Armenian National Committee of America
1711 N Street, NW
Washington, DC 20036
Tel. (202) 775-1918
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PRESS RELEASE
May 7, 2009
Contact: Elizabeth S. Chouldjian
Tel: (202) 775-1918

OBAMA SEEKS 38% CUT IN AID TO ARMENIA

— Proposes Breaking Military Aid Parity Agreement in Favor of
Azerbaijan

WASHINGTON, DC ? Despite a 9% increase in overall foreign aid
spending, President Barack Obama today called for a 38% cut in aid
to Armenia, a 20% increase in aid to Azerbaijan, and the
abandonment of the longstanding Armenia-Azerbaijan military aid
parity agreement in favor of Baku, reported the Armenian National
Committee of America (ANCA).

These figures, released today as part of the President’s Fiscal
Year (FY) 2010 budget, represent a sharp departure from the
President’s campaign commitments to maintain U.S. assistance to
Armenia and to foster its growth and development through aid and
trade. In January of 2008 and again only days before the November
election, the President said he would "help foster Armenia’s growth
and development through expanded trade and targeted aid," adding
that he will also, "strengthen the commercial, political, military,
developmental, and cultural relationships between the U.S. and
Armenian governments."

"President Obama, despite his promise to maintain U.S. assistance
to Armenia and his campaign commitment to help foster Armenia’s
growth and development, has called for a thirty-eight percent cut
in aid to Armenia," said Aram Hamparian, Executive Director of the
ANCA. "His proposal to sharply reduce vitally needed assistance to
Armenia, even as he is increasing overall foreign aid spending, is
all the more disappointing in light of the urgent economic
challenges facing Armenia."

President Obama’s budget calls for $30 million in U.S. aid to
Armenia, down 38% from the FY09 allocation of $48 million. Under
his proposal, funding for Azerbaijan would increase 20% from $18.5
million to $22.12 million. The complete international affairs
budget proposed by the White House is $53,872,901.

In Foreign Military Finance spending, President Obama has requested
$4 million for Azerbaijan and only $3 million for Armenia, while
funds for International Military Education and Training (IMET)
represent an even starker break in the parity agreement struck
between Congress and the White House in 2001, with $900,000 being
proposed for Azerbaijan and $450,000 for Armenia.

The Foreign Operations Subcommittees of the House and Senate
Appropriation Committees will now review the President’s budget and
each draft their own versions of the FY 2010 foreign assistance
bill.