SCHIFF EXPRESSES CONCERN OVER ADMINISTRATION’S BUDGET CUTS

armradio.am
12.03.2007 16:43

During a hearing before a key House foreign aid panel today,
Congressman Adam Schiff (D-CA) expressed concern with the
Administration’s budget request which calls for $35 million in
economic assistance to Armenia for Fiscal Year 2008, reports the
Armenian Assembly of America.

Schiff questioned Randall L. Tobias, US Director of Foreign Assistance
and USAID Administrator, on the Administration’s request that Congress
provide Armenia with a more than 50 percent reduction in economic
assistance. Last month, the House of Representatives approved FY 2007
funding for Armenia at the 2006 level of nearly $75 million.

Tobias responded that the Millennium Challenge Compact "is expecting
to disperse 60 million dollars" in FY 2008 alone and that "together
with foreign aid, Armenia will receive 98 million dollars, or a 34
percent increase."

Schiff said that "cutting funding in one area and adding in another
is misleading."

Last year, the United States and Armenia signed the Millennium
Challenge Compact – a five-year $235.65 million agreement intended to
reduce Armenia’s rural poverty and increase agricultural productivity.

"The Freedom Support Account (FSA) and the MCC grant serve completely
different functions," said Assembly Executive Director Bryan Ardouny.

"Funding for one should not be a substitute for another."

Schiff also asked that a complete accounting of financial assistance
to Armenia be sent to him following the hearing.

Armenian Caucus Co-Chair Joe Knollenberg (R-MI), who also serves on the
Committee, noted that Armenia’s upcoming parliamentary elections "must
go well," and asked Tobias to comment on Armenia’s electoral process.

Tobias replied that the multi-year assistance programs for elections
in Armenia have been "successful" and that Armenia has shown "great
progress" in recent elections.

"The Assembly thanks Congressmen Knollenberg and Schiff for their
longstanding support and looks forward to working with them, along with
Committee Chairwoman Nita Lowey (D-NY) and Ranking Member Frank Wolf
(R-VA), to rectify the deficiencies in the Administration’s budget
proposal," Ardouny added.