April 16, 2015
U.S. International Food Aid Programs
For over six decades, the United States has played a leading
role in global efforts to alleviate hunger and malnutrition
Surplus Removal or Food Aid?
and to enhance world food security through international
food aid—primarily through either the donation or sale on
The Food for Peace Act (FFPA) is the main authority for
concessional terms of U.S. agricultural commodities.
U.S. international food aid. First authorized in 1954 by
P.L. 83-480, or “P.L. 480” as it was commonly known,
The U.S. government has provided international food aid
FFPA was created in part to use government-owned surplus
through a variety of programs (Table 1 and Figure 1) and
grain stocks for international food aid purposes. The
for a variety of reasons which have evolved with foreign
United States remains one of the few countries that relies on
policy goals over the years. Current objectives include both in-kind transfers of domestically purchased commodities
emergency response to international food crises and non-
for its international food aid. Most other donor countries
emergency agricultural development assistance. U.S.
have converted primarily to cash-based food assistance.
international food aid outlays have increased gradually
U.S. reliance on in-kind food aid has become controversial
since the 1950s in current year dollars (Figure 1), but have
due to its identified inefficiencies and potential market
declined in inflation-adjusted 2013 dollars (Figure 2).
distortions compared with cash-based assistance.
Figure 1. U.S. International Food Aid Since 1955
U.S. Food Aid Has Many Restrictions
All U.S. food aid shipments are subject to a set of
requirements that potentially limit the flexibility of the U.S.
response to emergency food crises. U.S. laws require that:
• all agricultural commodities be U.S.-sourced;
• at least 50% of U.S. food aid be shipped on
U.S.-flag vessels;
• at least 20%, but not more than 30%, with at
least $350 million, of FFPA funding be
available for non-emergency food aid;
• at least 75% of in-kind food transfers
dedicated to non-emergency assistance be in
a processed, fortified, or bagged form;

• at least 50% of any bagging consist of U.S.-
Source: USAID (see Table 1 for program details).
bagged, whole-grain commodities; and
Figure 2. U.S. International Food Aid Since 1955,
• at least 15% of non-emergency food aid
Inflation-Adjusted
funding be made available to qualifying
nongovernmental organizations (NGOs) for
monetization—i.e., the process of selling
donated U.S. commodities in recipient-
country markets, often at a steep discount, to
generate cash for development programs.
The George W. Bush and Obama Administrations, along
with S. 525 of the 114th Congress, have proposed changes
to U.S. food aid programs that include at least partial
elimination of cargo preferences and monetization, while
expanding flexibility for cash-based assistance.
More Information
For more analysis, see CRS Report R41072, U.S.
International Food Aid Programs: Background and Issues.

Source: USAID historical data adjusted for inflation by CRS using a
GDP deflator from the Economic Research Service, USDA.
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U.S. International Food Aid Programs
Table 1. U.S. International Food Aid Programs
Statutory
First
Govt.
Program—Function and Funding Status
Authority
Year
Fundinga
Agcyb
Section 416(b)—Donations of government-owned (CCC)c stocks; inactive since
1949 Farm Bill
1949 M FAS,
2007 due to unavailability of CCC stocks.
(P.L. 81-439)
USDA
Food for Peace Act (FFPA), original y “P.L. 480,” renamed “Food for Peace Act”
FFPA
1954 D FAS,
by 2008 farm bill (P.L. 110-246). FFPA has four main program titles.
(P.L. 83-480)
USDA
Title I— Concessional sales—using long-term (up to 30 years), low-interest loans—of U.S.
1954
D
FAS,
commodities;d monetization proceeds fund food security and development projects. From
USDA
1955 through 1990, Title I was the primary program for distributing U.S. food aid (Figure 1);
however, no new funding has been appropriated since FY2006.
Title II—In-kindd or cash-based donations; cash or monetization proceeds fund both emergency food
1954
D
USAID
needs and non-emergency development projects in foreign countries. Since 1990, FFPA Title
II has become the largest component of U.S. international food assistance, averaging nearly
$1.7 billion or 78% of outlays (Figure 1). The 2014 farm bill continued annual authorizations
for Title II at $2.5 billion—subject to appropriations—through FY2018.
Title III—Government-to-government grants fund long-term economic development; no funding
1990
D
USAID
requests have been made since FY2002.
Title V—Farmer-to-Farmer Program provides technical assistance (not food aid) to agriculture-related
1985
D
USAID
projects in developing countries; 2014 farm bill requires minimum funding of the greater of
$15 million or 0.6% of total FFPA funds. Outlays averaged $11 million/year since 2010.
Food for Progress (CCC-funded)—U.S. commoditiesd sold on credit or donated
2014 Farm Bill
1985 M FAS,
for monetization; proceeds assist recipient countries strengthen free enterprise
(P.L. 113-79)
USDA
in agriculture sectors. By law, at least 400,000 metric tons of commodities must
be used annual y (costs vary with prices), but not more than $40 mil ion can be
used for shipping costs. Outlays averaged $188 million/yr. since 2010.
McGovern-Dole International Food for Education and Child Nutrition
2014 Farm Bill
2003 D FAS,
(IFECN)—U.S. commoditiesd, financial and technical assistance, used for
(P.L. 113-79)
USDA
school feeding and maternal, infant, and child nutrition programs in countries
identified with critical food needs. “Such sums as necessary” are authorized
subject to appropriations. Outlays averaged $189 million/yr. since 2010.
Emergency Food Security Program—Cash-based food aid program provides
Foreign
2010 D USAID
grants to eligible organizations for emergency food security needs. Funding is
Assistance Act
from USAID’s International Disaster Assistance account, authorized under the
(FAA) of 1961
FAA. Used primarily when U.S.-purchased commodities cannot arrive fast
(P.L. 87-195)
enough, or when other interventions are more appropriate than in-kind food
aid due to local conditions. Outlays averaged $357 million/yr. since 2010.
Local and Regional Procurement (LRP) Program—Awards grants to eligible
2014 Farm Bill
2014 D FAS,
organizations to purchase eligible commodities in nearby markets in response to
(P.L. 113-79)
USDA
food crises and disasters. Pilot program in the 2008 farm bill. The 2014 farm bill
authorized LRP as a permanent program with funding of $80 million per year—
subject to annual appropriations—through FY2018. No funding has been
appropriated through FY2015.
Source: Compiled by CRS.
Notes: Statutory authority derived from both the Food for Peace Act (FFPA) and the Foreign Assistance Act (FAA) is “as amended.”
a. D = discretionary funding via annual appropriations; M = mandatory funding financed through the borrowing authority of USDA’s CCC and thus not
general y subject to annual appropriations.
b. Either the Foreign Agricultural Service (FAS) of USDA or the U.S. Agency for International Development (USAID) are implementing agencies.
c. The Commodity Credit Corporation (CCC) is a U.S. government-owned and -operated corporation, created in 1933, with broad powers to support
farm income and prices and assist U.S. agricultural exports.
d. Commodities requested under FFPA Titles I and II, as well as the Food for Progress and McGovern-Dole IFECN programs, may be acquired from
CCC stocks or purchased in U.S. markets, and are subject to U.S. cargo preference requirements.
Randy Schnepf, rschnepf@crs.loc.gov, 7-4277

IF10194
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