Foreign aid isn’t just charity — it’s power. United States foreign aid serves as a strategic investment in national security, economic prosperity, and global influence.
Foreign aid, sometimes referred to as foreign assistance, falls into three basic categories: humanitarian assistance, development assistance, and security funding. Within these three categories lies a variety of goods, services, and monetary support that the U.S. provides to other countries.
Investing in economic growth and governance reforms promotes stability by addressing the root causes of conflict, strengthening diplomatic alliances, and opening new markets for American businesses. As developing nations become more stable and economically viable, they contribute to a safer and more prosperous global environment — one that benefits the U.S. as well as the recipient countries. By utilizing foreign aid as a strategic tool, the U.S. safeguards its interests while reinforcing its leadership on the world stage.
Foreign aid supports U.S. national security
Think of U.S. national security as a three-legged stool resting upon the three legs of defense, diplomacy, and development.
Defense: The military is responsible for protecting the U.S. from immediate threats and ensuring national security. However, military solutions alone cannot address the root causes of instability, such as poverty, weak governance, and political unrest. Over-reliance on defense without complementary development and diplomacy efforts can lead to prolonged conflicts and costly interventions.
Diplomacy: The State Department leads diplomatic efforts to negotiate agreements, build alliances, and resolve conflicts peacefully. Diplomacy strengthens international partnerships and ensures U.S. interests are represented on the global stage. Without diplomacy, military action becomes the default tool for addressing international crises, which is costly and often ineffective in achieving long-term stability.
Development: Economic growth, humanitarian assistance, and governance support can prevent conflicts before they start. Agencies like USAID play a crucial role in stabilizing fragile states, reducing poverty, and fostering self-reliance. By investing in development, the U.S. mitigates the conditions that fuel extremism, mass migration, and political instability, ultimately reducing the need for military intervention.
This widely used framework for understanding U.S. national security strategy emphasizes that defense, development, and diplomacy are all essential and must be balanced to maintain global stability and protect American interests. If one leg is weakened or removed, the entire structure becomes unstable, making the U.S. more vulnerable to global threats. Targeted investments in economic growth, disaster response, and governance strengthen fragile nations, reduce instability, and ultimately make the U.S. safer.
Foreign aid increases U.S. economic prosperity
As the world's largest and most globalized economy, the U.S. relies heavily on global stability to maintain its economic interests and safeguard its citizens. Foreign aid increases U.S. economic prosperity by fostering stable and growing markets for American goods and services. Many aid programs involve American businesses, which provide goods, services, and expertise to recipient nations, creating jobs at home.
International assistance programs purchase more than $2 billion in food annually from American farmers to alleviate famine and instability. As recipient nations develop stronger economies through aid-supported infrastructure projects, education, and governance reforms, they become more capable of engaging in international trade. Many of the fastest-growing markets for U.S. exports today were once major aid recipients. Thirteen of America’s top fifteen export markets were once recipients of U.S. international assistance. For example, South Korea, once a significant aid recipient, is now a top trading partner and a leading economy in Asia.
Foreign aid helps stabilize global supply chains, too, ensuring that the U.S. economy has reliable access to critical resources and goods. Many essential materials, including agricultural products, minerals, and manufactured goods, originate in developing nations. By investing in economic development and political stability through foreign aid, the U.S. reduces the risk of supply chain disruptions caused by conflict, economic collapse, or governance failures. This stability benefits American businesses and consumers by maintaining steady prices and ensuring a reliable flow of essential goods, which in turn supports economic growth and resilience.
Foreign aid also strengthens the global financial system by promoting economic stability and reducing the likelihood of financial crises that can have ripple effects on the U.S. economy. When developing nations experience economic turmoil, it can lead to capital flight, declining demand for U.S. exports, and increased migration pressures. By investing in sustainable economic development through aid programs, the U.S. mitigates these risks and fosters a more predictable and prosperous global economy. In the long run, these efforts enhance investor confidence, encourage trade, and ensure American businesses operate in a more secure and predictable international market.
Foreign aid influences global stability
The Foreign Assistance Act of 1961, which reorganized the structure of U.S. foreign assistance programs by establishing USAID, was designed to win the support of developing countries and counter the influence of the then-Soviet Union during the Cold War. The fundamental ideology held that American security is tied to the stability and economic advancements in other nations.
Historically, foreign aid has been a critical tool of U.S. influence, shaping global alliances and reinforcing strategic interests. By investing in development assistance, the U.S. strengthens economic and political ties with recipient nations, fostering goodwill and long-term cooperation. In an increasingly competitive global landscape, where countries like China and Russia use financial and development aid to expand their influence, U.S. foreign aid plays a crucial role in ensuring that the U.S. remains a leading force in global affairs.
Foreign aid also provides leverage in international negotiations. Nations that receive U.S. assistance are more likely to align with American policies and values, promoting democratic governance and economic stability. In turn, this helps prevent authoritarian regimes and extremist ideologies from taking root. For example, Kenya has received aid directed toward improving food security and health programs. In return, Kenya has become one of America’s most reliable allies in the developing world, even serving as an operations center for anti-terrorism strikes in the region.
By maintaining robust foreign aid programs, the U.S. not only fulfills humanitarian obligations, it also fortifies its own geopolitical standing and ensures it remains a dominant player on the world stage.
This article was written by Jill Fairholm, advocacy project consultant at Mormon Women for Ethical Government.