Washington, DC - Under the President’s leadership, we have turned our economy around and created 14 million jobs. Our unemployment rate is below five percent for the first time in almost eight years. Nearly 18 million people have gained health coverage as the Affordable Care Act has taken effect. And we have dramatically cut our deficits by almost three-quarters and set our Nation on a more sustainable fiscal path.

Yet while it is important to take stock of our progress, this Budget is not about looking back at the road we have traveled. It is about looking forward and making sure our economy works for everybody, not just those at the top. It is about choosing investments that not only make us stronger today, but also reflect the kind of country we aspire to be – the kind of country we want to pass on to our children and grandchildren.

The Budget makes critical investments in our domestic and national security priorities while adhering to the bipartisan budget agreement signed into law last fall, and it lifts sequestration in future years so that we continue to invest in our economic future and our national security. It also drives down deficits and maintains our fiscal progress through smart savings from health care, immigration, and tax reforms.

The Budget shows that the President and the Administration remain focused on meeting our greatest challenges – including accelerating the pace of innovation to tackle climate change and find new treatments for devastating diseases; giving everyone a fair shot at opportunity and economic security; and advancing our national security and global leadership – not only for the year ahead, but for decades to come.

The President’s Budget request for the Department of State and the U.S. Agency for International Development (USAID) directly supports the National Security Strategy by helping to build and sustain a more secure, prosperous, and democratic world. The Budget proposes targeted investments in international programs that will help mobilize collective action to meet global challenges, counter terrorism and violent extremism overseas, strengthen the U.S. economy, and support U.S. diplomatic personnel and facilities abroad. The Budget also advances diplomatic engagement on issues such as environment, energy, human rights, international peacekeeping as well as strengthens democratic institutions overseas.

Funding Highlights:

The President’s FY 2017 Budget provides $50.1 billion in discretionary funding for the Department of State and the U.S. Agency for International Development, including $14.9 billion in Overseas Contingency Operations. This Budget supports the following key priorities:

• Destroying the Islamic State of Iraq and the Levant (ISIL) and mitigating the crisis in Syria and Iraq, bolstering regional security, and responding to related humanitarian needs;
• Ensuring implementation of the U.S. Strategy for Engagement in Central America to address illegal migration, including the migration of unaccompanied children, and promoting good governance, shared prosperity, and improved citizen security;
• Countering Russian aggression through public diplomacy and foreign assistance programs, and building the resilience of governments and economies in Europe, Eurasia, and Central Asia;
• Leading internationally to strengthen resilience to climate change, reduce carbon pollution, and implement the Paris Agreement, through the Global Climate Change Initiative and $750.0 million in combined State and Treasury Department funding for the Green Climate Fund;
• Expanding and strengthening the U.S. commitment to effective global health programs, including increased support for the President’s Malaria Initiative (PMI) and Gavi, the Vaccine Alliance, as well as continued strong support for the President's Emergency Plan for AIDS Relief (PEPFAR), the Global Fund to Fight AIDS, Tuberculosis, and Malaria, and programs to end preventable child and maternal deaths;
• Providing support for international organizations, peacekeeping missions and peace operations that share global security responsibilities with other nations;
• Securing overseas diplomatic facilities that are instrumental to U.S. outreach to foreign governments and populations;
• Maintaining the rebalance to the Asia-Pacific Region, which supports regional institutions and architecture, advances economic integration across the region, strengthens and modernizes U.S. alliances, forges deeper partnerships with emerging powers, pursues a stable and constructive relationship with China, and promotes universal and democratic values;
• Committing to long-term national security, economic and development goals in Afghanistan, while sustaining a cooperative relationship with Pakistan on diplomatic and security matters; and
• Strengthening Young Leaders Initiatives that reach emerging private, public, and civil society leaders across Africa, Southeast Asia and Latin America, ensuring young people have the skills needed to become productive adults.

Reforms:

• The FY 2017 Budget includes a range of efforts supporting implementation of the Quadrennial Diplomacy and Development Review (QDDR), including expanded funding for diversity programs, bolstering capacity and expertise on climate issues, and revamping the Department’s countering-violent-extremist communications through a new Center for Global Engagement.

