Foreign Aid: An Introduction to U.S. Programs and Policy

Foreign assistance is a fundamental component of the international affairs budget and is viewed by many as an essential instrument of U.S. foreign policy. The focus of U.S. foreign aid policy has been transformed since the terrorist attacks of September 11, 2001. This report provides an overview of the U.S. foreign aid program, by answering frequently asked questions on the subject. There are five major categories of foreign assistance: bilateral development aid, economic assistance supporting U.S. political and security goals, humanitarian aid, multilateral economic contributions, and military aid. Due largely to the implementation of two new foreign aid initiatives the Millennium Challenge Corporation and the HIV/AIDS Initiative bilateral development assistance has become the largest category of U.S. aid.

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