Where does US spend most of foreign aid?

Debates over US aid to Israel and Ukraine have dominated Washington this year, raising questions about its economic and military support to various allies and whether the nation spends too much support abroad.

Opposition within the GOP to foreign aid has been building, with Republicans arguing the US needs to spend more on border security. The debate is likely to color this year’s presidential race, and the reelection of former President Trump and his America First campaign could raise questions about funding for some partners. 

All figures come from State Department spending in fiscal 2023, with the addition of foreign aid appropriations for Israel and Ukraine last month.

Ukraine

Congress allocated US$61 billion for Ukraine in a foreign aid package signed late last month, following months of political fighting over whether to continue backing the country against a Russian invasion.

The funding nearly doubles what the US has invested in Ukraine since its war began in early 2022, bringing the spending total on the conflict to about US$137 billion between military and economic aid, according to the Kiel Institute.

Nearly all the military spending in the new aid package will be spent on domestic arms manufacturers, resupplying stockpiles sent to Ukraine to fight Russia. It also includes about US$8 billion for economic development and recovery in the country.

The spending deal has split the GOP House majority and nearly led to the ouster of Speaker Mike Johnson, after Rep. Marjorie Taylor Greene and two other GOP members cited the aid package as the last straw in filing a motion to vacate the Speakership. Johnson survived the vote with the support of Democrats.

The Russia-Ukraine war has dragged on for months, with Ukrainian leaders complaining of dwindling supplies as American arms shipments from a December 2022 aid package ran out.

“For months, while MAGA Republicans were blocking aid, Ukraine’s been running out of artillery shells and ammunition,” Biden said when he signed the new aid package last month. “Meanwhile, Putin’s friends are keeping him well supplied.”

The new US$61 billion expenditure is on top of about US$17 billion allocated in 2022 that was spent last year.

Israel

Israel has been the largest recipient of US foreign aid since World War II. The country has accepted more than US$300 billion since 1946, according to the Council on Foreign Relations, with more than US$220 billion of the figure in military aid.

Long considered the closest ally of United States in the Middle East, Congress has allocated between US$3 billion to US$4 billion per year to Israel consistently since the 1970s for its defense. Nearly the entire sum is provided through a State Department program allowing Israel to purchase US-manufactured arms and munitions for no cost.

That trend was bucked late last month, as the long-awaited foreign aid package included about US$15 billion in military aid for Israel amid its war with Hamas in Gaza. The package is the largest single-year allocation of aid for Israel in at least 50 years, according to the Council on Foreign Relations.

“We will always make sure that Israel has what it needs to defend itself against Iran and the terrorists it supports,” Biden said when he signed the aid package.

President Biden withheld an arms shipment to Israel last week, part of a pressure campaign urging Israel to not invade the city of Rafah in southern Gaza.

Biden said the US will halt future arms shipments if Israel enters the city, which Israeli leaders said Thursday it will likely do with or without US backing.

Jordan

Jordan is the third-largest recipient of US foreign aid, according to a State Department and USAID tracker of spending. About half of the funds allocated for the country in 2023 were for military aid.

That spending has already come in handy in the Israel-Hamas war, as Jordan joined the United States in defending Israel against a wave of Iranian drone and missile strikes last month. The unprecedented attack on Israel was completely shut down by the combined defenses of the three countries.

Jordan also assisted the US in airdrops of humanitarian aid into Gaza amid the conflict in March. 

Egypt

Foreign spending in Egypt has come under additional scrutiny in the last year after the indictment of Sen. Bob Menendez. Menendez, who stepped down as chair of the Foreign Relations Committee during the investigation, is accused of accepting hundreds of thousands in bribes from interests in Egypt.

After the indictment, Sen. Ben Cardin, who became foreign relations chair when Menendez stepped down, held back US$235 million bound for Egypt, criticizing the country’s dogged record on human rights and press freedom.

“Congress has been clear, through the law, that the government of Egypt’s record on a range of critical human rights issues, good governance, and the rule of law must improve if our bilateral relationship is to be sustained,” Cardin said in October last year.

Rep. Gregory Meeks the top Democrat on the equivalent House committee, made a similar request weeks earlier.

The controversy comes as Egypt plays a central role in the Israel-Hamas war. Egyptian diplomats have acted as intermediaries between Israel, the US and Hamas, and Cairo played host to cease-fire negotiations last week.

