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1 1 (January 18, 2022)

handle is hein.crs/govegxh0001 and id is 1 raw text is: Congressional Research Servic informing the Iegislative debate since 1914 Updated January 18, 2022 U.S. Foreign Assistance 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, malaria nets, textbooks, roads and other infrastructure, food, educational exchanges, finance, and military weaponry. On average, about 2% of aid is provided as direct budget support (cash) to foreign governments. Congress provides authorization and appropriations for foreign assistance through a number of legislative vehicles, including the Foreign Assistance Act of 1961 and annual Department of State, Foreign Operations, and Related Programs (SFOPS) appropriations laws. It also conducts regular oversight of foreign aid programs via regular reporting and notification requirements, oversight hearings, and Office of Inspector General and Government Accountability Office audits and investigations, among other mechanisms. Why Provide U.S. Foreign Assstance? Advocates of foreign assistance cite three broad and overlapping rationales behind U.S. foreign assistance: (1) National Security. Aid may help build stability and counter international threats by promoting global prosperity, public health, environmental protection, democracy and rule of law, and 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 in the United States. (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 these efforts 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. How Much Is Spent on U.S. Foreign Assistance? In FY2019, the most recent year for which comprehensive data are available, the United States obligated an estimated $48.18 billion in foreign assistance from all sources, as reported by the ForeignAssistance.gov database. This represented about 1% of the total federal budget (Figure 1) and 3.5% of discretionary budget authority. Assistance included funds pursuant to the 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, FY20 1 9 (net obligations) :&atically, 9% uroot~ing E~conomic Growth,7% Pg~rm Management, 6% MuliSetor 3% I nternational Contributions, 1% Source: ForeignAssistance.gov; CRS calculations. Note: FY20 19 = most recent comprehensive data available. Among official development assistance donors, the United States ranked first in the world in 2019 in dollar terms, but ranks near the bottom on the basis of population and economy size (OECD 2019). While some argue that the United States should increase aid levels to address global needs, others assert that U.S. contributions adequately reflect U.S. global interests or exceed an appropriate share. Who Receives U.S. Foreign Assistance? More than 180 countries and territories received some form of U.S. assistance in FY2019, reflecting the broad use of aid as a diplomatic and strategic 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 health focus countries. Top recipients include countries that face humanitarian crises brought on by natural disaster or conflict. U.S. aid is geographically dispersed-55 countries received more than $100 million of U.S. aid in 2019, and 118 received more than $10 million. The top 10 recipient countries in FY2019 accounted for approximately 34% of aid obligations (Figure 2). Historic Trends and Outlook In recent decades, foreign aid spending has varied considerably depending on policy initiatives, international crises, and budget constraints (Figure 3).

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