Calendar No. 541 114THCONGRESS REPORT 2d Session " SENATE ! 114–290 DEPARTMENT OF STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS APPROPRIATIONS BILL, 2017 JUNE29, 2016.—Ordered to be printed Mr. GRAHAM, from the Committee on Appropriations, submitted the following REPORT [To accompany S. 3117] The Committee on Appropriations reports the bill (S. 3117) mak- ing appropriations for the Department of State, foreign operations, and related programs for the fiscal year ending September 30, 2017, and for other purposes, reports favorably thereon and rec- ommends that the bill do pass. Amounts in new budget authority Total of bill as reported to the Senate .................... $52,242,900,148 Amount of 2016 appropriations ............................... 52,833,900,910 Amount of 2017 budget estimate ............................ 52,930,343,148 Bill as recommended to Senate compared to— 2016 appropriations .......................................... ¥591,000,762 2017 budget estimate ........................................ ¥687,443,000 20–573 PDF CONTENTS Page Summary of Appropriations .................................................................................... 5 Introduction .............................................................................................................. 5 Countries and Issues of Concern ............................................................................ 12 Title I: Department of State and Related Agency: Department of State: Administration of Foreign Affairs: Diplomatic and Consular Programs .......................................... 37 Capital Investment Fund ........................................................... 42 Office of Inspector General ......................................................... 42 Educational and Cultural Exchange Programs ........................ 43 Representation Expenses ........................................................... 45 Protection of Foreign Missions and Officials ............................ 45 Embassy Security, Construction, and Maintenance ................ 45 Emergencies in the Diplomatic and Consular Service ............. 47 Repatriation Loans Program Account ....................................... 47 Payment to the American Institute in Taiwan ........................ 47 International Center, Washington, District of Colombia ......... 47 Payment to the Foreign Service Retirement and Disability Fund ......................................................................................... 48 International Organizations: Contributions to International Organizations ........................................ 48 Contributions for International Peacekeeping Activities ....................... 49 International Commissions: International Boundary and Water Commission, United States and Mexico ..................................................................................................... 49 Salaries and Expenses ....................................................................... 49 Construction ....................................................................................... 49 American Sections, International Commissions ..................................... 49 International Fisheries Commissions ...................................................... 50 Related Agency: Broadcasting Board of Governors: International Broadcasting Operations ............................................ 50 Broadcasting Capital Improvements ................................................ 51 Related Programs: The Asia Foundation ................................................................................. 52 United States Institute of Peace .............................................................. 52 Center for Middle Eastern-Western Dialogue Trust Fund .................... 52 Eisenhower Exchange Fellowship Program ............................................ 52 Israeli Arab Scholarship Program ........................................................... 52 East-West Center ...................................................................................... 52 National Endowment for Democracy ....................................................... 53 Other Commissions: Commission for the Preservation of America’s Heritage Abroad .......... 53 United States Commission on International Religious Freedom .......... 54 Commission on Security and Cooperation in Europe ............................. 54 Congressional-Executive Commission on the People’s Republic of China ...................................................................................................... 54 United States-China Economic and Security Review Commission ....... 54 Title II: United States Agency for International Development: Funds Appropriated to the President: Operating Expenses ........................................................................... 55 Capital Investment Fund .................................................................. 57 (2) 3 Page Title II—Continued United States Agency for International Development—Continued Funds Appropriated to the President—Continued Office of Inspector General ................................................................ 57 Title III: Bilateral Economic Assistance: Funds Appropriated to the President: Sector Assistance ................................................................................ 