U.S. Department of State Fiscal Year 2019 Agency Financial Report

toward the Worldwide Security Protection (WSP) program to strengthen security for diplomatic personnel and facilities. Per Section 8004 of the FY 2019 Act, $301.2 billion in WSP OCO funds appropriated by the Security Assistance Appropriations Act, 2017 (Division B, Public Law 114-254) was rescinded. Major elements of 2019 DP funding included $1.3 billion to support operations of the U.S. Mission in Iraq, of which $1.3 billion is OCO and $16 million is Enduring; $882 million for activities in Afghanistan, of which $847 million is OCO and $35 million is Enduring; $144 million for key programs and activities in Pakistan, of which $112 million is OCO and $31 million is Enduring; and $673 million for public diplomacy programs to counter misinformation and secure support for U.S. policies abroad, of which $83 million is OCO and $590 million is Enduring. The Department’s Information Technology (IT) Central Fund supported $321 million in IT investments in 2019. This included $93 million in enacted appropriations and $228 million in revenue from Expedited Passport fees. Investment priorities included Cloud migration; consolidation of software licenses; deployment of global Wi-Fi to overseas locations; reduction of the number of Department data centers; refreshing computers and other devices for online support; consolidation of contact and event management systems into a single cloud-based solution to increase knowledge and data sharing; data analytics enhancements; and modernization of multi-year enterprise financial management, logistics, and human capital systems. The Embassy Security, Construction, and Maintenance (ESCM) appropriation totaled $2.0 billion, all Enduring, which provides U.S. missions overseas with secure, safe, and functional facilities. ESCM’s centerpiece programs are Capital Security Cost Sharing ($847 million) and Maintenance Cost Sharing ($178 million), which enabled the Department to begin five New Embassy Compound/New Consulate Compound projects and start two maintenance projects. In addition to State’s funding, these programs rely on over $1 billion in interagency contributions based on each agency’s overseas presence. The Educational and Cultural Exchange Programs (ECE) appropriation was funded at $701 million. Elements of the Department’s public diplomacy strategy include ECE T he D epartment ’ s B udgetary P osition For 2019, the majority of the Department’s funding was provided by the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2019 (Division F, Public Law 116-6) (the “FY 2019 Act”) enacted on February 15, 2019. The Bureau of Budget and Planning manages the Diplomatic Engagement portion of the budget, and the Office of U.S. Foreign Assistance Resources manages Foreign Assistance funds. Budgetary Position for Diplomatic Engagement The 2019 appropriations for Diplomatic Engagement totaled $15.2 billion, which included $11.1 billion in Enduring funds from Title I of the Act, and $4.1 billion in Overseas Contingency Operations (OCO) funded through Title VIII. Funding in both titles supports the people and programs that carry out U.S. foreign policy, advancing U.S. national security, political, and economic interests at 276 posts in 191 countries around the world. These funds also maintain and secure the U.S. diplomatic infrastructure platform, from which U.S. Government agencies operate overseas. In addition to new 2019 funding, $14.4 billion in prior year funding remained available for obligation in 2019. In addition to appropriated resources, the Department earned and retained $3.5 billion in new user fee revenue derived from passport and visa processing, including Machine Readable Visa fees, Immigrant Visa fees, the Western Hemisphere Travel Initiative Surcharge, Visa Fraud Prevention and Detection fees, and other fee and surcharge revenues that support the Consular and Border Security Programs (CBSP) account. CBSP funds support programs that provide protection to U.S. citizens overseas and contribute to national security and economic growth. These programs are a core element of the national effort to deny individuals who threaten the country entry into the United States while assisting and facilitating the entry of legitimate travelers, and promoting tourism. Upon enactment of the FY 2019 Act, the name of the Department’s principal operating account was changed from Diplomatic and Consular Programs (D&CP) to Diplomatic Programs (DP). In 2019, DP totaled $8.9 billion, including Enduring and OCO funds. Within the total, $5.1 billion supported ongoing program operations and $3.8 billion went 2019 A gency F inancial R eport U nited S tates D epartment of S tate | 29 FINANCIAL SUMMARY AND HIGHLIGHTS | MANAGEMENT’S DISCUSSION AND ANALYSIS