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Updated December 2, 2019
U.S. Agency for International Development: An Overview
Background
reduction mandate, 72 of the 78 World Bank-determined
The U.S. Agency for International Development (USAID)
low- and lower-middle-income countries received
is the lead international humanitarian and development arm
assistance in FY2018, with about 50% of USAID funds
of the United States government. Its programs support U.S.
attributable to specific countries and regions in sub-Saharan
political and strategic aims by providing assistance to
Africa (Figure 1).
strategically important countries and countries in conflict;
leading global efforts to alleviate poverty, disease, and
Figure 1. USAID-Implemented Program Funding, by
humanitarian need; and assisting U.S. commercial interests
Region and Sector: FY2018
by furthering developing countries’ economic growth and
building these countries’ capacity to participate in world
trade.
USAID is responsible for the implementation of more than
$20 billion in combined annual appropriations, representing
more than one-third of the funds provided in the State,
Foreign Operations (SFOPS) appropriation and
international food aid provided in the Agriculture
appropriation. USAID’s annual appropriations come from
14 budget accounts—most “solely owned” and some
programmed collaboratively with the Department of
State—making any calculation of its current budget
imprecise. (For more on SFOPS, see CRS Report R45763,
Department of State, Foreign Operations, and Related
Programs: FY2020 Budget and Appropriations.)
“On behalf of the American people, we promote and
demonstrate democratic values abroad, and advance a
free, peaceful, and prosperous world. In support of
America’s foreign policy, the U.S. Agency for International
Development leads the U.S. Government’s international
development and disaster assistance through partnerships
and investments that save lives, reduce poverty, strengthen
Source: Foreign Aid Explorer and CRS calculations.
democratic governance, and help people emerge from
humanitarian crises and progress beyond assistance.”
Since the early 1990s, health has consistently been the
— USAID Mission Statement (2019)
largest USAID sector, bolstered since 2004 by billions of
dollars in transfers from the Department of State’s
President’s Emergency Program for AIDS Relief
USAID maintains more than 60 country and regional
missions that design and manage a range of projects, most
(PEPFAR). Humanitarian assistance has also increased in
intended to meet specific development objectives as
recent years, particularly in response to both the emergence
outlined in a Country Development Cooperation Strategy.
of new natural and human-induced humanitarian crises, and
Most projects are implemented, through a grant,
ongoing protracted crises. (For more information on U.S.
cooperative agreement, or contract, by one of thousands of
responses to humanitarian crises, see CRS In Focus
foreign and U.S. development partners—such as nonprofit
IF10568, Overview of the Global Humanitarian and
private voluntary organizations and other nongovernmental
Displacement Crisis.)
organizations (NGOs), for-profit contractors, universities,
USAID Under the Trump Administration
international organizations, and foreign governments.
USAID Administrator Mark Green was sworn in on August
In FY2018, the most recent year for which detailed data are
7, 2017. Under his leadership, and in response to
available, USAID provided assistance to more than 120
Administration directives aimed at making federal agencies
countries. Foreign aid allocations reflect both recipient
more efficient, effective, and accountable, USAID has
needs and U.S. foreign policy priorities. The top 10
pursued a series of internal reforms, branded as USAID
recipients of USAID-implemented funds in FY2018 were,
Transformation. Reforms are focused in three target
in order of funding, Jordan, Afghanistan, Nigeria, Ethiopia,
areas—process and programs, organizational structure, and
South Sudan, Syria, Yemen, Democratic Republic of the
workforce management—and many build on past efforts,
Congo, Iraq, and Kenya. Reflecting USAID’s poverty
including those of the Obama and George W. Bush
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U.S. Agency for International Development: An Overview
Administrations. Underlying the proposed Transformation
“Journey to Self-Reliance,” related country development
is the “Journey to Self-Reliance,” the ultimate goal of
plans, and new financing efforts—including greater private
which is ending the need for foreign assistance by building
sector engagement—are meant to address this challenge.
country capacity to plan, finance, and implement solutions
Further, in this Administration and the last, USAID has
to address development challenges without foreign
increased its project monitoring, evaluation, and learning
assistance.
