The President's budget recommends cutting U.S. economic aid to Armenia from the FY2006 actual level of $69 million to a proposed FY2008 level of $35 million. The budget proposal does not include any specific assistance figures for "Nagorno Karabakh."

The proposed military aid cuts come in two broad categories, Foreign Military Financing (FMF) and International Military Education and Training (IMET). The proposed FY2008 FMF figure for Armenia is $3 million, a cut of $960,000, fully 30% less than the proposed FY2008 figure for Azerbaijan of $4.3 million. The President is seeking only $300,000 in IMET for Armenia, down $538,000 from FY2006, a dramatic cut of 64%. In sharp contrast, the White House is proposing that Azerbaijan receive $1 million in IMET, a considerable increase over their FY2006 level of $823,000 and more than three times the IMET levels being proposed for Armenia. Overall, the President's budget proposes 38% less in U.S. military aid for Armenia than for Azerbaijan.

"We are troubled, once again, both by the President's breach of his agreement with Congress to maintain parity in military aid appropriations to Armenia and Azerbaijan, as well as by the drastic cut that he is proposing in economic development assistance to Armenia," said the Armenian National Committee of America (ANCA)  Executive Director Aram Hamparian.

"We look to our friends in Congress to help restore military aid parity and to substantially increase aid levels to Armenia and "Nagorno Karabakh" that reflect Armenia's growing partnership with the United States, as well as the shared values and enduring friendship between the American and Armenian peoples."

The Foreign Operations Subcommittees of the Senate and House Appropriation Committees will now review the budget and each draft their own versions of the FY 2007 foreign assistance bill.

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