CRS Report for Congress
State Department and Related Agencies
FY2000 Appropriations
Updated February 4, 2000
Susan B. Epstein
Specialist in Foreign Policy and Trade
Foreign Affairs, Defense, and Trade Division

Congressional Research Service ˜ The Library of Congress

This report tracks action by the 106th Congress on FY2000 appropriations for the State
Department and related agencies within the Commerce, Justice, State and Related Agencies
(CJS) appropriations (H.R. 3421). CJS appropriations became part of the Consolidated
Appropriations Act of FY2000 (H.R. 3194). The President’s FY2000 State Department and
related agency request was $6.3 billion–about 10% lower than the FY1999 total
appropriations of nearly $7.0 billion for these agencies (including the adjusted FY1999
emergency supplemental appropriation for embassy security of $1.56 billion). The final State
Department and international broadcasting funding level for FY2000 as passed by Congress
is $6.3 billion. This is the final report on State’s FY2000 budget.

State Department and Related Agencies
FY2000 Appropriations
On February 1, 1999 the President submitted his FY2000 budget request which,
after being amended in June, included $6.3 billion for the Department of State and the
Broadcasting Board of Governors. This represents a decline of $683 million (or
9.8%) from the FY1999 enacted level which consists of regular appropriations and
an emergency supplemental appropriation for embassy security, among other
measures. Congress approved the conference report (H.Rept.106-398) on Octoberth
20, 1999. The President vetoed the CJS legislation on October 25, citing the need
for hate crime legislation, the inadequacy in funding of the Department of Justice
COPS program to hire additional police officers, and inadequate funding/authorization
for U.S. arrearage payment to the United Nations. In November, Congress merged
a number of bills, including the CJS appropriations (H.R. 3421) into a consolidated
bill (H.R. 3194). Congress passed the Act on November 19, 1999; the President
signed it into law (P.L. 106-113) on November 29, 1999.
The Foreign Affairs Reform and Restructuring Act of 1999 (P.L. 105-277,
section 1001) required the foreign policy agencies to be reorganized before FY2000.
The Act required that the Arms Control and Disarmament Agency (ACDA) merge its
functions into the Department of State, and the U.S. Agency for International
Development (USAID) reorganize and come directly under the authority of the
Secretary of State by April 1, 1999. It required the U.S. Information Agency (USIA)
to consolidate its information and exchange functions into the Department of State,
while the broadcasting functions became an independent agency--the Broadcasting
Board of Governors (BBG)--as of October 1, 1999.
The amended FY2000 State Department budget request contained a total of
$568 million for embassy security upgrades and an advance appropriation request of
$3.6 billion for FY2001 - 2005. The final appropriations includes $568 million
specifically for worldwide security upgrades, with funds in other accounts available
for overseas security, as well.
U.S. arrearage payments to the United Nations had been a controversial issue in
recent years. The 105th Congress appropriated $475 million for arrearage payments
for FY1999; it was never authorized, however, because Congress included in the
authorization bill international family planning language that triggered a presidential
veto. The Administration sought $446 million for U.S. arrearage payments to the
U.N. for FY2000; Congress agreed to $351 million.
For the Broadcasting Board of Governors, the Administration requested an
FY2000 budget of $452.6 million–a 13.8% increase over the FY1999 broadcasting
account to help establish it as an independent agency. Congress agreed to $421.8
million for the BBG in FY2000.
This is the final report on the State Department’s FY2000 budget.

