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U.S. Foreign Assistance


What   ls U.S. Foreign Assistance?
Foreign assistance is an instrument of U.S. foreign policy
through which the U.S. government provides resources to
strategically important countries, countries in conflict, and
other populations in need. Most U.S. foreign assistance is
administered by the U.S. Agency for International
Development  (USAID);  the U.S. Departments of State,
Agriculture, Health and Human Services, the Treasury, and
Defense; and the Millennium Challenge Corporation.
U.S. foreign assistance can take many forms. Most aid is
provided on a grant basis through projects implemented by
nonprofit organizations, businesses, U.S. government
agencies, foreign governments, and multilateral
organizations. Projects may support assets such as vaccines,
malaria nets, food, weapons and other military hardware,
textbooks, and roads and other infrastructure. It may also
include interventions like expert technical advice, training,
engineering advice, and research products, among others, in
a wide range of sectors (see Figure 1). Aid may also be
provided as direct budget support (cash) to foreign
governments  or multilateral organizations.
Congress authorizes and appropriates foreign assistance
through legislation, including the Foreign Assistance Act of
1961, as amended, and annual Department of State, Foreign
Operations, and Related Programs (SFOPS) appropriations
laws. It also conducts oversight of foreign aid programs via
reporting and notification requirements, oversight hearings,
and examination of Office of Inspector General and
Government  Accountability Office audits and
investigations, among other means.
Rat onales  for Providing  U.S. Foreign  Assistance
Members  of Congress, executive branch officials, and other
policymakers present a range of arguments for and against
U.S. foreign assistance. Advocates cite three broad and
overlapping rationales in support of foreign aid:
(1) National Security. Aid may help build stability and
counter international threats by promoting global
prosperity, public health, environmental protection,
democracy  and the rule of law, and the military readiness
and security of U.S. partners and allies.
(2) Commercial  Interests. Supporting economic growth
and trade integration may expand markets for U.S. exports,
fostering U.S. economic opportunity and jobs.
(3) U.S. Values and Goodwill. Meeting basic needs such
as food, shelter, and medicine of vulnerable populations,
and broadly fighting global poverty, may effectively reflect
U.S. values and global leadership.
Critics maintain that foreign assistance 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.


Updated November   1, 2024


How   Much  Is Spent  on U.S. ForeIgn  Assistance?
In FY2022, the most recent year for which near-
comprehensive  data are available (and used throughout this
In Focus for that reason), the United States obligated an
estimated $70.3 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 3.9% of discretionary budget authority.
Assistance included funds pursuant to the SFOPS
appropriations and aid from other agency appropriations.
Figure  I. Foreign Aid as a Portion of Federal Budget
Authority  and by Sector, FY2022


                           Humanitarian Assistance, 25%
                           Health, 21%
                           Economic Development, 18%
                      S    Peace Ind securlty, 18%
                           Multi sector, V%
                           Program Support, 6%
                           Democracy/Governance 3%
                           Education and Social Services, 2%
                           Environment, 1%
   Net obligations
Source: Foreignassistance.gov data accessed on October 17, 2024;
CRS calculations.
According to the Organization for Economic Cooperation
and Development,  among  official development assistance
donors, the United States ranked first in the world in 2022
in dollar terms, but near the bottom when assistance levels
were presented as a percentage of gross national income.

Who   Receives  U.S. Foreign  Ass  stance?
Figure 2. Top  Recipients of U.S. Aid, FY2022

       Ukraine                                  $12,433
       Israel           $3,309
       Ethiopia      $2,190
   Afghanistan     $1,389
       Yemen       $1,376
       Egypt       $1,369
       Jordan      $1,189
       Nigeria     $1,155
       Somalia     $1,137              Net obligations
   South Sudan     $1,124              $ U.S. in millions

Source: Foreignassistance.gov data accessed on October 17, 2024;
CRS calculations.
Approximately  180 countries and territories received U.S.
assistance in FY2022, reflecting the broad use of aid as a
diplomatic and strategic tool. Top U.S. bilateral aid
recipients are typically strategic allies, countries in
humanitarian crisis, counterterrorism partners, or global

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