FY2006 Supplemental Appropriations: Iraq and Other International Activities; Additional Katrina Hurricane Relief

Publication Date: April 2006

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance

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Abstract:

On February 16, 2006, the Administration submitted two separate FY2006 supplemental appropriations requests. The first, totaling $72.4 billion, would fund ongoing military operations in Iraq and Afghanistan ($67.9 billion), and State Department operations in Iraq and various foreign aid programs, including additional assistance for Iraq ($4.2 billion). The other supplemental would provide $19.8 billion for recovery and reconstruction activities in hurricane-affected Gulf Coast areas. Thus, Congress is considering a combined spending proposal of $92.2 billion.

For the military component of the supplemental, several potential issues may arise in Congress, including whether DOD's funding requests for training Afghan and Iraqi security forces are necessary in light of the pace of implementation, how to make transparent the DOD assumptions about military personnel levels for activeduty and reserve forces that underlie the request, whether DOD could better contain increases in operating costs, and whether DOD's investment request finances peacetime as well as wartime needs.

The supplemental proposal for international matters covers a range of activities that were either not addressed in the regular FY2006 appropriations, address circumstances that have changed since passage of the regular spending measures, or, like military operations in Iraq and Afghanistan, have been largely funded through supplementals rather than incorporated into the "base" of annual, on-going diplomatic and aid operations. The request of $1.6 billion in Iraq stabilization assistance would be the first sizable aid package for Baghdad since Congress approved $18.45 billion in the FY2004 emergency supplemental measure. Other foreign policy elements include funding for U.S. diplomatic costs in Iraq and Afghanistan, reconstruction aid for Afghanistan, democracy promotion programs for Iran, Darfur humanitarian relief and peace implementation aid in Sudan, Pakistan earthquake reconstruction, Liberia refugee repatriation, and food aid for Africa.

For hurricane recovery, half the funds -- $9.9 billion -- are designated for the Department of Homeland Security, mostly for the Federal Emergency Management Agency (FEMA). The Department of Housing and Urban Development would receive $4.4 billion, most of which would be used for community planning and development. DOD would receive $1.8 billion and the Army Corps of Engineers $1.5 billion, primarily to be used for flood control and coastal emergencies, procurement, and construction. The Small Business Administration would receive $1.3 billion for loans to homeowners, renters, and businesses.

On March 17, 2006, the House passed a $91.95 billion supplemental appropriation measure (H.R. 4939; H.Rept. 109-388), $270 million less than requested by the Administration. On April 4, the Senate Appropriations Committee marked up its version at $106.5 billion, $14.3 billion more than the request (S.Rept. 109-230). This report will be updated to reflect congressional action.