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Updated January 27, 2022

U.S. Trade and Development Agency (TDA)

The U.S. Trade and Development Agency (TDA), an
independent U.S. government agency, operates under a dual
mission to advance overseas economic development and
promote U.S. commercial interests. TDA aims to link U.S.
businesses to export opportunities for priority infrastructure
projects in low- and middle-income countries by funding
project preparation and partnership building activities.
Background
TDA is authorized permanently under the Foreign
Assistance Act of 1961 (FAA), as amended (22 U.S.C.
§2421, P.L. 87-195), and it operates under the Secretary of
State's policy guidance. In 1992, Congress established
TDA as an independent agency (P.L. 102-549), but its
predecessor dates to the 1980s. The TDA Director is
appointed by the President, by and with the Senate's advice
and consent. An acting director currently leads TDA.
Programs. TDA provides grants to foreign project sponsors
(public or private entities that can make decisions and
implement projects), who are to select U.S. firms to
perform TDA-funded activities. TDA programs include
* Feasibility studies to assess technical, financial, legal,
environmental, and other aspects of projects to help
secure financing and achieve implementation.
* Pilot projects to test U.S. equipment and technology in
the foreign buyer's market to promote U.S. solutions
and identify scalability and replicability opportunities.
* Technical assistance to enhance the business
environment for U.S. exports, which may include
support for legal and regulatory reform, the
establishment of industry standards, and infrastructure-
planning activities in foreign markets.
* Training for foreign decision-makers on technology,
regulatory issues, or other matters.
* Reverse trade missions to bring foreign delegations to
the United States to meet with U.S. firms and showcase
U.S. products and technologies.
* Conferences and workshops to connect U.S. firms with
foreign project sponsors.
Requirements. The FAA directs TDA to promote United
States private sector participation in development projects
in developing and middle-income countries, with special
emphasis on economic sectors with significant United
States export potential, such as energy, transportation,
telecommunications, and environment. It also instructs
TDA to, as much as possible, require firms and other
entities to share the costs of TDA-funded project planning
and to reimburse TDA for its expenditures if project
implementation is successful.
Funding. For FY2021, TDA was appropriated $79.5
million, of which no more than $19.0 million could be used
for administrative expenses. The President's FY2022

budget request for TDA is equal to the FY2021 enacted
level. FY2022 appropriations have yet to be enacted.
In contrast, President Trump's budget requests for FY2018-
FY2021 sought an orderly closeout of TDA, based on the
premise that the private sector was better suited to carry out
TDA's mission and that other federal agencies could
continue to support U.S. exports, U.S. businesses overseas,
and international infrastructure development. Congress did
not implement these requests to eliminate TDA, and instead
funded TDA's continued operations for each of those years.
Activities. TDA provides services in response to private
sector demand, but the agency also seeks to spur export
growth in high-return activity, based on data-driven
analysis. In FY2021, TDA obligated about $69.5 million
for program activities (see Figure 1), up from $68.9 million
in FY2020 and $56.3 million in FY2019.
Figure I. TDA FY2021 Value of Obligations
Total Activities Obligation, FY2021: $69.5 million  $ US. miions
ACTWIVTIES BY PROGRAM TYPE
Technical Assistance                     537.9
Feasibility Studies          $  9
Conference/Workshop   $51
Desk Study/Definitional Missio  54.2
Reverse Trade Mission  $14
- - -  -   -   -    - --  -------  -----------  -----  -- ---  -  -- - -  -  -
ACTIVITIES BY ECONOMIC5ECTOR
Energy              .$2455
Services           $-170
ICT        SOY
Transportation     $100
Other Sectors   $7 2
ACTIVITIES BY GEOGRAPHiC REGION
Sub-Saharan Africa           $19.5
MENA, Europe & Eurasia       $14.2
Inchac:ific *  $10.5
Latin America & the Cariba 1 8.0
Worldwide            $16.4
Monitoring & Evaluati,  ;: 9
Source: CRS, based on TDA FY2021 annual report data.
Notes: Specific categories are TDA-based. ICT = Information &
Communication Technology; MENA = Middle East & North Africa.
Among its recent activities, TDA announced grant funding
for feasibility studies to expand internet access in
underserved communities (Nigeria and Southern Africa). At
the 2021 Indo-Pacific Business Forum, TDA announced
new funding commitments, including for a feasibility study
for solar power plants (the Philippines) and technical
assistance to support smart city infrastructure (Vietnam),

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