Background .................................................... 1
State Department................................................2
Administration of Foreign Affairs................................2
International Organizations and Conferences.......................5
International Commissions.....................................5
Related State Department Appropriations.........................6
Broadcasting Board of Governors...................................8
List of Tables
State Department, USIA, and Related Agencies Appropriations.............9

State Department and Related Agencies
FY2000 Appropriations
Budgets for the Department of State and the Broadcasting Board of Governors
(BBG), as well as U.S. contributions to United Nations (U.N.) International
Organizations and Peacekeeping are all within the Commerce, Justice, State and
Related Agency (CJS) appropriations. Intertwined with the annual appropriations
process is the biannual Foreign Relations Authorization (H.R. 3427) that, by law,
Congress must pass prior to the State Department’s expenditure of its appropriations.
On April 1, 1999, consolidation of the foreign policy agencies1 began with the
merger of the functions of the Arms Control and Disarmament Agency (ACDA)2 into
the State Department; as of October 1, 1999, the functions of the U.S. Information
Agency (USIA)3, excluding international broadcasting, also came directly under the
State Department. Although not part of the CJS appropriations, the U.S. Agency for
International Development (USAID) was required to reorganize and come directly
under the authority of the Secretary of State by April 1, 1999. (For more details on
USAID, see CRS Report RL30211, Appropriations for FY2000: Foreign Operations,
Export Financing, and Related Programs, by Larry Nowels.)
The Administration’s FY2000 State Department and International Broadcasting
budget request totaled $6.3 billion, 9.8% below the FY1999 enacted funding
(including the emergency supplemental), but 22% above the comparable FY1998
funding level. Overseas security funding was a key element in the FY2000 State
Department budget debate, as Congress sought more than the Administration had
originally requested. (For more details, see CRS Report 98-771, Embassy Security:
Background, Funding, and FY2000 Budget.) Noticeably absent was a request for
funds dedicated explicitly to reorganization expenses.
The Senate Appropriations Committee filed the report on its version of the CJS
appropriations (S. 1217/S.Rept. 106-76) on June 14, 1999. The Senate passed S.

1 The Foreign Affairs Reform and Restructuring Act of 1998 (Section 1001 of P.L. 105-277).
2 ACDA was established in 1961 as a small independent agency to be an advocate for arms
control with direct access to the President.
3 Established in 1953, USIA’s mission is to understand, inform, and influence foreign publics
as a means of promoting U.S. national interests and fostering dialogue between Americans and
U.S. institutions and their counterparts abroad. In 1978 Congress merged the State
Department’s Bureau of Education and Cultural Affairs into USIA which had primarily
focused on international broadcasting. As of FY1998, USIA maintained 6,828 positions.

1217 on July 21, 1999. The House passed its version the FY2000 CJS appropriation
(H.R. 2670) on August 5, 1999. Congress passed the conference report (H.Rept.

106-398) on October 20, 1999; however, the President vetoed it on October 25th,

largely because of inadequate provisions on hate crime, COPS, and U.N. arrearages.
Congress passed an omnibus appropriations bill (H.R. 3194) on November 19, 1999,
and the President signed it into law (P.L. 106-113) on November 29, 1999.
State Department
The State Department’s mission is to advance and protect the worldwide
interests of the United States and its citizens through the staffing of overseas missions,
the conduct of U.S. foreign policy, the issuance of passports and visas, and other
responsibilities. Currently, the State Department is host agency for the activities of
50 U.S. government agencies and organizations operating 250 posts in over 180
countries around the world. State’s staff size has increased, largely because of the
integration of ACDA and USIA personnel into State. The President’s FY2000 budget
request for the State Department (excluding international broadcasting) totaled $5.8
billion, comparable to the FY1999 level (which did not specify funding for some
USIA accounts, but did include supplemental funding). Congress set the level for
State at $5.9 billion--higher than either the House- or Senate-passed levels for
FY2000. Highlights follow.
Administration of Foreign Affairs
!Diplomatic and Consular Programs (DC&P) -- The DC&P account
funds overseas operations (e.g., motor vehicles, local guards,
telecommunications, medical), activities associated with conducting
foreign policy (i.e., intelligence, legal and political-military affairs),
passport and visa applications, regional bureaus, under secretaries,
and post assignment travel. The FY1999 level passed by Congress
for this account totals $1.64 billion. As of the beginning of FY2000,
the State Department’s Diplomatic and Consular Program account
included State’s Salaries and Expenses, USIA’s technology and
information functions, and ACDA. The Administration’s FY2000
request for this account equaled $2.84 billion, including $268 million
for recurring embassy security expenses. Congress approved $2.8
billion for DC&P, higher than either the House or Senate levels, but
comparable to the President’s request.
!Security and Maintenance of Overseas U.S. Missions -- This account
supports the maintenance, rehabilitation, and replacement of
overseas facilities to provide appropriate, safe, secure and functional
facilities for U.S. diplomatic missions abroad. Congress originally
had enacted $640 million for this account in FY1999. After agreeing
to an emergency supplemental following the embassy bombings in
Africa last August, this account reached a total funding of more than
$1 billion. The FY2000 request for this account was $747.7 million,

