FY 2009 Supplemental Appropriations Justification
Report

AFGHANISTAN ($980 Million)

If a scroll bar appears below the following table, swipe the table to move left/right of the dashed line.
Account
($ in thousands)
FY 2008 Estimate
FY 2008
Supp

FY 2009
Bridge
Supp

*FY 2009
Request

FY 2009
Supp Request

Development Assistance (DA)
148,651
0
0
0
0
Economic Support Fund (ESF)
540,502
859,000
455,000
707,000
839,000
Global Health and Child Survival (GHCS)
63,517
0
0
52,000
0
International Military Education and Training (IMET)
1,618
0
0
1,400
0
International Narcotics Control and Law Enforcement (INCLE)
272,574
35,000
101,000
250,000
129,000
Nonproliferation, Antiterrorism, Demining and Related Programs (NADR)
21,626
5,000
0
31,550
12,000
P.L. 480, Title II (Food Aid)
9,930
0
0
12,000
0
TOTAL
1,058,418
899,000
556,000
1,053,950
980,000


*FY 2009 country allocations have not been determined and will be transmitted to Congress at a later date as required by section 653 (a) of the Foreign Assistance Act of 1961.

Summary

The United States is committed to success in Afghanistan. That success, however, cannot be achieved by military means alone and must be complemented by a comprehensive and robust civilian effort on economic development, reconstruction, improved governance, the development of modern institutions, and effective counter-narcotics programs. Our counter-insurgency strategy must integrate population security with building effective local governance and promoting economic development. Civilian assistance efforts will align with and support the priority missions of our military forces: securing Afghanistan's south and east against a return of al Qaeda and its allies and providing a space for the national government to effectively establish civilian control. This complements the Department of Defense requested increases for the Afghanistan Security Forces Fund to provide the Afghan National Army and Police with the mentoring needed to expand rapidly and take the lead in effective counterinsurgency operations.

On February 17, President Obama said that Afghanistan “has not received the strategic attention, direction and resources it urgently requires.” The President ordered a strategic review of U.S. policy in order to define “a comprehensive strategy and the necessary resources to meet clear and achievable objectives in Afghanistan and the region” and in March, the Administration concluded its policy review. Implementation of this new strategy will require significant resources beginning with this FY 2009 supplemental request. If fully funded, the President’s request for Afghanistan will begin to provide the critical foreign assistance necessary to achieve our strategic objectives in Afghanistan.

This new assistance strategy for Afghanistan represents a major shift from a mix of long and short-term reconstruction/development activities throughout the country to activities focused on countering the insurgency, primarily in the south and east. This FY 2009 supplemental foreign assistance request is prioritized to reflect the new strategy and to complement the expanded efforts of the military to stabilize fragile areas in Afghanistan. This strategy also anticipates other donors focusing their activities in the more permissive areas of the north and west. The United States will assist the people of Afghanistan to ensure that Afghanistan does not serve as a base for attacks against the United States and others and to diminish the Taliban’s ability to attract support at the local level. Increased funding for Afghanistan’s south and east is critical to help build good governance, stimulate licit economic growth through agriculture and alternative development programs, enhance the rule of law, and help stabilize communities through short-term job creation programs. The United States will continue programs to build governance capacity at the national level and enhance sub-national programs in the south and east. This balanced approach will support the President’s comprehensive strategy to employ all elements of U.S. national power to fulfill achievable goals in Afghanistan.

$839 million Economic Support Fund (ESF)

Peace and Security ($214 million)

Counter-narcotics and stabilization programs, especially in the south and east, are a critical component of our assistance for Afghanistan. Alternative development programs will strengthen and promote legal alternatives to the illicit economy for farmers and non-farmers in poppy producing regions. U.S. programs will assist 30,000 farmers per year who will shift from poppy production to legal crops.

In addition, the U.S. Agency for International Development (USAID) will fund new stabilization programs that will strengthen counter-insurgency (COIN) efforts in critical and priority districts. The programs will help stabilize at-risk communities through projects focused on targeted segments of the population, community-based initiatives, and capacity building to help mitigate conflict and isolate extremist influences. Technical assistance, analysis, and independent monitoring and evaluation will enhance the effects of the stabilization program.

These stabilization programs include expanding the district centers construction program to help build a visible, tangible Afghan government presence at the local level. Currently, the United States is building 17 district centers and five training centers. USAID will expand this program to an additional 25 districts. The district centers are critical venues for citizens to discuss their concerns with local officials, which will enhance the accountability and legitimacy of local governments.

The Department of State also will fund small, quick-impact projects as a flexible mechanism to enable Provincial Reconstruction Teams (PRTs) to support the activities of local neighborhood organizations, government organizations, and community-based organizations, including non-profits, small businesses, professional associations, charitable organizations, and educational institutions.

Governing Justly and Democratically ($295 million)

The Afghan government must deliver security, basic services and the rule of law to earn the trust of its people. U.S. assistance for good governance programs will enhance the legitimacy and effectiveness of the Afghan government at the national, provincial, district, and municipal level, primarily in the south and east. U.S. programs will assist the Afghan government in combating corruption, which is essential to restoring citizen confidence in its elected leaders, promoting the government’s accountability, and promoting the government’s legitimacy.

At the national level, USAID technical assistance will improve the institutional capacity of key Afghan ministries in critical areas of financial management, budgeting, procurement, audit, human resource management, planning and organizational development, monitoring, and evaluation. In addition, USAID will continue to build the institutional capacity of Parliament to develop legislation, to form political consensus, and to improve the public’s understanding of Parliament through direct constituent communications. The United States will support Afghan government efforts to address anti-corruption and outreach, including assistance for the High Office of Oversight and the government media centers. The United States will provide funding to the Afghanistan Reconstruction Trust Fund (ARTF), a facility administered by the World Bank to provide multilateral assistance to the Afghan government for reconstruction projects.