58 Global Health Programs .................................................................... 58 Development Assistance .................................................................... 62 International Disaster Assistance .................................................... 69 Transition Initiatives ......................................................................... 69 Complex Crises Fund ......................................................................... 70 Development Credit Authority .......................................................... 70 Program Account ......................................................................... 70 Administrative Expenses ............................................................ 70 Economic Support Fund .................................................................... 70 Democracy Fund ................................................................................. 77 Assistance for Europe, Eurasia and Central Asia ........................... 78 Department of State: Migration and Refugee Assistance ................................................... 79 United States Emergency Refugee and Migration Assistance Fund ................................................................................................ 80 Independent Agencies: Peace Corps ........................................................................................ 81 Millennium Challenge Corporation .................................................. 81 Inter-American Foundation ............................................................... 81 United States African Development Foundation ............................. 81 Department of the Treasury: International Affairs Technical Assistance ...................................... 81 Title IV: International Security Assistance: Department of State: International Narcotics Control and Law Enforcement .................. 82 Nonproliferation, Anti-terrorism, Demining and Related Pro- grams ............................................................................................... 85 Peacekeeping Operations ................................................................... 86 Funds Appropriated to the President: International Military Education and Training .............................. 88 Foreign Military Financing Program ............................................... 91 Title V: Multilateral Assistance: Funds Appropriated to the President: International Organizations and Programs ..................................... 95 International Financial Institutions ........................................................ 96 Global Environment Facility ............................................................. 96 Contribution to the International Development Association .......... 96 Contribution to the International Bank for Reconstruction and Development ................................................................................... 97 Contribution for Central America and Caribbean Catastrophe Risk Insurance Program ................................................................ 97 Contribution to Global Infrastructure Facility ................................ 97 Contribution to the Green Climate Fund ......................................... 97 Contribution to the Inter-American Development Bank ................ 97 Contribution to the Asian Development Fund ................................. 97 Contribution to the African Development Bank .............................. 98 Limitation on Callable Capital Subscriptions .................................. 98 Contribution to the African Development Fund .............................. 98 Contribution to the International Fund for Agricultural Develop- ment ................................................................................................. 98 Contribution to the Global Agriculture and Food Security Pro- gram ................................................................................................. 98 Contribution to the North American Development Bank ............... 98 Limitation on Callable Capital Subscriptions .................................. 98 Title VI: Export and Investment Assistance: Export-Import Bank of the United States: Inspector General ............................................................................... 99 4 Page Title VI—Continued Export and Investment Assistance—Continued Export-Import Bank of the United States—Continued Administrative Expenses ................................................................... 99 Overseas Private Investment Corporation: Noncredit Account .............................................................................. 99 Administrative Expenses ................................................................... 99 Program Account ................................................................................ 99 Trade and Development Agency .............................................................. 100 Title VII: General Provisions .................................................................................. 101 Title VIII: Overseas Contingency Operations: Department of State: Administration of Foreign Affairs: Diplomatic and Consular Programs .......................................... 