Advertisements

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:

#

Advertisements

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

Posted: 2:25 am  ET

 

 

“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

*

Previous posts on FS funding:

*

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.

#

Uh-oh Dept: Royce Issues Subpoena to OMB Over Diplomatic Security Training Facility Documents

Posted: 3:01 am EDT

 

On May 28, U.S. Rep. Ed Royce (R-CA), Chairman of the House Foreign Affairs Committee (HFAC), issued a subpoena (pdf) to the Office of Management and Budget (OMB).  The subpoena compels OMB to provide the Committee with critical information he said HFAC has sought for nearly a year concerning the State Department’s plan to construct a Foreign Affairs Security Training Center (FAST-C) in Virginia.

Subpoena to the Office of Management and Budget (OMB) | HFAC

Subpoena to the Office of Management and Budget (OMB) | HFAC

Via HFAC:

The State Department plans to construct the FAST-C facility in Virginia at a cost of $413 million.  However, the project’s initial estimate of $950 million suggests the likelihood of considerable cost escalation over the construction period.  At either amount, the State Department proposal appears far more costly than the Department of Homeland Security’s (DHS) proposal to expand its Federal Law Enforcement Training Center (FLETC) in Glynco, Georgia to provide State Department diplomatic security training, as is currently taking place.

Chairman Royce said:  “In an increasingly dangerous world, the security of U.S. diplomats abroad is paramount.  We must ensure that our diplomats receive improved security training, and a big part of providing that training effectively is making the most of our limited resources.  That is why for nearly a year, I’ve been asking OMB to provide the Committee with its analysis, which according to OMB officials’ statements to Committee staff, recommended using an existing facility — a course that the Administration has apparently chosen to ignore.  I’d like to know the factors considered in this important decision.”

In late 2013, OMB examined the two proposals to determine whether State’s request for funding for FAST-C was justified.  Chairman Royce encouraged OMB to determine which proposal best addresses the State Department’s vital training needs in a fiscally responsible way.  He also requested that the Government Accountability Office perform an independent analysis of the proposals in September 2014.

The Committee is aware that OMB analysts had completed a written analysis recommending that the State Department pursue its diplomatic security training at the DHS’s FLETC facility.

On May 19, 2014, Chairman Royce requested that then-OMB Director Sylvia Burwell provide the Committee with a copy of OMB’s analysis.  On May 1, 2015, Chairman Royce reiterated his request to current OMB-Director Shaun Donovan, expanding it to include all “documents and communications” pertaining to the FASTC and FLETC facilities during OMB’s review period.  OMB has given no indication it will comply fully with these requests.

Chairman Royce said: “I am disappointed that OMB hasn’t provided the Committee its analysis so that the Congress can make informed and responsible policy decisions in this critical area.  The internal documents underlying this analysis should tell us how and why OMB arrived at its decision.  In light of OMB’s continued refusal, I am left with no choice but to issue this subpoena.”

 

Related items:

  • Chairman Royce’s January 9, 2014 letter to then-OMB Director Sylvia M. Burwell encouraging an independent OMB analysis is available here.
  • Royce’s May 19, 2014 letter requesting OMB’s analysis is available here.
  • Royce’s May 1, 2015 letter threatening to compel production of the analysis is available here.
  • In September 2014, Chairman Royce, Homeland Security Committee Chairman Michael McCaul (R-TX), and Homeland Security Subcommittee on Oversight and Management Efficiency Chairman Jeff Duncan (R-SC) requested an independent Government Accountability Office review of the State and DHS proposals. That review is ongoing.

Related posts:

Shutdown News: State Department Stays Open and Operational. For Now.

— By Domani Spero

Shortly before midnight, OPM released a statement ordering federal agencies to execute plans for an orderly shutdown due to the absence of appropriations. During the DPB the day before the shutdown, the State Department spokesperson Jen Psaki stated that State/USAID operation can be “sustained” for a limited duration in the event of a shutdown:

[R]egardless of the challenges a shutdown would create, we will continue to operate to advance national interests and to protect health and safety of American citizens and those living abroad. 

If appropriations are not continued, so if the government shuts down, initially Department of State and USAID activities can be sustained on a limited basis for a short period of time. I don’t have the specific number of days because it’s dependent on our programs and spending, so I can’t give you the prediction of the number of days.

Ms. Psaki asked specifically about “any immediate kind of furloughs” said: “I will have to double-check and make sure that the answer is zero. But I can convey definitively that the vast, vast majority of staff will not be…”

So it looks like, at least, for now, the State Department will remain open and operational and no employees will be put on furloughs. (If you are with State/USAID and have received a furlough letter, give us a shout here).

How is this possible?

If there is no continuing resolution or new FY 2014 appropriations bill by October 1, 2013, certain Department of State and USAID operations can continue on a limited basis for a short period of time.  At least, that’s what will happen initially.  According to State, its FY 2013 appropriations were not enacted by Congress until late March causing uncertainty about the agency’s funding levels. The result was a reduction of agency spending for the first part of FY 2013.  So certain multi-year State Department and USAID accounts have residual funds that will be available after September 30, 2013.  These funds will allow the Department and USAID to continue to meet most payroll obligations for a short period of time.

How short a period of time, the spokesperson is unable to say.

In the 1995 shutdown, non-essential government workers were put on furlough and the government suspended non-essential services from November 14 through November 19, 1995 and from December 16, 1995 to January 6, 1996, for a total of 28 days. During that shutdown, 20,000-30,000 visa applications went unprocessed each day, as did 200,000 U.S. passport applications for the period.  There were no numbers but this reportedly deeply impacted the tourism and travel sectors of the economy.”

That’s not happening this time around.

The State Department spokesman said yesterday that “activities carry out by our – by the Bureau of Consular Affairs will continue domestically and abroad. So that means they will continue visa issuance as well as our passport operations.”

There’s another reason why State may be able to sustain its operation even in a shutdown, at least for a limited time. Its public services like visa and passport issuances are now fee-based.  When you apply for a passport or a visa, or obtain other consular services overseas, you pay a fee and that helps fund the programs. Processing fee for regular tourist and student visa is currently $160.00. Passport books and cards range in fee from $30 – $165.

In FY 2012, the State Department processed 10.3 million non-immigrant visa applications and issued 8.9 million visas, including 497,044 student and 313,424 exchange visitor visas.  These international students reportedly contributed over $22.7 billion to the U.S. economy in 2011. In FY 2012, the State Department also issued 13.1 million passports and passport cards.

The State Department’s passport and visa operations generated approximately $3.14 billion in consular fee revenue in FY2012.  It retained 78% or $2.45 billion of the total revenue.  The retained fees were shared among its regional and functional bureaus. See breakdown below.

Screen Shot 2013-08-12

Prior to 1994, the Department did not retain any of the consular fees collected. Subsequently, Congress authorized the Department to retain Machine Readable Visa (MRV) fees to help fund consular operations related to border security (I think the roll out of machine readable visas was not completed until the summer of 1996).

The Department is also authorized to collect and retain other fees to fund consular-related activities. It now retains a portion of the consular fees that it collects and remits the remaining portion to the U.S. Department of the Treasury.  In FY 2010, the Department collected approximately $2.62 billion in fee revenue and was allowed to retain about 70 percent of the fees (or approximately $1.8 billion).

Various embassies and consulates have been tweeting that they are open for business and that applicants should keep their interview appointments.

The State Department’s guidance on operations during a lapse in appropriation is available here.

(O_O)