Should the U.S. Continue Giving Billions of Dollars in Foreign Aid? 

Last year, the U.S. spent $42 billion on foreign aid, more than any other country. Most of the money was for economic and humanitarian assistance to developing nations. The rest went toward military needs. 

Traditionally, U.S. presidents have viewed foreign aid as a way to promote American values abroad. They have also used it to prevent international issues, such as natural disasters, from turning into major crises. But President Donald Trump, who ran for office on an “America First” platform, has proposed cutting foreign aid by about one-third—to less than $30 billion. 

People who back Trump’s plan say foreign aid is a waste of taxpayer money. They say the funds don’t always solve the problems they’re meant to address. Instead, they say, corrupt leaders often use the money to keep themselves in power, not to help their people. 

Supporters of foreign aid, however, say the money has helped lift millions of people out of poverty and build up key U.S. allies. They say slashing foreign aid would leave many people, including kids, without the help they need. 

Should the U.S. continue to spend billions of dollars on foreign aid? Two experts weigh in.

Foreign aid makes up a tiny fraction of the U.S. budget. For every dollar the government collects in federal taxes, just one penny goes to help people in developing countries. But that investment in things like vaccines, providing school supplies, and helping rebuild after natural disasters has had a huge impact. In the past 25 years, the proportion of people living in extreme poverty worldwide has dropped by two-thirds. U.S. aid helped make that a reality. 

The money we spend overseas not only helps those in far-off places, it also has benefits here at home. For example, fighting disease outbreaks in poor countries helps prevent those diseases from spreading across our borders.

Foreign aid also boosts the U.S. economy and protects our national security. By helping people in poorer countries, we’re encouraging them to see Americans as allies rather than as enemies—and ultimately as potential business partners. In fact, in 2015, American businesses sold 51 percent of their products to customers in developing countries. South Korea, once a recipient of U.S. aid, is now one of America’s largest export markets.

Providing aid also reflects our American values. We are a nation of compassion and resources. We like to think we solve problems. And despite all the progress that’s been made, the world still has enormous challenges: Globally, 15 million school-age girls never set foot in a classroom, and 25 percent of kids who do go to school never learn to read. Smart U.S. foreign aid can change that.

Foreign aid can help make the world a safer and more prosperous place, and we should continue investing in it.

—Scott Morris
Senior Fellow, Center for Global Development

Since the end of World War II (1939-1945), U.S. taxpayers have watched their government spend more than $3 trillion on foreign aid. The time has come for significant cuts. Most aid projects have failed to solve the long-term problems of poverty and bad governance, and they will never succeed.

The biggest problem with foreign aid is that it often goes to countries that have troubled histories and deep-rooted problems. In many of these countries, the most basic functions of government are totally unreliable. For example, Ethiopia, Nigeria, Pakistan, and Haiti have received billions of dollars in U.S. aid in recent years but remain corrupt, unstable, or undemocratic.

Too often, foreign aid reinforces these problems, making it harder for countries to fight corruption and establish more-democratic institutions. It gives corrupt regimes money and good-paying jobs to hand out as perks. Some leaders even use the funds to target their political enemies. Sadly, we see this happening in South Sudan right now.

USAID, the agency that distributes foreign aid, was set up in the early 1960s, during the Cold War. At the time, foreign aid was a key weapon in the battle with the Soviet Union to influence the “hearts and minds” of people in developing nations. But the Cold War is over and that rationale is gone.

It’s true that U.S. foreign aid has had some notable successes, such as helping to fight malaria and halt the spread of HIV/AIDS in sub-Saharan Africa. But the overall track record is mixed at best.

At the end of the day, the goal of foreign aid agencies should be to put themselves out of business by helping countries succeed on their own. In that sense, foreign aid can’t end soon enough.

—James M. Roberts
Research Fellow, The Heritage Foundation