Related Items Full Coverage: White House Releases New Budget

By Miles Pomper
LEGI-SLATE News Service
Monday, Feb. 2, 1998

President Clinton on Monday unveiled a $20 billion international affairs budget that includes more than $1 billion in increased foreign affairs spending – a proposal that is likely to get a cool reception on Capitol Hill.

Nearly all of the increased spending in fiscal year 1999 budget are slated for programs involving international development banks and aid to Russia and Haiti, all of which are quite unpopular with Congress.

In addition, State Department officials said they would seek again to win congressional support to pay another $1 billion in U.S. dues to the United Nations. A bill [S. 903] granting that money if the U.N. undertook certain reforms cleared the Senate last year, but floundered in the House.

Congressional officials reacted with incredulity and bemusement to the administration's proposal.

"It's not going to be difficult to cut this budget," said a key House appropriations staffer. "They didn't put anything in to attract support."

Controversial requests include:

• $300 million for the World Bank's Global Environmental Facility. The United States now owes nearly $200 million to the organization, because Congress has repeatedly slashed much smaller requests from the White House. Capitol Hill aides give the request little chance of success.

• $925 million for the countries of the former Soviet Union. Last year, the White House requested $900 million and Congress granted $770 million. A similar pattern is likely to repeated this year, aides say.

• Continuing to devote nearly half of the foreign aid budget to the Middle East. Israel has expressed its willingness to phase out its $1.2 billion in economic assistance over several years, in return for a $600 million increase in military aid to $2.4 billion.

  Lawmakers, particularly Sen. Mitch McConnell, R-Ky., who chairs the Senate Foreign Operations Appropriations Subcommittee, are hoping to cut Egypt's $2.2 billion in annual military and economic assistance proportionately and reap a budget windfall. But administration officials indicated Monday that they would expect to plow any savings into aid to other Middle East countries, such as Jordan.

• Doubling U.S. assistance to Haiti from $70 million to $140 million. GOP legislators have been scathing in their criticism of Haitian President Rene Preval and will not look kindly on increasing aid to a government they consider corrupt, ineffective and violent.

• $225 million in reconstruction funds for Bosnia. Convinced that reconstruction efforts in the war-torn country have failed, congressional aides have pledged to thoroughly investigate the program before the planned third-phase of the U.S.-backed NATO mission there this summer.

In addition, House Republicans are still demanding that the administration agree to unrelated conditions on family planning before they would support paying off U.S. debts to the United Nations.

In particular, Republicans want to prevent family planning groups that receive U.S. funds from lobbying foreign governments to preserve or enact rules legalizing abortion.

The budget also includes an historic decision to cut off all economic and military aid to Greece and Turkey, ending a long-standing source of tension with Congress. Although the countries have received decreasing amounts of aid in recent years, battles over funding had served as a vehicle for groups, particularly Greek- and Armenian-Americans to demonstrate opposition to Turkey and its human rights record.

"This represents the maturing of our relationship; there is not the need for the same level of assistance," given the economic development of the two Aegean nations, L. Craig Johnstone, director of State's office of resources, plans, and policy, explained Monday.

Less controversial – but still not assured of congressional support – is a State Department request for funding of several new programs in Africa, including a $35 million to pay off debts owed by African nations to the U.S. government, $30 million in additional development funds, $26 million in additional educational funds and a $25 Africa Great Lakes Initiative designed to prevent conflict in Central Africa.

The Clinton administration requested substantial increases in funding for a few programs that actually have proved popular on Capitol Hill in recent years, including a $130 million increase for the Export-Import Bank, a $45 million increase each for State Department anti-drug activities and the Peace Corps, and a $30 million increase for demining activities.

Also likely to prove popular is a new $10 million U.S. contribution to an international program aiding victims of the Holocaust.