103 Office of Inspector General ......................................................... 103 Embassy Security, Construction, and Maintenance ................ 103 International Organizations: Contributions to International Organizations .......................... 103 Contributions for International Peacekeeping Activities ......... 103 Mechanism for Peace Operations Response .............................. 104 United States Agency for International Development: Funds Appropriated to the President: Operating Expenses .................................................................... 104 Capital Investment Fund ........................................................... 104 Bilateral Economic Assistance: Funds Appropriated to the President: International Disaster Assistance ............................................. 104 Transition Initiatives .................................................................. 104 Complex Crises Fund .................................................................. 104 Economic Support Fund ............................................................. 104 Assistance for Europe, Eurasia and Central Asia .................... 104 Department of State: Migration and Refugee Assistance ................................................... 104 United States Emergency Refugee and Migration Assistance Fund ................................................................................................ 105 International Security Assistance: Department of State: International Narcotics Control and Law Enforcement .................. 105 Nonproliferation, Anti-terrorism, Demining and Related Pro- grams ............................................................................................... 105 Peacekeeping Operations ................................................................... 105 Funds Appropriated to the President: Foreign Military Financing Program ............................................... 105 General Provisions ........................................................................................... 105 Title IX: Matters Relating to Israel: Combating BDS Act of 2016 ..................................................................... 106 Compliance With Paragraph 7, Rule XVI of the Standing Rules of the Senate . 107 Compliance With Paragraph 7(c), Rule XXVI of the Standing Rules of the Senate ................................................................................................................... 108 Compliance With Paragraph 12, Rule XXVI of the Standing Rules of the Senate ................................................................................................................... 109 Budgetary Impact of Bill ......................................................................................... 127 Comparative Statement of New Budget Authority ............................................... 128 SUMMARY OF APPROPRIATIONS The Committee recommends total appropriations of $52,242,900,148 for the Department of State, foreign operations, and related programs for fiscal year 2017. Of this amount, $52,084,000,148, including $14,895,000,000 for Overseas Contin- gency Operations [OCO], is for non-emergency discretionary pro- grams, and $158,900,000 is for mandatory programs. The Committee’s recommendations for fiscal year 2017, by title, compared to the budget request, are allocated in the following table: APPROPRIATIONS BY TITLE [Budget authority in thousands of dollars] Title Fiscarle qyeuaers t2 017 recComommmenitdteaeti on Title I—Department of State and Related Agency ............................................................ 11,800,551 11,250,820 Title II—United States Agency for International Development.......................................... 1,440,085 1,355,670 Title III—Bilateral Economic Assistance............................................................................ 16,531,024 16,507,106 Title IV—International Security Assistance ....................................................................... 6,206,373 6,463,375 Title V—Multilateral Assistance ........................................................................................ 2,617,921 2,342,529 Title VI—Export and Investment Assistance ..................................................................... ¥566,600 ¥577,600 Title VII—General Provisions.............................................................................................. 6,000 6,000 Title VIII—Overseas Contingency Operations..................................................................... 14,894,989 14,895,000 Title IX—Matters Relating to Israel................................................................................... .......................... .......................... Total....................................................................................................................... 