Friend –

There’s only one “first budget request” per Administration, so the Biden Administration’s “skinny budget” announcement last Friday was an important marker. Given the dramatically changed world from last year’s budget debates and the rising global challenges from COVID-19, the diplomacy and development proposals are smart and serious – good news.

Here’s why:

• Last month, the USGLC released an expert-driven needs-based assessment to underscore the growing global challenges impacting America’s health and economic recovery. With the growing concerns over variants and preventing the next pandemic, we did our homework and identified at least $14 billion in new resources needed for the U.S. International Affairs Budget.
  
  
• As I shared with reporters, the Administration’s proposal gets us halfway there to the needs identified by our national security and foreign policy experts – and proposes a critical down payment to help advance and protect America’s interests and values around the world.

Read below for my Top 9 Takeaways from the Administration’s first budget and what it means on the global stage to respond to the pandemic, the U.S. relationship with China, and much more.

Best, 

Liz
Liz Schrayer, USGLC

GLOBAL GAB – Budgeting in a World Turned Upside Down
Top 9 Takeaways from Biden’s First Budget for International Affairs
April 13, 2021

While international affairs programs will still likely make up about 1% of the federal budget, this year’s budget proposal addresses the multitude of growing global challenges caused by the global pandemic. It calls for an increase of 12% for U.S. international affairs programs, the largest annual increase we’ve seen in close to a decade for these programs, but we should not be surprised – it is clearly a reflection that the world has literally been turned upside down and that these investments directly impact the health, and economic interests of every American family.

This proposal builds on the call of Republicans and Democrats for decades – and particularly over the last year – to step up America’s partnerships on the global stage and sets an important marker as budget negotiations now take shape at both ends of Pennsylvania Avenue.

While the current proposal for international affairs was lite on details at just a few pages – with more coming later in the spring – it does offer useful insights into the new Administration’s priorities.

>> Click here to read the full analysis and report

#1 The Global Pandemic: COVID-19 Is Center Stage

• The Administration’s budget calls for a $10 billion investment in U.S. global health programs for combating COVID-19, future pandemics, and reversing the progress lost on global health over the last year.
  
  
• This includes $1 billion for Global Health Security, an $800 million increase compared to this year’s “non-emergency” level.
  
  
• The Administration also previews a new multilateral “health security financing mechanism” to strengthen pandemic prevention and preparedness.

#2 Global Crises: America’s Humanitarian Programs Could See Boost

• U.S. humanitarian assistance accounts see a $400 million increase for “refugees, conflict victims, and other displaced persons” as humanitarian crises around the world continue to intensify – exacerbated by the COVID-19 pandemic.
  
  
• Recent reports warn that the world will see a record 235 million people – a 40% increase – who will need humanitarian assistance this year due to the pandemic. UN humanitarian chief, Mark Lowcock, said “the outlook is bleak.”

#3 Central America: New Resources to Address Migration

• The budget includes $861 million to address the root causes of migration from Central America – part of a four-year $4 billion commitment from the Administration to “strengthen host government accountability” to provide security and services to their populations, promote rule of law and combat corruption, combat violence, and promote economic opportunity.

#4 Climate Change: Combatting Global Threat a Top Priority

• The request also includes $2.5 billion to combat climate change on the global stage, a four-fold increase from the current funding levels.
  
  
• This total includes $691 million for the State Department and USAID to help developing countries and fragile states adapt to and mitigate the impacts of climate change and build resilience.

#5 Alliances and Democracy: Renewed Agenda to Counter Authoritarianism

• The Administration’s also suggests there will be forthcoming increases – no numbers announced – to help counter “malign influence from China, Russia, and other authoritarian states”, complementing a future international “Summit for Democracy” proposed by President Biden.
  
  
• Additional areas mentioned for investment include support for human rights and for key allies in the Middle East, including Israel and Jordan.
  
  
• The budget proposes a $500 million increase to meet America’s commitments to international peacekeeping, along with commitments to support and reform international organizations like the World Health Organization (WHO).

#6 Diversity: A Call to Strengthen U.S. National Security Workforce

• While lite on details, the Administration says its budget will invest in “strengthening a diverse and inclusive diplomatic corps” by “increasing the size” of the Foreign Service and Civil Service at the State Department and USAID.
  
  
• Yesterday, Secretary Tony Blinken named Ambassador Gina Abercrombie-Winstanley as the State Department’s first Chief Diversity and Inclusion Officer.

#7 War-Time Accounts: New Effort to Shift “Contingency” Resources

• Recognizing the enduring needs on the global stage, the budget discontinues what has been known as the Overseas Contingency Operations (OCO) account, which has historically been used to fund defense and international affairs needs tied to military operations and other crises. While there is bipartisan agreement that annual budgeting should rely less on OCO funding, it remains to be seen how Congress will address the issue in FY22.

#8 Initial Reactions

• While it’s no surprise that Republicans in Congress have criticized the Administration’s overall budget – including the proposed spending levels for Pentagon – Senators McConnell, Inhofe, Graham, and Shelby did communicate the importance of “sustained investments in all our national security tools: military, diplomatic, economic…”
  
  
• This is one potential area to watch for bipartisanship in the coming days, particularly given how Members of Congress on both sides of the aisle overwhelmingly rejected calls to dramatically cut international affairs programs and have worked together to fully fund America’s civilian national security toolkit in recent years.
  
  
• Devex’s Michael Igoe called the Administration’s request a “major increase” but “also $7.2 billion less than what a recent @USGLC analysis found was likely needed.” See the full USGLC statement here.

#9 Stay Tuned: There’s More to Come

• While new Administration’s first budgets are typically lighter on details, it remains to be seen how the Administration’s funding levels will be distributed across the various accounts and programs. Ultimately, Congress holds the power of the purse and spending decisions will be decided through the budget and appropriations process on Capitol Hill, where slim majorities in the House and Senate means bipartisan support will likely be needed.

>> Click here to read the full analysis and report