US Foreign Aid: How Much It Costs, Who Gets It, Why It Matters

The U.S. spends billions on foreign aid. Learn where the money goes, who benefits, and how Americans feel about it.

The Trump administration is cutting foreign aid. It has frozen funds and is shutting down the main agency that distributes them. This move creates uncertainty for aid groups and foreign governments. Foreign aid is a small but controversial part of federal spending. Pew Research Center examined government data and public opinion to understand its impact.

The U.S. plans to spend $58.4 billion on foreign aid in the 2025 fiscal year. The Congressional Budget Office released this estimate in January 2025. However, these figures may change due to new policies.

In fiscal 2023, the U.S. spent $71.9 billion on foreign aid. The previous year, spending reached nearly $74 billion. These numbers exclude most military equipment sales.

Foreign aid varies yearly. Wars, disasters, and health crises influence spending. In fiscal 2001, foreign aid totaled $24.6 billion (adjusted for inflation). From 2008 to 2023, it ranged from $52.9 billion to $77.3 billion.

The U.S. remains the world’s largest aid donor. In 2024, it accounted for over 40% of humanitarian aid tracked by the United Nations.

FOREIGN AID’S SHARE OF THE FEDERAL BUDGET

Foreign aid represents a small fraction of U.S. government spending. In fiscal 2023, it made up 1.2% of the total federal budget of $6.1 trillion. Since 2001, foreign aid has ranged from 0.7% to 1.4% of total outlays.

Foreign aid was a bigger share during the Cold War. In 1963, it accounted for 4.7% of total spending. By 1989, it had dropped to 0.6%.

WHAT IS FOREIGN AID USED FOR?

U.S. foreign aid supports humanitarian efforts, economic development, and democracy promotion. Nonetheless, these categories often overlap.

In fiscal 2023, the largest spending area was “macroeconomic foundation for growth,” at $15.9 billion. Of that, $14.4 billion supported Ukraine’s government in its war with Russia.

Other major allocations included:

  • Disaster relief and humanitarian aid:$15.6 billion (21.7%)
  • HIV/AIDS and global health programs: $10.6 billion (14.7%)
  • Pandemic prevention and public health:$1.5 billion (2.0%)
  • Democracy and governance programs: $2.3 billion (3.2%)
  • Multi-sector aid programs:$2.9 billion (4.0%)

WHO RECEIVES U.S. FOREIGN AID?

In 2023, U.S. aid reached 177 countries and 29 regions. It also supported global initiatives. Thousands of foreign governments, nonprofits, and companies received funds.

Ukraine was the largest recipient, receiving $16.6 billion. Israel got $3.3 billion in military aid. Other key recipients included Ethiopia, Jordan, Egypt, and Afghanistan.

WHO DISTRIBUTES U.S. FOREIGN AID?

The U.S. Agency for International Development (USAID) has been the primary aid agency since 1961. As of March 2024, it employed 4,675 people. In fiscal 2023, USAID distributed $43.8 billion—nearly 60% of total aid.

The State Department managed $21.3 billion (30% of the total). Other agencies, like the Treasury and Health and Human Services, handled smaller portions.

Since January 2025, the Trump administration has begun dismantling USAID. It has laid off employees and moved its functions to the State Department.

MILITARY ASSISTANCE AND ARMS SALES

Military aid accounted for $8.2 billion (11.4%) of the $71.9 billion in total disbursements in 2023. Yet, overall military assistance is much higher.

Through the Foreign Military Sales program, foreign governments buy U.S. weapons. In 2024, these sales totaled $117.9 billion, up from $80.9 billion in 2023.

Direct commercial arms sales—where foreign buyers purchase weapons directly—are also significant. In 2024, these sales reached $200.8 billion, up from $157.5 billion in 2023.

HOW DO AMERICANS FEEL ABOUT FOREIGN AID?

Public opinion on foreign aid is divided. In a 2019 Pew survey, 35% of Americans supported increasing aid. Meanwhile, 33% favored keeping it the same. Additionally, 28% wanted cuts.

A 2023 survey found that only 33% of Americans believed aid mostly benefits developing countries. Another 37% thought it had mixed effects, while 8% said it did more harm.

Americans prioritize domestic security over foreign aid. In a 2024 survey:

  • 73% said preventing terrorism should be a top U.S. foreign policy goal.
  • 64% prioritized stopping drug smuggling.
  • 52% focused on controlling infectious diseases.
  • 26% considered promoting human rights abroad a top priority.
  • 18% supported advancing democracy in other nations.

WHERE DOES FOREIGN AID ALIGN WITH U.S. PRIORITIES?

U.S. foreign aid addresses some national security concerns. In fiscal 2023:

  • $417.8 millionwent to counterterrorism.
  • $331.7 milliontargeted weapons of mass destruction.
  • $126.5 millionfunded anti-narcotics efforts.
  • $16 billionsupported global health, including HIV/AIDS and malaria programs.

THE FUTURE OF U.S. FOREIGN AID

Foreign aid remains a key part of U.S. foreign policy. But political shifts may change its funding and focus. The Trump administration’s cuts could reshape global aid programs.

Aid advocates argue that reducing assistance harms U.S. influence and security. Critics say the money should be spent domestically.

As global challenges grow, the debate over U.S. foreign aid will continue. Policymakers must balance domestic needs with international responsibilities.

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