52,930,343 52,242,900 INTRODUCTION In the Introduction to Senate Report 114–79, the Committee jus- tified the relevancy of diplomacy and development to the global challenges faced by the United States and its allies, and under- scored that funds for these purposes since 2002 consistently in- cluded a mix of non-emergency appropriations, emergency supple- mental appropriations, and/or funds designated as OCO, depending on the prevailing designation at the time such funds were appro- priated. Polling data underscores that the American public remains cog- nizant of the threats posed by international terrorism, cyberterrorism, pandemic viruses, a nuclearized Iran and North Korea, and the displacement of populations unseen since World War II caused by conflict in the Middle East, Central America, and Africa.1 Yet despite this concern and the de facto status of the United States as the sole superpower, only 16 percent of Americans believe the United States should take a leading role in solving 1http://www.gallup.com/poll/189161/americans-cite-cyberterrorism-among-top-three- threats.aspx (5) 6 international problems and 37 percent of Americans believe that the United States should play a minor role or no role at all.2 Given this apparent contradiction, an early task of a new admin- istration should be to define and clarify the role and responsibility of the United States in world affairs. This will require the next President to— —fully understand the multidimensional complexities of the threats and challenges the United States faces today, including by armed non-state actors seeking to undermine state systems in Syria, Iraq, Libya, and Yemen on one level, and the concur- rent clash of geostrategic interests between Iran and the Gulf States on another; —develop and articulate a grand strategy for American power, influence, and security, which must translate into coherent and coordinated policies to guide U.S. departments and agencies; and —request adequate personnel and resources for diplomacy, devel- opment, and defense in order to effectively implement such policies. The United States has a clear choice. Through the triad of diplo- macy, development, and defense it can help shape the strategic ter- rain and provide some semblance of order to international affairs, or it can continue to be buffeted by new and expanding threats to U.S. national security, including in the form of a virus, extremism, or a cyber-attack. The Committee believes that funds in the act for diplomacy, development, and security effectively contribute to bilat- eral and multilateral efforts to achieve greater stability in the international system, but that going forward, greater clarity must be provided by the President on the strategic imperative of foreign operations and assistance, including the appropriate use of non- emergency, emergency supplemental, and OCO funds. As the Committee heard in testimony on April 12, 2016 on ‘‘The Causes and Consequences of Violent Extremism and the Role of Foreign Assistance’’: ‘‘. . . there remains a role that only America can fill—lead- ership that only America can provide. . . . We know what American ingenuity can do when unleashed. We know what American compassion can do. We know what American leader- ship can do.’’ CONDUCT OF FOREIGN AFFAIRS The Committee underscores the primacy of the Secretary of State in the conduct of foreign affairs, as enumerated in section 622(c) of the Foreign Assistance Act of 1961 [FAA] (Public Law 87–195) for the ‘‘continuous oversight and general direction of economic as- sistance, military assistance, and military education and training programs’’. Section 7056 of the act updates these responsibilities to include law enforcement and justice assistance. However, the failure of the National Security Council under this and previous administrations to adequately integrate and coordi- nate foreign and military policies to ensure more effective coopera- 2http://kff.org/report-section/2016-survey-of-americans-on-the-u-s-role-in-global-health-section- 1-8861/. 7 tion among and between U.S. Government departments and agen- cies, and the complex and dynamic nature of today’s security threats, have created parallel and competing foreign assistance programs, particularly at the Department of Defense. Unless con- ducted in a whole-of-government manner under the direction of the President and the Secretary of State, economic, law enforcement, justice, and military assistance programs conducted by the Depart- ment of Defense without the concurrence of the Secretary of State—from program development through program execution— erodes the coherent, coordinated, and effective implementation of U.S. foreign policy. REDUCING COSTS As in prior years, the Federal agencies administering funds ap- propriated by the act are directed to regularly review all costs asso- ciated with operations and programs to determine their necessity, priority, and effectiveness. Contractor Bonuses.—The Committee directs the Department of State, the United States Agency for International Development [USAID], and other agencies to refrain from providing bonuses to government contractors that have failed to complete their contract in a satisfactory manner, including as a result of scheduling delays or cost overruns. Cost Savings and Efficiencies.—Not later than 45 days after en- actment of the act, the Offices of Inspector General [OIG] of the Department of State and USAID shall each provide the Committee a consolidated list of OIG recommendations for potential position reductions and office reductions or closures for the past fiscal year, including estimated cost savings, and the responses to such rec- ommendations by such agencies. Development Innovation Ventures Program.