The Cable

Budget deal delays State Department takeover of Pakistan fund

The State Department is giving the Pakistan Counterinsurgency Capability Fund (PCCF) back to the Pentagon for the rest of the year, as part of the budget deal struck between Congress and the administration to avert a government shutdown.

The budget deal took $8.5 billion away from the State Department and foreign operations for the remainder of fiscal 2011. The administration had requested $1.2 billion in the State Department's budget for PCCF this year, but the new budget deal cuts that request by $400 million and transfers the remaining $800 to the Defense Department, under what DOD calls the Pakistani Counterinsurgency Fund (PCF).

The Pentagon was in fact the original owner of that fund. But transferring the money as well as the program's management to Foggy Bottom was a key part of Secretary of State Hillary Clinton's plan to assert more State Department control of foreign military assistance programs.

The State Department may have agreed to give up the fund out of convenience. By moving the remaining $800 million of PCCF funding back to DOD, State managed to remove about 10 percent of the total $8.5 billion in budget cuts, thereby saving several other programs.

For next year's budget, State has requested $1.0 billion for PCCF, but nobody knows whether or not that money will be given to State or DOD. State perhaps has a better chance of keeping the PCCF money in fiscal 2012, as opposed to fiscal 2011, because next year the money is being requested as emergency war funding and therefore does not have to fit under the regular budget limits.

Overall, the PCCF funding is one piece of a larger puzzle in which State is competing with DOD for authorities and programs that both have a role in. If the PCCF funding is any indication, these decisions are now largely being made to fit budget realities, and are less a result of considerations over which agency is best suited to manage which issue.

"It looks like the transfer of responsibility for Pakistan counterinsurgency programs from DOD to State, which the Congress wanted to do, has been delayed," said Gordon Adams, former Office of Management and Budget director for national security spending, now a professor at American University. "Could be it was easier to fund the program this way, which sets a bad precedent for the future."

The Cable

Senate Libya debate unlikely this month

The Senate probably won't be debating the Libya war anytime soon. Top senators on both sides of the aisle are still negotiating over language for a resolution to express the Senate's view on the U.S. involvement in Libya, while the budget battle pushes the intervention to the back burner.

Congress was upset with President Barack Obama last month for committing U.S. forces to the international military intervention in Libya without seeking congressional consent or even really telling Congress about it in advance. But now, almost a month after the attack began, the appetite in the Senate for holding a full-fledged Libya debate on the floor, much less passing a resolution, just isn't there.

"I don't know if there will be time" to debate a resolution before senators leave town for a two-week recess next week, Senate Foreign Relations Committee Chairman John Kerry (D-MA) told The Cable in an interview on Tuesday.

Kerry said he was still working on a resolution with Sen. John McCain (R-AZ)  that expresses support for Obama's policy and that Sen. Carl Levin (D-MA) has also had input. But the three of them just can't seem to get together on the final language.

 "We've got the language resolved except for two words," Kerry said. He didn't say what those two words are, but several senate sources mentioned "regime change."

Regime change was the focus of the draft resolution circulated by Sen. John Cornyn (R-TX) last week. Cornyn's draft is the marker inside the GOP caucus -- but because it outwardly calls for regime change in Libya, it goes farther than the White House's policy and therefore can't be signed onto by the administration's top supporters on Libya, which include Levin and Senate Minority Whip Dick Durbin (D-IL).

Like Cornyn, Sen. Marco Rubio (R-FL) also wants the Senate to officially endorse regime change, a step Senate Majority Leader Harry Reid (D-NV) adamantly opposes.

We're told by multiple GOP senate aides that ultimately, a majority of the GOP caucus could go along with removing the phrase "regime change" from the resolution, but there's still no consensus. Meanwhile, there are also several senators who are just flat out opposed to the Libya war, including Sens. Rand Paul (R-KY) and SFRC ranking Republican Richard Lugar (R-IN).

In a Tuesday interview, Lugar told The Cable that he still had not received any clarity from the administration on the objectives, goals, or costs of the Libya war, which he said is just as important as resolving the issue of congressional authorization for the war.

"There's been no plan, no metrics for success, no budget as to how much will be spent during the conflict nor post conflict," Lugar said. "I think these are all important things and we'll continue to call for it."