Advancing Security, Confronting New Threats and Global Challenges:

Destroys ISIL and Responds to the Syria Crisis. The President’s highest priority is keeping the American people safe, and the State Department and USAID budget includes funding that is critical to the United States’ leadership role in the global coalition that will destroy ISIL. Supporting the QDDR strategic priority of Preventing and Mitigating Conflict and Violent Extremism, the Budget includes $4.1 billion to: stabilize communities liberated from ISIL in Syria and Iraq; disrupt ISIL’s attack-plotting, financing and recruitment; discredit ISIL propaganda; and support a political solution to the Syrian civil war. The Budget strengthens regional partners and provides humanitarian assistance to those impacted by the conflict, both inside Syria and in neighboring countries.

Addresses Root Causes of Migration from Central America. As part of the Administration’s $1.0 billion investment to further support the U.S. Strategy for Engagement in Central America, the State Department and USAID budget includes $750.6 million to sustain a long-term, comprehensive approach designed to address the underlying causes of migration of unaccompanied children and families from the region. Efforts are designed to promote economic opportunities for the Central American people; build democratic, accountable, transparent and effective public institutions; and provide a safer and more secure environment for its citizens.

Counters Russian Aggression. The Budget includes $953.0 million for critical support for Ukraine and surrounding countries in Europe, Eurasia and Central Asia to counter Russian aggression through foreign assistance and public diplomacy, and for other enduring programming such as global health and counter-terrorism activities. Programs focus on building the resilience of governments, with emphasis on improving democracy and good governance, increasing defense capabilities, promoting European integration, economic and trade diversification, and energy security.

Addresses Humanitarian Needs. The Budget maintains strong support for the State Department and USAID to address humanitarian challenges around the world, including helping internally displaced persons, refugees, and others affected by conflict or natural disasters. The Budget includes $6.2 billion for humanitarian assistance to support the provision of food assistance, shelter, water and sanitation, protection, and other critical services for those affected by disasters in countries such as Iraq, Syria, and South Sudan.

Combats Climate Change. The Budget includes $983.9 million at the State Department and USAID to advance the goals of the Global Climate Change Initiative and help countries both mitigate and adapt to climate change, through important multilateral and bilateral engagement with major and emerging economies. These funds support the President’s Climate Action Plan’s focus on leading international efforts to address global climate change and the QDDR strategic priority to mitigate and adapt to climate change. This amount includes $500.0 million for the Green Climate Fund as part of a combined State Department and Treasury Department request of $750.0 million, which will help developing countries leverage public and private financing to invest in reducing carbon pollution and strengthening resilience to climate change.

Supports International Organizations and Peacekeeping. The Budget includes over $4.7 billion for international organizations and peacekeeping efforts to enable the U.S. to meet both assessed and voluntary contributions to the UN budget, UN special political missions, and other international organizations, as well as to enhance the ability for states to participate in peacekeeping and stability operations. These funds strengthen strategic relationships across the globe and enable the United States to advance global security while sharing the burden with other nations.

Sustains our Commitment to Afghanistan and Pakistan. The Budget provides $2.5 billion for programs that reinforce Afghanistan’s security and development by supporting military training and assistance, as well as health, education, economic growth, governance, and other civilian assistance necessary to promote stability and strengthen diplomatic ties. The Budget also provides $859.8 million towards sustaining cooperative relationships with Pakistan and making progress to disrupt, dismantle and defeat al-Qaida and its extremist allies.

Promoting Prosperity, Health, and Development:

Supports Consular and Border Security Programs and Operations. Consular fees and surcharges support a range of activities that are critical to ensuring U.S. border security, including services for American citizens overseas, passport issuance, visa adjudications, and fraud prevention. The revenue derived from these services helps meet the continued growth in demand for passports and visas without compromising security requirements. The Budget re-proposes a new standalone Treasury account that will more transparently identify these resources to stakeholders.

