Part 2: What exactly is "foreign aid" and who gets it?

What exactly is "foreign aid" and who gets it?

Before establishing an opinion about what should or shouldn’t happen with foreign aid, it’s vital to understand what we are talking about. Luckily, we can easily find exactly what we need to know.

To understand what foreign aid (assistance) is and how it works, a reliable source is this article produced by the Brookings Institute. In short, foreign aid consists of money, technical expertise, equipment, and supplies that the U.S. gives to other countries. The foreign aid budget is only about 1% of the federal budget; in 2024, that was $39 billion in aid. And while America provides the most aid of any nation in the world, per person we give less than other wealthy nations.

Foreign aid is most often given to other U.S. government departments/agencies, corporations, or non-governmental organizations (NGOs) for specific projects or purposes – we give a very small amount directly to other countries. To see exactly who received what in foreign aid, the United States Department of State and U.S. Agency for International Development provides this information in a clear and easy-to-read website: ForeignAssistance.gov - Dashboard. You can choose a year, and clearly see how much, where, to whom, and why aid was given.

In 2024, humanitarian assistance and economic development were the two primary sectors that received the most aid – more than $20 billion combined. Initiatives focused on the geographic region of Sub-Saharan Africa received the most funding. Military assistance received $114,805,048 (less than 1 percent) of foreign aid. 

The State Department also reports what agencies are chosen to receive foreign aid, and you may be surprised that one entity, the U.S. Agency for International Development (USAID), managed 91% of foreign aid in 2024. (The second runner-up is the Millennium Challenge Corporation, who in 2024 received $1.696 billion of the foreign aid budget – click here to see a current and past list of Boards of Directors.) 

On February 3, the USAID website was disabled. USAID is the largest manager of foreign aid and was created in 1963 for this purpose. The seizing of USAID by the State Department, and sudden removal of information about USAID, its history, and its work from the web, should alarm every American who values transparency in government.

TAKEAWAYS:

• The United States government gives 1% of the federal budget (about $39 billion last year) in foreign aid.
• Most aid in 2024 went to two sectors: humanitarian assistance and economic development
• 95% of foreign aid is routed through two U.S. government agencies: USAID and the Millennium Challenge Corporation
• Less than 1 percent of foreign aid is spent on military assistance; projects and initiatives focused on Sub-Saharan Africa received the largest percentage of aid

OTHER BLOGS IN THIS SERIES:

Part 1: Introduction

Part 3: What does foreign aid actually do?

Part 4: What is going on right now and why you should care.