The Bush Administration request for Fiscal Year 2007 budget includes $50 million in economic aid to Armenia. According to the Armenian Assembly of America, it is $25 million less from the total amount Congress allocated to Armenia in FY 2006. Details of the Administration’s spending plan describe Armenia as “one of Eurasia’s leading performers in economic and political reform,” and noted that Armenia was recently approved to sign a Millennium Challenge Corporation (MCC) Compact. In December, the MCC approved a five-year $235.65 million Compact with Armenia. The overall request level reflects a more than $36 million drop in assistance for the Independent States of the Former Soviet Union, from $382 million in 2006 to $346 million in 2007. The Senate and House will consider the request at the Committee next meeting.
The Armenian Assembly also drew attention to the Administration’s request for asymmetrical military assistance to Azerbaijan and Armenia in the Fiscal Year 2007 budget request, arguing that the disparity would only serve to undermine stability in the South Caucasus. The Administration’s 2007 funding proposal for Foreign Military Financing (FMF) calls for $4.5 million for Azerbaijan and only $3.5 million for Armenia. The proposed budget also suggests $885,000 for Azerbaijan versus $790,000 for Armenia in International Military Education and Training (IMET) assistance. “In a repeat of events from two years ago, the Administration is once again taking an unbalanced approach in military funding to Armenia and Azerbaijan,” said Assembly Board of Directors Chairman Anthony Barsamian. He said that the Assembly, working in conjunction with the Armenian-American community and Members of Congress, will make every attempt to reverse the Administration’s attempt to provide Baku with a $1.095 million increase over Yerevan.