Ethiopia

Allocations to Ethiopia are nearly entirely humanitarian aid, as regions of the country struggle with a deep famine and civil unrest. The northern region of Tigray fell into an ethnic conflict in 2022, with rebel and government forces facing off as thousands starved.

USAID resumed food aid to the region in December, five months after it took the extraordinary step of halting its nationwide program over a massive corruption scheme by local officials.

The rare combination of droughts, conflict and other factors disrupting food supplies has made Ethiopia one of the largest recipients of US humanitarian aid. About one-sixth of Ethiopians received food aid before discovery of the food theft early last year.

Nigeria

Nigeria foreign aid spending is focused on health care and food access. The US spent about a quarter billion dollars on stemming the spread of HIV and AIDS in the country in 2023, according to USAID, as well as another US$130 million on other health needs.

The country also has areas where food is in critical need, sparking another quarter billion in spending for food access and other expenditures filed by the State Department under “emergency response.”

Most of the support is funneled through non-government organizations and charities operating in the country.

Somalia

Almost the entirety of funds allocated for Somalia is under emergency designation for food access as the country continues to struggle after decades of civil unrest.

About US$700 million of the expenditures are in partnership with the United Nations, which has had a constant presence in the country for decades amid a brewing civil war with breakaway Somaliland. Just more than US$100 million is set to fund UN peacekeeping missions in the country.

Kenya

In Kenya, US humanitarian assistance is spread between health, food access and economic development. The largest expenditure is in partnership with the World Food Program in the region, while the government also invested significant sums into fighting the spread of HIV and AIDS and supporting local agriculture.

 Courtesy: The Hill

 

 

Iraq:: Chinese to explore oil and gas

According to Reuters, Chinese companies won bids to explore five Iraqi oil and gas fields on Saturday in a licensing round for hydrocarbon exploration that was primarily aimed at ramping up gas production for domestic use.

An Iraqi Kurdish company also took two of the 29 projects up for grabs in the three-day licensing round across central, southern and western Iraq, which for the first time includes an offshore exploration block in the country's Arab Gulf waters.

Iraq aims to lure billions of dollars of investments to develop its oil and gas sector as it looks to ramp up local petrochemicals production and end imports of gas from neighbouring Iran that are currently key to producing power.

More than 20 companies pre-qualified for the licensing round, including European, Chinese, Arab and Iraqi groups.

Notably, there was no US oil majors involved, even after Iraqi Prime Minister Mohammed Shia met with representatives of US oil firms during an official visit to the United States last month.

Zhongman Petroleum and Natural Gas Group (ZPEC) took the northern extension of the Eastern Baghdad field, in Baghdad, and the Middle Euphrates field that straddles the southern Najaf and Karbala provinces, the oil ministry said.

China's United Energy Group Ltd won a bid to develop the Al-Faw field in southern Basra, while ZhenHua won a bid to develop Iraq's Qurnain field in the Iraqi-Saudi border region and Geo-Jade won a bid to develop Iraq's Zurbatiya field in the Wasit.

Two oil and gas fields were taken by Iraq's KAR Group - the Dimah field in eastern Maysan province, and the Sasan & Alan fields in Iraq's northwestern Nineveh province - the ministry said.

Around 20 more projects are open for bidding on Sunday and Monday.

Falah Al-amri, the Iraqi prime minister's advisor for oil and gas issues, said the government hoped the new projects would raise oil production to 6 million barrels per day by 2030 from around 5 million now.

The government also wants the projects to produce enough natural gas so that, along with plans to all-but eliminate gas flaring by 2030, Iraq could end imports.

"It is too early to talk about (gas) exports. We want to get self-sufficient," Al-amri told Reuters.

Iraq, OPEC's second-largest oil producer after Saudi Arabia, at one time had targeted becoming a rival to the Gulf Arab kingdom with output of over a tenth of global demand.

But its oil sector development has been hampered by contract terms viewed as unfavourable by many major oil companies as well as recurring conflict and political paralysis.

Growing investor focus in recent years on environmental, social and governance criteria have also had an effect.

Western oil giants such as Exxon Mobil Corp and Royal Dutch Shell Plc have departed from a number of projects in Iraq while Chinese companies have steadily expanded their footprint.

 

 

 

Chevron denied claim for Iranian oil

Three insurance companies have rejected Chevron's claim over the seizure last year of an oil cargo by Iran, according to a complaint filed on Tuesday in a US court in California.

