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Foreign Aid: An Introduction to U.S. Programs and Policy

CRS Report via FAS – Foreign Aid: An Introduction to U.S. Programs and Policy – Curt Tarnoff, Specialist in Foreign Affairs; Marian L. Lawson, Specialist in Foreign Assistance Policy. June 17, 2016.

“Foreign assistance is a fundamental component of the international affairs budget and is viewed by many as an essential instrument of U.S. foreign policy. On the basis of national security, commercial, and humanitarian rationales, U.S. assistance flows through many federal agencies and supports myriad objectives , including promoting economic growth, reducing poverty, improving governance, expanding access to health care and education, promoting stability in conflictive regions, countering terrorism , promoting human rights, strengthening allies, and curbing illicit drug production and trafficking. Since the terrorist attacks of September 11, 2001, foreign aid has increasingly been associated with national security policy. At the same time, foreign aid is seen by many Americans, and Members of Congress, as an expense that the United States cannot afford given current budget deficits. In FY2015, U.S. foreign assistance, defined broadly, was estimated at $48.57 billion, or 1.3% of total federal budget authority. About 43% of this assistance was for bilateral economic development programs, including political/strategic economic assistance; 35% for military aid and non-military security assistance; 16% for humanitarian activities; and 6% to support the work of multilateral institutions. Assistance can take the form of cash transfers, equipment and commodities, infrastructure, or technical assistance, and, in recent decades, is provided almost exclusively on a grant rather than loan basis. The United Statesis the largest foreign aid donor in the world, accounting for about 24% of total official development assistance from major donor governments in 2014 (latest year for which this data is available).”

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