re not talking about 2 or 3 percent — we’re talking about double-digit reductions, and that’s a lot.

DIRECTOR MULVANEY:  There’s going to be a lot of programs that — again, you can expect to see exactly what the President said he was going to do.  Foreign aid, for example — the President said we’re going to spend less money overseas and spend more of it here.  That’s going to be reflected in the number we send to the State Department.

Q    Thank you very much.  One quick follow on foreign aid.  That accounts for less than 1 percent of overall spending.  And I just spoke with an analyst who said even if you zero that out, it wouldn’t pay for one year of the budget increases that are being proposed right now.  So how do you square that amount?  So why not tackle entitlements, which are the biggest driver, especially when a lot of Republicans over the years have said that they need to be taxed?

DIRECTOR MULVANEY:  Sure.  On your foreign aid, it’s the same answer I just gave, which is, yes, it’s a fairly part of the discretionary budget, but it’s still consistent with what the President said.  When you see these reductions, you’ll be able to tie it back to a speech the President gave or something the President has said previously.  He’s simply going to — we are taking his words and turning them into policies and dollars.  So we will be spending less overseas and spending more back home.

 

See three separate threads on Twitter with some discussion of the proposed cuts.

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With @StateDept Facing a 30% Funding Cut, 121 Generals Urge Congress to Fully Fund Diplomacy and Foreign Aid

Posted: 1:49 pm  ET

 

So last night, an unnamed Senior Administration Official told reporters that Trump’s first budget will include $54 billion in additional funds to the Pentagon, and as much as 30% cut to the State Department budget (see@StateDept Budget Could Be Cut By As Much as 30% in Trump’s First Budget Proposal?). Additional reporting indicates that the administration will also seek an additional $30 billion in supplemental defense appropriations for the FY 2017 year.

Today, 121 retired U.S. generals and admirals urged Congress to fully fund U.S. diplomacy and foreign aid. They write:

The State Department, USAID, Millennium Challenge Corporation, Peace Corps and other development agencies are critical to preventing conflict and reducing the need to put our men and women in uniform in harm’s way. As Secretary James Mattis said while Commander of U.S. Central Command, “If you don’t fully fund the State Department, then I need to buy more ammunition.” The military will lead the fight against terrorism on the battlefield, but it needs strong civilian partners in the battle against the drivers of extremism– lack of opportunity, insecurity, injustice, and hopelessness.

We recognize that America’s strategic investments in diplomacy and development – like all of U.S. investments – must be effective and accountable. Significant reforms have been undertaken since 9/11, many of which have been embodied in recent legislation in Congress with strong bipartisan support – on human trafficking, the rights of women and girls, trade and energy in Africa, wildlife trafficking, water, food security, and transparency and accountability.

We urge you to ensure that resources for the International Affairs Budget keep pace with the growing global threats and opportunities we face. Now is not the time to retreat.

The letter is addressed to Congressional leaders Paul Ryan, Mitch McConnell, Nancy Pelosi and Chuck Schumer with courtesy copies to Secretary of State Rex Tillerson, Secretary of Defense James Mattis, and National Security Advisor H.R. McMaster.

Read the full letter below.

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@StateDept Budget Could Be Cut By As Much as 30% in Trump’s First Budget Proposal?

Posted: 3:40 am  ET

 

Via Bloomberg:

Trump’s first major fiscal marker will land in the agencies one day before his first address to a joint session of Congress. […] The Pentagon is due for a huge boost, as Trump promised during the campaign. But many nondefense agencies and foreign aid programs are facing cuts, including at the State Department. The specific numbers aren’t final and agencies will have a chance to argue against the cuts as part of a longstanding tradition at the budget office.

Note that in fiscal year 2016, the Pentagon has had nearly $600 billion at its disposal. According to Newsweek, that’s twice the size of the defense budget before the 9/11 attacks and more than 10 times the amount the State Department received for diplomacy. For fiscal year 2017, then President Obama had asked Congress to increase Pentagon spending by $22 billion, while his State Department request has remained flat, at $50 billion.  And now, potentially a 30% cut? We hope to have a follow up post when we have further details.

