About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

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).

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Already a HeinOnline Subscriber?

profiles profiles most