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Updated August 14, 2020
U.S. Agency for International Development: An Overview
Background
low- and lower-middle-income countries received
The U.S. Agency for International Development (USAID)
assistance in FY2019, with nearly 39% of USAID funds
is the lead international humanitarian and development arm
programmed in sub-Saharan Africa (Figure 1).
of the U.S. government. Its programs support U.S. political
and strategic aims by providing assistance to strategically
Figure 1. USAID-Implemented Program Funding, by
important countries and countries in conflict; leading global
Region and Sector: FY2019 Estimate
efforts to alleviate poverty, disease, and humanitarian need;
and assisting U.S. commercial interests 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
Department of State, Foreign Operations, and Related
Programs (SFOPS) appropriation and international food aid
provided in the Agriculture appropriation. USAID’s annual
appropriations come from 12 budget accounts—most
“solely owned” and some programmed collaboratively with
the Department of State (State)—making any calculation of
its current budget imprecise. (For more on SFOPS, see CRS
Report R46367, Department of State, Foreign Operations,
and Related Programs: FY2021 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
Source: Foreign Aid Explorer and CRS calculations.
development and disaster assistance through partnerships
Notes: World accounts for programs that span multiple regions.
and investments that save lives, reduce poverty, strengthen
Since the early 1990s, health has consistently been the
democratic governance, and help people emerge from
largest USAID sector, bolstered since 2004 by billions of
humanitarian crises and progress beyond assistance.”
dollars in transfers from State’s President’s Emergency
— USAID Mission Statement (2019)
Program for AIDS Relief (PEPFAR). Humanitarian
assistance has also increased in recent years, particularly in
USAID maintains more than 60 country and regional
response to both the emergence of new natural and human-
missions that design and manage a range of projects, most
induced humanitarian crises, and ongoing protracted crises.
intended to meet specific development objectives as
(For more information on U.S. responses to humanitarian
outlined in a Country Development Cooperation Strategy.
crises, see CRS In Focus IF10568, Overview of the Global
Most projects are implemented, through a grant,
Humanitarian and Displacement Crisis.)
cooperative agreement, or contract, by one of thousands of
foreign and U.S. development partners—such as nonprofit
USAID Under the Trump Administration
private voluntary organizations and other nongovernmental
Under former USAID Administrator Mark Green (who
organizations (NGOs), for-profit contractors, universities,
served from August 2017-April 2020, after which John
international organizations, and foreign governments.
Barsa was appointed Acting Administrator), and in
response to Administration directives aimed at making
In FY2019, the most recent year for which detailed
federal agencies more efficient, effective, and accountable,
estimates are available, USAID provided assistance to more
USAID began a series of internal reforms, branded as
than 120 countries. Foreign aid allocations reflect both
USAID Transformation. Reforms target three areas—
recipient needs and U.S. foreign policy priorities. The top
process and programs, organizational structure, and
10 recipients of USAID-implemented funds in FY2019
workforce management—and many build on past efforts,
were, in order of funding, Jordan, Afghanistan, Ethiopia,
including those of the Obama and George W. Bush
Yemen, Democratic Republic of the Congo, Nigeria, Syria,
Administrations. Underlying the proposed Transformation
South Sudan, Kenya, and Iraq. Reflecting USAID’s poverty
is the “Journey to Self-Reliance,” the ultimate goal of
reduction mandate, 72 of the 79 World Bank-determined
https://crsreports.congress.gov
U.S. Agency for International Development: An Overview
which is ending the need for foreign assistance by building
including greater private sector engagement—are meant to
country capacity to plan, finance, and implement solutions
address this challenge. Further, in this Administration and
to address development challenges without foreign
the last, USAID has increased its project monitoring,
assistance. While most Transformation reforms are not
evaluation, and learning (MEL) requirements for both staff
contingent on congressional approval, Congress has shaped
and implementing partners to measure project progress.
the reform’s implementation through other oversight
USAID indicates that its MEL agenda is an iterative
functions and funding requirements and restrictions. (For
process, evolving to incorporate best practices.
more information on Transformation, see CRS Report
Human Resources. USAID staff are hired and managed
R45779, Transformation at the U.S. Agency for
under more than 20 mechanisms. These include direct hire
International Development (USAID).)
