How is U.S. Foreign Assistance Funded?

Legislative Authority

The authority for funding foreign assistance comes from the Foreign Assistance Act of 1961, which “promote[s] the foreign policy, security, and general welfare of the United States by assisting peoples of the world in their efforts toward economic development and internal and external security, and for other purposes.” The Foreign Assistance Act has been amended multiple times since its initial passage but never fully reauthorized.

U.S. Government Budget Overview

The government goes through the budget process annually to determine discretionary spending levels. The latest spending levels show that the State, Foreign Operations, and Related Programs Bill, which funds most humanitarian and development accounts, represents approximately 1% of the entire budget.

How U.S. Funding Is Delivered to Programs

Guided by directives from Congress, government agencies set policy and implement programs. In SFOPs, most of these agencies make contracts and provide grants to deliver funding to people and communities on the ground through implementing partners, such as NGOs in the InterAction community.

Key Foreign Assistance Accounts

International Development

• The primary development accounts are Development Assistance and the Economic Support Fund. These accounts fund programs in food security and agricultural development; democracy and governance; climate and environmental programs; water and sanitation; and basic education worldwide.

Humanitarian Assistance

• The USG provides humanitarian assistance primarily through three accounts: International Disaster Assistance, Migration and Refugee Assistance, and Emergency Refugee and Migration Assistance.

International Organizations and Programs

• The International Organizations and Programs (IO&P) account provides voluntary contributions to international organizations that advance U.S. strategic goals across a broad spectrum of critical development, humanitarian, and scientific activities. The Contribution to International Organizations (CIO) account funds the assessed contributions to the U.N.

Global Health

• The U.S. provides global health funding for maternal and child health, nutrition, family planning, vaccines, and prevention and treatment for HIV, malaria, and tuberculosis.