JUST FACTS: USAID

What Does USAID Do?

USAID may sound like alphabet soup, but it stands for the US Agency for International Development. Last week, the Trump administration presented a plan to keep about 300 of the agency’s employees on duty. Thousands of others have been placed on leave. A federal judge has ordered a temporary halt for calling thousands of USAID staffers back to the US from their posts overseas.

Meanwhile, the agency has said that a foreign aid freeze has affected its ability to track $8.2 billion in unspent aid.

USAID is an independent agency within the executive branch but outside the president's cabinet, meaning it has some autonomy. The head of USAID is an administrator nominated by the president and confirmed by the Senate. They report to the Secretary of State. USAID spent $21.7 billion in federal fiscal year 2024, which accounted for 0.3% of the $6.8 trillion the federal government spent that year.

The agency, created in 1961 as part of the Foreign Assistance Act, administers foreign aid and economic development assistance, which has been linked to national security goals. It does this by:
- Supporting economic growth
- Supporting global health and fighting epidemics
- Building schools and supporting education
- Providing humanitarian aid after a crisis

In fiscal year (FY) 2023 — the most recent fully-reported year — Ukraine received $16.6 billion, the most of any country. This amount reflects disbursements, a measure of foreign aid that captures when money is actually transferred out of US government accounts. Foreign aid is reported by more than 20 agencies within the federal government that fund foreign assistance activities.

How much foreign aid does the US provide?

About $68.2 billion in aid was promised for fiscal year (FY) 2023, the most recent fully-reported year. The United States gives foreign assistance to provide humanitarian aid and support peace, security, and economic development around the world. Investing in global security and stability serves US national security interests by creating strategic and economic connections with other countries.

AID

Overall federal spending has risen 193.7% since FY 1980, while USAID spending has risen 106.4%. Spending priorities shift over time due to population growth, policy and program changes, and emerging issues on the global stage