Wall Street Journal - December 15, 2003
Michael Waldholz, Staff Reporter of The Wall Street Journal

The U.S. is expected to spend about $2.2 billion to help battle AIDS overseas in the 2004 budget Congress is expected to soon pass, a 50% increase over the $1.46 billion being spent this fiscal year. But that level of spending is only one third of the $6.3 billion the United Nations and others say could be put to use this year, and not quite half of the $4.6 billion that is likely to be spent in developing nations.

The Kaiser report, to be released Monday, follows news last week that President Bush is expected early next year to request a smaller funding increase in fiscal 2005 for the war on global AIDS than many had expected. AIDS advocates say they are hearing that Mr. Bush will seek about $2.7 billion in 2005 for overseas AIDS projects. The advocates say that is less than expected since President Bush promised in his state of the union speech last January to spend $15 billion over five years in new funding to fight AIDS in 11 poor nations.

The $2.7 billion "is about $1 billion short of what the U.S. should be committing, based on the amount of money that could be spent in these countries in 2005," says Jamie Drummond, executive director of DATA (Debt AIDS Trade Africa), an advocacy group founded by Bono, the rock performer.

Mr. Drummond says his understanding is that the 2005 budget will allocate only $200 million more for the Global Fund to Fight AIDS, Tuberculosis and Malaria. "That's low-balling what the Global Fund needs," Mr. Drummond said.

Trent Duffy, a White House spokesman, said he couldn't comment on the amount activists are saying will be budgeted next year. But he did acknowledge that ramping up spending by $500 million or so in 2005 wouldn't be inconsistent with the president's promise. "The president will keep to his commitment" to triple funding over the next five years, Mr. Duffy said, adding that the administration believes the countries don't yet have the medical professionals and programs to absorb a larger increase in funds.

The Kaiser report says the global AIDS effort can make use of $10.7 billion in 2005. Given the expected U.S. commitment, total spending from the U.S., other donor nations, foundations and affected countries will likely be about half that.

The Kaiser Foundation points out that in 2003 the U.S. gave $1.06 billion in overseas AIDS funding, which doesn't count about $500 million to support research and for treatment and prevention efforts against other infectious disease. The next largest amount in 2003 was $432 million from the U.K; Germany spent $134 million and Japan spent $95 million.

Write to Michael Waldholz at mike.waldholz@wsj.com

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