27% less than the FY1999 appropriation. Of the $747.7 million,

$264 million would have been for security upgrades, $36 million for
site acquisition and design of security improvements at posts deemed
most urgently in need, and the rest for embassy security upgrades,
building construction and maintenance costs. In addition, the
Administration requested an advance security appropriation of $3.6
billion for FY2001-FY2005. Congress approved $428.6 million for
the Security and Maintenance account and $313.6 million for
Worldwide Security Upgrades for a total of $742.2 million--just $5
million below the Administration’s request. Furthermore, the Senate
foreign relations authorization bill is expected to authorize $4.5
billion for security in increments of $900 million over the next five
years beginning in FY2000.
!Worldwide security upgrades--A new line item--worldwide security
upgrades--was added to the FY1999 budget by the emergency
supplemental appropriation. In response to the bombings in Africa,
the Department took immediate steps to strengthen security at
overseas posts and meet the needs of overseas staff and foreign
nationals. The FY1999 funding level is set at $785.7 million. The
Administration had requested $254 million for FY2000 to meet the
recurring costs of the security measures taken with last year’s
supplemental. (Recurring costs include salaries of increased security
guard services, ongoing personnel security training, and upkeep of
added information systems, software, and armored vehicles.) Some
in Congress had criticized the State Department for requesting an
inadequate amount for overseas security, especially since the Crowe
report recommended $1.4 billion annually for the next ten years for4
necessary improvements in overseas security. The Administration
amended its request for security measures to $264 million to be
included in the Security and Maintenance account. Conference
report language provided $313.6 million in the worldwide security
upgrades account.
!ACDA — As of April 1, 1999, ACDA’s functions came under the
Department of State’s Bureau for Arms Control and International
Security Affairs. ACDA’s FY1999 enacted funding was $41.5
million. For FY2000 ACDA-related activities within the
Department, the Administration requested $47.7 million for ACDA
Salaries and Expenses. (For more details on arms control issues,
see CRS Report RL30033, Arms Control and Nonproliferation
Activities: A Catalogue of Recent Events.) Congress included
ACDA funding in the Diplomatic and Consular Programs account
and did not separate out ACDA funding levels for

4 After the twin bombings of American embassies in Africa on August 7, 1998, Secretary of
State Madeleine Albright and CIA Direct George Tenet created an Accountability Review
Board chaired by retired Admiral William J. Crowe. The Board’s findings and
recommendations (referred to as the Crowe Report) were submitted to Congress January


