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

The 2019 IMET appropriation totaled $110.8 million. IMET is a key component of U.S. security assistance that promotes regional stability and defense capabilities through professional military training and education. IMET students from allied and friendly nations receive valuable training and education on U.S. military practices and standards. IMET is an effective mechanism for strengthening military alliances and international coalitions critical to the global fight against terrorism. The INCLE appropriation for 2019 totaled $1.5 billion. INCLE supports the safety and security of the United States through bilateral, regional, and global programs that address and mitigate security threats posed by illicit trafficking in narcotics, persons, and wildlife, among other pernicious forms of transnational crime. INCLE programs assist U.S. partners in developing their criminal justice systems and capabilities in order to protect the national security and economic interests of the United States from the impact of crime and instability overseas. In 2019, many INCLE resources were focused where security situations are most dire, and where U.S. resources were used in tandem with host-country government strategies to maximize impact. The 2019 IO&P appropriation totaled $339 million. It provided international organizations voluntary contributions that advanced U.S. strategic goals by supporting and enhancing international consultation and coordination. An important aspect of the Department’s 2019 budget is the OCO component. OCO funds enable us to prevent, address, and help countries recover from crisis, particularly in Africa, the Middle East and South Central Asia. The Department’s Foreign Assistance portion of the 2019 budget for OCO totaled $1.9 billion in the FMF, MRA, and PKO accounts. The Democracy Fund appropriation totaled $227.2 million in 2019; the funds are split, however, between the Department and USAID. The Department was allocated $157.7 million to promote democracy in priority countries where egregious human rights violations occur, democracy and human rights advocates are under pressure, governments are not democratic or are in transition, where there is growing demand for human rights and democracy, and for programs promoting Internet Freedom. The 2019 ERMA appropriation totaled $1 million. ERMA serves as a contingency fund from which the President can draw in order to respond effectively to humanitarian crises in an ever-changing international environment. The 2019 FMF appropriation totaled $6.2 billion, of which $229 million is designated as OCO and $6.0 billion supports core programs. FMF promotes U.S. national security by contributing to regional and global stability, strengthening military support for key U.S. allies and regional partner governments, and countering transnational threats, including terrorism and trafficking in narcotics, weapons, and persons. The provision of FMF assistance to partner militaries establishes and facilitates strong military-to-military cooperation, promotes U.S. trade and economic interests, and enables friends and allies to be interoperable with U.S., regional, and international military forces. In 2019, the portion of the Global Health Programs appropriation managed by the Department totaled $5.7 billion. This is the primary source of funding for the President’s Emergency Plan for AIDS Relief. These funds are used to control the epidemic through data-driven investments that strategically target geographic areas and population where the initiative can achieve the most impact for its investments. The majority of the funds ($3.4 billion) continue to be allocated to the Africa region where the HIV/AIDS epidemic is the most widespread. There was also made a $1.4 billion contribution to the Global Fund to Fight AIDS, Tuberculosis, and Malaria. 2019 A gency F inancial R eport U nited S tates D epartment of S tate | 31 FINANCIAL SUMMARY AND HIGHLIGHTS | MANAGEMENT’S DISCUSSION AND ANALYSIS