POMED Notes: “FY2012 Budget Hearing”

The House Subcommittee on State, Foreign Operations, and Related Programs of the House Appropriations Committee held a budget hearing on Thursday, March 10, 2011 for the administrations FY2012 budget request.  Subcommittee Chairwoman, Rep. Kay Granger (R-TX), chaired the hearing with Secretary of State Hillary Clinton testifying before the subcommittee.

For full notes, continue below. For PDF, click here.

Congresswoman Kay Granger made opening remarks stating that both the administration and Congress must make “wise decisions” and cannot continue to spend money “like we have been.”  Granger reiterated her commitment to national security through foreign investment while keeping in consideration current economic difficulties quoting Admiral Mike Mullen, Chairman of the Joint Chiefs: “Our debt is the greatest threat to our national security.”  She praised that State-Foreign Operations portion of H.R. 1, the continuing resolution passed by the House, for prioritizing the “front line states” of Iraq, Afghanistan, and Pakistan along with key U.S. allies.  She also praised the cuts the resolution made to programs that she said the U.S. can no longer afford and also called for a reconsideration of plans to increase State and USAID staff, support multi-year commitments and long term loans, and boost lending by international banks.  Granger also noted that the FY2012 budget request of $59.5 billion is about $11 billion above FY2012 enacted levels.  While she acknowledged that increased funding requests for Iraq programs would cost significantly less than keeping troops stationed there, she questioned the State Department’s capability to manage such a large program and ability to ensure the security of State Department staff in the country.  She reiterated the need for oversight on how the administration and State Department monitor and evaluate programs in order to achieve “clear goals” so that civilian efforts would complement military activity.

Ranking Member Rep. Nita Lowey (D-NY) stated that diplomacy and development is crucial to peace despite “fiscal belt tightening,” and that foreign investments contribute directly to national security which ultimately cost less than deploying troops.  She outlined some of the security imperatives that are enhanced by such investments including: fighting trans-national crime, drug cartels, and terrorism along with natural disaster relief as well as strengthening U.S. allies abroad.  Lowey also stated that the U.S. has a moral obligation to provide diplomatic and development assistance abroad.  She expressed concern about the lack of mention of basic education in the budget saying that basic education funding was vital to long term stability in many places throughout the world.  Lowey concluded her opening remarks by calling the budget a “realistic request.”   

Congressman Hal Rogers (R-KY), Chairman of Appropriations Committee, commented that base appropriations for the State-Foreign Operations Subcommittee have grown by more than 33% since 2008.  He also said the FY2012 budget request represented a 22% increase above FY2010 levels and that the U.S. simply cannot sustain that level of spending.

Congressman Norm Dicks (D-WA) stated that USAID and the State Department were essential to national security strategy and that he remained confident that the U.S. could balance its domestic and international priorities.  Dicks further stated that stable democracies are less likely to pose a threat to their neighbors and the U.S.

Secretary of State Hillary Clinton began her testimony to the subcommittee by stating that the current revolutions in the Middle East present challenges to U.S. security and long term strategy and that she would be traveling to Tunis and Cairo next week “to speak to the people.”   She pointed to the success of democratization in eastern and central Europe as an example of how foreign aid could achieve the same results in the Middle East.  She also said that the U.S. is standing with the Libyan people as they demand that Muammar Gadhafi leave power and end the violence.  She highlighted the assistance that the U.S. is already providing to Libyan refugees fleeing the violence with the U.S. sending humanitarian teams to the border areas with food, shelter, water, medical equipment along with evacuation assistance.  Clinton stated that the U.S. has already airlifted Egyptian migrant workers out of Libya.  American diplomats, the Secretary said, are working with allies and partners at the U.N., NATO, African Union, Arab League, and Gulf Cooperation Council; all of which demonstrate the example of the successful combination of diplomacy, development, and defense.  This combination, she said, is the most cost effective way to promote American security interests abroad, but only with a budget that provides for needed solutions.

The Secretary reiterated that she understood that Americans were rightfully concerned about the deficit but that they also wanted smart decisions and investments in the future.  She reiterated that Iraq has a democratically elected government that U.S. must continue to support to ensure success.  The State Department budget request for FY2012 would represent an increase by less than $4 billion from FY2010 which would help the U.S. maintain a strong presence in volatile regions like Yemen, Somalia, Sudan, and Haiti.  She highlighted the integrated civilian-military approach in Afghanistan that is leading reconciliation efforts there, American re-engagement in the Pacific and Western Hemisphere, trade deals to promote American jobs and nuclear treaties to protect national security along with comprehensive peace in Sudan.  The work is continuing, she said, in the Middle East, to support “irreversible” democratic transitions in Egypt and Tunisia: “Now would be the wrong time pull back.”

Clinton also called the State Department and USAID’s work a “force for economic renewal.”  She reiterated the signing of eight ‘open skies’ agreements that would open markets to U.S. air carriers.  Clinton pointed out that Chairwoman Granger’s home district would benefit greatly from this as the Dallas airport would receive billions of dollars in new business.  Economic officers, she said, are advocating U.S. business interests around the globe and finding new opportunities for American companies.   Clinton also mentioned that consular officers were the first line of defense for the U.S. in handling visa requests and ensuring that terrorists are not able to find ways into the country.  Diplomats and development officers are also accompanying military officers in Afghanistan and are embedded with troop units.  Despite trying to get back on a “strong fiscal footing,” the Secretary warned that the rest of the world “hasn’t stopped.” 

