there was a story about a black man having raped a white woman. when this story spread into the shipyard, several thousands of the shipyard workers, some say at least 2,000 shipyard workers came out of the shipyard. >> subscribing on tooup.com/c-span. coming up shortly, state department briefing on the agencies fy 2013 budget request. proposing to increase state department spending by about 9%. it includes foreign assistance aid for iraq, afghanistan and

pakistan. it keeps major -- funds to middle east and north africa incentive fund to promote democracy and good governments. the proposal maintains billions in spenlding on international health projects including aids. the briefing is just getting under way. we'll have coverage on c-span3. >> they are going to speak briefly, take a few questions. deputy secretary has to run. he's traveling to iraq later today. but following the briefing, we do invite to you join us across the hall where we're going to have an on background discussion in greater detail if any of you need to indulge your inner wonk on some of these issues. without further ado. >> thank you all very much. good morning. let me start by welcoming you today to the rollout of the 2013

budget request from the state department and usaid. i know tomorrow is valentine's day. i was going to actually give some of you flowers, others chocolate, but because of budget constraints what i've done is given you this very, very pretty book. you can take it home with you and enjoy it. it's just considered a very nice prevalentine's day present. i thought it was funnier earlier, but wasn't funny for you guys. steve is laughing hilariously. i'm also u.s. aid raj shaw discuss in details programs for all of you. this budget follows a perforational change in the world as you know. new powers emerging, america is strengthening relationships in asia pacific region while keeping commitments around the world. in iraq we completed the largest

military to civilian transition since the marshall plans. the budget reflects the beginning of the normalizing of our footprint. afghanistan has 20,000 troops who surged income home. our civilians will continue work to secure hard won gains. this budget also reflects that. meanwhile the middle east is reinventing itself before our eyes since i presented last year's budget, there hasn't been a day when we weren't managing multiple crises at once. the demands in us have never been higher. you will see all of that in this budget request. of course it's also a time of economic hardship in our country and we all get that here. so this budget seeks to stretch every tax dollar as far as possible without compromising our core national security interests. now if my high-tech skills serve me correctly, i will show you in

graphic detail how our budget fits into the overall federal budget. first, as you know, 58% of the federal budget is spent on mandatory programs like social security, medicare and medicaid. second, 22% supports expressionary security programs department of defense, homeland security and veterans affairs. third, 13% discretionary nonsecurity programs run by transportation, education, justice, commerce, and hud. and fourth, 6% pays the interest on our federal debt. if you think there isn't a lot left over, you're right. state and u.s. aid account for 1% of the federal budget. see that thin yellow line? that's us. 1%. today i want to explain how we use that 1% to make the outside's contribution to america's prosperity, security,

and leadership. from day one secretary clinton has made it a priority to work smarter and more effectively. this is the first budget reflects reforms outlined in the diplomacy review better known as qdr. what we have, we've streamlined our efforts, not shied away from making tradeoffs in painful but responsible cuts. interestingly enough a recent gallup poll found americans believe we spent a quarter of our budget on foreign assistance. but let me remind you again what the chart shows. state and u.s. aid, all of what you described, not with 25% of the federal budget but a little less than 1%. so let me take a few minutes to quickly go over some of the numbers. my colleagues will stick around after this to go into more details if you wish. as you know, fy 2013 budget for international affairs known as the function 150 account for all

of you budget folks out there totals $56.4 billion. this includes state and u.s. aid but the 150 account includes treasury's international programs, millennium challenge corporation, peace corps among others. so within the 150 account, you will find the state department and u.s. aid's request which totals $51.6 billion. that is what i'm going to focus on today, the $51.6 billion. we've limited our request to achieve our mission. our budget increases less than the rate of inflation. this money goes to four principle areas. let me show you the breakdown of the budge by percentages. 23% of the budget is spent on the frontline states, iraq,

afghanistan, and pakistan. 28% of our budget goes preventing conflicts, support allies and partners through direct assistance and multi-lateral contributions among other things. another 28% is also spent on human and economic security. and the remaining 20% or 21% supports our people, embassies, and global presence. now the specific numbers. first, the 23% or $11.9 billion of request goes into defending security interest in the frontline states of iraq, afghanistan, and pakistan. our civilian overseas contingency operationsbudget, better known for ary cost assoc with these missions. using the same methodology from last year's request, we've asked for $8.2 billion in oco and $3.7

