Department of State and Other International Programs

The Department of State, the U.S. Agency for International Development (USAID), and other international programs advance the national security interests of the United States through global engagement, partnership, and the promotion of universal values. By investing in civilian diplomatic and development power alongside defense, we take an integrated approach to solving global problems and support the mutually reinforcing elements of the President’s national security strategy. The President’s 2012 Budget proposes $47 billion for the Department of State and USAID, excluding costs for Overseas Contingency Operations, a 1 percent increase from 2010 enacted funding levels. To support the Administration’s ongoing efforts in key regions, significant levels of funding are continued for operations and assistance in Iraq, Afghanistan, and Pakistan. Increases are made in the areas of food security, to help prevent political instability and reduce hunger, and global health, to reduce the incidence of disease and strengthen local health systems. Although not subject to a freeze in funding, the Department is committed to finding efficiencies, cutting waste, and focusing on key priorities. Accordingly, foreign assistance to several countries has been eliminated. Additionally, efficiency gains have dramatically reduced the costs of treating AIDS through the Global Health Initiative, and future savings will be realized through changes to USAID’s operating model to encourage local ownership and facilitate the phasing-down of such funding.

Maintains US Global Leadership

• Promotes U.S. exports and economic growth by supporting the President’s National Export Initiative, with additional resources for the Export-Import Bank to strengthen its efforts to promote small business exports and to meet increased financing demands at no cost to the taxpayer.  The Administration also supports U.S. Trade and Development Agency activities to promote U.S. exports for priority development projects in emerging economies with $56 million.
• Makes strategic investments essential for U.S. national security in a time of constrained resources and strengthens core diplomatic and development activities essential for U.S. global leadership. These include funding for operations and assistance in Iraq, Afghanistan, and Pakistan as well as $27 billion to support the Presidential Policy Directive on Global Development by focusing on sustainable development outcomes and placing a premium on broad-based economic growth, democratic governance, game-changing innovations, and sustainable systems for meeting basic human needs. 
• Makes strategic investments of $1.4 billion to address the root causes of hunger and poverty and lift a significant number of people out of poverty and reduce malnutrition for millions of children under five years old by 2015.
• Provides $4.2 billion to help internally displaced persons, refugees, and victims of armed conflict and natural disasters
• Invests $9.8 billion in the President’s Global Health Initiative to save lives and strengthen health systems in developing countries.
• Invests $3.3 billion in multilateral institutions through the Department of Treasury, including the multilateral development banks, leveraging billions of donor dollars from other donor partners and supporting key countries and Administration priorities.
• Continues a multi-year initiative to strengthen U.S. diplomatic and development expertise in countries of the greatest strategic importance with investment of $87 million.
• Advances efforts to address national security challenges through a cooperative approach that includes $50 million to support a Global Security Contingency Fund that integrates Defense and State resources to address security crises involving both agencies.

Reduces Costs and Improves Planning

• Reduces bilateral programs and the Assistance for Europe, Eurasia & Central Asia account by $115 million to focus funding on regions with the greatest assistance needs such as Africa.
• Eliminates bilateral security assistance for several countries, as resources are being focused on countries with strategic significance such as Israel and Pakistan.
• Cuts funding for the African Development Foundation and the Inter-American Foundation by nearly 20 percent and instructs the organizations to seek partnerships to leverage and maximize remaining funding.
• Supports USAID operational and programmatic improvements, including reforms to procurement systems and investments in science and technology, innovation, and monitoring and evaluation.
• Saves approximately $15 million in 2012 using information technology to achieve efficiencies such as eliminating duplication of data center services and infrastructure to control energy use and facility costs and phasing out legacy messaging systems.