U.S. Agency for International Development: An Overview
link to page 1 
Updated November 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 Obligations Estimate
alleviate poverty, disease, and humanitarian need; and
assists U.S. commercial interests by supporting developing
countries’ economic growth and building such countries’
capacity to participate in world trade.
USAID was responsible for the management of more than
$40 billion in combined annual appropriations in FY2022,
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 USAID’s current budget imprecise. (For
more on SFOPS, see CRS Report R47579, Department of
State, Foreign Operations, and Related Programs: FY2024
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
Source: ForeignAssistance.gov, accessed on November 2, 2023, and
organizations and other nongovernmental organizations
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 descending order of
diversity of voices at USAID and among implementers; (2)
funding, Ukraine, Ethiopia, Yemen, South Sudan, Somalia,
focusing assistance more “on the voices and needs of the
Nigeria, Afghanistan, Democratic Republic of Congo,
most marginalized”; and (3) making aid more “responsive”
Syria, and Sudan. Reflecting USAID’s poverty reduction
by better incorporating the perspectives of those on the
mandate, 70 of the 82 World Bank-determined low- and
ground. Such priorities build on those of previous
lower-middle-income countries received USAID assistance
Administrations, including those articulated in the USAID
in FY2022, with 32% of USAID funds programmed in sub-
Transformation (Trump) and USAID Forward (Obama)
Saharan 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
faced challenges in operationalizing its localization work.
USAID faces numerous challenges as it seeks to fulfill its
These include potential increased financial risk when
mission, in part due to how the institution has adapted to
working with local partners when compared with U.S.-
changes in U.S. foreign aid priorities over time. Legislative
based entities, inconsistent definitions of “local entities”
and congressional oversight issues include the 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. Congress may seek to assess USAID’s
recurrent management challenge for USAID. There is often
efforts to expand its use of local implementing partners.
a significant disparity between what the Administration
requests for USAID and what Congress appropriates.
Human Resources. USAID staff are hired and managed
Congress often enacts final funding levels months into the
under more than 20 mechanisms. These include direct hire
fiscal year due to Congress’s use of continuing resolutions,
staff (e.g., civil and foreign service) and nondirect hire staff
requiring offices to redistribute funds to meet global needs
(e.g., personal services contractors and institutional support
on a smaller budget or to program large sums of money in
contractors). USAID has stated that this structure does not
relatively short time periods. Further, in response to
give enough flexibility to meet the agency’s evolving
COVID-19 and the war in Ukraine, Congress has enacted
needs, and recent reports have indicated dissatisfaction
large sums of emergency supplemental funding for USAID,
among contractors, in particular. Further, some experts are
requiring the agency to rapidly program and oversee such
concerned that the agency’s reliance on nondirect hire
funds. These disparities, delays, and sudden influxes can
positions has led to a lack of institutional knowledge and
pose ongoing challenges to USAID’s planning and program
higher staff turnover. Members may examine these issues
management that Congress may seek to mitigate through
and consider legislative responses.
USAID-specific or broader budget reforms.
Workforce Diversity. Administrator Power has repeatedly
Ukraine. Since February 2022, Congress has appropriated
cited diversity, equity, inclusion, and accessibility (DEIA)
nearly $36.7 billion in emergency supplemental funds for
as agency priorities. The agency appointed a Chief
accounts solely or partially administered by USAID to
Diversity Officer (CDO)—USAID’s first—and established
address the war in Ukraine. Funds have been obligated for
an office to implement USAID’s DEIA Strategic Plan,
direct financial support to Ukraine; humanitarian assistance;
launched in April 2022. USAID’s efforts to increase
and development assistance in the agriculture, governance,
workplace diversity face various challenges, including a
and energy sectors, among other purposes. Some Members
lack of comprehensive agency diversity data, what some
have expressed concern about both the scale and oversight
view as limited and narrowly focused diversity programs,
of such funding. Members may consider whether to provide
and reported slow pace of change in the agency, among
additional support to Ukraine and other countries affected
others. The 117th Congress held hearings on USAID’s
by the war, including through accounts administered by
DEIA efforts; Members in the 118th Congress have
USAID. Members may also examine whether current
continued to engage on these issues as part of their agency
oversight mechanisms are sufficient and, if not, debate
oversight activities.
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
expressed concern that the agency’s increased participation
Fragility. Congress enacted the Global Fragility Act in
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’
programming, recognizing the enduring challenge of so-
s elevated role has advanced foreign assistance vis-
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; State and USAID released country/regional
Localization. USAID defines locally led development as
plans under GFA in March 2023. Members may continue to
“the process in which local actors—encompassing
engage on these issues, including through monitoring
individuals, communities, networks, organizations, private
GFA’s implementation and using such information to
entities, and governments—set their own agendas, develop
inform annual appropriations for GFA activities.
solutions, and bring capacity, leadership, and resources to
make those solutions a reality.” The agency asserts that
Emily M. McCabe, Analyst in Foreign Assistance and
pursuing locally led development approaches is “essential
Foreign Policy
for fostering sustainable results.” However, the agency has
IF10261
https://crsreports.congress.gov
U.S. Agency for International Development: An Overview
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF10261 · VERSION 14 · UPDATED
Updated November 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 Obligations Estimate
alleviate poverty, disease, and humanitarian need; and
assists U.S. commercial interests by supporting developing
countries’ economic growth and building such countries’
capacity to participate in world trade.