At the sub-national level, USAID will expand ongoing social outreach programs, with eastern and southern border districts as a priority, in order to strengthen the relationship of Provincial Councils and district officials with their constituencies. Furthermore, USAID will provide technical assistance to selected provincial capitals and to the city of Kabul. This assistance will include programs focused on participatory planning and budgeting, enhancing municipal transparency in decision making, improving relationships with constituents and non-governmental leaders, and developing and managing small infrastructure activities.

The implementation of successful Presidential and provincial council elections is a critical milestone for Afghanistan during 2009. Elections will remain a top priority and requested supplemental assistance will allow us to increase support for Presidential and other elections. Due to the exceptionally high profile of national elections, USAID will provide additional funding for security to protect the Independent Elections Commission (IEC) headquarters, the provincial and district voting centers, and IEC staff and technical advisors.

USAID will continue to foster the rule of law by expanding access to legal and prosecutorial services and other legal resources through non-governmental organizations (NGOs) and the Ministry of Justice (MOJ). In addition, USAID will strengthen the capacity of the MOJ secretariat to manage the provision of legal and prosecutorial services. USAID also will train appeals courts to review corruption cases, improve court infrastructure, and enhance security for courts and judges.

The United States will make targeted investments in information systems and evaluations. With the assistance proposed in more provinces, municipalities, districts and regional growth centers, we anticipate increased data collection, processing, and analysis to allow enhanced coordination between PRTs and Kabul, and between USAID and DoD.

Investing in People ($135 million)

USAID will provide social and economic services and protection to vulnerable populations and will significantly expand cash-for-work programs that target unskilled labor for low-tech labor intensive activities. This program will provide short-term jobs for urban and rural families, including women in vulnerable areas with the intention of providing income to these families, improving infrastructure, and increasing food production. These programs will target southern and eastern provinces threatened by drought conditions or potential political instability. Since these activities are implemented in the most insecure environments, these programs have high security costs. Illustrative cash for work activities include canal cleaning, road rehabilitation, snow removal, flood protection, public building rehabilitation, and orchard/tree planting. PRT staff will be instrumental in executing these programs.

Economic Growth ($170 million)

Robust economic growth and the creation of new jobs are critical to combat the insurgency’s appeal. The United States will support a broad program to promote policy reform, support new business development, and build the skills of Afghan economic officials and entrepreneurs.

Under this new strategy, increased resources will develop the agricultural sector, which employs 80 percent of the Afghan workforce. Programs will focus on small and medium-size landholders to expand agricultural production, support commercial agriculture activities, promote widespread adoption of improved technologies, and improve marketing skills. The United States will invest more heavily in farm-to-market roads, irrigation, rural electrification, and cold storage to help Afghan farmers improve their access to markets.

In addition, USAID will assist the Afghan government’s development of monetary and fiscal policies to help mitigate the impact of high inflation rates, particularly in the energy and food sectors, and improve the administration, structure, and efficiency of its public spending. USAID will assist the expansion of the new Central Business Registry beyond Kabul to lessen the bureaucratic steps needed to start a new business.

A significant number of refugees and displaced persons are expected to return and settle in urban areas. USAID will provide technical assistance to develop a new national land registry (cadastre) to over 21 provinces in Afghanistan.

USAID will expand workforce development programs to provide viable alternatives to illicit activities and recruitment by the insurgency. USAID will spur the creation and expansion of micro and small and medium enterprises (SME) by training entrepreneurs, including women, in business management, linking local firms to new markets, and improving the competitiveness of targeted industries. In addition, USAID will enhance training and provide capital to microfinance, SME, and credit union organizations that serve both urban and rural areas to expand the outreach of financial services to new and underserved populations. USAID will also train bank loan officers to help improve micro and SME access to financial services. Additional funding will be provided to develop business education program to train accountants, financial managers, and other skilled professionals in the financial sector.

Finally, USAID will provide technical assistance for Afghanistan’s efforts to coordinate and reform its trade and tariff policies, participate in international trade negotiations, and implement regional and international trade agreements. These activities will help to stimulate the growth of the private sector in Afghanistan, contribute to its long-term goal of World Trade Organization (WTO) accession, and speed the implementation of regional agreements, such as the South Asia Free Trade Area (SAFTA).

Program Support ($25 million)

Funding will provide program development and support for program administration and oversight.

$129 million International Narcotics Control and Law Enforcement (INCLE)

Consistent with the President’s new strategy, supplemental INCLE funds will support counter-narcotics and law enforcement efforts primarily in the south and east of Afghanistan.

Peace and Security ($46 million)

U.S. counter-narcotics assistance will expand in the south and east, building upon the comprehensive effort in Helmand to integrate counter-narcotics efforts into broader security and governance activities. Funding will sustain current reductions in poppy cultivation achieved through pre-planting campaigns and eradication efforts, with incentives to farmers, communities and provinces to stay or become poppy-free. This will be accomplished through the Good Performers Initiative, an incentive program that provides high-impact development assistance to provinces and communities that demonstrate proven resolve in countering the narcotics industry, and Quick Impact Projects that provide essential commodity items (wheat, vegetable oil, and salt), Town Hall Kits (generators and rugs), and other immediate assistance in order to provide an emergency stop-gap until other medium and long-term development projects can take effect.

Funding will support the public information and outreach initiatives of Afghanistan’s Counter-narcotics Advisory Teams, which currently operate in seven provinces and have played a vital role in dramatically reducing poppy cultivation in Nangarhar, Balkh and Badakhshan. U.S. assistance for drug prevention and drug treatment programs will build residential and outpatient drug treatment facilities and provide project monitoring by anti-drug experts. The Department of State will assist community coalitions, which support shuras, village councils, and town-hall meetings on drug issues, youth summits, social campaigns, and policy change.