Rep. Granger asked the Secretary about the 3.5 million for agricultural development and commitments to climate change funding and development bank funding.  Granger said that the price tag would be $10 billion in only two years and suggested that the U.S. stop making large multi-year commitments.

Clinton responded by saying that the programs Rep. Granger was speaking of included President George W. Bush’s PEPFAR initiative in Africa and climate change work in the Pacific.  She said that the funding, besides helping combat HIV/AIDS in Africa and helping Pacific island nations deal with climate change effects, the funding helps created a positive image of the United States in these region.  In the U.N., because of U.S. work on climate change, Pacific island nations represent consistent votes in support of U.S. positions.  The Secretary also said that U.S. competition with China in these regions makes funding for such programs vital.

Chairman Rogers asked Clinton if there is “something we missed” in the “popular” uprisings in the Middle East and who the U.S. is talking to from theses “leaderless revolutions.”  Clinton responded that the role of social media in the revolutions was a surprise, particularly Facebook and Twitter.  She also said that the U.S. was reaching out everyone who may be a possible leader.  Rogers also asked the Secretary about economic and military aid to Egypt in light of the recent revolution.  Clinton said the U.S. was focused on reprogramming aid for economic assistance.  She cited the decline in Egyptian GDP and tourism as a result of the revolution and said Egyptian were looking to the U.S., not Europe or the Gulf for help.  So far, the U.S. has designated $90 million for economic aid and $60 million for election assistance and set up.

Rep. Norm Dicks (D-WA) asked the Secretary about upcoming civilian efforts in Iraq.  Clinton replied that when U.S. troops leave by year’s end, State and USAID would be taking over all responsibilities.  She outlined plans to open consulates in Basra, Kirkuk, and Erbil with branch offices in Mosul while maintain the embassy in Baghdad.  She also said the U.S. would have to rely on a significant number of contract security forces and estimated a total of 17,000 U.S. personnel to maintain the civilian effort.  All of this, the Secretary said, will cost money.

Rep. Tom Cole (R-OK) asked what “assets” the can be used in Libya where the U.S. has little direct impact.  Clinton replied that the U.S. is forging international consensus and fighting international ambivalence over Libya.  She also mentioned the role of NATO and humanitarian assistance as well as sanctions and working with the ICC to ensure accountability for the violence.  Clinton further stated that she would be meeting with Libyan opposition leaders during her trips to Cairo and Tunis and cautioned against the U.S. acting alone as the consequences would be “unforeseeable.”  She said that establishing no-fly zones did not dislodge either Saddam Hussein or Slobadan Milosevic from power or did it stop the slaughter of innocents on the ground and that any actions taken in regards to Libya must derive from careful thought and consideration.

Rep. Adam Schiff (D-CA) called the events in the Middle East as historic as the fall of the Soviet Union and said he was in favor of whatever investments the U.S. was capable of.  He pointed out that economic recession did not stop foreign aid funding for democratization in central and eastern Europe in the 1990s.  Clinton responded that Egyptian officials have specifically mentioned the central and eastern European example in calls for aid and assistance.  She also said the Tunisia wants U.S. help as many there still remember the supportive role the U.S. played in Tunisian independence.

In response to a comment about the deficit increase by Rep. Mario Diaz-Balart (R-FL) Clinton said that non-defense discretionary cuts alone will not work to fix the budget deficit and that revenue and entitlements would also need to be considered.  She further stated that cuts to State and USAID negatively affect Defense and Homeland Security and said that all of the departments are now “joined at the hip.”  Clinton said the State Department, as part of the national security effort, would like to be treated in the same manner that both Defense and Homeland Security are but said the Congress is still “stovepiped” on the issue.

Rep. Charlie Dent (R-PA) asked if the U.S. exhibited a “lack of clarity” on the Middle East uprisings by failing to distinguish between madmen dictators and “friendly tyrants.”  Clinton responded that she disagreed with such an assessment and reiterated that U.S. policy is driven by facts and events on the ground and that U.S. interests in terms of support for democracy are uniform everywhere.

Rep. Steve Rothman (D-NJ) commented that not continuing the U.S. effort in Iraq would be a disaster as it would allow Iran to turn it into a client state like Lebanon.  He said the U.S. must continue to make investments.  Clinton agreed with the statement and added that cutting funding for the civilian effort would add a great tragedy to the sacrifice the U.S. has made in terms of lives and money and that failure to secure Iraqi democracy would reflect poorly on the U.S. for generations to come.

Rep. Cole also asked about the role al-Qaeda or Iran may have had in the uprisings.  Clinton quickly dismissed the notion that either had any role in Tunisia, Egypt, Libya, or elsewhere but cautioned that both would certainly try to leverage current events directly or indirectly.  The use of “smart power” by the U.S. would countermand any growing Iranian influence but standing on the sidelines or using force would be a mistake.

Rep. Steve Austria (R-OH) closed out the questioning period by asking the Secretary about U.S. policy towards the Muslim Brotherhood.  Clinton responded that the U.S. was working closely with the Supreme Council of the Armed Forces in Egypt and taking appropriate steps.  She reiterated that the U.S. only supports groups who adhere to democratic principles and values.