billion in our base budget for a total of $11.9 billion for the frontline states. let me now just break it down to you specifically. in iraq, we're requesting $4.8 billion for next year, which is about 10% less than last year. the transition is already saving american taxpayers a great deal of money. now with troops no longer on the ground, the government is spending $40 billion less this year than last. as discussed during last weeb's press briefing, we're continuing to be thoughtful about the right sizing of our presence in iraq, hiring more local staff, procuring more goodsich should spending. in afghanistan we're requested $4.6 billion. civilians are vital to our efforts and securing our gains

against the taliban. they are helping us take afghan's lead responsibility for their own security. they are laying the groundwork for what comes next, sustainable economic growth, national reconciliation, and long-term civilian partnership, all of which helps us ensure afghanistan never becomes the safe haven for terrorists. then pakistan. a 2013 request is $2.4 billion. our relationship with pakistan is challenging. make no mistake, effective cooperation with pakistan is critical to afghanistan's future and to america's national security. our request includes funds to strengthen democratic institutions, extremism, supporting counter-terrorism efforts and protecting our civilians on the ground. second, we vote 28% or $14.6

with confidence in supporting key allies and partners. this yeesh our request includes a new $770 million middle east and north africa incentive fund to support political and economic reforms in the region. our investment to support allies and partners includes everything from police training in latin america to efforts for civility in places like haiti, south sudan to more than 70 military to military partnerships which are managed by the state department. it funds peacekeeping missions around the world. our presence in international institutions. it matches last year's record high of $3.1 billion for the state of israel and continuing our efforts to support our arab partners. third, we devote another 28% of our budget, $14.7 billion to our

investment in human and economic security. specifically global health, food security, and climate change. poverty reduction and cross-cutting efforts to empower women and girls in our humanitarian budget. for all these programs, we're focused on achieving measurable outcomes that have real impact on improving people's lives. even with the financial constraints we face, this budget fully supports the president's goal of treating more than 6 million people effectively with hiv/aids by the end of 2013. this is a $2 million more than support and puts us on the path to an aids-free generation. the money we spend on human and economic security funds responses and the care for refugees. i'll leave it to

shah to speak in more detail about the programs implemented by usaid. four, 20% or $4 billion supports men and women of the state department and usaid who make the work i describe probable. this budget pays for all of our operations and 274 missions around the world. it funds political officers who advance our interest and defends democracy in human rights. it funds development opportunities and the opportunity to make the world a safer place. helps bring businesses to the u.s. and helps america's emergence around the world. helps economic officers who help businesses compete in new markets that put america back to work. as i like to say, not a bad return on our investment. this is a moment of historic change around the world. tight

times for government and people. the two truths that guided us from day one. so as i likeremind you once again, with just 1% of the federal budget, state department and usaid will change leadership around the world, promote va above all keep america safe in 2013 and beyond. let me now turn the floor over to my friend. raj shah. >> thank you. thank you, tom. i want to start just by reiterating tom's both opening and closing point that the entire budget and activities all described live within the 1% of the federal budget that tom highlighted. i intend to go into a little more detail on the core development priorities of the fy '13 budget proposal and starting

with the point that the president and secretary have focused on elevating develop as part of our foreign policy. because theve the world, the resulting investments we make in health, ediongunger are part of our national security strategy to keep us safe and are part of our economic security strategy to ensure we're expanding the number of countries and communities whom we can trade and as a result create jobs here at home. the budget accounts familiarsis health, child survival, international disaster relief and millennium challenge accounts. in all of these areas we're taking a more business-like approach to delivering results. fy '13 request demonstrates a willingness to focus and concentrate investments on those areas where they will deliver maximum results and more value for u.s. taxpayers.

