The new US government’s move to close down the US Agency for International Development (USAID) will raise questions about which organizations will receive multibillion-dollar funds for US foreign programs when the 90-day freeze on US international aid spending ends, reports The Wall Street Journal (WSJ)
WSJ reporters have reviewed the final financial statements for 2023 US international assistance programs, calculating that a total of $64.69 billion—about 0.24 percent of the US national income—was allocated for these purposes from the budget. About two-thirds of this spending was made by USAID, whose budget for international programs was $42.45 billion.
The second largest organization that sent funds through international assistance programs was the US State Department ($18.89 billion). Also, the State Department spent money on military aid to various states and on setting up refugee camps.
In 2023, the US Treasury Department spent $2.18 billion on international programs, while the Department of Health and Human Services spent $1.9 billion.
Two US federal agencies, the Millennium Challenge Corporation ($0.77 billion) and the Peace Corps ($0.46 billion), have become the main administrators of American aid.
The largest items in US international aid spending were investments in economic development in various countries ($20.6 billion), humanitarian assistance ($14.43 billion), peace and security ($10.74 billion), healthcare programs ($9.85 billion), and support for democracy and human rights in other states ($2.64 billion).
The WSJ noted that the key principle for allocating funds was the US strategic interest in its presence in a particular region. Until 2022, the main recipient of funds within the framework of US international programs was Israel, followed by Ukraine.
The officials of US President Donald Trump’s administration are assessing all programs for compliance with his declared “America First” principle, but even with a review of priorities, the country will continue to spend heavily on international aid, the WSJ noted.
It is not yet known which US government agency will receive the USAID “inheritance.”