Foreign aid increases passed by Congress

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February 2004

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Foreign aid increases passed by Congress

Foreign aid increases passed by Congress
Congress approved a significant increase in funding to fight
global health crises and poverty in 2004 last month. The Senate gave final approval on January 22 for major increases in funding to fight AIDS and infectious diseases, as well as significant new money for poor countries through the Millennium Challenge Account (MCA). The House had approved these increases in early December.

The foreign aid bill, passed as part of the 2004 Omnibus appropriations bill, marks a significant victory for development assistance priorities outlined by the U.S. Conference of Catholic Bishops and Catholic Relief Services and contains the largest increase in developmental and civilian foreign aid programs in four decades. The final bill also contains authorization for the MCA and helps ensure a more effective and morally appropriate global health program, according to the USCCB's Office of Social Development and World Peace.

The 2004 foreign aid bill provides $17.55 billion in overall foreign aid, including:

$2.4 billion to fight global AIDS and other infectious diseases (a $900 million increase from 2003);

$1 billion for the MCA (new poverty-focused development aid); and $1.4 billion in development assistance.

The final bill retains the Senate amendment which protects those provisions in the Global AIDS Act that seek a more effective and morally appropriate global health program.

The bill includes authorization language for the MCA which:

Ensures that in 2004, only the poorest countries (those which are eligible for assistance from the International Development Association (IDA) will be eligible for MCA funds;

Authorizes up to 10 percent of 2004 MCA funds for those countries with a demonstrated commitment to achieving the eligibility criteria, but who failed to meet these requirements; and

Includes emphases on poverty reduction and civil society participation.

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