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Clinton Reneges on Funding Bill

© Bryan Johnson

While the U.S. foreign aid budget will resume its four-year downward trend next year (after a small increase this year), the Clinton Administration is preparing to request from the new Congress some $2.5 billion in emergency spending. Billed as a "supplemental" appropriation, many members of Congress are reacting with skepticism. Having just finished months of negotiations with the White House over the 1999 Omnibus Appropriations Act, which was concluded just prior to the adjournment of the 105th Congress, there seems little inclination in Congress to re-open a debate that ended in October. But in Washington, it's not really over, even when the fat lady does sing.

The increased Clinton funding would go to Israel and the Palestinians, Asian countries suffering from the global financial crisis, and Central American countries afflicted by Hurricane Mitch. While some Congressional lawmakers favor the hurricane aid, many more question the need to provide up to $1.5 billion to Israel and the Palestinians, when Israel remains America's largest foreign aid recipient (some $3.1 billion annually). In fact, Israel and Egypt make up over one-third of the entire U.S. foreign aid budget.

Moreover, many lawmakers question why Asian countries need additional aid when the U.S. Congress just approved some $18 billion (more than the entire U.S. foreign aid budget) to the IMF to help countries in turmoil resulting from the Asian financial crisis. Nonetheless, the Clinton Administration is moving forward with its request, despite the fact that they are offering no offsetting spending reductions.

Typically, if the White desires new spending that was not part of the finalized budget Clinton signed into law, then it must be offset with spending that was approved. Politically, however, the White House knows that such a request (to help the peace process on the Middle East and hurricane victims in Central America) would likely be popular with the American people. So why should Clinton make the tough decisions on where to come up with the money? Instead, Clinton is forcing the new Republican-controlled Congress to come up with the spending cuts.

Another solution would be to take the money out of the assumed budget surplus (which Republicans have promised to return to those who earned it, the taxpayers) or to deficit spend. In any case, Clinton would be able to place blame on the Republicans for either: 1) refusing to help the poor hurricane victims starving to death in Central America, 2) stealing money from the budget "surplus" "he" created, 3) beginning a new Congress by deficit spending, or 4) cutting programs that he signed into law last year (in which he can claim that the Republicans are reneging on their budget deal).

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