Governing Justly and Democratically ($78 million)

The Department of State will provide training, infrastructure, equipment, and institutional development for Afghanistan’s central and provincial justice institutions. Particular focus will be on strengthening the criminal justice system by training legal practitioners, increasing transparency of the case process and adjudication, and strengthening communication between justice institutions focused on criminal law. U.S. assistance will build Afghanistan’s anti-corruption capacities; improve legal education, legal awareness and legal defense; and support a trust fund for the justice sector. Funding also will support education and rehabilitation assistance for women and children who are living in women’s prisons in all major provinces of Afghanistan, and assisting the Afghan government to ensure that female prisoners are being housed under the basic humanitarian conditions as established by the International Committee of the Red Cross. U.S. assistance also will address gender-based violence, including prevention, support, recovery, and safe haven, and will continue and expand legal and psychological counseling, shelter, mediation, and social work services to Afghans at risk for or victimized by gender-based violence.

Funds will provide technical assistance to the Afghan Central Prison Directorate (CPD) to identify the most critical needs related to external security, internal prison management, emergency response, and the health and well-being of inmates. Funding will augment the efforts to rebuild, equip, staff and provide training at Pol-i-Charki prison. Funds also will improve prison industries and prisoner rehabilitation programs at provincial prison facilities, including improved financial controls; and, support justice sector security needs, including training, equipment, advisors and their support, with special attention to the Central Narcotics Tribunal, which has become a target for narcotics trafficker assassinations.

Program Support ($5 million)

Funding will provide program development and support for program administration and oversight.

$12 million Non-proliferation, Anti-Terrorism, Demining and Related Programs (NADR)

Peace and Security ($12 million)

The Afghan Presidential Protection Service is of critical importance for the protection of Afghan leadership and containment of terrorist elements. The U.S. focus remains on establishing effective leadership and building a management core within the Presidential Protection Service. Additional funding is needed in FY 2009 to continue to build the institutional capacity of this professional protective corps.

PAKISTAN ($497 Million)

If a scroll bar appears below the following table, swipe the table to move left/right of the dashed line.
Account
($ in thousands)
FY 2008 Actual
FY 2008
Supp
FY 2009
Bridge Supp
*FY 2009 Request
FY 2009
Supp Request
Child Survival and Health (CSH)
29,816
0
27,855
Development Assistance (DA)
29,757
0
0
Economic Support Fund (ESF)
347,165
0
150,000
453,200
429,500
Foreign Military Financing (FMF)
297,570
0
300,000
International Military Education and Training (IMET)
2,103
0
1,950
International Narcotics Control and Law Enforcement (INCLE)
21,822
0
32,000
65,500
Nonproliferation, Anti-Terrorism, Demining and Related Programs (NADR)
9,725
0
11,250
2,000
TOTAL
737,958
0
150,000
826,255
497,000



*FY 2009 country allocations have not been determined and will be transmitted to Congress at a later date as required by section 653 (a) of the Foreign Assistance Act of 1961.

Summary

As with the request for Afghanistan, this is the first budget request that funds the President’s new strategy for Pakistan. Goals of this strategy include supporting a stable ally and assisting the people of Pakistan to ensure that Pakistan does not serve as a base for attacks against the U.S. and others, as well as diminishing the extremists’ ability to attract support at the local level. The Administration is seeking urgent new funding to help stem the rapidly deteriorating security and economic conditions confronting Pakistan, an essential partner in the fight against extremism and militancy. Failure to address these conditions could lead to a further opening for extremists.

The new government of President Asif Ali Zardari demonstrated courage last year in accepting the terms of an International Monetary Fund (IMF) Stand-by Arrangement that stabilized a collapsing economic situation but required politically difficult steps for implementation, including the elimination of energy subsidies and serious cut-backs in social safety net spending for Pakistan’s poorest citizens. The Fund is urging international donors to help the Government of Pakistan fill a $4 billion shortfall in its budget. Four hundred million of this supplemental request will go towards filling this shortfall as well as encouraging other donors to pledge sufficient funds at the upcoming Donors’ Conference in Tokyo on April 17th.

The Government of Pakistan is increasing its engagement in the Federally Administered Tribal Areas (FATA) and the Northwest Frontier Province (NWFP). However, civilian law enforcement agencies lack the capacity to hold areas that have been cleared of insurgents, a critical shortcoming in the government’s counter-insurgency efforts. Funding requested in this supplemental request will be used to provide immediate support for FATA and NWFP police agencies as the first phase of a long-term program to enhance Pakistan’s law enforcement capabilities.

In addition to law enforcement assistance, there is an urgent requirement to help the civilian population most seriously affected by the growing insurgent violence in the FATA and NWFP. In Bajaur and Mohmand agencies, and in Swat, hundreds of thousands of citizens have been forced to flee their homes and seek shelter in refugee camps or with friends and families. Supplemental funding will provide urgently needed assistance to these individuals and create economic opportunities in areas of the country that are the most vulnerable to extremism.

$429.5 million Economic Support Funds (ESF)

Economic Growth ($421.5 million)

To help address Pakistan’s economic crisis and balance of payment deficit, a total of $400 million will be used to supplement the Government of Pakistan’s $7.65 billion 23-month Standby Agreement with the IMF. The IMF estimates that Pakistan needs $4 billion over two years from donors to strengthen Pakistan’s resilience to potential shocks, help finance the expanded social safety net programs, allow for higher spending on development programs, and finance foreign reserves through budget support. These supplemental funds will support filling these IMF-identified gaps and help the Government of Pakistan meet IMF benchmarks, while also encouraging other donors to assist.