—Not later than 45 days after enactment of the act, the USAID Administrator shall submit to the Committee the status of implementation of rec- ommendations by the U.S. Government Accountability Office [GAO] regarding USAID’s Development Innovation Ventures pro- gram (GAO–16–142). Diplomatic Facilities.—The Committee directs the Department of State and USAID to continue to consolidate redundant services and operations at diplomatic facilities abroad. Not later than 90 days after enactment of the act, the Secretary of State, in consultation with the USAID Administrator, should update the report required in Senate Report 113–195 on these services and operations. Duplication.—The Committee notes that in recent years GAO has published reports suggesting areas of unnecessary duplication and overlap throughout the Federal Government. Not later than 90 days after enactment of the act, each department and agency iden- tified in the 2016 annual GAO duplication report (GAO–16–375SP) that receives funds appropriated by the act shall submit a report to the Committee detailing efforts to eliminate or remedy the dupli- cation identified, and describing any legal or other barrier to ad- dressing such duplication. Executive Meetings, Ceremonies, and Conferences.—The Com- mittee directs the Department of State, USAID, and other agencies funded by the act to continue to achieve savings by reducing the 8 cost of executive meetings, ceremonies, and conferences, and cur- tailing the purchase of commemorative and promotional items. CONGRESSIONAL BUDGET REQUEST AND JUSTIFICATIONS Timely budget information in the congressional budget justifica- tion [CBJ] that is clearly, concisely, and accurately presented must be a priority of the administration. The Committee expects the De- partment of State, USAID, and other agencies funded by the act to submit CBJs within 4 weeks of the release of the President’s fiscal year 2018 budget request. The Committee also directs the Depart- ment of State, USAID, and other agencies to include detailed infor- mation on all available resources, including estimated prior year unobligated balances and recoveries, reimbursable agreements, funds transferred pursuant to sections 632(a) and (b) of the FAA, and significant uses of the Economy Act. The Committee directs the Department of State, USAID, and any other agency that utilizes a Working Capital Fund [WCF] to in- clude in the CBJ the total budgetary resources for each office that receives funds from a WCF. The CBJ shall also include a table on WCF resources that will serve as the baseline for reprogramming and transfer purposes. The Committee directs that CBJs include estimated savings from any proposed office or mission closing, and actual prior year rep- resentation expenses for each department and agency that is au- thorized such expenses. DEFINITIONS AND ABBREVIATIONS For purposes of the Balanced Budget and Emergency Deficit Control Act of 1985 (Public Law 99–177), as amended, with respect to appropriations contained in the act the term ‘‘program, project, and activity’’ shall mean any item for which a dollar amount is specified in the act or this report. In addition, the definition of ‘‘program, project, and activity’’ in section 7023 of the act shall apply to the accounts listed in that section. In carrying out any Presidential sequestration, the Department of State, USAID, and other agencies funded by the act shall conform to the definition of ‘‘program, project, and activity’’ described above. The Committee includes language in the act making certain ac- tions, such as obligations of funds, ‘‘subject to the regular notifica- tion procedures of the Committees on Appropriations.’’ This lan- guage requires a separate notification to the Committee 15 days prior to the proposed obligation of funds or other action that is the subject of this notification requirement, regardless of what may be contained in an agency’s CBJ or in the operating and spend plans required by section 7076 of the act. Thus, such CBJs and operating and spend plans do not suffice as justification for purposes of satis- fying such notification requirement. Pursuant to section 7034(r)(1) of the act and unless expressly provided to the contrary, the term ‘‘appropriate congressional com- mittees’’ as used in the act and this report means the Committees on Appropriations and Foreign Relations of the Senate and the Committees on Appropriations and Foreign Affairs of the House of Representatives. 9 Pursuant to section 7034(r)(6) of the act and for purposes of this report, the term ‘‘extremist organizations’’ means the Islamic State of Iraq and the Levant [ISIL]; organizations affiliated with ISIL; a foreign organization that is determined to be engaged in terrorist activity; and other entities designated as a foreign terrorist organi- zation [FTO] pursuant to section 219 of the Immigration and Na- tionality Act (8 U.S.C. 1189). The term ‘‘extremist’’ means an indi- vidual affiliated with an extremist organization, and the term ‘‘ex- tremism’’ means the advocacy or use of violence by such organiza- tion or individual to achieve political or religious goals. Section 7034(r)(8) of the act defines the term ‘‘spend plan’’, which the Committee requires for certain countries, programs, and ac- counts. The Committee is aware that the level of detail required by a spend plan may be equivalent