Study Shows Over 40% Spending Shortfall Since Start of Program; Nearly 50% of Total Shortfall During the Obama Administration

August 23, 2010

WASHINGTON, DC – Successive U.S. Administrations – both Democratic and Republican – have, since Fiscal Year 1998, expended $25 million less in aid to Nagorno Karabakh than Congress intended, according to an Armenian National Committee of America (ANCA) review showing that less than $36 million of the $61 million slated by Congress for this purpose has actually been expended.

“Armenian Americans are deeply appreciative to the U.S. Congress for its vision and generosity in initiating U.S. aid to Nagorno Karabakh, and for providing funding to help the people of Nagorno Karabakh emerge from the crisis created by Azerbaijan’s aggression, meet pressing humanitarian needs, and, develop as a free society,” said Ken Hachikian, Chairman of the ANCA. “It is precisely because of our respect for the role of Congress and the vital aims that are served by this aid that we are so troubled by the failure of successive administrations to honor the clear intent of Congress that this vital assistance program be properly funded and fully implemented.”

Click here to read the ANCA’s report – Legislative History of U.S. Assistance to Nagorno Karabakh.

The decision by the U.S. Congress in 1997, over the formal objections of the State Department, to start providing aid to Nagorno Karabakh remains a constant target for vocal attacks by the Azerbaijani government, which – both directly and through its Washington lobbyists – seeks to block the appropriation of aid for this purpose. Azerbaijani officials have argued, unsuccessfully, that, as a matter of state sovereignty, any outside aid to the people of Nagorno Karabakh must be approved by the Azerbaijani government and channeled through Baku. U.S. legislators, recognizing the political and the practical weaknesses of this reasoning, sensitive to the considerable unmet needs in Karabakh, and realizing the benefits of U.S. assistance to the search for peace in the region, have, since Fiscal Year 1998, appropriated direct aid for Nagorno Karabakh.

“Sadly, the same State Department which sought unsuccessfully to prevent Congress from starting the Nagorno Karabakh aid program back in the late 1990s, is still obstructing the clear will of Congress by spending considerably less for this vital purpose than Congressional appropriators intended,” added Hachikian. “The State Department’s willful obstruction is all the more outrageous, given the longstanding blockades by Turkey and Azerbaijan in violation of international law. Apparently, the State Department is willing to ignore the wishes of Congress and the needs of the people of Nagorno Karabakh at the same time it supports weakening or eliminating the Section 907 restriction on aid to Azerbaijan, a country which continues to both make and, as it did as recently as June 18th, act upon threats of renewed military aggression against Nagorno Karabakh.”

A conservatively estimated ANCA review of Congressional appropriations legislation, reports, and legislative history from Fiscal Year 1998 through Fiscal Year 2010 demonstrates an intent on the part of U.S. House and Senate appropriators, during the history of this aid program, to provide $61 million in assistance to Nagorno Karabakh. In the interest of providing a cautious estimate, the ANCA review did not reflect the clear objective of legislators to provide additional allocations of aid to Nagorno Karabakh in fiscal years 2000, 2001, and 2002. In the first two of these three years, appropriators did not set a specific dollar amount, but did indicate that Nagorno Karabakh should receive new aid allocations based on a legislative formula that directed the Administration to set aside a certain amount of funding to address regional conflicts in the South Caucasus, “especially those in the vicinity of Abkhazia and Nagorno-Karabakh.” In 2002, appropriators, again, did not set a specific dollar amount, but did call continued assistance to Nagorno Karabakh a “high priority.” Had such funds been included, they would likely have pushed the Nagorno Karabakh aid total to more than $70 million.

In actual practice, based on figures provided by the State Department’s Office of the Coordinator of U.S. Assistance to Europe and Eurasia to the Congressional Research Service, the amount allocated by the Clinton, Bush, and Obama Administrations to Nagorno Karabakh between FY1998 and FY2010 was $35.77 million, more than 41%, or fully $25.23 million less than the intent expressed by Congress through legislation and legislative reports. (Source of actual allocations: Congressional Research Service, “Armenia, Azerbaijan, and Georgia: Political Developments and Implications for U.S. Interests: Table 2. U.S. Humanitarian Assistance to Nagorno Karabakh,” June 30, 2010.)

The Administration’s shortfall in spending on Nagorno Karabakh was acknowledged by Matthew Bryza, President Obama’s nominee to serve as U.S. Ambassador to Azerbaijan, during his July 22, 2010 confirmation hearing before the Senate Foreign Relations Committee. During this hearing, Senator Barbara Boxer (D-CA) noted that the U.S. Congress has consistently appropriated aid to Nagorno Karabakh, including $8 million in each of the past two fiscal years. She added that: “According to the Congressional Research Service, only about $2 million was spent in Nagorno Karabakh each year,” then asked: “Do you think that is accurate? And why wasn’t the full amount spent?” Bryza responded, stating: “Based on my knowledge of assistance programs, I believe it is accurate that around $2 million of the $8 million appropriated was spent.” Click here to view the video of the full exchange on this matter.

Approximately $12 million of the $25 million shortfall in aid to Nagorno Karabakh is the result of under-spending by the Obama Administration during its first two years in office.


For Immediate Release
Media Contact: Elizabeth S. Chouldjian
Email / Tel: (202) 775-1918 / (703) 585-8254 cell
Armenian National Committee of America
1711 N Street, NW, Washington, DC 20036
Tel. (202) 775-1918 * Fax. (202) 775-5648 * Email.anca@anca.org
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