To stimulate economic activity, create jobs and improve service delivery, additional ESF will be used to expand USAID’s Community Rehabilitation Infrastructure Support Program (CRISP) ($21.5 million). The program will focus on restoring irrigation channels, repairing road and bridges, rehabilitating potable water supply and distribution systems and installing off-grid energy sources such as micro-hydro and solar units. These funds will support urgently needed activities throughout Pakistan in areas that are particularly vulnerable to the appeal of extremism.

Humanitarian Assistance ($8 million)

As a result of instability on the border regions there have been serious displacements of populations within Pakistan. The situation is especially acute in the FATA and NWFP, including Bajaur, Mohmand and Swat, where thousands of displaced families have taken refuge in camps and with host families, thus placing serious strain on the local population where these Internally Displaced Persons (IDP) have relocated. To support the government’s plans to provide emergency aid to those impacted by the situation, these funds will provide household equipment and supplies, immediate livelihood support and other basic needs to vulnerable families and children in these areas. This ESF funding will complement other efforts funded with Migration and Refugee Assistance (MRA) and International Disaster Assistance (IDA) to ensure that the U.S. has a comprehensive and integrated approach to the conflict. The emergency humanitarian assistance funding (funded through MRA and IDA) will meet the first order needs of IDPs while they are in camps or living with families, while the ESF resources will focus on the second order needs as IDPs resettle and need assistance with livelihoods and rebuilding their lives.

$65.5 million International Narcotics Control and Law Enforcement Funding (INCLE)

Peace and Security ($60.5 million)

Over the past year, an intensified insurgency and an increase in terrorist incidents have altered the security landscape throughout Pakistan particularly in the FATA and the settled areas of the NWFP. To counter this development the USG will intensify efforts to train and equip law enforcement entities in these areas.

FY 2009 supplemental funding will expand the Air Wing's support of the Frontier Corps, helping them better respond to the realities on the ground and improve their capacity to use aircraft in tactical counter-narcotics, law enforcement, and border security operations. Funding will support the operations and maintenance of five additional Huey II helicopters, for a total fleet of 14. This will allow moving from the Quetta base up to 10 helicopters at a time to Peshawar to support Frontier Corps operations in the NWFP and FATA. This funding will also allow Narcotic Affairs Section to hire a Deputy Aviation Advisor to assist with expanded maintenance and operations at the Quetta base. Supplemental funding will enable installation of technical upgrades to the Squadron’s fixed-wing aircraft to improve information gathering capabilities and flight safety ($22.5 million).

The immediate need to re-establish security and stability in the NWFP requires supplemental funding to support the continued development of an elite police force within the NWFP police through expanded training, acquisition of non-lethal equipment, construction and renovation of police stations in Peshawar and other locations in the insurgency-affected region, and the establishment of a new police training center for use by multiple Pakistani police agencies from the border region. Funds also will allow expansion of assistance to include other law enforcement agencies in the NWFP and FATA, including the NWFP police at large, Levy forces, and the Frontier Constabulary ($35 million).

Security and equipment upgrades in current police training venues will be required as well as additional fully armored vehicles to support trainers who travel to these sites, many of which are located in high threat areas ($3 million).

Program Support ($5 million)

FY 2009 Supplemental funds will support program development, administration and oversight and allow the immediate hiring of Police Advisors and Trainers for the Law Enforcement Program, as well as staff in NAS Islamabad and in INL Washington.


$2 million Nonproliferation, Antiterrorism, Demining and Related Programs (NADR)


Peace and Security ($2 million)

Requested supplemental funds will provide four additional Crisis Response Team training courses for the Federal Investigative Agency’s anti-terrorist team, a high priority of the Interior Ministry. This effort complements other police training programs, and will improve the security and investigative abilities of selected police forces.


MEXICO ($66 Million)

If a scroll bar appears below the following table, swipe the table to move left/right of the dashed line.
Account
($ in thousands)
FY 2008 Estimate
FY 2008
Supp

FY 2009
Bridge Supp
*FY 2009 Request
FY 2009
Supp Request
Development Assistance (DA)
8,215
0
0
14,000
0
Economic Support Fund (ESF)
11,903
20,000
0
0
0
Foreign Military Financing (FMF)
0
116,500
0
2,000
0
Global Health and Child Survival (GHCS)
2,678
0
0
2,500
0
International Narcotics Control and Law Enforcement (INCLE)
26,553
215,500
48,000
477,816
66,000
Nonproliferation, Anti-Terrorism, Demining and Related Programs (NADR)
919
0
0
3,845
0
International Military Education and Training (IMET)
369
0
0
834
0
TOTAL
50,637
352,000
48,000
500,995
66,000


*FY 2009 country allocations have not been determined and will be transmitted to Congress at a later date as required by section 653 (a) of the Foreign Assistance Act of 1961.

Summary

The multi-year Merida Initiative ($1.4 billion for Mexico) was announced on October 22, 2007. The Initiative aims to reduce drug demand, stop the flow of arms and weapons, and confront gangs and criminal organizations in Mexico and Central America. It is designed to build on activities already underway in the region and to complement U.S. domestic efforts to combat these threats.

$66 million International Narcotics and Law Enforcement Fund (INCLE)

Peace and Security ($66 million)

Given the escalating violence along the U.S.-Mexico border and drug cartels’ vicious attacks to undermine President Calderon’s government, there is a pressing need to provide the Government of Mexico (GOM) critical air mobility support to effectively combat the drug cartels.

