Fiscal year 2003 security assistance legislation and funding allocations

DISAM Journal, Spring, 2003 by Kenneth W. Martin

Each year, the Defense Institute of Security Assistance Management (DISAM) Journal publishes a summary and analysis of the legislation that impacts U.S. security assistance. In this issue, we present the nineteenth in a series of annual studies of the major pieces of legislation with references to security assistance and related programs. This report is intended to alert all security assistance community members to the collective changes in legislation that will influence program planning and implementation for the coming year. As we have done in the past, the report is in outline form, with key topics highlighted to facilitate locating specific statutory references. For the first time in several years, this report will also include tables showing the levels of funding for the affected countries and programs. This is possible because of the timely receipt of the Department of State (DoS) report for the allocation of foreign operations funding submitted to Congress on 14 March 2003 in accordance with Section 6 53(a), Foreign Assistance Act (FAA).

Introduction

Because of the continuing political and military efforts for the global war on terrorism (GWOT) and peace in the Middle East, the continuing economic recession, and the distraction of the November 2002 congressional elections, budget actions by Congress before the end of fiscal year (FY) 2002 were delayed, with much work remaining to be done well into the FY2003. Only two (2) of the required thirteen (13) annual appropriations were legislated and enacted before the 107th Congress recessed for November elections. These two included the Department of Defense Appropriations Act, 2003, P.L. 107-248, 23 October 2002, and the Military Construction Appropriations Act, 2003, P.L. 107-249, 23 October 2002. The remaining eleven (11) appropriations, to include security assistance funding, were finally legislated and enacted with the Consolidated Appropriations Resolution, 2003, P.L. 108-07, 20 February 2003. This law actually started out within the new 108"' Congress to be a continuing resolution, H.J. Res. 2, but by a Senate amendment grew into the enormous appropriations act needed for FY2003. However, as with most other appropriated programs for FY2003, the initial total security assistance appropriation of $6,562,000,000 experienced a directed rescission (reduction) of 0.65 percent resulting in a funding figure lowered by $42,654,000 to a total of $6,519,346,000 for FY2003.

Eight (8) continuing resolutions (CRs) were necessary for continued federal government operations at the beginning of FY2003. The final one, P.L. 108-5, 7 February 2003, extended the spending authority to expire on 20 February 2003, ultimately the same date that the Consolidating Appropriations Resolution, 2003, was enacted. The third CR for FY2003 is of special interest to the security assistance community. Section 128 of this law, Making Further Continuing Appropriations for the Fiscal Year 2003, and for Other Purposes, P.L. 107-240, 11 October 2002, provided for the Section 23, Arms Export Control Act (AECA), authority for foreign military financing program (FMFP) direct loan assistance during FY2003 of $3,800,000,000 to Poland but with no U.S. funding for loan subsidies or any associated fees.

Items of significance within the Foreign Operations, Export Financing, and Related Programs, Division E, P.L. 108-7, 20 February 2003, included four (4) worthy of note.

* With foreign military financing program (EMEP) funding for FY2003 remaining essentially unchanged from FY2002, the ever-popular international military education and training (IMET) program continues its growth, realizing a fourteen (14) percent increase of $9,480,000 after rescission over prior year funding.

* Showing a continued interest in Department of Defense's (DoD) overhaul of the Informational Program (IP), Congress directed that FMFP, IMET, or Economic Support Fund (ESF) funding may not be used for entertainment expenses of a substantially recreational character to include for the first time "theatrical and musical productions."

* At the Administration's request, authorized for up to $93,000,000 in FMFP for Colombia to be transferred to "Andean Counterdrug Initiative" for helicopters, training, and other assistance for the security of the Cano Limon pipeline.

* There will be no FY2003 funding for assistance to the Korean Peninsula Energy Development Organization (KEDO). Last year's law authorized up to $95,000,000.

* Before the issuing of an export license for the commercial sale of U.S. Munitions List (USML), Category I, small arms, valued $1,000,000 or more, an advance 36(c) congressional notification is required.

By far, the most significant changes for security assistance were provided by the Security Assistance Act of2002, Division B, P.L. 107-228,30 September 2002. The following thirteen (13) items were of particular note, arranged only by order of appearance in the law.

* Taiwan shall be treated as though it was designated as a major non-North Atlantic Treaty Organization (NATO) ally.