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Updated January 3, 2023
U.S. Agency for International Development: An Overview
Background
humanitarian assistance in response to natural and human-
The U.S. Agency for International Development (USAID)
induced humanitarian crises. (See CRS In Focus IF10568,
is the lead international humanitarian and development arm
Overview of the Global Humanitarian and Displacement
of the U.S. government. Established in 1961 to lead
Crisis.)
implementation of the Foreign Assistance Act of 1961, as
amended, it provides assistance to strategically important
Figure 1. USAID-Implemented Program Funding, by
countries and countries in conflict; leads global efforts to
Sector and Region: FY2022 Estimate
alleviate poverty, disease, and humanitarian need; and
assists U.S. commercial interests by supporting developing
countries’ economic growth and building their capacity to
participate in world trade.
USAID is responsible for the management of more than
$25 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. Some USAID
appropriations accounts are programmed collaboratively
with the Department of State (State), making any
calculation of its current budget imprecise. (For more on
SFOPS, see CRS Report R47070, Department of State,
Foreign Operations, and Related Programs: FY2023
Budget and Appropriations.)
USAID’s workforce totals more than 10,000, with
approximately two-thirds serving overseas. The agency
maintains more than 60 country and regional missions that
design and manage a range of projects, most intended to
meet specific development objectives as outlined in a
Country Development Cooperation Strategy. Most projects
are implemented—through a grant, cooperative agreement,
or contract—by one of thousands of foreign and U.S.
development partners, including nonprofit private voluntary
organizations and other nongovernmental organizations
Source: ForeignAssistance.gov and CRS calculations.
(NGOs), for-profit contractors, universities, international
organizations, and foreign governments.
USAID Under the Biden Administration
USAID Administrator Samantha Power, who took office in
In FY2022, the most recent year for which detailed
May 2021, set three priorities for institutional change at
estimates are available, USAID provided assistance to more
USAID in her “New Vision for Global Development”: (1)
than 130 countries. The top 10 recipients of USAID-
“broaden[ing] the coalition” by increasing the number and
managed funds in FY2022 were, in order of funding,
diversity of voices at USAID and among implementers; (2)
Ukraine, Ethiopia, Yemen, South Sudan, Somalia, Nigeria,
focusing assistance more “on the voices and needs of the
Afghanistan, Democratic Republic of Congo, Syria, and
most marginalized”; and (3) making aid more “responsive”
Sudan. Reflecting USAID’s poverty reduction mandate, 70
by better incorporating the perspectives of those on the
of the 82 World Bank-determined low- and lower-middle-
ground. Such priorities build on those of previous
income countries received USAID assistance in FY2022,
Administrations, including those articulated in the USAID
with 31% of USAID funds programmed in sub-Saharan
Transformation (Trump) and USAID Forward (Obama)
Africa (Figure 1).
initiatives.
Since the early 1990s, health was consistently the largest
Programmatically, USAID has increasingly focused on
USAID sector, bolstered since 2004 by billions of dollars in
food security—including in response to the surge in global
transfers from State’s President’s Emergency Plan for
hunger in part due to COVID-19 and Russia’s war in
AIDS Relief (PEPFAR) and since 2020 by emergency
Ukraine—climate change, and democracy and governance.
assistance to combat the COVID-19 pandemic. In FY2022,
The agency is also providing significant humanitarian,
however, humanitarian assistance surpassed health as the
development, and economic support to Ukraine.
largest sector. This follows year-over-year increases in
https://crsreports.congress.gov
U.S. Agency for International Development: An Overview
Issues for Congress
for fostering sustainable results.” However, the agency has
USAID faces numerous challenges in the process of
faced challenges in operationalizing its localization work.
fulfilling its mission, in part due to how the institution has
These include potential increased financial risk when
adapted to changes in U.S. foreign aid priorities over time.
working with local partners when compared with U.S.-
Congressional oversight and legislative issues include the
based entities, inconsistent definitions of “local entities”
following:
leading to confusion among stakeholders, and potential
conflicts between localization objectives and USAID
Budget. Unpredictable annual budgets are often seen as a
development goals. The 118th Congress may seek to assess
recurrent management challenge for USAID. There is often
USAID’s efforts to expand its use of local implementing
a significant disparity between what the Administration
partners.
requests for USAID and what Congress appropriates.
