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Updated January 18, 2022
U.S. Foreign Assistance
What Is U.S. Foreign Assistance?
How Much Is Spent on U.S. Foreign Assistance?
Foreign assistance is an instrument of U.S. policy through
In FY2019, the most recent year for which comprehensive
which the U.S. government provides resources to another
data are available, the United States obligated an estimated
country’s government, civil society, or other private sector
$48.18 billion in foreign assistance from all sources, as
entity on a grant or concessional loan basis. Most U.S.
reported by the ForeignAssistance.gov database. This
foreign assistance is administered by the U.S. Agency for
represented about 1% of the total federal budget (Figure 1)
International Development (USAID); the Millennium
and 3.5% of discretionary budget authority. Assistance
Challenge Corporation (MCC); the U.S. Departments of
included funds pursuant to the SFOPS appropriations as
State, Agriculture (USDA), the Treasury, and Defense
well as aid from USDA, DOD, Centers for Disease Control
(DOD); or is channeled through multilateral organizations.
and Prevention, and other agency appropriations.
Figure 1. Foreign Aid as a Portion of Federal Budget
U.S. foreign assistance can take many forms. Most aid is
Authority and by Sector, FY2019 (net obligations)
provided through projects implemented by U.S. and
international agencies, contractors, or nongovernmental
organizations. It takes the form of expert technical advice,
training, equipment, and construction in a wide range of
sectors (see Figure 1), and can support vaccines, malaria
nets, textbooks, roads and other infrastructure, food,
educational exchanges, finance, and military weaponry. On
average, about 2% of aid is provided as direct budget
support (cash) to foreign governments.
Congress provides authorization and appropriations for
foreign assistance through a number of legislative vehicles,
Source: ForeignAssistance.gov; CRS calculations.
including the Foreign Assistance Act of 1961 and annual
Note: FY2019 = most recent comprehensive data available.
Department of State, Foreign Operations, and Related
Programs (SFOPS) appropriations laws. It also conducts
Among official development assistance donors, the United
regular oversight of foreign aid programs via regular
States ranked first in the world in 2019 in dollar terms, but
reporting and notification requirements, oversight hearings,
ranks near the bottom on the basis of population and
and Office of Inspector General and Government
economy size (OECD 2019). While some argue that the
Accountability Office audits and investigations, among
United States should increase aid levels to address global
other mechanisms.
needs, others assert that U.S. contributions adequately
reflect U.S. global interests or exceed an appropriate share.
Why Provide U.S. Foreign Assistance?
Who Receives U.S. Foreign Assistance?
Advocates of foreign assistance cite three broad and
overlapping rationales behind U.S. foreign assistance:
More than 180 countries and territories received some form
of U.S. assistance in FY2019, reflecting the broad use of
(1) National Security. Aid may help build stability and
aid as a diplomatic and strategic tool. Top U.S. bilateral aid
counter international threats by promoting global
recipients are typically countries that are strategic allies in
prosperity, public health, environmental protection,
the Middle East, important partners in counterterrorism
democracy and rule of law, and the military readiness and
efforts, or global health focus countries. Top recipients
security of allied nations.
include countries that face humanitarian crises brought on
(2) Commercial Interests. Supporting economic growth
by natural disaster or conflict. U.S. aid is geographically
and expanding trade capacity in developing countries may
dispersed—55 countries received more than $100 million of
expand markets for U.S. exports, creating economic
U.S. aid in 2019, and 118 received more than $10 million.
opportunities and jobs in the United States.
The top 10 recipient countries in FY2019 accounted for
approximately 34% of aid obligations (Figure 2).
(3) Humanitarian Interests. Providing food, shelter, and
other basic assistance to displaced persons and other
Historic Trends and Outlook
victims of natural disasters and conflict is a reflection of
In recent decades, foreign aid spending has varied
U.S. values and global leadership.
considerably depending on policy initiatives, international
Critics of foreign aid maintain that these efforts have often
crises, and budget constraints (Figure 3).
been ineffective and wasteful. Other critics argue that
foreign aid funds would be better used to address domestic
priorities, or to reduce the federal deficit.
https://crsreports.congress.gov
U.S. Foreign Assistance
Figure 2. Top Recipients of U.S. Aid, FY2019
presence in Iraq and Afghanistan, led to reduced aid
(net obligations in $ mil ions)
funding from FY2011 to FY2013, but assistance obligations
steadied in subsequent years, largely reflecting emerging
crises and new priorities.
The Trump Administration consistently proposed deep cuts
to foreign assistance, but Congress maintained or increased
foreign aid appropriations. Focus areas included
development finance (reflected in the creation in 2019 of
the U.S. International Development Finance Corporation);
global heath; humanitarian crises, including Coronavirus
Disease 2019 (COVID-19); and countering the global
influence of China and Russia.
Source: ForeignAssistance.gov; CRS calculations.
The Biden Administration has set three cross-cutting
Note: FY2019 data are the most recent complete data available.
priorities for foreign assistance, including responding to
Military aid to Central America and efforts at Middle East
climate change through bilateral and multilateral efforts,
peace drove the aid program in the 1980s, which peaked in
addressing the effects of the COVID-19 pandemic, and
1985. The end of the Cold War and a deficit reduction law
combating rising authoritarianism. The Administration has
led to funding lows in the 1990s, though aid to Eastern
proposed increased funding for overall foreign assistance.
Europe peaked at this time, supporting the transition from
Congress plays a significant role in shaping U.S. foreign
Communism to democracy and market-led governance.
assistance. In authorizing and appropriating aid, Members
After the September 11, 2001, terrorist attacks, and the U.S.
may support Administration proposals, direct foreign
invasions of Afghanistan and Iraq, foreign aid levels began
assistance toward their own priority sectors and countries,
to rise sharply with new military and development
mandate new strategies and initiatives, and prohibit
assistance funds for Iraq and Afghanistan, creation of the
assistance for certain purposes. Such congressional
MCC, and launch of the President’s Emergency Plan for
directives affect the Administration’s ability to implement
AIDS Relief (PEPFAR). These increases elevated concern
its foreign assistance strategies and to adjust assistance to
within Congress about accountability and effective
meet emerging needs.
oversight of aid programs, particularly in conflict zones.
For more detailed information on foreign assistance, see
The Obama Administration organized its efforts under three
CRS Report R40213, Foreign Assistance: An Introduction
major aid initiatives: the Global Health Initiative (GHI), the
to U.S. Programs and Policy, and CRS Report R46935,
Global Climate Change Initiative, and the Feed the Future
Department of State, Foreign Operations, and Related
Initiative. Fiscal constraints imposed by the Budget Control
Programs: FY2022 Budget and Appropriations.
Act of 2011, together with scaled-back U.S. military
Figure 3. Foreign Aid Funding in Historic Context
(net aid obligations in bil ions of constant 2019 U.S. $)
Source: ForeignAssistance.gov; CRS calculations.
Notes: BCA = Budget Control Act of 2011; MCC = Mil ennium Chal enge Corporation; PEPFAR = President’s Emergency Plan for AIDS Relief.
Emily M. Morgenstern, Analyst in Foreign Assistance and
Foreign Policy
Nick M. Brown, Analyst in Foreign Assistance and
Foreign Policy
https://crsreports.congress.gov
U.S. Foreign Assistance
IF10183
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https://crsreports.congress.gov | IF10183 · VERSION 15 · UPDATED