The Chevron-chartered tanker Advantage Sweet was boarded by Iranian military, opens new tab in the Gulf of Oman in April 2023 and its crude oil cargo confiscated and later transferred to an Iranian vessel.

Zurich American Insurance, Liberty Mutual Insurance and Great American Insurance asked a US District Court in San Francisco to uphold their rejection of Chevron's $57 million claim under both marine cargo and war risks policies the company held.

The seizure of the crude oil and its later expropriation by Iran do not constitute 'warlike operations,' the companies said of their denial of war risks coverage. Chevron's marine cargo policy also did not cover a seizure or confiscation, they told the court.

A Chevron spokesperson said the company contests the denial of insurance coverage.

"The military seizure by the Islamic Republic of Iran of the Advantage Sweet in international waters with Chevron's cargo aboard was a hostile act plainly covered by our insurance policies. We look forward to proving this in court," said Chevron spokesperson Christine Dobbyn.

Chevron chartered the Advantage Sweet to transport crude oil to Houston from the Neutral Zone area shared by Saudi Arabia and Kuwait, the complaint said. Chevron has oil production operations in the zone.

"Iranian Navy commandos boarded the Advantage Sweet while the vessel was in international waters in the Gulf of Oman on or about April 27, 2023 and seized control of the vessel and its cargo of crude oil," according to the complaint.

 

Iran assures energy supply to Afghanistan

Iran's Deputy Ambassador to Kabul, Hassan Mortazavi, highlighted Iran's commitment to serving as a dependable energy supplier to Afghanistan during a meeting with Abdul Latif Mansoor, the Acting Minister of Water and Energy of Afghanistan's caretaker government in Kabul.

Mortazavi expressed Iran's readiness to export energy to Afghanistan and emphasized the country's potential to play a crucial role as a reliable partner in this regard. He also expressed optimism about the completion of the Kamal Khan Dam, noting that water cooperation could strengthen ties between Tehran and Kabul, benefiting the Muslim populations of both nations.

Under the 1973 Helmand River Treaty, Iran is entitled to approximately 850 million cubic meters of Helmand water annually. However, due to drought and irregular water conditions in recent years, Iran's agreed-upon water share has not been fully met, leading to challenges for residents of Iran's Sistan and Baluchistan province. 

The Acting Energy Minister of Afghanistan acknowledged that a significant portion of Iran's water share has been provided thus far. The discussions between the two sides also encompassed topics related to water cooperation, including the energy supply chain between Iran and Afghanistan.

 

Trump not considering Haley running mate

Donald Trump said on Saturday that former Republican presidential candidate Nikki Haley was not being considered to be his running mate in the November 2024 election.

"Nikki Haley is not under consideration for the Vice President slot, but I wish her well!" Trump wrote on his social media platform Truth Social.

It was reported that Trump could pick Haley if he were convinced she could help him win the presidency, avoid a potential prison sentence and cover tens of millions in legal bills if he loses.

Haley, the former South Carolina governor and a former US ambassador to the United Nations, ended her long-shot challenge to Republican presidential frontrunner Trump in March this year.

Comment was not immediately available from Haley. While she has acknowledged that Trump, who repeatedly belittled her candidacy, would be the Republican nominee, Haley has not endorsed him.

There is already a long list of potential candidates for the vice president position that includes North Dakota Governor Doug Burgum, South Dakota Governor Kristi Noem, U.S. Senators Marco Rubio, Tim Scott and J.D. Vance, and US Representative Elise Stefanik.

Burgum and Scott competed against Trump for the 2024 Republican nomination before dropping out.

Noem has been embroiled in controversy after revealing in a memoir that she once shot a 14-month-old dog for being disobedient.

Trump does not seem in hurry to pick a running mate. He will not be formally nominated until the Republican convention in Milwaukee, Wisconsin, in July.

He will face President Joe Biden, a Democrat, in the November 05 general election.

 

 

Muslim World League inaugurates first Council of Southeast Asian Scholars

Sheikh Dr. Muhammad Al-Issa, Secretary-General of the Makkah-based Muslim World League (MWL) and Chairman of the Association of Muslim Scholars, has inaugurated the Council of Southeast Asian Scholars in Kuala Lumpur.

The ceremony was held under the patronage of Malaysian Prime Minister Anwar Ibrahim, with prominent scholars and muftis from ASEAN countries in attendance.