Congress often enacts final funding levels months into the
Human Resources. USAID staff are hired and managed
fiscal year due to Congress’s use of continuing resolutions,
under more than 20 mechanisms. These include direct hire
requiring offices to redistribute funds to meet global needs
staff (e.g., civil and foreign service) and nondirect hire staff
on a smaller budget or to program large sums of money in
(e.g., personal services contractors and institutional support
relatively short time periods. Further, in response to
contractors). USAID has stated that this structure does not
COVID-19 and the war in Ukraine, Congress has enacted
give enough flexibility to meet the agency’s evolving
large sums of emergency supplemental funding for USAID,
needs, and recent reports have indicated dissatisfaction
requiring the agency to rapidly program and oversee such
among contractors, in particular. Further, some experts are
funds. These disparities, delays, and sudden influxes can
concerned that the agency’s reliance on nondirect hire
pose ongoing challenges to USAID’s planning and program
positions has led to a lack of institutional knowledge and
management that Congress may seek to mitigate through
higher staff turnover. The 118th Congress may examine
USAID-specific or broader budget reforms.
these issues and consider legislative responses.
Ukraine. As of January 1, 2023, Congress has appropriated
Workforce Diversity. Administrator Power has repeatedly
nearly $36.7 billion in emergency supplemental funds for
cited diversity, equity, inclusion, and accessibility (DEIA)
accounts solely or partially administered by USAID to
as agency priorities. The agency appointed a Chief
address the war in Ukraine. Funds have been obligated for
Diversity Officer (CDO)—USAID’s first—and established
direct financial support to Ukraine; humanitarian assistance;
an office to implement USAID’s DEIA Strategic Plan,
and development assistance in the agriculture, governance,
launched in April 2022. USAID’s efforts to increase
and energy sectors, among other purposes. Some Members
workplace diversity face various challenges, including a
have expressed concern about both the scale and oversight
lack of comprehensive agency diversity data, what some
of such funding. The 118th Congress may consider whether
view as limited and narrowly focused diversity programs,
to provide additional support to Ukraine and other countries
and reported slow pace of change in the agency, among
affected by the war, including through accounts
others. The 117th Congress held hearings on USAID’s
administered by USAID. Members may also examine
DEIA efforts; the 118th Congress may engage on these
whether current oversight mechanisms are sufficient and, if
issues as part of its agency oversight activities.
not, debate potential alternatives.
Program Flexibility. Congressional funding mandates,
USAID’s Policy Role. USAID is, by statute, both an
specifying amounts for health, biodiversity, and other
“independent establishment” and under “the direct authority
sectors, account for as much as two-thirds of USAID’s
and policy guidance of the Secretary of State” (P.L. 105-
annual program budget. These mandates allow Congress to
277). Each Administration has adopted its own approach to
direct USAID’s attention and resources to issues of interest
this status. The Biden Administration granted the USAID
or concern to Members, but they may also limit USAID’s
Administrator a permanent seat on the National Security
flexibility and potentially disadvantage certain sectors.
Council (NSC), a more prominent role than under previous
Congress may consider whether legislative directives,
Administrations during which the Administrator attended
individually or as a general policymaking tool, effectively
only certain NSC meetings that addressed the agency’s
balance issue-specific programming priorities against
work and other development-related issues. While many
broader USAID strategy and U.S. foreign policy priorities.
development stakeholders welcomed this adjustment, some
Fragility. Congress enacted the Global Fragility Act in
expressed concern that the agency’s increased participation
could stretch staff capacity and require an expanded “scope
2019 (GFA, Title V of Div. J, P.L. 116-94) in an effort to
of knowledge.”
advance a more coherent approach to stabilization
Congress may consider how, if at all,
USAID’s elevated role has advanced foreign assistance vis
programming, recognizing the enduring challenge of so-
-
called fragile states and the lack of a working methodology
a-vis other U.S. foreign policy priorities. Congress may
to address state instability. The Biden Administration
seek to determine whether such participation has affected
announced country and subregional GFA priority countries
agency operations and interagency coordination.
in April 2022, though State and USAID had not finalized
Localization. USAID defines locally led development as
country/regional plans under GFA as of January 2023. The
“the process in which local actors—encompassing
118th Congress may continue to engage on these issues,
individuals, communities, networks, organizations, private
including through monitoring GFA’s implementation.
entities, and governments—set their own agendas, develop
solutions, and bring capacity, leadership, and resources to
Emily M. McCabe, Analyst in Foreign Assistance and
make those solutions a reality.” The agency asserts that
Foreign Policy
pursuing locally led development approaches is “essential
IF10261
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U.S. Agency for International Development: An Overview
Disclaimer
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https://crsreports.congress.gov | IF10261 · VERSION 13 · UPDATED