i'll begin by describing global health. at $7.9 billion, this is a budget request that focuses on cost effectiveness and saving lives. it allows us, as tom mentioned, to meet the president's goal of putting 6 million patients on extremity for hiv/aids, building on the progress we've already seen under this administration from going from 1.7 to 3.9 million under coverage today. this is in part possible because of a more than 50% reduction in the cost of doing treatment thanks to leadership of ambassador and the petfar program. this will allow us to invest in hiv prevention, including pediatric aids by treating pregnant women. this allows us meet our global commitments and immunization whereby getting together with the global community we've made investments to help save more than 4 million lives over a

five-year period by expanding access to new vaccines to poor children around the world. and it allows us to extend our investments in malaria and maternal and child health where we've seen concrete and specific results. since 2008, child mortality has been reduced by 16%, maternal mortality has been reduced by 13%, and very clear studies just coming out in the past few weeks have shown effectiveness of u.s. investments in global health in places like rwanda and tanzania. second our feed the future program, the president and secretary's signature effort to advance food security around the world is funded at $1 billion and is predicated on the point it's cheaper and smarter to help countries feed themselves than to address famine, food riots in failed states that result from food insecurity. again, this is an area where

we've changed the way we work to focus on delivering results measured as the number of people that move out of a condition of hunger through their own sustainable efforts. where we focus our investments on those countries taking on reforms to ensure they can be successful and where we work more absentively in partnership with the private sector to stretch taxpayer dollars even further. we've seen important results in places like bangladesh and tanzania where food production is up and the number of people and the number of children who are chronically hungry have gone down. we've implemented new partnerships such as with pepsi and ethiopia and walmart and central america that are reaching tens of thousands of families and stretching u.s. taxpayer dollars even further in delivering these results. third, we have a priority in our humanitarian accounts. across state and u.s. aid, these accounts help us deal with food

emergencies, address water when water is not available to needy communities, address refugee flows around the world and support internally displaced populations in conflict and other countries everywhere around the world. in these areas as well, we've taken a reform approach and prioritized deficiencies investing in early warning systems that highlight faster where disasters are likely to occur. prepositioning food and supplies to reduce the cost and improve the time to delivery and expanding both local procurement and initiatives like the secretary's 1,000 days initiative that targets food assistance to pregnant women and children so that it achieves better results in terms of nutrition, learning, and outcomes. these types of strategies allowed us to reach more than 4.6 million people who are at risk in the horn of africa during the past several months and the drought and famine that

ensued. despite the fact that that's now been downgraded in part due to effective humanitarian support, the u.s. will continue to make investments in humanitarian crisis in the horn and other parts of the world where it's necessary and will continue to use our leadership and our ability to make those investments to diversify the burden and ensure that the whole world is living up to its shared responsibilities at times of need and crisis. and finally tom mentioned that $10.4 billion of the overall budget is for investing in our staff and reform initiatives across state aid including $1.5 billion for u.s. aid operating expenses and a set of reforms called u.s. aid forward. these reforms came out of the secretary's qddr initiative and are allowing us to use new technologies like mobile banking in haiti and afghanistan to fight corruption and expand

access to banking services and financial services. they are allowing us to invest scientific and technical partnerships like the grand challenges program which we were relaunch programs like saving lives at births and efforts to use technology to help all children improve their lit rera outcomes in grade levels. they leverage 3 or $4 from other donors and other partners before we go forward. perhaps most importantly these investments allow us to build a staff model that allows us to oversee contracts and programs in a way that's designed to reduce waste, fraud, and abuse, cut down on contractor costs and save taxpayers money. so i would end just by recalling tom's opening point that this entire portfolio of investment takes place within 1% of the federal budget and is part of -- a critical part of keeping us safe and secure and improving

our economic prospects around the world. thank you. >> do you have time for a few questions? >> i'd like to ask maybe secretary about some of the areas where you're expected a cut in funding, for instance, aid to egypt, although the $1.3 billion is in there, it doesn't -- if things aren't resolve with the egyptians it looks as if it was cut. also might refer to the unesco funding. for next year you have close to $79 million. >> that's right, $79 million. >> i'm wondering are these ing explain that a little? >> let's do unesco first. as you know, the congress has prohibited us from funding unesco this year. and as you know the president's also articulated quite clearly

that he would like a waiver to allow us to participate in unesco. we have put the money in the budget, realizing we're not going to be able to spend the money unless we get the waiver and we made it clear to the congress that we would like a waiver. we would work with friends an colleagues on capitol hill on hopes we would work it. unesco does a lot of enormously good work. we would like to make sure that we have a contribution xhis rate with their work. as relate tosss to egypt our go to provide the money which includes $1.3 billion of fmf, which is the foreign military funding, financing, and then the $250 million direct assistance which is put in at 2013. our goal is to provide those funds. it's obviously clear to all of us that we have issues that we need to work through. we are working very aggressively to do so. but this budget reflects our