staff (e.g., civil and foreign service) and nondirect hire staff
Issues for Congress
(e.g., personal services contractors and institutional support
contractors). USAID has stated that this structure does not
USAID faces numerous challenges in the process of
give enough flexibility to meet the agency’s evolving
fulfilling its mission, in part due to how the institution has
needs. Further, some experts are concerned that the
had to adapt to changes in U.S. foreign aid priorities over
agency’s increasing reliance on nondirect hire positions has
time. According to authors Kopp and Naland, “The constant
led to a lack of institutional knowledge and higher staff
battles in Congress and within the administration over how
turnover. The USAID Office of Inspector General also
much to spend on foreign aid and how and where to spend
found in 2019 that staff responsible for award and contract
it make the agency vulnerable to sharp swings in funding
and frequent reorganization.”
management often felt overworked, without the time to
The challenges that observers
conduct adequate program oversight. USAID maintains that
have noted and Congress may track include the following:
it is factoring these issues, among others, into its workforce
Budget. Each year, the Trump Administration has proposed
development plan; Congress provides input into USAID
cuts of more than 20% to the agency’s annual budget. As
workforce issues in annual appropriations legislation.
Congress has repeatedly not accepted the proposed budget
Employee Diversity. In June 2020, the Government
cuts, the disparity between what is requested and what is
appropriated has posed a challenge to USAID’s planning
Accountability Office (GAO) found that USAID was not
fully successful in its efforts to increase the agency’s
and program implementation. The appropriation of
workforce diversity from 2002 to 2018. Further, GAO
significantly more funding than requested—often months
into the fiscal year due to Congress’
found that “promotion outcomes at USAID were generally
s use of continuing
lower for racial and ethnic minorities than for whites in
resolutions—can require offices to program large sums of
early to mid career.” USAID outlined a number of steps it
money in relatively short time periods.
would take to address these findings, including revising its
COVID-19. USAID has led U.S. foreign assistance efforts
operational policy, updating the agency’s Strategic Plan for
to “prevent, prepare for, and respond to” Coronavirus
Diversity and Inclusion, and analyzing workforce data to
Disease 2019 (COVID-19) abroad. Focus areas include
inform future diversity and inclusion work. Congress has
health assistance in coordination with the U.S. Centers for
signaled its support for USAID’s diversity efforts through
Disease Control and Prevention, humanitarian aid, and
annual appropriations legislation, among other avenues.
economic development. Congress provided supplemental
Program Flexibility. Congressional funding mandates,
funding for USAID’s work and monitors implementation
specifying amounts for health, biodiversity, and other
through oversight mechanisms. For more, see CRS In Focus
sectors, account for as much as two-thirds of USAID’s
IF11496, COVID-19 and Foreign Assistance: Issues for
annual program budget. These, plus any presidential
Congress, and CRS In Focus IF11606, COVID-19 and
initiatives, may limit USAID missions’ capacity to advance
Foreign Assistance: Congressional Oversight Framework
and Current Activities.
the objectives of their Country Development Cooperation
Strategies. Some critics believe that legislative conditions
USAID and the State Department. The Administration’s
further stymie flexibility and cost efficiency.
Transformation effort renewed a long-standing debate
Security. Security concerns in nonpermissive environments
about the USAID-State relationship. In crafting the reform
raise obstacles to successful project implementation.
agenda, USAID solicited input from stakeholders, which
Following the 1998 bombings of the U.S. Embassies in
led to multiple reform proposals. These include making
Kenya and Tanzania, Congress required the co-location of
USAID the coordinator of all government humanitarian and
USAID personnel in extremely secure U.S. embassies, even
development assistance, absorbing USAID into State, and
in seemingly stable, safe countries. Some observers raise
creating an entirely new aid agency, among others. As of
concern that this arrangement can discourage the interaction
now, no firm plans exist to drastically modify the
with local government and private sector stakeholders that
institutional relationship, but the debate may continue.
many consider necessary for successful development
USAID was never established in statute; its status in
programs. In 2018, USAID joined with the Departments of
relation to State has been largely shaped by executive order
State and Defense to conduct a Stabilization Assistance
and could feasibly change without congressional action.
Review (SAR), which offers lessons learned and best
Sustainability and Effectiveness. Congress remains
practices for working in conflict-affected areas.
interested in how USAID ensures that project efforts are
maintained by local governments and organizations after
Emily M. Morgenstern, Analyst in Foreign Assistance and
U.S. support ends. USAID’s “Journey to Self-Reliance,”
Foreign Policy
country development plans, and new financing efforts—
IF10261
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U.S. Agency for International Development: An Overview
Disclaimer
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