FY2000.International Information Programs(IIP) — This account
was formerly the Salaries and Expenses account of USIA.5 The
FY1999 enacted appropriation set this account at $455.2 million.
Beginning in FY2000 State’s Under Secretary for Public Diplomacy
and Public Affairs administers IIP. The FY2000 request would have
decreased this account to $418.2 million in anticipation of some
savings attributable to USIA’s merger into State. The CJS
conference agreement included funding of information programs
within the Diplomatic and Consular Programs account. Within the
conference report language, Congress specified $236.3 million for
IIP, provided that other earmarks within that account would be met.
!Educational and Cultural Exchanges -- This account funds
programs authorized by the Mutual Educational and Cultural
Exchange Act of 1961, such as the Fulbright Academic Exchange
Program, as well as leadership programs for foreign leaders and
professionals. Government exchange programs have come under
close scrutiny in recent years for being excessive in number and
duplicative. By a July 1997 executive order, the Office of U.S.
Government International Exchange and Training Coordination was
created. In its FY1998 request, the Administration requested funds
to establish an international exchange coordination office. Congress,
however, did not include it in the FY1998 final appropriations. The
FY1999 enacted level for Educational and Cultural Exchanges
totaled $200.5 million, including $95 million for Fulbright academic
exchanges. The President’s FY2000 request for exchanges totaled
$210.3 million, including $105.9 million for the Fulbright program.
Congress passed $205 million for Educational and Cultural
Exchanges, but did not specify a level for the Fulbright program.
!The Capital Investment Fund (CIF) -- CIF was established by the
Foreign Relations Authorization Act of FY1994/95 (P.L. 103-236)
to provide for purchasing information technology and capital
equipment to ensure the efficient management, coordination,
operation, and utilization of State’s resources. In FY1998 Congress
approved a 250% increase in this fund, from $24.6 million in FY1997
to $86 million in FY1998. The Administration sought $118.3 million
(an increase of 38%) in FY1999 for CIF. Congress exceeded the
request, agreeing to $158.6 million for this account, which included
funds from the emergency supplemental appropriation for Y2K
compliance. The FY2000 request for CIF would have reduced

5 USIA’s mission is to understand, inform, and influence foreign publics as a means of
promoting U.S. national interests and fostering dialogue between Americans and U.S.
institutions and their counterparts abroad. Currently, USIA operates 192 U.S. Information
Service (USIS) posts in 141 countries. In FY1998, USIA maintained 6,828 positions–3,336
domestic, 739 overseas American, and 2,753 foreign national positions. Until October 1,
1999 USIA will continue to administer U.S. government (nonmilitary) international
broadcasting and foreign exchange programs.

funding to $90 million; however, the Administration estimated an
additional $50 million from expedited passport fees would be
combined with CIF appropriations to meet State Department
technology needs in the coming year. The conference report set CIF
at $80 million.
International Organizations and Conferences
!Contributions to International Organizations (CIO) -- CIO provides
funds for U.S. membership in numerous international organizations
and for foreign policy activities that transcend bilateral issues, such
as human rights. Maintaining a membership in international
organizations, the Administration argues, benefits the United States
by advancing U.S. interests and principles while sharing the costs
with other countries. Payments to the United Nations (U.N.) and its
affiliated agencies, the Inter-American Organizations, as well as
regional and other international organizations are included in this
account. The FY1999 appropriation set the CIO account at $922
million. In addition, Congress appropriated $475 million for U.S.
arrearage payments to the U.N., payment of which was contingent
upon reducing the U.S. assessment rate to at least 22% for the U.N.
regular budget and 25% for peacekeeping. The $475 million
arrearage payment was never authorized, however. The FY2000
Administration request for this account equaled $963.3 million. In
addition, $446 million was requested for U.N. arrearage payments.
Congress approved $885.2 million for CIO and $351 million for U.S.
arrearage payments to the U.N. (For more detail, see CRS Issue
Brief IB86116, U.N. System Funding: Congressional Issues by Vita
!Contributions to International Peacekeeping Activities (CIPA) —
The United States supports multilateral peacekeeping efforts around
the world through payment of its share of the U.N. assessed
peacekeeping budget. Multilateral peacekeeping often provides an
alternative between doing nothing and unilateral U.S. action in
overseas situations of importance to the United States. Congress
approved $231 million for this account for FY1999. The
Administration’s FY2000 request for CIPA totaled $235 million,
including $66 million for U.N. operations in the former Yugoslavia.
The final agreement included $500 million for CIPA. (For more
detail, see CRS Issue Brief IB90103, United Nations Peacekeeping:
Issues for Congress by Marjorie Ann Browne.)
International Commissions
The International Commissions account includes the U.S.-Mexico Boundary and
Water Commission, the International Fisheries Commissions, the International
Boundary Commission, the International Joint Commission, and the Border
Environment Cooperation Commission. The FY1999 enacted level for International

Commissions totaled $45.8 million. The FY2000 request equaled $52 million. The

13.5% increase was due to increases in each of the commissions listed above.

