REPATRIATION LOANS PROGRAM ACCOUNT
Proposed Appropriation Language REPATRIATION LOANS PROGRAM ACCOUNT (INCLUDING TRANSFER OF FUNDS) For the cost of direct loans, [ $678,000 ] $739,000 , as authorized: Provided , That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974. In addition, for administrative expenses necessary to carry out the direct loan program, [ $675,000 ] $711,000 , which may be [ transferred ] paid to [ , and merged with, funds made available under the heading ] "Diplomatic and Consular Programs”. ( Department of State, Foreign Operations and Related Programs Appropriations Act, 2009.)
FY 2008 Actual reflec ts the rescission of 0.81% provided by the Department of State, Foreign Operations, and Related Programs Appropriations Act, 2008 (P.L. 110 – 161, Division J). Overview The FY 2010 request will allow the Department of State to subsidize and administer the Repatriation Loans program consistent with the Credit Reform Act of 1990 and at a funding level consistent with historical requirements. This activity is funded as a direct loan program in accordance with the Credit Reform Act. The Dep artment of State receives a limited level of financing for direct loans from the Department of the Treasury in a separate financing account, disburses these funds to U.S. citizens as needed abroad, and repays the Treasury as the repatriation loans are coll ected from the public. Program Description As authorized by section 4 of the State Department Basic Authorities Act, the Department of State‘s Repatriation Loans program provides emergency loans to assist destitute Americans abroad who have no other sour ce of funds to return to the United States. They include Americans temporarily abroad who are without funds because of unforeseen events such as theft, illness, or accident; individuals suffering from serious physical or mental illness who need to return to the United States for medical care; Americans residing abroad with an alien spouse needing assistance to escape an abusive situation; and individuals caught in a disaster or emergency abroad who need to be removed from harm‘s way. Approval of a repatria tion loan is not based on an applicant‘s credit worthiness but rather destitution. State r epatriation loans are provided for temporary subsistence and transportation to a U.S. port of entry. When U.S. citizens abroad become destitute and are unable to fu nd their return home, they may enlist the assistance of the U.S. Embassy or Consulate in the country in which they are stranded. Consular officers first attempt to obtain funds for the person in need from family members and/or friends in the United States or in any other country . If this cannot be done, the post is authorized in certain circumstances to purchase transportation for direct return to the United States and to provide food and lodging for the period prior to the next available flight , via U.S. c arrier whenever possible . The recipient is required to sign a promissory note for the amount of the loan. The Department of State actively seeks repayment of these loans. To encourage repayment, the recipient‘s passport is restricted at the time the loan i s granted to allow direct return to the United States only. This restriction remains in effect until the loan is repaid. The Repatriation Loan Program directly benefits American citizens by providing them with the means to return to the United States if destitute . During FY 200 8 , 893 repatriation loan cases were processed abroad in the following regions: Africa 54 cases; the Americas 338 cases; East Asia/Pacific 185 cases; the Near East and South Central Asia 94 cases; and Europe 222 cases .
FY 2010 subsidy request of $739,000 (58.05 percent ) will provide a loan level of $1,273,040. The subsidy appropriation represents the estimated costs to the U.S. Government of loans that are unlikely to be repaid. For FY 2010, the Department is also requesting continuation of authority within the Emerge ncies in the Diplomatic and Consular Service account (EDCS) to allow the transfer of up to $1 million into this account from EDCS if loan requirements exceed the requested level. Administration ($ in thousands)
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