Emergency Funding for Central America and Jordan

March 8, 1999

The following alert goes out to advocates from Bernadine Grant McRipley, program associate in the Washington Office.

ISSUE:

Congress is currently proposing emergency supplemental appropriations legislation intended to provide hurricane relief to Central America and some aid to Jordan. The purpose of a supplemental bill is to seek funds in addition to those already appropriated for the same purpose during the current fiscal year. Thus the Senate and House must find "offsets" (reductions in spending from other budget lines) in the fiscal year 1999 budget to pay for these emergency appropriations.

The Senate Appropriations Committee on March 4 marked up the legislation including a provision that would use $350 million of fiscal 1999 TANF (welfare) funds to partially offset the $1.2 billion in the bill. This offset would be achieved by "deferring" the TANF funds until fiscal year 2002.

ACTION:

Immediate action needed. The House Appropriations Committee will meet this week (probably on Tuesday or Wednesday) to finalize the proposal to provide emergency aid to countries devastated by hurricanes in Central America and the Caribbean. Funding promised to Jordan in the Wye River agreement may also be included.

If your U.S. representative is on the list below of members of the House Appropriations Committee, please call immediately to urge these actions:

1. Support the emergency supplemental legislation for hurricane relief in Central America and the Caribbean, including the Pelosi amendment for debt cancellation;
2. Make clear that these funds must not be taken from funds already appropriated for services to poor people in the United States or elsewhere.

BACKGROUND:

The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 replaced the Aid for Families with Dependent Children (AFDC) program, which was a federal entitlement, with the block grant to states called the Temporary Assistance for Needy Families (TANF). The welfare reform law sets limits so that beneficiaries cannot receive federal cash assistance after 2002.

To use $350 million of fiscal 1999 TANF funding could abrogate the commitment that Congress made to states and to our nation's needy people to guarantee full funding of TANF for five years. In order for these TANF funds to become available by 2002, they will have to be offset in the appropriations process by fiscal 2002, placing them in competition with other discretionary domestic spending at that time. Therefore, this "deferral" could result in this money never being available to TANF again.

Rep. Nancy Pelosi (D-Calif.) will offer an amendment to the emergency relief bill that will provide an additional $25 million to allow the total cancellation of the debt that Nicaragua and Honduras owe to the U.S. government. Both countries are already among the most heavily indebted poor countries. The present unbearable debt burden will paralyze efforts to rebuild the countries while still attempting to meet basic human needs of their people.

GENERAL ASSEMBLY GUIDANCE:

The 209th General Assembly (1997) approved a resolution on "Welfare and Poverty." Among other things, it states, "There are persons, who for reasons of disability, age, or particular circumstance, will never be able to maintain employment at life- sustaining wages. Government assistance, including income maintenance, health care, housing and other services, should be provided to such persons without stigma."