About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 1 (September 19, 2023)

handle is hein.crs/govemwt0001 and id is 1 raw text is: Con gressionaI Resear h Service Informinrg the 14gIative debate sinco 1914 0 Updated September 19, 2023 International Financial Institutions: FY2024 Budget Request For FY2024, the Biden Administration is requesting $4.04 billion for the international financial institutions (IFIs). These include the International Monetary Fund (IMF), the multilateral development banks (MDBs), and associated multilateral trust funds focused on climate change and food security. The FY2024 request for the IFIs is 70% more than the amount in FY2023 ($2.36 billion, Figure 1), and accounts for about 6% of the total FY2024 Department of State, Foreign Operations, and Related Programs (SFOPS) budget request. U.S. funding for the IFIs is administered by the Treasury Department, which is responsible for managing U.S. participation in these institutions. Congress authorizes and appropriates U.S. contributions to the IFIs. The Senate Committee on Foreign Relations and the House Committee on Financial Services are responsible for managing MDB authorization legislation. The SFOPS Subcommittees of the House and Senate Committees on Appropriations manage the relevant appropriations legislation. Over the past several decades, authorizations and appropriations for U.S. contributions to the IFIs have been included in annual SFOPS appropriations or larger omnibus appropriations acts. Figure I. Treasury's International Programs Budget Request Multilateral Dev. Banks -UEnery & Environment Orfi FY2023 Enacted $1.91 $236 FY2024 Request $229 $L42 $4.04 $ in billions Source: U.S. Treasury Department, International Programs Congressional Justification for Appropriations, FY2024. Overview of the FY2024 Request More than half of the Treasury international programs request-$2.29 billion-is U.S. funding to the MDBs, which finance development projects in low- and middle- income countries. The second largest portion of the request is $1.42 billion for multilateral energy and environmental trust funds, more than five times the amount enacted in FY2023 ($275.2 million). Together, the MDBs and the trust funds focused on energy and the environment account for about 90% of the FY2024 request. Multilateral Development Banks Most of the MDBs provide two types of financial assistance: concessional financing, which provides grants and low-cost loans to the world's poorest countries, and non-concessional financing, which provides market-based loans to middle-income and some low-income countries. Nearly 80% of the budget request for the MDBs is for the concessional lending facilities. The FY2024 request includes annual installments towards multi-year pledges, including: $1.48 billion to the International Development Association (IDA), the World Bank's concessional lending facility; $224 million for the African Development Fund, the concessional lending facility of the African Development Bank; and $107.2 million for the Asian Development Fund, the concessional lending arm of the Asian Development Bank. The request also includes annual installments towards previously negotiated, multi-year capital increases of two MDB non-concessional lending facilities. Specifically, the Administration is requesting $233.3 million for the International Bank for Reconstruction and Development (IBRD), the World Bank's non-concessional lending facility, and $54.6 million for non-concessional lending by the African Development Bank. U.S. contributions to capital increases protect U.S. voting shares at these institutions. Additionally, the budget request includes two new MDB funding initiatives. The first is $75 million for a new capital increase at the Inter-American Investment Corporation (ICC, also called IDB Invest). The ICC is part of the Inter- American Development Bank (IADB), which focuses on private sector development. The second is $119.3 million for two new programs at the Asian Development Bank: (1) the Innovative Finance Facility for Climate in Asia and the Pacific and (2) the Energy Transition Mechanism Partnership Trust Fund. Energy and Environmental Trust Funds U.S. funding for multilateral climate change and environmental initiatives has varied over time, and the Administration is requesting $1.42 billion for FY2024, up from $275 million enacted in FY2023. Specifically, the Administration is requesting * $800 million for the Green Climate Fund (GCF), which is established within the framework of the United Nations Framework Convention on Climate Change (UNFCCC) to assist developing countries in adaptation and mitigation practices to counter climate change (the State Department budget request includes an additional $800 million for the GCF); * $425 million for the Clean Technology Fund (CTF), which provides concessional resources to be combined with MDB resources to support clean energy, climate adaptation, and sustainable land use; * $168.2 million for the Global Environment Facility, which provides mostly grants to developing countries to

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Already a HeinOnline Subscriber?

Log In

profiles profiles most