FY 2009 Supplemental resources, in combination with prior year funds to be reprogrammed, will be used to acquire three Blackhawk helicopters for Mexico’s civilian Public Security Secretariat (SSP) to provide them urgently needed air transport capacity and also to provide spare parts and other support. The GOM seeks to have an expanded SSP replace the Mexican military in conducting law enforcement operations as expeditiously as the security crisis permits. U.S. funding for this program will highlight our support for quickly moving primary responsibility for law enforcement operations back to the SSP. These helicopters will supplement the seven already purchased or on order by the GOM using its own resources, giving the SSP a total of ten. The helicopters will be used throughout Mexico, but particularly where drug trafficking organizations are challenging the GOM for control of major cities, including those on the U.S./Mexico border. The SSP is expanding its roster of trained and vetted personnel and will be ready to absorb and make use of these three helicopters upon their delivery.

The Department of State is committed to supplying the GOM with the resources required to increase SSP air mobility and will reprogram $16 million in existing Merida funds provided in P.L. 110-252 to fully fund the acquisition of three Blackhawk helicopters (total cost of $82 million), as well as spare parts and support costs.


MIGRATION AND REFUGEE ASSISTANCE ($293 Million)

If a scroll bar appears below the following table, swipe the table to move left/right of the dashed line.
Account
($ in thousands)
FY 2008 Enacted
FY 2008
Supp

FY 2009
Bridge Supp
FY 2009 Enacted
FY 2009
Supp Request
Emergency Refugee and Migration Assistance (ERMA)
44,636
31,000
0
40,000
0
Migration and Refugee Assistance (MRA)
1,023,178
315,000
350,000
931,000
293,000
TOTAL
1,067,814
346,000
350,000
971,000
293,000

Summary

Funds in the amount of $293 million are requested to respond to new FY 2009 requirements that stem from events in late 2008 and early 2009 not anticipated in the FY 2009 request or the Bridge Supplemental.

$293 million Migration and Refugee Assistance (MRA)

Humanitarian Assistance ($293 million)

West Bank/Gaza and Lebanon: $150 million - Additional support is needed in FY 2009 to respond to the heightened humanitarian crisis in Gaza resulting from the December 2008-January 2009 conflict. Gaza has seen massive internal displacement, food and fuel shortages, and extensive damage to health facilities, schools, homes, and basic infrastructure. Currently, the UN Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) is providing food assistance to 900,000 Palestinian refugees and thousands have had their homes destroyed. Funding will support early recovery/rehabilitation efforts, to begin in late 2009, related to UNRWA-managed school and health facilities, and refugee shelter. Additional support is required to support a portion of UNRWA’s second year requirements for the reconstruction of the Nahr el Bared refugee camp in Lebanon and ongoing assistance to over 30,000 Palestinian refugees still displaced. The USG provided $184 million to UNRWA in FY 2008; $100 million to the regular budget and $84 million to special appeals. To date in FY 2009, the USG has provided $115 million to international organizations to support Palestinian refugees and conflict victims through FY 2009 MRA Bridge Supplemental and FY 2009 base funding, and the Emergency Refugee and Migration Assistance (ERMA) account. Requested funds include:
  • $125 million to support emergency needs in Gaza and the West Bank through international organization partners, including UNRWA, International Committee of the Red Cross (ICRC), among others; and
  • $25 million to support the reconstruction of the Nahr el Bared refugee camp in Lebanon and provide ongoing life-sustaining assistance to displaced refugees in Lebanon.

Iraq: $108 million – Humanitarian requirements total over $300 million to support Iraqi refugees, internally displaced persons (IDPs), and conflict victims in FY 2009; the Bureau of Population, Refugees, and Migration (PRM) has already identified $196 million in FY 2009 Bridge Supplemental and FY 2008 carryover funds. The Bureau programmed over $287 million in FY 2008 on Iraq-related humanitarian programs. The needs of displaced Iraqis remain significant as there are an estimated 4.8 million Iraqi refugees, IDPs, and conflict victims in the region. Similar levels of funding are required in FY 2009 to respond to the following:
  • Increased emphasis by major international and non-governmental partners on preparation for refugee returns;
  • Need to support initiatives to improve services affecting local conditions (shelter, water/sanitation, healthcare) in areas of return and build local capacity to provide protection and reintegration assistance for returnees (emergency shelter and household items, legal aid, property restitution);
  • Increasing reliance of Iraqi refugees on assistance from the international community to meet their basic needs due to significant cost of living increases in Jordan and Syria;
  • Increased access to vulnerable Iraqis in Syria as more non-governmental organizations (NGOs) are now registered with the Syrian government and able to operate in the country, which will allow for expanded humanitarian assistance activities for Iraqis in Syria;
  • The international community continues to look to the USG to meet assistance and protection gaps, particularly for Iraqis in neighboring countries.

Afghanistan: $7 million – Additional funds are required to support the UN Humanitarian Response Plan and expanded program needs of the ICRC. Additional support is required to respond to a November 2008 Government of Afghanistan and UN High Commissioner for Refugees (UNHCR) plan for repatriation and reintegration needs of returning Afghan refugees. The plan focuses on health, education, livelihoods, and land allocation for returning refugees. Additional funds will also support UNHCR’s Refugee Affected Hosting Area (RAHA) initiative in Pakistan and to assist Afghan refugees in an increasingly dire situation in Pakistan to reduce the possibility of conflict, further tensions, and threats of uncoordinated camp closures.

