Department of State - 02.06.2003

Office of International Information Programs
U.S. Department of State

Fact Sheet Details Freedom Support Act (FSA) Funding Levels


The FY 2004 request for Freedom Support Act (FSA) totals $576 million. FSA funding supports programs that promote Eurasia's integration into the Euro-Atlantic community and bolster the stability of the front-line states in the war against terrorism.

The request is $179 million less than the FY 2003 request. This reduction in part reflects a shift of funding for educational and professional exchanges from FSA to the Educational and Cultural Exchange Programs account in the Commerce, State, Justice Appropriation. In FY 2002, funding for these exchanges was approximately $110 million. An additional $11.4 million was provided for exchanges through supplemental funding in FY 2002. Educational and professional exchanges will continue to be a key element of our assistance programs.

The reduction in the request from last fiscal year does not detract from the critical importance of the Eurasian region to U.S. interests. Rather, it reflects difficult decisions that had to be made among a large number of very high foreign assistance priorities.

FSA Priorities for FY 2004

Throughout Eurasia, FSA programs will emphasize two priorities in FY 2004: decentralization of power and strengthening of civil society (by strengthening NGOs, independent media, local governments, and the judicial branch) and bolstering the rule of law (by fighting corruption and improving the effectiveness of law enforcement systems).

To help support economic growth and job creation, FSA funds will support small and medium-sized private businesses, U.S. investment and trade, and facilitate WTO accession.

FSA funds will promote change at the grass-roots level by strengthening nongovernmental organizations, increasing Internet access, and improving community access to social services.

FSA funds will continue to support the independence and viability of the independent media throughout the region.

FSA funds also will help address serious socio-economic problems across Eurasia, especially in the health sector. Programs will seek to improve maternal and infant health, combat infectious diseases (HIV/AIDS and tuberculosis), and improve community health services.

FSA funds will continue to advance important non-proliferation goals across the region.

The request also will provide funding to improve capabilities of local law enforcement agencies to deal with terrorism, narcotics trafficking, and other forms of organized crime. FSA also will fund programs to fight trafficking in persons.

Regional Focus

The request continues the shift begun in FY 2002 toward relatively more funding for the Central Asian republics, and includes $157 million for these countries. These funds would allow us to sustain efforts begun in the wake of the September 11 attacks to enhance long-term stability in these key front-line states.

Programs will be aimed at creating economic hope through support for macroeconomic reform and small business growth; opening political space by strengthening democratic institutions and grassroots organizations; repairing the badly deteriorated health and education infrastructure; overcoming isolation, and easing interethnic and cross-border tensions.

Just as Poland, Hungary, the Czech Republic and other countries in Central Europe have graduated from SEED assistance, we can now foresee the day when Eurasian countries also will have made sufficient progress to begin phasing out of the FSA assistance program.

FSA Funds and Corruption

We recognize corruption is a corrosive element that undermines public confidence in governments across the region, is a drag on investment and economic growth, and runs counter to the rule of law that our programs and many people throughout Eurasia are attempting to create or strengthen.

In many countries of the region, FSA programs work to fight corruption by encouraging good governance, transparency, accountability, and judicial independence. These are key elements of anti-corruption strategies.

It is important to understand that FSA assistance consists primarily of technical assistance. It does not entail the transfer of funds to host governments but the provision of expertise and know-how to work with governments, the private sector, nongovernmental organizations, the media, and other sectors of society to advance democratic and market reform.