July 21, 2015
U.S. Agency for International Development: An Overview
Background
Figure 1. USAID-Implemented Program Funding by
Region: FY2013
The U.S. Agency for International Development (USAID)
is the leading international humanitarian and development
Latin
Asia/
arm of the United States government. Its programs also
America,
Pacific,
support the political and strategic aims of the United States
7.4%
8.0%
by providing assistance to strategically important and
conflict countries, and assist U.S. commercial interests by
Africa,
furthering the economic growth of developing countries and
39.2%
building these countries’ capacity to participate in world
trade.
MENA,
23.5%
In FY2015, USAID is responsible for more than $20 billion
in appropriations, representing more than one-third of the
International Affairs 150 budget function and more than
half of total foreign assistance encompassed by the State,
Foreign Operations Appropriations (SFOPS) and
Af/Pak,
Europe/
international food aid appropriated under the Agriculture
19.2%
Eurasia,
Appropriations. USAID’s annual appropriations come from
2.7%

13 different budget accounts—most “solely-owned” and
Source: USAID U.S. Overseas Loans and Grants
some shared with the Department of State and other
(https://eads.usaid.gov/gbk/) and CRS calculations.
agencies, making any calculation of its current budget
Note: Af/Pak = Afghanistan/Pakistan; MENA = Middle East and
somewhat imprecise.
North Africa.
We partner to end extreme poverty and to promote
Of funds attributable to a specific sector (Figure 2), 36%
resilient, democratic societies while advancing our security
went for health programs and 19% for humanitarian efforts.
and prosperity. USAID Mission Statement
Since the early 1990s, health programs have consistently
been the largest USAID assistance sector, bolstered since
2004 by billions of dollars in transfers from the Department
USAID maintains more than 60 country and regional
of State’s President’s Emergency Program for AIDS Relief
missions that design and manage a wide range of
(PEPFAR). Humanitarian aid, too, has increased
development projects, most intended to meet specific
significantly in recent years, particularly in response to the
development objectives as formulated in a Country
2004 Indian Ocean earthquake and tsunami, the 2010 Haiti
Development Cooperation Strategy. Most projects are
earthquake, and the 2014 Ebola epidemic.
implemented through some form of grant, cooperative
agreement, or contract by one of thousands of potential
Figure 2. USAID-Implemented Program Funding by
development partners—such as U.S. nonprofit private
Sector: FY2013
voluntary organizations and other non-governmental
organizations (NGOs), U.S. for-profit contractors,
Education
universities, international organizations, and foreign partner
4%
governments, civil society, and the private sector.
Health 36%
Agriculture
USAID currently provides assistance to over 100 countries,
6%
including 78 of the 84 low and lower-middle income
countries. Foreign aid allocations reflect both recipient
needs and U.S. foreign policy priorities. Suggestive of the
Democracy
strong foreign policy purpose behind many USAID
13%
Humanitarian
activities, the top 10 recipients of USAID-implemented
19%
funds in FY2013 were Afghanistan, West Bank/Gaza,
Jordan, Pakistan, Syria (for refugees), Ethiopia, Kenya,
Environment
Other Economic
South Sudan, Nigeria, and Egypt. In FY2013, nearly 40%
3%
7%
Growth
of funds attributable to countries and regions went to sub-
11%
Saharan Africa and more than 19% went to Afghanistan

and Pakistan (Figure 1).
Source: USAID, U.S. Overseas Loans and Grants
(https://eads.usaid.gov/gbk/) and CRS calculations.
www.crs.gov | 7-5700