This new council represents the first comprehensive Islamic council in the Southeast Asian region, featuring senior muftis and scholars.

It also marks the first among the regional scholarly councils established globally by the MWL. The creation of the council is a direct outcome of the "Southeast Asian Scholars Conference," which took place in Kuala Lumpur on June 30, 2022, and received endorsement from the Prime Minister of Malaysia.

Israel orders Palestinians to evacuate more areas of Rafah

Israel called on Saturday for Palestinians in more areas of Gaza's southern city of Rafah to evacuate and head to what it calls an expanded humanitarian area in Al-Mawasi, in a further indication that the military is pressing ahead with its plans for a ground attack on Rafah.

In a post on social media site X, a military spokesperson also called on residents and displaced people in the Jabalia area of northern Gaza, and 11 other neighbourhoods in the enclave to go immediately to places west of Gaza City.

The Palestinian health ministry said at least 37 Palestinians, 24 of them from central Gaza areas, were killed in overnight airstrikes across the enclave, including in Rafah.

"They threw fliers on Rafah and said, from Rafah to al-Zawayda is safe, people should evacuate there, and they did, and what has become of them? Dismembered bodies? There is no safe place in Gaza," Khitam Al-Khatib, who said she had lost at least 10 of her relatives in an airstrike on a family house earlier on Saturday, told Reuters.

Al-Zawayda is a small town in central Gaza Strip that has been crowded by thousands of displaced people from across the enclave.

The Israeli military said its aircraft struck tens of targets across the Strip over the past day, adding its ground troops had eliminated fighters in Zeitoun in recent hours.

An Israeli airstrike killed at least seven people in a house in Beit Lahiya town in the northern Gaza Strip, all from the same family, medics said.

In Rafah, residents told Reuters the new evacuation orders by the Israeli military covered areas in the centre of the city and left little doubt Israel planned to expand its ground offensive there.

"The situation is very difficult, people are leaving their homes in panic," said Khaled, 35, a resident of the Shaboura neighbourhood, an area where the new orders to leave have been issued.

The Israeli military said it was continuing operational activity against Hamas fighters in eastern Rafah and on the Gazan side of the Rafah crossing.

Despite heavy US pressure and alarm expressed by residents and humanitarian groups, Israel has said it will proceed with an incursion into Rafah, where more than one million displaced people have sought refuge during the seven-month-old war.

Israeli tanks captured the main road dividing Rafah's eastern and western sections on Friday, effectively encircling the eastern side in an assault that has caused Washington to hold up the delivery of some military aid to its ally.

Israel says it cannot win the war without rooting out thousands of Hamas fighters it believes are deployed in Rafah.

About 300,000 Gazans have so far moved towards Al-Mawasi, according to Israeli military estimates released on Saturday.

Two crossing points vital for delivery of aid to Gaza were still closed on Saturday the Palestinian WAFA news agency said the Rafah crossing was closed for a fifth day, while another crossing, Kerem Shalom, has been shut for around a week.

The latest evacuation orders came hours after internationally mediated ceasefire talks appeared to be faltering, with Hamas saying Israel's rejection of the truce offer it had accepted returned things to square one.

The Palestinian militant group also hinted it was reconsidering its negotiation policy. It did not elaborate on whether a review meant it would harden its terms for reaching a deal, but said it would consult with other allied factions.

Israel says it wants to reach a deal under which hostages would be released in exchange for the freeing of Palestinian prisoners held by Israel, but that it is not prepared to end the military offensive.

In Deir Al-Balah in the central Gaza Strip, where hundreds of thousands were sheltering, Palestinians mourned relatives during funerals on Saturday.

"Here they are, in pieces, here is my sister-in-law, without a head, my aunt is without a head, what is this injustice? Until when will this go on? We are exhausted, by God we are exhausted, I have lived in tents for the past seven months," said Khatib, sitting near bodies wrapped in white shrouds bearing the names of the dead men and women.

Prime Minister Benjamin Netanyahu's government is under increasing pressure over its military campaign, including from longtime ally the United States.

The Biden administration said on Friday Israel's use of US-supplied weapons may have violated international humanitarian law during its Gaza operation, in its strongest criticism to date of Israel.

But the administration stopped short of a definitive assessment, saying that due to the chaos of the war it could not verify specific instances where use of those weapons might have been involved in alleged breaches.