Congress approved $46.8 million--below the President’s request, but higher than
Related State Department Appropriations
!The Asia Foundation -- The Asia Foundation is a private, nonprofit
organization that supports efforts to strengthen democratic processes
and institutions in Asia, open markets, and improve U.S.-Asian
cooperation. The Foundation receives both government and private
sector contributions. Government funds for the Asia Foundation are
appropriated to and pass through the State Department. The
FY1999 Administration request for The Asia Foundation reflected an
87% increase over the FY1998 level, mainly to support rule of law
projects agreed to in the October 1997 Jiang-Clinton Summit.
Although the Senate would have provided no funding for The Asia
Foundation for FY1999, saying that it “should graduate from public
support,” Congress set the Foundation’s FY1999 appropriation at
$8.3 million, the level agreed to in the House. The Administration’s
FY2000 request was $15 million for The Asia Foundation. The
Senate, once again, voted to provide no funding for The Asia
Foundation in FY2000. In contrast, the House passed $8 million for
it. The conference agreement included $8.3 million for the Asia
!National Endowment for Democracy (NED) — The National
Endowment for Democracy, a private nonprofit organization
established during the Reagan Administration, strengthens
democratic institutions in more than 90 countries around the world.
NED proponents assert that many of its accomplishments are
possible because it is not a government agency. NED’s critics claim
that it duplicates U.S. government democracy programs and either
could be eliminated or could operate entirely with private funding.
NED’s FY1999 enacted appropriation was increased to $31 million
from its usual $30 million in previous years. The FY2000 request
would have raised its budget to $32 million, largely to meet wage
and price increases. Congress approved $31 million for NED for
!East-West and North-South Centers -- The Center for Cultural and
Technical Interchange between East and West (East-West Center),
located in Honolulu, Hawaii, was established in 1960 by Congress to
promote understanding and cooperation among the governments and
peoples of the Asia/Pacific region and the United States. The Center
for Cultural and Technical interchange between North and South
(North-South Center) is a national educational institution in Miami,
FL, closely affiliated with the University of Miami. It promotes
better relations, commerce, and understanding among the nations of
North America, South America and the Caribbean. The North-South

Center began receiving a direct subsidy from the federal government
in 1991.
The Administration’s FY1999 budget recommended phasing out
government funding of both the East-West and North-South Centers. The
House had set zero funding for both Centers in FY1999, while the Senate had
agreed to double North-South Center funding to $3 million, and continue the
East-West Center at its FY1998 level of $12 million. P.L. 105-277 contained
$12.5 million for the East-West Center and $1.75 million for the North-South
Center. The Administration’s FY2000 budget request would have continued
FY1999 budget for the East-West Center and would have raised the North-
South Center budget to $2.5 million. The conference agreement continued the
two centers at their FY1999 levels.

Broadcasting Board of Governors
The United States International Broadcasting Act of 19946 reorganized within
USIA all U.S. government international broadcasting, including Voice of America
(VOA), Broadcasting to Cuba, Radio Free Europe/Radio Liberty (RFE/RL), Radio
Free Asia (RFA), and the newly-approved Radio Free Iraq and Radio Free Iran. The
Act established the Broadcasting Board of Governors (BBG) to oversee all U.S.
government broadcasting; abolished the Board for International Broadcasting (BIB),
the administering body of RFE/RL; and recommended that RFE/RL be privatized by
December 31, 1999.
During reorganization debate, the 105th Congress agreed that credibility of U.S.
international broadcasting was crucial to its effectiveness as a public diplomacy tool.
Therefore, Congress agreed not to merge broadcasting functions into the State
Department, but to maintain the Broadcasting Board of Governors (BBG) as an
independent agency as of October 1, 1999.
Congress appropriated for FY1999 a total of $384 million for international
broadcasting including $22.1 million for Broadcasting to Cuba and $21.7 million for
Radio Free Asia. The FY2000 budget request for international broadcasting was
$431.7 million, a 19% increase to help the agency get established. The conference
agreement set a total of $421.8 million for international broadcasting, including $22.1
million for Cuba Broadcasting.
The BBG’s Broadcasting Capital Improvements account (formerly USIA’s
Radio Construction account) funds the building or renovating of radio stations,
upgrading and refurbishing station capabilities, updating technology, and replacing old
transmitters. The FY1999 appropriation for this account was $13.2 million. The
President’s FY2000 request of $20.9 million (a 58% increase over FY1999) reflected
the costs of 1) an expanded phase of transmitters for the Tinian Project (facilities built
on the Tinian Islands for Radio Free Asia transmission), 2) converting from analog to
digital technology, 3) upgrading existing transmitting stations, and 4) improving
satellite and terrestrial communications. Congress approved $11.3 million for capital