Africa: $15 million - Three complex, interlocking conflicts in eastern Democratic Republic of Congo (DRC) have led to mass displacement, declining humanitarian indicators, and increased need, involving major humanitarian agencies in the response. Hostilities in eastern DRC between Congolese rebels and the DRC government have led to new displacements (250,000 IDPs and some 40,000 refugees in Uganda from August 2008 until February 2009). There is also new displacement of more than 150,000 and flight of 15,000 Congolese refugees into Southern Sudan as a result of Lord’s Resistance Army attacks and the joint DRC/Uganda/southern Sudan military actions against the Lord’s Resistance Army. In addition, joint DRC-Rwanda military action against Rwandan rebels (the FDLR – Democratic Front for the Liberation of Rwanda) in the DRC has led to both unexpected returns of FDLR refugee families from the DRC to Rwanda (over 3,000 returns to date) and possible accelerated returns of the over 50,000 DRCongolese refugees from Rwanda to the DRC.

Global Protection/Emergency Response Requirements/Food: $10 million –
Resources would respond to urgent food pipeline breaks in refugee feeding operations, particularly in Africa, that may occur in FY 2009.

Asia: $3 million for Burmese refugees – Critical support is needed to assist Burmese refugees. In 2008, declines in purchasing power, rice shortages, and spikes in commodity and fuel prices impeded NGO partners’ ability to respond to growing needs to support over 140,000 refugees in camps along the Thai-Burma border, forcing them to make severe resource cutbacks. Funding will provide badly-needed essentials (food, soap, insecticide-treated mosquito nets, building supplies) and address nutritional deficiencies and other consequences of this continuing lack of resources.


INTERNATIONAL DISASTER ASSISTANCE ($200 Million)

If a scroll bar appears below the following table, swipe the table to move left/right of the dashed line.
Account
($ in thousands)
FY 2008 Enacted
FY 2008
Supp

FY 2009
Bridge Supp
FY 2009 Enacted
FY 2009
Supp Request
International Disaster Assistance (IDA)
319,739
350,000
200,000
350,000
200,00
TOTAL
319,739
350,000
200,000
350,000
200,000



Summary

As the U.S. Government’s first responder to international disasters, the United States Agency for International Development's (USAID) Office of Foreign Disaster Assistance (OFDA), in the Bureau of Democracy, Conflict, and Humanitarian Assistance (DCHA), has responded to more than 225 natural and manmade disasters in the past three years. With the scope and duration of disasters expanding, OFDA is being called upon to respond to increasing needs. In FY 2008, OFDA spent $553 million responding to 81 disasters in 63 countries. Based on developments over the last several months, the FY 2009 activity will exceed FY 2008 levels.

$200 million International Disaster Assistance (IDA)

Humanitarian Assistance ($200 million)

Since the enactment of the FY 2009 Bridge Supplemental, additional requirements have arisen across the globe. In East and Central Africa, increased insecurity, armed conflict, and poor rainy seasons have resulted in expanding needs in several countries. In Somalia, more than 3.2 million people, representing 43 percent of the population, now require humanitarian assistance as a result of the cumulative affects of drought, continued civil conflict, rising inflation, and ongoing food insecurity. In Ethiopia, political instability and insecurity in Somaliland, consecutive seasons of failed rains, exacerbated by endemic problems, have led to chronic food insecurity, and water shortages. In the Democratic Republic of Congo, renewed clashes between armed opposition groups and government forces have resulted in new displacement. In Southern Africa, a cholera outbreak in Zimbabwe has spread to all 10 provinces, and conditions for most Zimbabweans continue to deteriorate due to the country’s collapsing economy and recent political violence. In the Middle East, South Asia and Central Asia, OFDA is addressing the needs of internally displaced persons from civil conflict in several locations, including Pakistan, and responding to winter emergencies in Tajikistan and Kyrgyzstan.

An additional supplemental of $200 million would allow for an adequate response to these growing complex emergencies and/or replenish costs incurred.

P.L. 480, TITLE II ($300 Million)

If a scroll bar appears below the following table, swipe the table to move left/right of the dashed line.
Account
($ in thousands)
FY 2008 Enacted
FY 2008
Supp

FY 2009
Bridge Supp
FY 2009 Enacted
FY 2009
Supp Request
P.L. 480 – Title II
1,210,864
850,000
395,000
1,225,900
300,000
TOTAL
1,210,864
850,000
395,000
1,225,900
300,000



Summary

Humanitarian Assistance ($300 million)

Since the FY 2009 Bridge Supplemental was enacted, unanticipated emergency food aid needs in Africa and elsewhere have risen. For example, in Zimbabwe, the upcoming April/May harvest will be poor due to limited seed and fertilizer availability. The continued economic decline is also compounding the situation, leading to continued increases in humanitarian needs. In Somalia, insecurity and another poor rainy season are leading to continued record-level humanitarian needs. In Kenya, poor rains in some areas and an increase in Somali refugees are raising needs. In parts of Ethiopia, unexpectedly high food aid needs are continuing due to high food prices and the impact of drought and crop and pasture failure in 2008.


USAID OPERATING EXPENSES and USAID CAPITAL INVESTMENT FUND ($201.1 Million)

If a scroll bar appears below the following table, swipe the table to move left/right of the dashed line.

Account

($ in thousands

FY2008
Enacted
FY2008
Supp
FY2009
Bridge Supp
FY2009 Enacted
FY2009
Supp
Request
USAID Operating Expenses (OE)

650,657

150,500

93,000

808,584

152,600
USAID Capital Investment Fund (CIF)

87,287

0

0

35,775

48,500
TOTAL
737,944
150,500
93,000
844,359
201,100



$152.6 million USAID Operating Expenses (OE)

Afghanistan Staffing Surge and Operations ($140 million)

As part of a coordinated approach with the Department of State, the United States Agency for International Development (USAID) is requesting additional resources to significantly expand its civilian presence in Afghanistan to support and manage increased development efforts. This civilian increase is an essential complement to the military operations to stabilize communities at the provincial level and strengthen Afghan Government capacity. The request for additional civilian staff and operational support will allow USAID to expand reconstruction efforts at the provincial and district level.

