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Keys to the 150 Supplemental March 10, 2009

Posted by Molly in Analysis.
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FY08 suppIn the next few weeks President Obama will release the FY09 supplemental request, one of his first opportunities to put his money where his mouth is.   Yesterday Stephen posted on the outlook for the DOD supplemental.  Provisions for additional funding in the 150 budget will be a another reflection of Obama’s foreign policy objectives for Iraq, Afghanistan and other security-critical regions.

During the Bush administration, supplementals were major vehicles for growth in Diplomatic and Consular Programs, Economic Security Fund, and International Narcotics Control and Law Enforcement (see the account breakdown above). Changes in supplemental funding to these accounts will be a key indicator of the new administration’s national security priorities.

Watch for the following key accounts:

  • Economic Support Funds: The FY08 supplemental request included $797 million for Iraq, $834 for Afghanistan, $350 for West Bank and Gaza, $236 for other countries. This round may see an increase in funding for Afghanistan and Pakistan as President Obama realigns the focus of the war on terror toward this region.  We may also see part of the $900 million that Secretary Clinton committed to the Palestinian Authority last week in Egypt.
  • Diplomatic and Consular Programs: This has been the big-ticket item in the past few years as the need for personnel, logistics and security for State Department employees in Iraq and Afghanistan increased dramatically. Public and Congressional support for this account remains high, but growth in the account may slow to reflect a drawdown of troop levels in Iraq.
  • International Narcotics Control and Law Enforcement: Supplemental funding for INCLE should drop substantially from last year’s high of $734 million. The FY08 supplemental request included $550 million for the first installment of a $1 billion+ anti-narcotics partnership with Mexico, the Mérida Initiative.  The supplemental request for INCLE this year should fall closer to the FY07 supplemental request, $260 million.
  • Country-wise Breakdown: A renewed focus on Afghanistan and Pakistan as a critical region in the war on terror may translate to shifting funding levels. In the FY08 supplemental, 35% of funding went to Iraq, while Afghanistan received 23% and Pakistan 2%. The proportion of funding directed at Mexico should drop dramatically as funding for the Merida Initiative is absorbed in the normal FY09 and FY10 budgets.
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1. The Week Ahead « Budget Insight - March 23, 2009

[…] Stimson Center analysis of the upcoming supplemental bill are here,  here, and […]


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