How can the President pledge money?
November 2, 2005 11:29 AM Subscribe
What is the mechanism that allows the President to, say, pledge $50,000,000 for earthquake relief in Pakistan?
I'm familiar with the general appropriations process, and I know that there was a bill passed earlier this year to appropriate money for tsunami relief. The President pledged money to Pakistan, and this money is, apparently, already being spent, but there hasn't been legislation specifically appropriating funds for this purpose. Is there some sort of general foreign-aid "slush fund"?
This is something I feel like I should already know.
I'm familiar with the general appropriations process, and I know that there was a bill passed earlier this year to appropriate money for tsunami relief. The President pledged money to Pakistan, and this money is, apparently, already being spent, but there hasn't been legislation specifically appropriating funds for this purpose. Is there some sort of general foreign-aid "slush fund"?
This is something I feel like I should already know.
Discretionary spending.
Discretionary spending just means money that is left over after subtracting government debt intrest and (I belive) entitlements. The congress still needs to authorize all spending.
My guess would be that a bill was quickly passed after the president anounced the aid.
posted by delmoi at 11:57 AM on November 2, 2005
Discretionary spending just means money that is left over after subtracting government debt intrest and (I belive) entitlements. The congress still needs to authorize all spending.
My guess would be that a bill was quickly passed after the president anounced the aid.
posted by delmoi at 11:57 AM on November 2, 2005
Isn't aid typically given in services "valued at $X" rather than $X in cash? I think also a lot of it comes in a Line of Credit.
posted by mkultra at 1:12 PM on November 2, 2005
posted by mkultra at 1:12 PM on November 2, 2005
Slate covered this exact question in an article entitled, "Do Governments Take Checks? How the United States gives foreign aid."
To paraphrase:
...most U.S. humanitarian aid gets disbursed to independent contractors and consultants. Private, public, and international groups submit proposals to USAID, which then selects recipients for grants or contracts. The grant recipient uses this money to set up a project, hire staff, and purchase supplies.
posted by junesix at 1:29 PM on November 2, 2005
To paraphrase:
...most U.S. humanitarian aid gets disbursed to independent contractors and consultants. Private, public, and international groups submit proposals to USAID, which then selects recipients for grants or contracts. The grant recipient uses this money to set up a project, hire staff, and purchase supplies.
posted by junesix at 1:29 PM on November 2, 2005
Response by poster: delmoi, there wasn't such a bill, not that I could find (and I'm, um, pretty good at searching for such things). Perhaps USAID had enough in reserve?
posted by MrMoonPie at 5:51 PM on November 2, 2005
posted by MrMoonPie at 5:51 PM on November 2, 2005
I know that a good portion of the monies involved are things like future payments due to agencies like the World Food Program through UN membership. We send them cash, they buy rations. We fulfill a promise of aid to Pakistan, without actually increasing the budget -- just accelerating (or perhaps more accurately, catching up with) our payment balance.
posted by dhartung at 10:53 PM on November 2, 2005
posted by dhartung at 10:53 PM on November 2, 2005
This thread is closed to new comments.
posted by Thorzdad at 11:37 AM on November 2, 2005