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1 1 (February 25, 2019)

handle is hein.crs/govxyl0001 and id is 1 raw text is: Conrrtesoa I serhSevc Updated February 25, 2019 U.S. Foreign Assistance What Is 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, the Treasury, and Defense (DOD); or is channeled through multilateral organizations. U.S. foreign assistance can take many forms. On average, about 2% of aid is provided as direct budget support (cash) to foreign governments. More often, 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, food, roads and other infrastructure, educational exchanges, microcredit, applied research, and military weaponry. ...Strategic development assistance is not charity-it is an essential modern tool of U.S. national security. joint Testimony of 16 Retired Generals and Flag Officers to Senate Armed Services Committee, 6/13/2017 Why Provide U.S. Foreign Assistance? 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 in developing countries may expand markets for U.S. exports, creating economic opportunities here at home. (3) Humanitarian Interests. Providing food, shelter, and other basic assistance to refugees 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, 9/7/201 7 How Much Is Spent on U.S. Foreign Assistance? In FY2017, the United States obligated an estimated $49.87 billion, about 1.2% of the total federal budget and 4.1% 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 State, Foreign Operations and Related Agencies (SFOPS) appropriations as well as aid from the Department of Agriculture, 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, FY201 7 (net obligations) Peace & Security, 34% a in ve sting iP, Peopl e, 23% ) A Humanitaan, 17% Pt at r ng Ec onmic Growh ,9% Prngr m Management, 7% overning Justly & Democratically, 6% Mu ti-Sector, 4% Source: Foreign Aid Explorer; CRS calculations. Note: FY2017 data are the most recent comprehensive data available. Excluding military assistance (for which comparable data is not available), the United States ranked first in the world in 2017 among official donors of development and humanitarian assistance in dollar terms, followed by Germany, the United Kingdom, Japan, and France. When such aid is calculated as a percentage of gross national income, however, the United Arab Emirates tops the list of major donors, while the United States ranks 25th (OECD 2017). 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 200 countries received some form of U.S. assistance in 2017, reflecting the 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 https://crsreports.congress.gov

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