6 Title III of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995, P.L. 103-


(millions of dollars)
FY1996FY1997FY1998FY1999FY2000HouseSenateH.R. 3421
Enacted Enacted Enacted Enacted Request
Diplomatic & Consular Program1,713.71,725.31,730.01,644.32,838.92726.82,671.42,823.8
Salaries and expenses367.9352.3363.5354.2[367.8]-.--.--.-
ACDAsee below[47.7]-.--.--.-
Information Programs (USIA S&E)[445.4][441.4][427.1]455.2[418.2]-.--.--.-
Technology Fund(USIA)[5.1][5.1][5.1]9.1[2.7]-.--.--.-
Ed& cultur. exch. prog.(USIA)199.7185.0197.7200.5210.3175.0216.5205.0
Office of Inspector General 27.327.527.528.5*30.128.526.527.5
Representation allowances4.
Protec.-missions & officials8.
Security/maint. of buildings321.3389.3397.91,081.1*747.7403.6583.5428.6
Worldwide security upgrades-.--.--.-785.7*[264.0]313.6-.-313.6
Kosovo Supplemental17.1
Emergency-diplo. & consular servs.*
Repatriation loans.
Payment American Inst. Taiwan15.114.514.014.815.814.816.015.4
For. Serv. Retirement Fund125.4126.5129.9132.5128.5128.5128.5128.5a
Capitol Investment Fund 16.424.686.0158.6*
2,607.0 2,679.9 2,773.7 4,912.8* 4,094.9 3889.9 3,714.6 4,043.1
Contrib. to int'l. organizations892.0882.0955.5922.0963.3842.9943.3885.2
Contrib. intl. peacekeeping359.0352.4256.0231.0235.0200.0280.9500.0
U.N. Arrearage payments475.0446.0351.0107.0351.0
Int'l. conf./contingencies3.010.00.0-.--.--.--.--.-
1,254.0 1,244.4 1,211.5 1,628.0 1,644.3 1393.9 1,331.2 1,736.2
39.1 42.0 44.0 45.8 52.0 45.6 46.8 46.8 below
3,905.1 3,974.3 4,037.3 6,594.9* --.-- -.- -.- -.-
The Asia Foundationsee above15.08.0-.-8.3
National Endowment for Democracy30.
East-West Center11.510.012.012.512.50.012.512.5
North-South Center2.
Eisenhower Exch.
Israeli Arab Scholarship.
44.2 42.5 44.5 46.2 62.9 39.9 43.3 54.4
--.-- --.-- --.-- --.-- 5,854.1 5,369.4 5135.9 5,880.4
Capital Improvements32.6*35.540.013.220.911.313.211.3
Broadcasting Operations324.9350.0391.5362.4431.7410.4362.4388.4
Broadcasting to Cuba24.8(25.0)(22.1)22.1-.--.-23.722.1
Radio Free Asia(5.0)-.-(25.0)-.--.--.--.--.-
382.3 385.5 431.5 397.7 452.6 421.7 399.3 421.8
1,077.2 1,059.5 1,105.9 1,108.7 -.- -.- -.- -.-
38.6 41.5 41.5 41.5 --.- -.- -.- -.-
5,020.9 5,075.3 5,184.7 7,038.8 6,306.7 5791.0 5,535.2 6,302.2