Search Penny Hill Press

Tuesday, June 22, 2010

FY2010 Supplemental for Wars, Disaster Assistance, Haiti Relief, and Court Cases

Amy Belasco, Coordinator
Specialist in U.S. Defense Policy and Budget

Daniel H. Else
Specialist in National Defense

Bruce R. Lindsay
Analyst in Emergency Management Policy

Rhoda Margesson
Specialist in International Humanitarian Policy

Kennon H. Nakamura
Analyst in Foreign Affairs

Maureen Taft-Morales
Specialist in Latin American Affairs

Curt Tarnoff
Specialist in Foreign Affairs

The Administration requested $63.4 billion in FY2010 supplemental appropriations: 

• $5.1 billion to replenish the U.S. Disaster Relief Fund administered by the Federal Emergency Management Agency (FEMA); 

• $33 billion for the Department of Defense (DOD) primarily for deploying 30,000 additional troops to Afghanistan; 

• $4.5 billion in war-related foreign aid to Afghanistan, Iraq, and Pakistan; 

• $2.8 billion for Haiti reconstruction and foreign aid in the wake of the earthquake; 

• $243 million for activities related to the Deepwater Horizon oil spill. 

• $13.4 billion to compensate veterans exposed to Agent Orange; 

• $3.4 billion to settle land trust claims of American Indians in the Cobell case and $1.2 billion to pay for discrimination claims of 70,000 black farmers in the Pigford II case. 

On March 23, 2010, the House passed H.R. 4899, the Disaster Relief and Summer Jobs Act with $5.7 billion in funding to replenish FEMA's Disaster Assistance Fund, and $600 million for a Labor Department summer jobs program. After four days of floor debate from May 24 through May 27, 2010, the Senate passed H.R. 4899 by a vote of 67-28, including not only the $5.7 billion for FEMA but also $36.6 for the Afghan and Iraq wars, $2.9 billion for Haiti relief and reconstruction, $193 million for expenses related to the Deepwater Horizon oil spill, and $13.4 billion for veterans affected by Agent Orange. The Senate bill also adds about $600 million in U.S. disaster aid, $400 million for other foreign aid and deletes the$600 million for summer jobs. 

The $58.9 billion total in the Senate bill is about $4 billion below the Administration request primarily because funds for the federal two court settlements are not included. Funding for those settlements is included in the House but not the Senate version of H.R. 4213, the American Jobs and Closing Tax Loopholes Act of 2010, and is likely to be settled in conference. 

The Defense Department, the State Department, FEMA, and the court plaintiffs have all cited funding deadlines in May and June but there appears to be some flexibility in these dates. The DOD war funding may not be needed until the end of July. In response to a letter from Admiral Thad Allen, and Department of Homeland Security Secretary Jane Napolitano stating that the Coast Guard would run out of money that could be drawn from the Oil Spill Liability Trust Fund in two weeks to pay for its oil spill response activities, the House and Senate passed S. 3473 raising the limit on the amount available for the Deepwater spill to $1 billion. While FEMA originally said it would run out of money for disaster relief projects in June, it currently has $952 million in its Disaster Relief Fund because it has only paid claims for urgent needs. And while the plaintiffs in the Cobell and Pigford cases could reject the settlements, support in Congress and the Administration could persuade them to wait. 

Senate debate focused on proposed ways to respond to the Gulf oil spill, border security, and cut spending to pay for the supplemental. The House Appropriations Committee cancelled its May 27, 2010 markup of their alternative version and has not announced another date. Floor action, without markup, may occur as early as next week or could be delayed.

Date of Report: June 11, 2010
Number of Pages: 76
Order Number: R41232
Price: $29.95

Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.