Foreign assistance is a fundamental component of the international affairs budget and is viewed
by many as an essential instrument of U.S. foreign policy. The focus of U.S. foreign aid policy
has been transformed since the terrorist attacks of September 11, 2001. This report provides an
overview of the U.S. foreign aid program, by answering frequently asked questions on the
subject.
There are five major categories of foreign assistance: bilateral development aid, economic
assistance supporting U.S.