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Updated September 12, 2017
U.S. Agency for International Development: An Overview
Background
Figure 1. USAID-Implemented Program Funding by
Region: FY2016
The U.S. Agency for International Development (USAID)
is the leading international humanitarian and development
arm of the United States government. Its programs also
support the political and strategic aims of the United States
by providing assistance to strategically important and
conflict countries, and assist U.S. commercial interests by
furthering the economic growth of developing countries and
building these countries’ capacity to participate in world
trade.
In FY2017, USAID is responsible for over $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
international food aid appropriated under the Agriculture
Appropriations. USAID’s annual appropriations come from
14 different budget accounts—most “solely-owned” and
Source: USAID, https://explorer.usaid.gov and CRS calculations.
some shared with the Department of State—making any
calculation of its current budget somewhat imprecise.
Of FY2016 funds attributable to a specific sector (Figure
2), 41% went for health programs and 20% for
humanitarian efforts. Since the early 1990s, health
We partner to end extreme poverty and to promote
programs have consistently been the largest USAID
resilient, democratic societies while advancing our security
assistance sector, bolstered since 2004 by billions of dollars
and prosperity. USAID Mission Statement
in transfers from the Department of State’s President’s
Emergency Program for AIDS Relief (PEPFAR).
USAID maintains more than 60 country and regional
Humanitarian aid, too, has increased significantly in recent
missions that design and manage a wide range of projects,
years, particularly in response to the 2004 Indian Ocean
most intended to meet specific development objectives as
earthquake and tsunami, the 2010 Haiti earthquake, and the
formulated in a Country Development Cooperation
2014 Ebola epidemic.
Strategy. Most projects are implemented through some
form of grant, cooperative agreement, or contract by one of
Figure 2. USAID-Implemented Program Funding by
thousands of potential development partners—such as U.S.
Sector: FY2016
nonprofit private voluntary organizations and other non-
governmental organizations (NGOs), U.S. for-profit
contractors, universities, international organizations, and
foreign partner governments, civil society, and the private
sector.
In FY2016, the most recent year in which detailed data is
available, USAID provided assistance to over 120
countries, including 74 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 strong foreign policy purpose behind
many USAID activities, the top 10 recipients of USAID-
implemented funds in FY2016 were Afghanistan, Ethiopia,
Syria (for refugees), South Sudan, Kenya, Jordan, Nigeria,
Pakistan, Iraq, and Democratic Republic of Congo. In
FY2016, about 52% of USAID funds attributable to
countries and regions went to sub-Saharan Africa and 17%
Source: USAID, https://explorer.usaid.gov and CRS calculations.
went to the Middle East and North Africa (Figure 1).
USAID Under the Trump Administration
Administrator Mark Green was sworn in August 7, 2017.
While no new policies have been announced under his
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U.S. Agency for International Development: An Overview
leadership, in testimony he cited accountability, focusing on
missions are insufficiently staffed, especially in crisis
what works, incentivizing local capacity-building and
countries. Despite an increased number of USAID Foreign
implementation, and leveraging partnerships with the
Service Officers in recent years, the agency still faces
private sector among his guiding principles. Prior to
shortages of specific skill sets—for example, contract
Administrator Green’s confirmation, the Trump
officers and program officers to meet the needs generated
Administration proposed an FY2018 budget that would cut
by the on-going effort to work more closely with local
USAID funding by nearly 40%. Congress is likely to
government and private sector partners, and agricultural
modify the Administration’s proposal, but account and
specialists to develop and implement Food Security
programs cuts could have a major impact on how USAID is
Initiative projects. Staff retention, especially of foreign
able to address operational challenges.
nationals, and lack of language and skill training are
continuing human resource concerns.
Challenges
Program Flexibility. Congressional funding mandates,
USAID faces numerous challenges in the process of
specifying amounts for health, biodiversity, and other
fulfilling its mission, in part due to the setting in which it
sectors, account for as much as two-thirds of USAID’s
often operates—developing countries. Among the
annual program budget. These, plus a host of presidential
continuing and new challenges that observers have noted
initiatives, are viewed by many observers as restricting the
and the Congress may track closely are the following:
ability of USAID mission personnel to program project
activities in accordance with development professional and
Reform. A March 2017 executive order seeking a
partner country priorities. Some critics believe that many
comprehensive plan to reform government and reduce the
legislative conditions further stymie flexibility—most food
workforce requires agencies to propose efficiencies and
aid, for example, must be provided in the form of U.S.
program cuts. It remains to be seen whether any proposed
produce and shipped on expensive U.S. freighters instead of
changes will complement the so-called USAID Forward
purchased with cash near a food emergency site.
reforms undertaken during the Obama Administration,
which sought to improve the way USAID did business, or
Scaling-Up. Innovations in science, technology, and
take a markedly different approach. The congressional role
development practice are usually tested with pilot programs
in approving executive-initiated reforms is unclear at this
in one province in one country. Seeing successful ideas
point as well.
from pilot through to maturity and making them work at the
country, region, and international level likely requires a
USAID Status. The Administration reorganization effort
long-term funding horizon, programming flexibility, and
has stimulated multiple reform proposals from NGOs,
mechanisms to spread ideas throughout the agency. Each of
including calls for making USAID the coordinator of all
these elements represents a challenge in the current aid
government humanitarian and development assistance, for
policy and planning process.
the absorption of USAID into the Department of State, and
for creation of an entirely new aid agency, among others.
Evaluation. To improve its learning process, USAID has
Deputy Secretary of State Sullivan has said absorption into
State is not planned. Any change in USAID’s institutional
required more project evaluations and has established
improved indicators by which it can measure project
status must have congressional approval.
progress. The next step and challenge for the agency is to
ensure that lessons learned are applied to future projects so
Local Solutions. Under USAID Forward, the agency
that actual change results in how things are done.
sought, with variable success, to push an increasing amount
of assistance through local entities—15.9% of mission
Security. Security concerns in non-permissive
program funds in FY2016, down from a high of 18.6% in
environments, such as South Sudan and Afghanistan, raise
FY2015. Ensuring accountability for use of U.S. taxpayer
obstacles to successful project implementation, including
dollars by local governments, civil society, and private
restricted access to local projects for monitoring purposes
business in at times corrupt societies requires special efforts
and finding contractors willing to take the risk of
to mitigate risk, including a need for more personnel and
establishing a local presence. Even in “normal” countries,
funding in order to monitor local entities and build their
security concerns have often caused the co-location of
capacities.
USAID in isolated and extremely secure U.S. embassies
that discourage the interaction with local government and
Sustainability. How can USAID ensure that project efforts
private sector considered necessary by many observers for
are maintained by local governments and organizations
successful development programs.
after U.S. financial and technical support ends? One
USAID response is the Local Solutions initiative that seeks
to build “country ownership” for development objectives.
For further background on the agency, see CRS Report
R44117, U.S. Agency for International Development
Another is more domestic resource mobilization efforts—
(USAID): Background, Operations, and Issues.
projects to develop a government’s capacity to collect
revenue to support development. Sustainability is
increasingly viewed as a measure of aid effectiveness.
Curt Tarnoff, Specialist in Foreign Affairs
IF10261
Human Resources. A 2015 study of the stress faced by
USAID staff suggests that employees are overburdened and
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U.S. Agency for International Development: An Overview
Disclaimer
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