What every American should know about US foreign aid. (2023)

Foreign aid is money, technical assistance, and goods that the United States provides to other countries in support of a common US-US interest. Opinion polls consistently report that Americans believe that foreign aid accounts for about 25% of the federal budget when in fact it is less than 1%. As the richest nation in the world, the US provides more aid than any other country, but a smaller percentage of its gross domestic product (GNP) than other wealthy nations. Historically, support for foreign aid has been bipartisan.

75 years of US foreign aid has produced more fiction than fact when it comes to how US taxpayers' money is being spent.

At the beginning of an election cycle, it's important for candidates and voters to have a basic understanding of how taxpayers' money supports foreign aid.

Foreign assistance is money, technical assistance, and goods that the United States provides to other countries in support of a common interest of the United States and that country. Usually the support goes to a government agency or municipalities in that country. This assistance generally falls into one of three categories: humanitarian assistance to save lives in natural and man-made disasters; development assistance that promotes the economic, social and political development of countries and communities; and security assistance, helping to strengthen military and security forces in countries allied with the United States. The relative shares vary from year to year, but over time, humanitarian aid accounts for just under a third of the development aid budget, development aid a little over a third, and security aid about a third. In fact, very little is paid in cash, and most humanitarian and development aid funds are not given to government agencies, but are used for technical assistance and products provided by US, international, and local organizations.

Less than 1%. Opinion polls consistently report that Americans believe foreign aid accounts for about 25% of the federal budget. When asked how much it should be, they say about 10%. In fact, at $39.2 billion for fiscal 2019, foreign aid accounts for less than 1% of the federal budget.

YES, in relation to its economic size. The United States provides more aid than any other country, which is appropriate as the richest nation in the world. There is a broad international commitment that rich countries should contribute 0.7% of GDP annually to help poor countries. Five countries (Norway, Sweden, Luxembourg, Denmark and the UK) outperformed this benchmark. The average of all rich nations is about 0.3%. The United States brings up the rear with a minus of 0.2%.

BY TWO POLITICAL PARTIES. Given today's divisive politics, this is surprising. Historically, Democrats have accepted foreign aid more fully than Republicans. Take the Truman Administration, which created the Marshall Plan. Or in the 1990s, when congressional votes on foreign aid spending were tight, the budget bill received more Democratic than Republican votes. Yet every president, Democrat and Republican, down to the current resident of the White House, has been a strong supporter of foreign aid.

In fact, some of the fastest increases in foreign aid have occurred during the Republican presidency: the early administrations of Ronald Reagan and George W. Bush. Since the early 2000s, since President Bush's popular and successful programs (Millennium Challenge Corporation, President's Emergency Plan for AIDS Relief (PEPFAR), and President's Malaria Initiative) were launched, foreign aid has also now carried a Republican stamp and has received parliamentary support from both sides. Look for no more evidence of this than the recent bipartisan rejection of the Trump administration's proposals to cut the US foreign affairs budget by a third.

NO. Only about a fifth of US economic aid goes to governments. In 2018, 21% of official U.S. foreign aid went to governments, 20% to nonprofit organizations, 34% to multilateral organizations, and 25% elsewhere. When the US wants to support a country ruled by a corrupt, uncooperative, or autocratic government, US aid usually goes through private channels: NGOs, other private entities, or multilateral organizations. Liability for US financial aid is high: the US imposes strict, some would say onerous, reporting and accounting requirements on recipients of US aid, and the US Inspector General investigates abuses.

LESS TODAY. During the Cold War, when foreign aid was often based on the premise "the enemy of my enemy is my friend," some aid went to autocratic governments, regardless of the type of government. This changed fundamentally in the 1990s after the fall of the Soviet Union. However, there are countries that are “semi-democratic” at best, with autocratic elements, but receive US aid because of strong US security interests in their stability. In addition, there is cause for concern that concerns about autocracy are returning in our post-9/11 era with widespread fears of terrorism.

YES. The US government requires regular monitoring and reporting of how and if aid programs are working, and regular evaluation of results. There is concrete evidence that humanitarian and development programs achieve significant results, with the exception of foreign and security policy-oriented programs. While US aid is by no means the only driver, the track record of global development results is impressive. These results include:

BOTH. Foreign aid is usually intended to support the security and economic, social and political development of recipient countries and their peoples. At the same time, such support also advances any or all of the following overriding US interests:

YES. While the term "aid" is not universally popular, and polls show that some find our foreign policy excessive, Americans support America's active engagement in the world. Polls spanning several decades show consistent support for US aid efforts, with particularly strong support for things like improving people's health, helping women and girls, educating children, and helping poor countries develop their economies.

A 2016 Chicago Council on Global Affairs poll found that 64% of Americans believe the US should play an active role in international affairs. 78 percent supported the statement, "The United States must coordinate its power with other countries according to shared ideas about what is best for the world as a whole."

A 2017 University of Maryland Public Research Program poll found that 8 in 10 respondents supported humanitarian aid and two-thirds supported aid that helps countries in need develop their economies. Two-thirds supported the notion that "the world is so interconnected today that it is in the long-term economic interest of the United States to help developing third world countries". The service with strategic purposes receives less support.

Editor's Note: This version of this article was originally published byThe Lipon Forum.