If you ask the average American what percentage of the federal budget goes to foreign aid, they might guess 10%, maybe even 20%. The real number? Just over 1%. Yet this small sliver of spending packs a global punch — funding everything from emergency food in Haiti to healthcare programs in Africa. That’s why most Americans agree that it’s worth the investment.
But what exactly do we really mean when we talk about foreign assistance?
Understanding Assistance
Foreign assistance (or aid) is money, goods or services the U.S. gives other countries. That can mean sending tents and medical teams after an earthquake, funding clean water infrastructure, supporting health campaigns like PEPFAR for HIV/AIDS or even financing democratic elections and anti-corruption efforts.
In FY2023, the U.S. disbursed $71.9 billion in total foreign assistance, according to ForeignAssistance.gov. That’s roughly 1.2% of the total federal budget — a fraction that’s stayed relatively stable for the past two decades. By comparison, the U.S. defense budget in 2023 was $816.7 billion, roughly 11 times greater than our aid investments.
Where Does the Money Go?
It varies, but mostly for programs that boost regional stability, provide emergency and humanitarian response and support global health.
In FY2023, U.S. aid went to programs in 177 countries. The biggest recipient was Ukraine, receiving $16.6 billion — mostly direct budget support to help the nation survive Russia’s invasion. But Ukraine is the exception, not the rule.
Other top recipients included:
- Israel: $3.3 billion in military aid
- Jordan, Egypt and Ethiopia: combined $4.65 billion
- Global HIV/AIDS response: $10.6 billion
- Disaster relief and humanitarian aid: $15.6 billion
- Global health security: $1.5 billion
A large slice of foreign assistance — over $15.9 billion — was categorized as a “macroeconomic foundation for growth,” including that support for Ukraine. Another $2.3 billion backed democracy, governance and rule-of-law programs.
Who Delivers It?
Since the early 1960s, the U.S. Agency for International Development (USAID) has been the engine behind U.S. foreign aid, delivering around $40 billion annually. Following recent changes by the Trump Administration, USAID as an aid delivery mechanism has been eliminated and its functions reorganized under the State Department.
USAID hasn’t been the only distributor of assistance, however. The Treasury and agencies like the Millennium Challenge Corporation also contribute. In fact, at least 20 federal entities play a role.
It’s important to note that not all aid is humanitarian. Military assistance accounted for $8.2 billion last year, or just over 11% of the total aid budget. That includes foreign military financing, training and other support. Through programs like Foreign Military Sales, for example, countries can buy American-made weapons and equipment, often with U.S. government financing.
In FY2024, these sales hit $117.9 billion.
Why Does It Matter?
Foreign assistance is often framed as charity. In fact, it’s a strategic investment to prevent instability and conflicts before they start. Aid helps stabilize fragile states, contain global health threats and strengthen American allies. That means fewer pandemics, fewer refugees and fewer U.S. troops deployed to clean up the aftermath.
“You can pay now to prevent a crisis,” said former USAID Administrator Rajiv Shah, “or pay much more later when you have to intervene militarily or with humanitarian relief.”
“You can pay now to prevent a crisis,” said former USAID Administrator Rajiv Shah, “or pay much more later when you have to intervene militarily or with humanitarian relief.”
U.S. foreign aid also ensures countries looking to develop have a place to turn without the strings attached that often come from other nations. A good example of this is China, which is rapidly expanding their own international investments through programs like the Belt and Road Initiative, which leaves many recipients of their aid indebted for decades.
The Bottom Line
Foreign assistance is not a blank check to other countries. It’s a carefully tracked, strategically deployed tool that supports American values and advances U.S. interests — often at a bargain price.
It may only be 1% of the federal budget, but it’s 100% critical for building a safer, healthier and more stable world — including at home.
“Foreign aid is national security insurance,” as former Defense Secretary James Mattis put it. “If you don’t fund the State Department fully, then I need to buy more ammunition.”
“Foreign aid is national security insurance,” as former Defense Secretary James Mattis put it. “If you don’t fund the State Department fully, then I need to buy more ammunition.”