Strengthens the U.S. Commitment to Global Health. A healthy population is critical to sustained economic growth and poverty reduction. The Budget builds upon the Administration’s strong global health legacy by increasing support for effective global health programs, including $745.0 million for the President’s Malaria Initiative. In addition, the Budget proposes to use an additional $129.0 million out of the remaining Ebola emergency funding to combat malaria, for a total increase of $200.0 million, or nearly 30% above current levels. In total, the Budget provides $8.6 billion in critical funding to combat HIV/AIDS, malaria, and tuberculosis, and to address other important health issues such as preventing child and maternal deaths. The Budget provides $1.35 billion for the Global Fund to Fight AIDS, Tuberculosis, and Malaria, and continues support for the PEPFAR Impact Fund to focus on reducing HIV infections in high-burden populations and areas. In addition, the Budget increases support for USAID programs to advance the Global Health Security Agenda to prevent, detect, and respond to infectious disease threats in vulnerable nations, and increases the U.S. contribution to Gavi, the Vaccine Alliance to $275.0 million as part of the $1.0 billion, four-year pledge announced in 2015.

Advances the Rebalance to Asia and the Pacific. The Budget includes $1.5 billion to support the Administration’s commitment to a comprehensive regional strategy in Asia and the Pacific that advances security, prosperity, and human dignity across the region. It aligns resources and activities to strengthen U.S. alliances and partnerships with emerging powers, promotes regional economic cooperation, supports the Trans-Pacific Partnership to help open markets and level the playing field for U.S. workers and businesses, and builds a constructive relationship with China.

Builds Strong Democratic Institutions. The Budget continues to provide robust support for democracy, human rights, and governance programs, recognizing that promoting democracy and good governance reflects American values and is essential to achieving our broader global development and national security objectives. The Budget includes $2.7 billion for programs that support rule of law and human rights, good governance, political competition and consensus-building and civil society capacity-building, and supports key Administration initiatives, including the Open Government Partnership and Stand With Civil Society initiative.

Bolsters Development. The Budget supports the President's Power Africa Initiative, which encourages investment in Africa’s energy portfolio to expand electricity access and in building greater economic and institutional capacity among our pan-African partners. It supports additional sectors fundamental to development and economic growth and included in the 2030 Agenda for Sustainable Development, including food security, trade, education for children and adolescent girls, clean water, and conservation of natural resources.

Our People, Our Platforms, and Our Global Engagement:

Promotes Our Diplomatic Mission While Investing in Our People. The Budget includes $5.0 billion for Diplomatic and Consular Programs ongoing operations, including new positions for Administration and QDDR priorities such as climate change, enhancing Freedom of Information Act processing, cybersecurity, counterterrorism, and intelligence and research. As called for in the QDDR, the Budget continues investments in an agile skilled workforce, and supports diversity initiatives through expanded recruitment, internship, and fellowship opportunities and provides more competitive wages for the Locally Employed Staff who make up more than 60 percent of our workforce. The Budget also includes $1.4 billion for the USAID Operating Expenses account to maintain the Agency’s workforce and sustain on-going global operations to meet foreign policy objectives, implement Presidential initiatives, and expand global engagement.

Supports Security Programs and Overseas Facilities. The Budget supports the security programs and overseas facilities that are critical to the global operating platform for diplomacy and development. The Budget includes $6.1 billion for Embassy Security, Construction, and Maintenance and Worldwide Security Protection, including Diplomatic Security (DS) operations, IT network and infrastructure protection, medical support at selected posts, and emergency planning and preparedness. This amount also includes funding for diplomatic facility construction and maintenance to continue the Department’s commitment to implementing the security recommendations of the Benghazi Accountability Review Board, as well as the ongoing repair and safety of over $40.0 billion in overseas real property assets.

Furthers Our Global Engagement Priorities. Our public diplomacy programs and educational exchanges promote U.S. foreign policy goals by informing and influencing foreign opinion. The Budget includes $1.2 billion in funding for these programs to assist in countering misinformation about U.S. society and policies, which are critical around the world, but particularly increases for the new Center for Global Engagement’s efforts to counter-ISIL and other extremist groups, consistent with the strategic priority recommendation within the 2015 QDDR. These public diplomacy and exchange activities strengthen relationships between Americans and foreign publics and shape worldwide information campaigns on Presidential priorities such as climate change and global health. They also engage a global audience of young emerging leaders from Africa, Southeast Asia, and Latin America who will build bilateral partnerships and support for the United States.

For more information, see:
http://www.state.gov/documents/organization/252179.pdf
https://www.usaid.gov/results-and-data/budget-spending