(MEL) requirements for both staff and implementing
partners to measure project progress. USAID indicates that
While most Transformation reforms are not contingent on
its MEL agenda is an iterative process, evolving to
congressional approval, some have required congressional
incorporate best practices.
notification prior to implementation. Through the
notification process, Congress has been able to weigh in on
Human Resources. USAID staff are hired and managed
actions and apply “holds” when it deems necessary (holds
under more than 20 mechanisms. These include direct hire
are nonbinding but USAID generally defers action when
staff (e.g., civil and foreign service) and nondirect hire staff
holds are in place). Congress has also shaped the reform’s
(e.g., personal services contractors and institutional support
implementation through other oversight functions and
contractors). USAID has stated that this structure is
funding requirements and restrictions. (For more
unwieldy to manage and does not give it enough flexibility
information on Transformation, see CRS Report R45779,
to meet the agency’s evolving needs. Further, some experts
Transformation at the U.S. Agency for International
are concerned that the agency’s increasing reliance on
Development (USAID).)
nondirect hire positions has led to a lack of institutional
knowledge and higher staff turnover. The USAID Office of
Issues for Congress
Inspector General also found in 2019 that staff responsible
USAID faces numerous challenges in the process of
for award and contract management often felt overworked,
fulfilling its mission, in part due to how the institution has
without the time to conduct adequate program oversight.
had to adapt to changes in U.S. foreign aid priorities over
USAID maintains that it is factoring these issues, among
time. According to authors Kopp and Naland, “The constant
others, into its workforce development plan; Congress
battles in Congress and within the administration over how
provides input into USAID workforce issues in annual
much to spend on foreign aid and how and where to spend
appropriations legislation.
it make the agency vulnerable to sharp swings in funding
and frequent reorganization.” The challenges that observers
Program Flexibility. Congressional funding mandates,
have noted and Congress may track include the following:
specifying amounts for health, biodiversity, and other
sectors, account for as much as two-thirds of USAID’s
Budget. For the third year in a row, the Administration is
annual program budget. These, plus any presidential
proposing cuts of more than 20% to the agency’s annual
initiatives, may limit USAID missions’ capacity to advance
budget. As Congress has repeatedly not accepted the
the objectives of their Country Development Cooperation
proposed budget cuts, the disparity between what is
Strategies. Some critics believe that legislative conditions
requested and what is appropriated has posed a challenge to
further stymie flexibility and cost efficiency. For example,
USAID’s planning and program implementation. The
all funding for USAID Mozambique is congressionally
appropriation of significantly more funding than
directed or earmarked by presidential initiatives, leaving the
requested—often months into the fiscal year due to
mission no discretion to program funds or assign
Congress’s use of continuing resolutions—can require
development objectives outside of those mandates.
offices to program large sums of money in relatively short
time periods.
Security. Security concerns in nonpermissive environments
raise obstacles to successful project implementation,
USAID and the State Department. The Administration’s
including restricted access to local projects for monitoring
Transformation effort has renewed a long-standing debate
purposes and finding contractors willing to take the risk of
about the USAID-State Department relationship. In crafting
establishing a local presence. Security standards passed by
the reform agenda, USAID solicited input from a number of
Congress following the 1998 bombings of the U.S.
stakeholders, which led to multiple reform proposals. These
Embassies in Kenya and Tanzania required the co-location
include making USAID the coordinator of all government
of USAID personnel in extremely secure U.S. embassies,
humanitarian and development assistance, absorbing
even in seemingly stable, safe countries. Some observers
USAID into the State Department, and creating an entirely
raise concern that this arrangement can discourage the
new aid agency, among others. As of now, no firm plans
interaction with local government and private sector
exist to drastically modify the institutional relationship, but
stakeholders that many consider necessary for successful
the debate may continue throughout Transformation’s
development programs. In 2018, USAID joined with the
implementation. USAID was never established in statute;
Departments of State and Defense to conduct a Stabilization
rather, its status in relation to the State Department has been
Assistance Review (SAR), which explores the challenges of
largely shaped by executive orders. As such, USAID’s
and best practices for working in conflict-affected areas.
status could feasibly change without congressional action.
Lessons learned include increasing data use to inform
project development and increasing burden sharing among
Sustainability and Effectiveness. How USAID ensures
other donors and local actors, among others.
that project efforts are maintained by local governments and
organizations after U.S. financial and technical support
Emily M. Morgenstern, Analyst in Foreign Assistance and
ends continues to be of interest to Congress. USAID’s
Foreign Policy
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U.S. Agency for International Development: An Overview
IF10261
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