---

U.S. Agency for International Development: An Overview
USAID Forward
to build “country ownership” for development objectives.
Another is more resource mobilization efforts—projects to
Since 2010, under its USAID Forward agenda, the agency
develop a government’s capacity to collect revenue to
has undertaken numerous reforms. Among these:
support development. A clear path to sustainability remains
•
a work in progress.
Local Solutions. In order to help ensure that USAID
objectives are maintained after its project efforts end,
Human Resources. Despite increased number of USAID
i.e., are made more sustainable, USAID has focused
Foreign Service Officers in recent years, the agency still
increasing amounts of funding on working with local
faces shortages of specific skill sets—for example, contract
governments, civil society, and the private sector to
officers and program officers to meet the needs generated
implement development programs and develop local
by the on-going effort to work more closely with local
capacities. Excluding Afghanistan and Pakistan, 15.1%
government and private sector partners, and agricultural
of program funding went through local entities in
specialists to develop and implement Food Security
FY2014.
Initiative projects. Staff retention, especially of foreign
• Evaluation. To improve its learning process, USAID
nationals, lack of language and skill training, and a lack of
has required more evaluations and has established
travel funds to monitor projects are continuing human
improved indicators by which it can measure project
resource concerns.
progress.
•
Program Flexibility. Congressional funding mandates,
Science, Technology, and Innovation. To invigorate
specifying amounts for health, biodiversity, and other
its historic leadership in applying science and
sectors, account for as much as two-thirds of USAID’s
technology to development problems, USAID
annual program budget. These, plus a host of presidential
established a Global Development Lab and multiple
initiatives, are viewed by many observers as restricting the
programs seeking solutions from scientists, universities,
ability of USAID mission personnel to program project
and the broader public for a range of development
activities in accordance with development professional and
challenges.
partner country priorities. Some critics believe that many
• Private Sector Funding. Building on existing efforts to
legislative conditions further stymie flexibility—most food
leverage contributions to development from private
aid, for example, must be provided in the form of U.S.
resources, USAID has expanded public-private
produce and shipped on expensive U.S. freighters instead of
partnerships and increased use of its Development
purchased with cash locally near a food emergency site.
Credit Authority.
•
Scaling-Up. Innovations in science, technology, and
Policy and Budget Capacity. To restore capacities lost
development practice are usually tested with pilot programs
to the State Department in a 2006 reorganization,
in one province in one country. Seeing successful ideas
USAID re-established offices of policy and budget.
from pilot through to maturity and making them work at the
country, region, and international level likely requires a
While these reforms are on-going, most are associated with
long-term funding horizon, programming flexibility, and
former-USAID Administrator Rajiv Shah (January 2010-
mechanisms to spread ideas throughout the agency—each a
February 2015). A new administrator may bring a different
challenge in itself.
set of operational and policy priorities to the agency.
Challenges
Security. Security concerns in non-permissive
environments, such as South Sudan and Afghanistan, raise
numerous obstacles to successful project implementation,
USAID faces multiple challenges in the process of fulfilling
including restricted access to local projects for monitoring
its mission, in part due to the setting in which it often
purposes and finding contractors willing to take the risk of
operates—developing countries. Among the continuing and
establishing a local presence. In “normal” countries,
new challenges that observers have noted and the Congress
security concerns have often caused the co-location of
may track closely are the following:
USAID in isolated and extremely secure U.S. embassies
that discourage the interaction with local government and
Local Solutions. Working more closely with local
private sector considered necessary by many observers for
governments, civil society, and private business presents
successful development programs.
multiple challenges to USAID, the greatest of which is
accountability concerns as increasing amounts of U.S.
For further background on the agency and related
taxpayer dollars are directed through local entities in at
issues, see CRS Report R44117, U.S. Agency for
times corrupt societies. Efforts to mitigate risk generally
International Development (USAID): Background,
require more personnel and consequent funding to monitor
Operations, and Issues, and CRS In Focus IF10183, U.S.
local entities and build their capacities.
Foreign Assistance.
Sustainability. How can USAID ensure that project efforts
Curt Tarnoff, ctarnoff@crs.loc.gov, 7-7656
are maintained by local governments and organizations

after U.S. financial and technical support ends? One
USAID response is the Local Solutions initiative that seeks
IF10261
www.crs.gov | 7-5700

---