Supplemental funding is requested to support the increase in USAID civilian staff supporting the Provincial Reconstruction Teams (PRTs), as part of the U.S. Government’s overall efforts to strengthen civilian presence in the field. Based on the evolved PRT model for Afghanistan, USAID is requesting funding for 150 U.S. personnel and 200 local staff to expand reach at the provincial and district level and staff regional PRTs to mirror the ISAF/NATO structure and is in line with the new Afghanistan strategy. Supplemental funding of $100 million is requested to support this staffing surge, which includes full year salaries and benefits, travel, security, and all support costs.

The significant expansion of USAID personnel in Afghanistan will require a concurrent expansion of the Agency’s air wing to ensure the safe and secure transport of PRT and Kabul based staff. Based on current staff to flight seat capacity, supplemental funds in the amount of $40 million are requested to service the increase in travel needs brought about by additional staff deployed to PRTs and project and site visits by Kabul-based personnel. More specifically, this funding will expand the number of aircraft to a total of nine, five fixed-wing and four rotary-wing.

Pakistan Operations ($7.6 million)

Pakistan is currently undergoing a significant staffing increase to meet the management needs of an ever-increasing portfolio. Including funds requested in this supplemental, the program budget will have nearly tripled since FY 2008. In January 2009, 81 additional positions were approved, bringing the total staffing ceiling to 243. Of the 81 approved positions, 16 are U.S. Direct-Hires (USDH) and were not fully funded in the FY 2009 base budget. These funds will be used to support the salaries, benefits, personnel support, ICASS and other operational costs associated with this increase in staff. Additionally, as the USAID/Pakistan Mission grows, programmatically and administratively, the support needs traditionally provided by Washington will also increase. Thus, a portion of these funds may be used to hire additional Washington-based support staff.

West Bank and Gaza Operations ($5 million)
These funds are requested to appropriately monitor and manage increased programs and activities in the West Bank and Gaza, including those requested programs for which additional funding is requested in this supplemental. The request would fund security assets and logistics consisting of armored vehicles, personnel security details, and related costs for direct oversight of USAID funded programs and activities in West Bank and Gaza. The request also funds two U.S. and one local additional staff to meet program oversight and logistical support requirements for Gaza activities; expanded office and residential space and temporary duty support to contract for and mobilize expanded assistance levels; and related office furnishings, IT and telecommunication equipment for expanded operations.

$48.5 million USAID Capital Investment Fund (CIF)

Capital Security Cost Sharing Program ($19.87 million)

Supplemental funds are requested to pay in full the USAID FY 2008 Capital Security Cost Sharing Program (CSCS) bill. The FY 2008 CSCS bill was $99.5 million and USAID has only been able to pay $79.63 million of this bill, leaving a shortfall. USAID risks losing its right to occupy overseas buildings if it does not pay the $19.87 million balance as authorizing language for the CSCS program states that new diplomatic facilities may not include space for any agency that has not provided the full amount of its funding share as required by this program.

Other New Office Buildings/Annexes ($18.43 million)

Supplemental funds are requested for new office space overseas needed to accommodate the significant expansion of USAID’s permanent Foreign Service Officer (FSO) corps launched under the Agency’s Development Leadership Initiative (DLI). With an increase of at least 300 new FSOs in FY 2009 alone and projected additional increases through 2012 , USAID must begin to expand its office space overseas to handle both training and permanent deployment of these new staff. The request will fund build-outs for interim office buildings in Abuja, Nigeria and Bangkok, Thailand and expansions/reconfigurations of new embassy compounds in Addis Ababa, Ethiopia; Amman, Jordan; Lima, Peru; and San Salvador, El Salvador.

Enterprise Disaster Recovery Project ($10.2 million)

Supplemental funds are requested for the Enterprise Disaster Recovery Project, which enables USAID to plan and implement a solution for continued IT support for critical functions in the event that IT systems or infrastructure fail. This funding will also allow the Agency to address the issue of records retention and management for data stored on the USAID network.


ASSISTANCE TO DEVELOPING COUNTRIES AFFECTED BY THE GLOBAL FINANCIAL CRISIS ($448 Million)

If a scroll bar appears below the following table, swipe the table to move left/right of the dashed line.
Account
($ in thousands)
FY 2008 Estimate
FY 2008
Supp

FY 2009
Bridge Supp
FY 2009 Request
FY 2009
Supp Request
Economic Support Fund (ESF)
0
0
0
0
448,000

TOTAL
0
0
0
0
448,000



Summary

The global financial crisis is severely affecting poor countries and represents a serious short-term threat to U.S. national security interests abroad. The rapid collapse of currency exchange rates, bank lending, trade flows, remittances, and commodity prices will cause a sharp drop in the incomes and purchasing power of many of the world’s poorest and most vulnerable populations in 2009. The World Bank estimates that the expected slowdown in economic growth will throw at least 50 million additional people into extreme poverty in 2009.

A sharp increase in global poverty has the potential to spark new humanitarian crises, erode the gains from a wide range of major U.S. taxpayer investments in development, reverse recent progress toward achieving the Millennium Development Goals, and de-stabilize countries that share common interests and are key partners of the United States in a wide range of international forums

Funds requested will: (a) provide a temporary safety net (e.g., health, education, cash-for-work programs) to highly vulnerable populations; (b) provide technical assistance to build the capacity of governments, financial institutions, and private enterprises to restore and sustain broad-based economic growth and (c) provide loans and loan guarantees to private financial institutions to help spur private lending and investment which is critical to employment, recovery, and growth.

