PolitiFact: Most U.S. foreign aid flows through U.S. organizations
“President Donald Trump’s budget director Mike Mulvaney confirmed recently that foreign aid is on the chopping block. … Critics of programs that aim to boost economies, increase education, and otherwise give poorer nations a leg up often say such aid is wasted through corruption and poor design. … The former head of the U.S. Agency for International Development Raj Shah wrote recently that such concerns about fraud and theft are way behind the times. … Shah said that most U.S. foreign assistance goes to private companies and nonprofits in the form of contracts and grants. According to the Congressional Budget Office, USAID, the government’s largest agency for non-military aid, spends about four percent of its funds on direct aid to foreign governments. A trade publication reported that 70 percent of the agency’s money ran through U.S.-based organizations. The use of contracts and grants has grown over the past three decades. An independent aid analyst said the general pattern at USAID applies across the other government offices that oversee foreign assistance. We rate this claim True” (Greenberg, 3/8).