U.S. House of Representatives passes foreign aid legislation (08/15/99)

U.S. House of Representatives passes foreign aid legislation

by Michael Sawkiw Jr.
Ukrainian National Information Service

WASHINGTON - After four days of debate and introduction of amendments on the House floor, the U.S. House of Representatives passed the foreign aid bill on August 3. In an overwhelming show of support for U.S. programs overseas, the members of Congress voted 385-35 for the $12.6 billion foreign aid bill.

The president has threatened to override the foreign aid bill due to its low levels of funding as compared to the proposal he had submitted.

The House bill including of $725 million for the FREEDOM Support Act (FSA) for the Independent States (IS) of the former Soviet Union. This funding level falls far short of the president's request of $1.032 billion, of which a sizable portion ($250 million) was designated for nuclear threat reduction (NTR) programs in Russia.

The bill notes that it "renames the heading 'Assistance to the Independent States of the Former Soviet Union,' dropping the word 'new' after nine years." Like most House bills, country-specific earmarks are deleted from the final version of the proposed law.

The House bill also limits U.S. foreign assistance to any one country in the IS/FSU to no more than 25 percent of the entire funding level for the FSA account, or approximately $180 million.

Consideration of certification language for Ukraine was removed from the bill. In the bill's report language, the appropriations committee states: "During the past two years, as an incentive for Ukraine to support necessary reform efforts and end harassment of American investors, the Foreign assistance Appropriations Act included language that withheld one-half of Ukraine's Assistance." The committee recommends that linking U.S. assistance to specific investor's problems will not change the situation in Ukraine as much as continuing support for humanitarian help, "partnerships and others forms of cooperation with non-governmental organizations in Ukraine ... and technical assistance to reform-minded local and regional governments."

Emphasis in the House bill was also placed on private-sector development in Ukraine. "Universal access to information," states the House bill, "gives small-scale producers information about market conditions that allow their businesses or farms to succeed." Furthermore, direct U.S. foreign assistance to Ukraine's central government is frowned upon by the House appropriations committee and thus requires the coordinator of U.S. foreign assistance to the NIS to consult with the committee before making any such decisions. Instead, the committee proposes that "community-based initiatives help create jobs and increase production as they expose communities to democratic processes."

Since the House and Senate versions of the foreign aid bills differ in their amounts and programs, a conference committee will be called in September (following the August congressional recess) to finalize a compromise bill.

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