Fund for Ireland aid to stay at $19.6m

Fears that the US contribution to the International Fund for Ireland would be cut next year have been allayed, as Congress has…

Fears that the US contribution to the International Fund for Ireland would be cut next year have been allayed, as Congress has reached agreement to keep the amount at $19.6 million.

The fund finances employment creation projects in Northern Ireland and Border counties.

This funding is part of the total foreign aid appropriation which has been threatened by the Republican-controlled Congress.

The Tanaiste, Mr Spring, and the Irish Embassy here have been lobbying key congressional figures to ensure there would be no cut in aid for the fund, which also receives contributions from the EU, Canada and New Zealand.

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After the IRA ceasefire in 1994 President Clinton proposed to increase the US contribution to 30 million in each of the three following years. But shortly afterwards, the Republicans took control of both Houses of Congress and attacked what they saw as an excessive foreign aid budget.

As Congress is due to rise soon, the haggling over next year's budget has become intense but Irish officials have been informed that the allocation for the International Fund has been agreed by a House-Senate conference.

The Bill approving the package should pass both Houses before the election.