The White House has recommended that the annual US payment of $25 million to the International Fund for Ireland be reduced to $8.5 million in the comming year, according to sources in Washington, writes Conor O'Clery, North America Editor in New York
The proposal was made by the White House budget office in line with cuts in all government programmes not connected with national defence, which has become a priority in the war against terrorism and the prospect of military action against Iraq.
The two-thirds cut would be a major setback to the range of programmes organised by the Fund in Northern Ireland and Border areas.
The Taoiseach, Mr Ahern, will be in Washington tomorrow and will have an opportunity to lobby members of Congress for the subvention to be fully restored when the budget goes back to Capitol Hill.
Mr Richard Haass of the State Department recommended to the White House that the annual payment of $25 million continue in the coming year.
This sum was included in the draft budget sumbitted to President Bush by the Congress but amended by the White House budget office.
There has been some criticism of the annual payment in recent years, given the success of the Irish economy, but Irish and Northern Irish officials have successfully argued that the effects of the Celtic Tiger have not been not felt in Border areas, and there is still an urgent need for reconciliation programmes.
In the current climate of severe budget cuts affecting non-defence departments, it will be much more difficult this year to have the payment restored to $25 million.
The fund, launched in 1986, received $19.6 million a year during the latter part of the 1990s, and this was increased to $25 million annually three years ago.
The fund, currently chaired by Mr Willie McCarter, aims to promote economic and social advance and to encourage contact, dialogue and reconciliation between nationalists and unionists throughout Ireland.