to, and in some cases may exceed, that of notifications. Not later than 30 days after enactment of the act, the Secretary of State and the USAID Administrator shall con- sult with the Committee on spend plan and notification require- ments. For purposes of this report, the following accounts are abbre- viated as follows: Title I: Diplomatic and Consular Programs [D&CP]; Capital In- vestment Fund [CIF]; Worldwide Security Protection [WSP]; Edu- cational and Cultural Exchange Programs [ECE]; Embassy Secu- rity, Construction, and Maintenance [ESCM]; Contributions for International Peacekeeping Activities [CIPA]; International Bound- ary and Water Commission, United States and Mexico [IBWC]; International Broadcasting Operations [IBO]; Broadcasting Capital Improvements [BCI]; and National Endowment for Democracy [NED]. Title II: Operating Expenses [OE]. Title III: Global Health Programs [GHP]; Development Assist- ance [DA]; International Disaster Assistance [IDA]; Transition Ini- tiatives [TI]; Complex Crises Fund [CCF]; Economic Support Fund [ESF]; Democracy Fund [DF]; Assistance for Europe, Eurasia and Central Asia [AEECA]; Migration and Refugee Assistance [MRA]; and Millennium Challenge Corporation [MCC]. Title IV: International Narcotics Control and Law Enforcement [INCLE]; Nonproliferation, Anti-terrorism, Demining and Related Programs [NADR]; Peacekeeping Operations [PKO]; International Military Education and Training [IMET]; and Foreign Military Fi- nancing Program [FMF]. Title V: International Organizations and Programs [IO&P]; Inter- American Development Bank [IDB]; and African Development Bank [AfDB]. Title VI: Export-Import Bank of the United States [EXIM]; and Overseas Private Investment Corporation [OPIC]. MONITORING AND EVALUATION Humanitarian Aid Cost-Effectiveness.—Section 7034(m) of the act seeks to enhance the effectiveness of humanitarian aid through regular and accurate feedback data from implementing partners, which should include the use of mobile technology to facilitate real- time data. Such information should be used to improve the delivery and effectiveness of humanitarian assistance. 10 Foreign Assistance Data Review Findings Report.—Not later than 90 days after enactment of the act, the Secretary of State shall sub- mit a report to the Committee detailing steps taken to implement the recommendations of the Foreign Assistance Data Review Find- ings Report, including to develop a standard foreign assistance management business process, identification of new system re- quirements to meet such process, and a plan for developing stand- ards and governance to integrate such process. Report on Monitoring and Evaluation of Fiscal Year 2015 Pro- grams.—The Committee underscores the importance of monitoring and evaluating the effectiveness of foreign assistance programs. Independent evaluations, including impact evaluations where ap- propriate, of such programs are an important method for improving performance and ensuring that taxpayer resources are spent effi- ciently and effectively. However, the quality of foreign assistance program evaluations varies widely, and there are inadequate proc- esses in place to ensure that the findings and recommendations of evaluations inform program design, policy decisions, and budget al- locations. Moreover, monitoring and evaluation processes do not al- ways incorporate sufficient local data, feedback and participation, and comparable standards are not consistently applied across the full range of foreign assistance programs. Not later than 90 days after enactment of the act, and following consultation with the Committee, the Secretary of State shall con- duct a review of the quality of program evaluations and the utiliza- tion of such evaluations in programs conducted by Department of State regional bureaus with funds appropriated in fiscal year 2015, and publish the findings on the Department Web site. Results-Based Assistance.—The Committee recommends that the USAID Administrator consider expanding results-based foreign as- sistance, such as cash on delivery assistance and non-cost-based fi- nancing. Not later than 90 days after enactment of the act, the USAID Administrator shall consult with the Committee on any current or planned activities utilizing such methods and rec- ommend ways to expand such use, if appropriate. Rule Making.—The Committee notes the Department of State may have, at times, loosely interpreted the Administrative Proce- dures Act of 1946 (5 U.S.C. 551 et seq.) when using an exception to the publishing of a proposed rulemaking related to a function of foreign affairs. The Committee notes that the exception should only be used if public rulemaking provisions ‘‘would clearly provoke defi- nitely undesirable international consequences’’. MULTI-YEAR PLEDGES The Committee directs the heads of U.S. departments and agen- cies funded by the act to refrain from making any pledge for future year funds for any multilateral or bilateral program unless such pledge was: included in an act making appropriations for the De- partment of State, foreign operations, and related programs or pre- viously authorized by an act of Congress; previously justified in a CBJ, including projected future year costs; or the subject of prior consultation with the Committee at least 7 days in advance of the pledge.