The following criteria will generally be used to choose a limited number of recipient countries; selected countries will be those where:

  1. 2007 per capita Gross National Income is $3,705 or less (i.e., the funds will be directed only to countries in the World Bank’s “low income” or “lower middle income” group);
  2. a sharp slowdown in economic growth is expected as a result of the crisis;
  3. the slowdown will be expected to have severe impacts on highly vulnerable, poor populations;
  4. those impacts will significantly raise the risk of social and political instability;
  5. the recipient government has demonstrated strong commitment to improving good governance, including transparent and accountable management of public resources; and
  6. the government, however, does not have the fiscal capacity to mitigate the impact of the crisis on their most vulnerable populations.

While the crisis continues to unfold and the relative severity of the impacts remains unpredictable, some of the countries that meet these criteria and are likely to be targeted for assistance under this request could include Guatemala, Haiti, Liberia, Mongolia, Tanzania, and Zambia.

$448 million Economic Support Fund (ESF)

Economic Growth ($448 million)

The net effect of the crisis in many of these countries will be to exacerbate food insecurity, fiscal stress, social and political instability, and other impacts of the food price crisis of 2008. Many developing country governments already carry large fiscal deficits and are unable to borrow funds for counter-cyclical safety net programs or other fiscal stimulus. As a result, even those countries that are best-governed and most committed to protecting the welfare of their populations have few effective policy tools with which to forestall potential humanitarian crisis and instability. In some of the countries, riots and other signs of instability have already manifested themselves in response to the crisis.

Therefore, a portion of the funds requested will provide a temporary safety net to highly vulnerable populations to forestall humanitarian crisis, avoid potential social or political instability, and preserve productive human and other resources needed for broad-based economic recovery and growth. This support will be provided through mechanisms – potentially including conditional cash transfers to public sector budgets -- that provide quick income support while encouraging local initiative, entrepreneurship and self-responsibility. Potential examples include mechanisms that provide cash for work on small-scale community infrastructure projects and other productive assets (e.g., restoring tree crop resources), and food vouchers conditioned on continued school enrollment for both girls and boys.

In addition, a portion of the funds requested will provide targeted technical assistance to local public and private institutions and civil society institutions to strengthen their capacity to meet the needs of vulnerable populations by providing immediate and adequate social insurance and other safety net services, while maintaining the highest global standards of transparency and accountability. Technical assistance to governments will improve the efficiency of fiscal management, including through better-targeted tax and expenditures programs and modernized public safety nets, which help recipients make the most of existing resources and increase their countries’ resilience to future economic shocks.

Finally, a portion of the funds requested will finance the subsidy costs of loans and loan guarantees to private financial institutions to provide credit risk enhancement or liquidity, where necessary, to spur lending which is critical to employment, recovery, and growth. These loans and loan guarantees, implemented through USAID Development Credit Authority (DCA) and the Overseas Private Investment Corporation (OPIC) facilities, will provide credit to small and medium enterprises and microfinance institutions that generate large numbers of jobs for the poor, help maintain bank and non-bank financial institutions’ solvency, expand regional and international trade finance, and re-launch critical infrastructure investments. To maximize the effectiveness of these loan and guarantee facilities, funds will also be used to provide technical assistance to banks, non-bank financial institutions, and regulatory authorities to strengthen capacity to evaluate and manage risk, and to regulate financial sector activity in a way that revitalizes private credit and investment while maintaining or improving fiduciary standards and market stability. This technical assistance will be implemented through USAID and the Department of Treasury’s Office of Technical Assistance, as appropriate.




If a scroll bar appears below the following table, swipe the table to move left/right of the dashed line.
FY 2009 Foreign Assistance Supplemental Request by Program and Account
(Dollars in Thousands)

FY 2009 Supp Request
DA
ESF
PKO
FMF
INCLE
IMET
NADR
FSA
MRA
IDA
PL 480
AID Admin
FY 2009 Supp Request
4,811,000
38,000
2,874,500
50,000
98,400
389,500
2,000
122,000
242,500
293,000
200,000
300,000
201,100
Africa
133,000
38,000
45,000
50,000
-
-
-
-
-
-
-
-
-
Democratic Republic of the Congo
10,000

10,000

Kenya
38,000
38,000

Somalia
40,000

-
40,000

-

Zimbabwe
45,000

45,000

East Asia and Pacific
155,000
-
108,000
-
-
-
-
47,000
-
-
-
-
-
Burma
13,000

13,000

North Korea
142,000

95,000

47,000

Europe and Eurasia
242,500
-
-
-
-
-
-
-
242,500
-
-
-
-
Georgia
242,500

242,500

Near East
1,295,400
-
1,005,000
-
98,400
129,000
2,000
61,000
-
-
-
-
-
Iraq
482,000

449,000

-
20,000
2,000
11,000

Lebanon
98,400

98,400

West Bank and Gaza
715,000

556,000

109,000

50,000

-

South and Central Asia
1,477,000
-
1,268,500
-
-
194,500
-
14,000
-
-
-
-
-
Afghanistan
980,000

839,000

-
129,000

12,000

-

Pakistan
497,000

429,500

-
65,500

2,000

Western Hemisphere
66,000
-
-
-
-
66,000
-
-
-
-
-
-
-
Merida - Mexico
66,000

-

-
66,000

-

-

Bureau of Population, Refugees, and Migration
293,000
-
-
-
-
-
-
-
-
293,000
-
-
-
Bureau of Population, Refugee, and Migration
293,000

293,000

Democracy, Conflict and Humanitarian Assistance
500,000
-
-
-
-
-
-
-
-
-
200,000
300,000
-
Democracy, Conflict and Humanitarian Assistance
500,000

200,000
300,000

USAID Administrative Expenses
201,100
-
-
-
-
-
-
-
-
-
-
-
201,100
USAID Operating Expense
152,600

152,600
USAID Capital Investment Fund
48,500

48,500
Global Financial Crisis
448,000

448,000