USAID was responsible for the management of more than
$40 billion in combined annual appropriations in FY2022,
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 USAID’s current budget imprecise. (For
more on SFOPS, see CRS Report R47579, Department of
State, Foreign Operations, and Related Programs: FY2024
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
Source: ForeignAssistance.gov, accessed on November 2, 2023, and
organizations and other nongovernmental organizations
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 descending order of
diversity of voices at USAID and among implementers; (2)
funding, Ukraine, Ethiopia, Yemen, South Sudan, Somalia,
focusing assistance more “on the voices and needs of the
Nigeria, Afghanistan, Democratic Republic of Congo,
most marginalized”; and (3) making aid more “responsive”
Syria, and Sudan. Reflecting USAID’s poverty reduction
by better incorporating the perspectives of those on the
mandate, 70 of the 82 World Bank-determined low- and
ground. Such priorities build on those of previous
lower-middle-income countries received USAID assistance
Administrations, including those articulated in the USAID
in FY2022, with 32% of USAID funds programmed in sub-
Transformation (Trump) and USAID Forward (Obama)
Saharan 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
faced challenges in operationalizing its localization work.
USAID faces numerous challenges as it seeks to fulfill its
These include potential increased financial risk when
mission, in part due to how the institution has adapted to
working with local partners when compared with U.S.-
changes in U.S. foreign aid priorities over time. Legislative
based entities, inconsistent definitions of “local entities”
and congressional oversight issues include the 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. Congress may seek to assess USAID’s
recurrent management challenge for USAID. There is often
efforts to expand its use of local implementing partners.
a significant disparity between what the Administration
requests for USAID and what Congress appropriates.
Human Resources. USAID staff are hired and managed
Congress often enacts final funding levels months into the
under more than 20 mechanisms. These include direct hire
fiscal year due to Congress’s use of continuing resolutions,
staff (e.g., civil and foreign service) and nondirect hire staff
requiring offices to redistribute funds to meet global needs
(e.g., personal services contractors and institutional support
on a smaller budget or to program large sums of money in
contractors). USAID has stated that this structure does not
relatively short time periods. Further, in response to
give enough flexibility to meet the agency’s evolving
COVID-19 and the war in Ukraine, Congress has enacted
needs, and recent reports have indicated dissatisfaction
large sums of emergency supplemental funding for USAID,
among contractors, in particular. Further, some experts are
requiring the agency to rapidly program and oversee such
concerned that the agency’s reliance on nondirect hire
funds. These disparities, delays, and sudden influxes can
positions has led to a lack of institutional knowledge and
pose ongoing challenges to USAID’s planning and program
higher staff turnover. Members may examine these issues
management that Congress may seek to mitigate through
and consider legislative responses.
USAID-specific or broader budget reforms.
Workforce Diversity. Administrator Power has repeatedly
Ukraine. Since February 2022, Congress has appropriated
cited diversity, equity, inclusion, and accessibility (DEIA)
nearly $36.7 billion in emergency supplemental funds for
as agency priorities. The agency appointed a Chief
accounts solely or partially administered by USAID to
Diversity Officer (CDO)—USAID’s first—and established
address the war in Ukraine. Funds have been obligated for
an office to implement USAID’s DEIA Strategic Plan,
direct financial support to Ukraine; humanitarian assistance;
launched in April 2022. USAID’s efforts to increase
and development assistance in the agriculture, governance,
workplace diversity face various challenges, including a
and energy sectors, among other purposes. Some Members
lack of comprehensive agency diversity data, what some
have expressed concern about both the scale and oversight
view as limited and narrowly focused diversity programs,
of such funding. Members may consider whether to provide
and reported slow pace of change in the agency, among
additional support to Ukraine and other countries affected
others. The 117th Congress held hearings on USAID’s
by the war, including through accounts administered by
DEIA efforts; Members in the 118th Congress have
USAID. Members may also examine whether current
continued to engage on these issues as part of their agency
oversight mechanisms are sufficient and, if not, debate
oversight activities.
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
expressed concern that the agency’s increased participation
Fragility. Congress enacted the Global Fragility Act in
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’
programming, recognizing the enduring challenge of so-
s elevated role has advanced foreign assistance vis-
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; State and USAID released country/regional
Localization. USAID defines locally led development as
plans under GFA in March 2023. Members may continue to
“the process in which local actors—encompassing
engage on these issues, including through monitoring
individuals, communities, networks, organizations, private
GFA’s implementation and using such information to
entities, and governments—set their own agendas, develop
inform annual appropriations for GFA activities.
solutions, and bring capacity, leadership, and resources to
make those solutions a reality.” The agency asserts that
Emily M. McCabe, Analyst in Foreign Assistance and
pursuing locally led development approaches is “essential
Foreign Policy
for fostering sustainable results.” However, the agency has
IF10261
https://crsreports.congress.gov
U.S. Agency for International Development: An Overview
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF10261 · VERSION 14 · UPDATED