How Foreign Aid Benefits the American People and Bolsters National Security

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Every year, across Republican and Democratic administrations, the United States distributes billions of dollars in foreign assistance to bolster American national security, reduce extreme poverty, promote stability and peace, support developing economies, strengthen democratic governance, combat public health threats and much more. Why do we do this, rather than investing that money at home? In short, because it is in our own self-interest.

Foreign assistance is not charity – it’s an investment in our own security and our future. Foreign aid grows the economy and creates good-paying jobs here at home, lessens the need for U.S. military entanglements overseas, bolsters our partnerships with military allies that keep us safe, and helps to solve some of the biggest challenges we’ll face in the 21st century. Faced with emerging and aggressive adversaries, a rapidly changing climate, backsliding in democratic governance, and increasing rates of conflict, the need for strong U.S. global leadership is more critical than ever.

Here’s how it benefits the American people and bolsters our national security:

  • Mitigates crises and reduces risk of military intervention: Foreign aid contributes to our national security by supporting our allies around the globe as they work to promote peace and regional stability. By working to ensure stability around the globe, we are less likely to risk American lives and treasure to respond to crises in the future. American military leaders understand this. Defense Secretary Jim Mattis, who served under Trump, warned that we’d “need to buy more ammunition” if funding for the State Department and foreign aid were cut.

  • Bolsters America in our competition with China: It’s no secret that the United States is locked in a geopolitical competition with China and other adversaries. In recent years, China has spent roughly $1 trillion on infrastructure projects in other countries as a part of its Belt and Road Initiative. That spending isn’t driven by goodwill – it’s a strategic effort to secure leverage and control over developing countries vital to its future. The United States must continue to use its foreign aid as a building block in our own alliances – or risk losing our leadership role on the world stage.

  • Promotes prosperity and self-reliance in developing countries: History has shown that, as people transition from barely surviving to everyday consumers, their newfound prosperity opens up new markets for U.S. companies and generates American jobs. Nearly 50 percent of American exports go to the developing world. And one in three domestic manufacturing jobs depends on these exports. Businesses that export goods provide one in every five American jobs. In fact, 11 of America’s top 15 trading partners were, at one time, recipients of American assistance.

While it’s clear that foreign aid can do a lot to advance American interests around the globe, American voters still have a lot of reasonable questions and doubts about these programs. Here are a few common claims you might have heard about our investments – and how best to dispel them:

  • MYTH: “We spend too much on foreign aid” Opinion polls show that most Americans believe foreign aid accounts for roughly 25 percent of the federal budget. When pushed to determine how much we should spend on aid, most participants say about 10 percent. In reality, foreign assistance usually accounts for about 1 percent of the federal budget.

  • MYTH: “Other countries aren’t doing their fair share” As a share of our economy, we contribute less than many of our allies. The world’s wealthy countries set a goal of contributing 0.7 percent of GNP annually to foreign aid. Five countries – Sweden, Norway, Luxembourg, Denmark and the Netherlands – have consistently reached or exceeded that benchmark. The United States usually contributes about 0.2 percent.

  • MYTH: “Only Democrats support foreign aid” Every President, Democratic or Republican – until Donald Trump – has been a strong and consistent supporter of foreign assistance. In fact, some of America’s most effective and celebrated programs, including George W. Bush’s lifesaving PEPFAR, were championed by Republican leaders in Congress and the White House.

  • MYTH: “Foreign aid is wasteful and inefficient” The United States carefully monitors the effectiveness, efficiency, and integrity of their assistance programs to ensure that taxpayer dollars are being used responsibly. The government imposes stringent reporting and accounting requirements on recipients of aid.

American foreign assistance has made significant and underappreciated contributions to our wellbeing and security – creating billions of dollars in wealth, preventing disastrous military conflicts, bolstering our critical alliances and burnishing America’s reputation around the globe. No tool of national power is perfect, but it is without a doubt an important and indispensable pillar of U.S. leadership around the globe – and one that should be defended by elected officials who prioritize strengthening our national security. 

Published: February 2024