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                                                                                          Updated  March 4, 2019
Foreign Affairs Overseas Contingency Operations (OCO)

Funding: Background and Current Status


The 116th Congress may debate Overseas Contingency
Operations (OCO) funding levels in the context of the
FY2020  foreign affairs and defense budgets. A key feature
of OCO  funds is their effective exemption, like emergency
funds, from the discretionary spending limits established by
the Budget Control Act of 2011 (BCA, P.L. 112-25). Some
Members  have suggested that this exemption provides
agencies with additional budget cushioning and flexibility,
allowing defense and nondefense funding to exceed the
spending caps.

Within the Bipartisan Budget Act of 2018 (BBA, P.L. 115-
123), Congress raised the overall discretionary spending
limits set by the BCA. It increased FY2019 defense funding
levels by $85 billion and FY2019 nondefense funding
levels (including foreign affairs) by $68 billion. In response
to the raised caps, the Administration requested no foreign
affairs OCO funds for FY2019, instead proposing that all
funds fall within regular funding. The FY2019 enacted
omnibus appropriations law (Consolidated Appropriations
Act, 2019, P.L. 116-6, Div. F) set foreign affairs OCO
funding at $8.0 billion.

While ongoing debate in Congress over OCO may focus on
defense spending (where the largest share of OCO funds are
appropriated), foreign affairs OCO funding may continue to
play a role in the international affairs budget.

  ackground on Foreign Affairs OCO
The foreign affairs agencies began requesting OCO funding
in FY2012, distinguishing between what is referred to as
enduring (ongoing costs) versus extraordinary, temporary
costs of State and USAID in the frontline states of Iraq,
Afghanistan, and Pakistan. Many view this approach as
similar to the annual emergency supplemental
appropriations to support the Global War on Terrorism
(GWOT)   in the frontline states during the George W. Bush
Administration.

Congress, having provided OCO funds for the Department
of Defense (DOD) earlier, adopted this approach for foreign
affairs, although it never permanently defined its uses in
statute. Since 2012, Congress has appropriated more
nondefense OCO  funds than were requested each year and
authorized its use in additional countries (see Figure 1). In
contrast, President Obama first sought OCO funds for a
country other than the three frontline states in the FY2015
request when he requested OCO funds for Syria.

For the first foreign affairs OCO appropriation, Congress
provided FY2012  OCO  funds (P.L. 112-74, Title VIII) for a
wide range of recipients beyond the three frontline states,
including Yemen, Somalia, Kenya, and the Philippines. In


addition to country-specific uses, Congress also
appropriated funds for the Global Security Contingency
Fund.

In the FY2013 full-year continuing appropriations (P.L.
113-6, Div. F, Title VII, Sec. 1707-1708), Congress
specified only Jordan as an additional OCO-recipient
country.

     Figure I. Nondefense  Overseas  Contingency
             Operations,  FY20 I 2-FY20 19
  $ Billions  * Requested         M Enacted
  $25.0

                                   $20.7 $O.8
   $20.0

   $15.0
                   $ 2 ~                    0$12.0






        FY2012 FYIC1 ' _,014 FY2015 FY2016 FY201Y -Y2018 FY2019

Source: Department of State Congressional Budget justifications,
FY2014, FY2015, FY2016, FY2017, FY2018, and FY2019, P.L. 115-
141, and P.L. 116-6. The totals enacted include net rescissions.

For FY2014  (P.L. 113-76, Title VIII), Congress provided
four accounts with no-year (available until expended) OCO
funds, but made most foreign affairs OCO funds available
for two years-or until September 30, 2015. Congress also
expanded the terms of transfer authority, providing greater
flexibility among certain accounts. It also authorized
transfers from those accounts to International Disaster
Assistance (IDA) and Migration and Refugee Assistance
(MRA)  accounts, subject to certain dollar amounts or
percentages, and regular notification procedures. FY2014
OCO-funded  activities were in Iraq, Afghanistan, Pakistan,
Jordan, Lebanon, the Central African Republic, and
Somalia.

For FY2015, although Congress did not provide specific
OCO  funds for countering the Islamic State (IS), as was
requested, it did provide an increase in OCO funds in many
accounts with language that allowed it to be used for
counterterrorism.

The Obama  Administration requested an expanded use of
OCO  funds for Syria and peacekeeping in FY2016 and
FY2017.  Congress also provided OCO funding in both


https://crsreports.congress.gov

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