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That #SwedenIncident 😧–America First, Sweden Second–Listen, But Don’t ‘Bomb Ikea’

Posted: 2:19 am  ET

 

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@USUN Ambassador Nikki Haley: Taking Names and Diplomatic Dustup

Posted: 12:44 am  ET

 

On November 23, then President-elect Donald Trump announced his intent to nominate SC Governor Nikki Haley as his Ambassador to the United Nations (see Trump to Nominate SC Governor Nicki Haley as U.N. Ambassador).  She had her confirmation hearing on January 18 and was confirmed by the Senate in a 96-4 vote on January 24.  The following day, she was sworn into office by Vice President Pence. She made her first appearance before the press as USUN ambassador on January 27 prior to presenting her credentials. She made a huge splash with her opening salvo:  “For those who don’t have our back, we’re taking names – we will make points to respond to that accordingly.”  A short while later, a diplomatic dustup.

This  round-up is a bit late, but we want this up for future reference. It’s not even a month yet, stuff could happen here, there, everywhere …  tonight, tomorrow … heck, there’s “breaking news” every 5 minutes!

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White House Issues Clean-Up Memo For Trump Ban to Exempt Green Card Holders

Posted: 1:09  am ET

 

On February 1, White Counsel Donald F. McGahn II released a memo intended to provide “Authoritative Guidance on Executive Order Entitled “Protecting the Nation from Foreign Terrorist Entry into the United States” (Jan. 27, 2017).”

Section 3(c) of the Executive Order entitled “Protecting the Nation from Foreign Terrorist Entry into the United States” (Jan. 27, 2017) suspends for 90 days the entry into the United States of certain aliens from countries referred to in section 217(a)(12) of the Immigration and Nationality Act (INA), 8 U.S.C. 1187(a)(12). Section 3(e) of the order directs the Secretary of Homeland Security, in consultation with the Secretary of State, to submit to the President a list of countries recommended for inclusion on a Presidential proclamation that would prohibit the entry of certain foreign nationals from countries that do not provide information needed to adjudicate visas, admissions, or other benefits under the INA.

I understand that there has been reasonable uncertainty about whether those provisions apply to lawful permanent residents of the United States. Accordingly, to remove any confusion, I now clarify that Sections 3(c) and 3(e) do not apply to such individuals. Please immediately convey this interpretive guidance to all individuals responsible for the administration and implementation of the Executive Order.

The EO clearly states  “I hereby proclaim that the immigrant and nonimmigrant entry into the United States of aliens from countries referred to in section 217(a)(12) of the INA, 8 U.S.C. 1187(a)(12), would be detrimental to the interests of the United States, and I hereby suspend entry into the United States, as immigrants and nonimmigrants.”  So the EO drafters had to idea what are green card holders? Or they just want to tame the blowback right now.

Here is Section 3 (c):

(c)  To temporarily reduce investigative burdens on
relevant agencies during the review period described in
subsection (a) of this section, to ensure the proper review
and maximum utilization of available resources for the
screening of foreign nationals, and to ensure that adequate
standards are established to prevent infiltration by foreign
terrorists or criminals, pursuant to section 212(f) of the
INA, 8 U.S.C. 1182(f), I hereby proclaim that the immigrant
and nonimmigrant entry into the United States of aliens from
countries referred to in section 217(a)(12) of the INA, 8
U.S.C. 1187(a)(12), would be detrimental to the interests of
the United States, and I hereby suspend entry into the United
States, as immigrants and nonimmigrants, of such persons for
90 days from the date of this order (excluding those foreign
nationals traveling on diplomatic visas, North Atlantic Treaty
Organization visas, C-2 visas for travel to the United
Nations, and G-1, G-2, G-3, and G-4 visas).

Here is Section 3 (e)

(e)  After the 60-day period described in subsection (d)
of this section expires, the Secretary of Homeland Security,
in consultation with the Secretary of State, shall submit to
the President a list of countries recommended for inclusion on
a Presidential proclamation that would prohibit the entry of
foreign nationals (excluding those foreign nationals traveling
on diplomatic visas, North Atlantic Treaty Organization visas,
C-2 visas for travel to the United Nations, and G-1, G-2, G-3,
and G-4 visas) from countries that do not provide the
information requested pursuant to subsection (d) of this
section until compliance occurs.

The full WH memo is here:

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