commitment and desire to fully fund those initiatives. >> i'm curious. one on egypt and broader. on the egyptian side it's your hope to be able to give them the money that you've outlined here. how much pushback are you expecting from congress on these particular numbers? do you have an argument for the people in congress who say they shouldn't be getting these money? secondly, on the $770 million for the broader incentive fund, how much of that is going to be actually new money and how much of that is sort of moved from other places? >> first on egypt, i think the desire from the hill and the administration is resolve the issues that are currently occurring in egypt. and i think there is bipartisan support once we can get these issues resolved is to support egypt. i don't think that's -- i think no argument on that. at least from where we stand. obviously we have issues we need to deal in in which we're

actively engaged in. our desire as we perceive this year and have discussions about the budget, clear to all of us as a situation gets clear for us in egypt, and that will be able to provide the assistance we will be able to provide. as relates to the $770 million of the middle east transition fund, this is something secretary clinton has really -- and with the president -- has focused principally on. the notion is that we are in a new world. the arab spring has come. we need to make sure we have the tools and the flexibility in which to fund these initiatives. i cannot tell you today where that money will be spent because it will obviously be consultation with the hill. coming up with initiatives and will be discussing with the hill. this is something we coordinated and talked a lot about with our friends on the hill with the ideas to have some flexibilities to support everything from tunisia, to support areas like potentially in egypt and in area where's things are changing

every day in syria. we have no idea the world is evolving as we see it. we felt it was important to have a pool of money. some of the money we have taken from other areas. some of it is new money. it's all capital in the overall budget request which i point out is basically up about 1 1/2 percent from last year. as you can see we're doing lots of tradeouts. yeah? >> would that include the $250 million and non-military? >> that 77 is a different pile of money. you have egypt money, which is $1.5 million which is -- good numbers here. $1.3 million is fmf. $250 million or $250 something million is direct assistance. did i screw this up? i look over around they have their hands on fair face. the $770 million is new money. >> thanks. looking -- >> don't stop me, josh.

don't do that. i was doing so well. okay? >> okay. >> so the court enduring budget, the core budget, the request this year is $48 billion. that's a 4.3 or 10% increase. >> yes. you're good at matt. there's two ways to do this. the budget is switched around between oco and core budget. so the hill last year in our budget request made a decision to move some items into the oco account out of the base account. we've had a lot of dialogue back and for the with them as relates to 2012. we are making -- we are shifting some of those things back into our base budget. the overall budget, especially in front line, is basically up just a little bit as we flex in afghanistan. even though it looks like the base budget is up. in fact, the base and oco together is basically five.

is up 1%. >> my question is, you know, since there are discretionary spending cuts going into effect for the first time based on the debt control budget act, you expect that to be funded in the regular budget and you expect congress to just be shifted back. >> you've watched this for a long time. this is the beginning of a process. i mean, obviously, the benefit of the oco account in general allows for all of you who report on this and for the hill to look at the cost where front line stays. to look at iraq and afghanistan and pakistan. and that's important because you better see those costs come down over time. i think that's why the idea of putting the oco part of the state department as relates to the united states is critically important. that's the benefit of the oco and i think the congress will look at that in 13. my assumption is it will continue to fund the oco in a way that they feel reflects those costs.

>> one specific thing is $626 million forses assistance in europe and central asia and -- >> 18%. >> $626 million. >> these guys will get it, but europe and oh. >> 25 that 18% is a democracy. >> yes. >> and $626 million to zero? >> we'll follow up on it. it didn't zero out. generally we're cutting all of the assistance by those three regions by whatever it is. >> again, we will have -- as the document will show, you're is down about 18% as the secretary and the president has discussed many times, we have a limited amount of money. we have a huge amount of new activities occurring.

and we need to shift resources based upon the activities that are occurring. >> it's on page 11. >> last question, anyone? yeah. >> i'm just wondering the2$.4 billion for pakistan and the core money. the core money does the kerry luger bill? >> it went from 1.5 to 1.2, i think is r. the numbers. >> okay. >> has it come down, is it staying the same level? >> the t. security system for pakistan is staying the same. is that right? staying the same. staying the same. >> thanks. >> thanks, everyone. appreciate it. >> sir? sure. sure. go ahead. >> one question. let's get the lights out. we've got $313 billion cut for global health programs. >> well, the global health