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Updated May 6, 2020


U.S. Foreign Assistance


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Foreign assistance is an instrument of U.S. policy through
which the U.S. government provides resources to another
country's government, civil society, or other private sector
entity on a grant or concessional loan basis. Most U.S.
foreign assistance is administered by the U.S. Agency for
International Development (USAID); the Millennium
Challenge Corporation (MCC); the U.S. Departments of
State, Agriculture (USDA), the Treasury, and Defense
(DOD); or is channeled through multilateral organizations.
U.S. foreign assistance can take many forms. Most aid is
provided through projects implemented by U.S. and
international agencies, contractors, or nongovernmental
organizations. It takes the form of expert technical advice,
training, equipment, and construction in a wide range of
sectors (see Figure 1), and can support vaccines and
malaria nets, textbooks, roads and other infrastructure,
food, educational exchanges, microcredit, and military
weaponry. On average, about 2% of aid is provided as
direct budget support (cash) to foreign governments.

  ...U.S. foreign assistance is not charity but a strategic
  investment in our own security that saves lives and
  keeps us safe. Joint Statement from Admiral James
  Stavridis (Ret) and General Tony Zinni (Ret.), 211012020



There are three main overlapping rationales behind U.S.
foreign assistance:
(1) National Security. Aid may help build stability and
counter international threats by promoting global prosperity
and health, environmental protection, democracy and rule
of law, and by bolstering the military readiness and security
of allied nations.
(2) Commercial Interests. Supporting economic growth
and expanding trade capacity in developing countries may
expand markets for U.S. exports, creating economic
opportunities and jobs here at home.
(3) Humanitarian Interests. Providing food, shelter, and
other basic assistance to displaced persons and other
victims of natural disasters and conflict is a reflection of
U.S. values and global leadership.
Critics of foreign aid maintain that efforts to generate
economic growth in developing countries, promote
democracy, and train and equip foreign militaries, among
other objectives, have often been ineffective and wasteful.
Other critics argue that foreign aid funds would be better
used to address domestic priorities, or to reduce the federal
deficit.


  I think it's a very simple choice that when we're
  looking at helping those in need in our country, we
  quit sending money to other countries. Senator Rand
  Paul, Senate Floor Speech, 9/7/2017

How Much      ,       rg-.t U.S,
In FY2018, the United States obligated an estimated $46.89
billion, about 1% of the total federal budget and 3.3% of
discretionary budget authority, for foreign assistance from
all sources, as reported by the U.S. Foreign Assistance
Explorer database (https://explorer.usaid.gov/). This
included aid pursuant to the Department of State, Foreign
Operations and Related Agencies (SFOPS) appropriations
as well as aid from USDA, DOD, Centers for Disease
Control and Prevention, and other agency appropriations.
Figure I. Foreign Aid as a Portion of Federal Budget
Authority and by Sector, FY2018 (net obligations)

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              .......... .......................... .



         :::::::::::::::::::::::::::::P::::t:::::::  ::: thig  Econom ik  Growth, 7%
         . ......                Maagement 7%
                            M. ...... ...



                          Inaternatisnal Contriburions, 1%

Source: Foreign Aid Explorer; CRS calculations.
Note: FY20 18 data are the most recent comprehensive data
available.
Excluding military assistance (for which comparable data
are not available), the United States ranked first in the
world in 2018 among official donors of development and
humanitarian assistance in dollar terms, followed by
Germany, te United Kingdom, France, and Japan. When
such aid is calculated as a percentage of gross national
income, however, te United Arab Emirates tops the list of
major donors, while the United States ranks at the bottom
(OECD 2018). While some argue that the United States
should increase aid levels to address global needs. oters
assert that U.S. contributions adequately reflect U.S. global
interests or exceed an appropriate share.


More than 170 countries and territories received some form
of U.S. assistance in FY2018, reflecting te broad use of
aid as a diplomatic tool. Top U.S. bilateral aid recipients are
typically countries that are strategic allies in the Middle
East, important partners in counterterrorism efforts, or
global healt focus countries. Top recipients also often
include countries tat face humanitarian crises brought on
by natural disaster or conflict. In FY20 18, the top 10


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