The $50B US aid budget: What’s in it for development?

Two weeks ago, the U.S. Congress released a $50 billion compromise appropriations bill that, if approved, would set the budget for foreign assistance in the fiscal year 2026. While 16.1% lower than the $59.7 billion enacted budget in 2025, it still substantially exceeds the Trump administration’s $30.1 billion budget request. The bill still needs the approval of the Senate and the president, and many uncertainties remain about operations and logistics in the post-USAID era. Despite all that, many in the development community already see it as a win, as it affirms the bipartisan support for foreign aid in Congress. But what does the $50 billion funding entail? First of all, not all of it will be spent on development and humanitarian projects. A sizable sum is earmarked for administration and operation costs, as well as the U.S.’ diplomatic affairs carried out by the Department of State. By our estimation, direct aid spending will likely be between $30 billion and $31 billion. This includes the $23.4 billion allocation for bilateral aid programs, around $4.5 billion in multilateral aid, and $2.6 billion for international security assistance. Aside from the reduced appropriation for the State Department, the estimated development budget is also significantly lower than the U.S.’ $65.5 billion aid disbursements in 2024 for a couple of reasons. First, the budget bill only shows newly allocated money, while the Organisation for Economic Co-operation and Development counts the actual aid spending in a given year regardless of when the money was appropriated. Second, the budget for DOS does not cover other aid activities, such as in-donor refugee costs, which are included in the budgets of other agencies, such as the Department of Health and Human Services and the Department of Homeland Security. In 2024, the U.S. spent almost $7 billion on hosting refugees on its soil. In this analysis, we provided a line-by-line breakdown of the budget to see exactly where the money will go. Title I: Department of State and Related Agency Total approved budget: $16.6 billion Of the total, $12.8 billion will cover State Department costs — from salaries, training, security, and protection of officials and personnel to embassy maintenance and construction works. The budget will also fund diplomatic missions, as well as leadership and diplomacy-related educational and cultural exchange programs, such as the Madeleine K. Albright Young Women Leaders Program and the McCain fellowships. Another $1.3 billion will go to other international commissions and agencies that support the U.S.’ foreign policy and diplomacy, such as the National Endowment for Democracy, the United States Institute of Peace, and the U.S.-China Economic and Security Review Commission. Around $1.4 billion is allotted for the U.S.’ mandatory contributions to multilateral organizations and treaties, chiefly to the United Nations’ regular budget, and another $1.2 billion for the U.N. peacekeeping operations. The U.N.’s regular budget and peacekeeping operations, or PKOs, are both mandatory payments determined by a formula based on a member country’s capacity to pay. For many years, the U.S. has been the only member state to reach the 22% ceiling for assessed contributions to the U.N. regular budget. In 2024, this was around $820 million of the U.N.’s $3.72 billion approved budget. Meanwhile, the U.S.’ contribution to PKOs accounted for 26.95% of the $5.6 billion total for 2024-2025, or around $1.5 billion. Title II: Administration of Assistance Total approved budget: $174.5 million This covers the costs for the administration and operation of aid activities, which were previously carried out by the defunct USAID and now fall within the purview of DOS. The budget line consists of two main components: $112 million for operating expenses and $62.5 million for the Office of Inspector General, which acts as an independent watchdog. Title III: Bilateral Economic Assistance Total approved budget: $23.4 billion Bilateral Economic Assistance makes up the largest portion of the budget, and is intended to fund the bulk of the U.S.’ bilateral aid programs and international humanitarian efforts. Of the total, $9.4 billion is earmarked for global health programs, which have two subheadings: • $5.9 billion for HIV/AIDS, which includes $1.25 billion for The Global Fund to Fight AIDS, Tuberculosis, and Malaria, the first tranche of the U.S.’ $4.6 billion total pledge for the multilateral partnership’s eighth replenishment cycle, and $45 million to UNAIDS, which in 2024 received $113 million from the U.S. — more than half of the agency’s $217.3 million total revenue that year. • $3.5 billion for all the other health programs: $915 million for maternal and child health, of which $300 million will go to Gavi, the Vaccine Alliance; $795 million for malaria; $615.6 million contribution to the Global Health Security Fund; $524 million for family planning and reproductive health; $378.7 million for tuberculosis; $165 million for nutrition; $108.8 million for neglected tropical diseases; and $30 million for vulnerable children. Although it may not be completely comparable with the numbers in the budget document, the latest aid data suggests that the U.S. previously spent a significantly larger sum for the control of sexually transmitted infections, accounting for virtually all of the bilateral aid disbursements in the area among the Development Assistance Committee member countries in all of the available reporting years. In 2024 alone, the U.S. spent $8 billion on STI control and prevention. National Security Investment Programs is the next largest budget line under Bilateral Economic Assistance, with $6.8 billion. It merges a wide range of funds, initiatives, and programs in different countries and regions, such as the Young African Leaders Initiative, the Caribbean Energy Initiative, and the Nita M. Lowey Middle East Partnership for Peace Act, which supports peacebuilding efforts in Israel and Palestine. The bill also enumerated several requirements for the National Security Investment Programs, one of which is that at least 15% of the total budget should be spent in Africa. International Humanitarian Assistance, which funds global lifesaving humanitarian activities, is the next largest section of the budget, with $5.4 billion. It consolidates several previously distinct overheads, such as the International Disaster Assistance and Migration and Refugee Assistance. The remaining budget under Bilateral Economic Assistance will go to government agencies and initiatives: • $1.4 billion total budget for all the other aid-disbursing U.S. government agencies, including $830 million for the Millennium Challenge Corporation, $410.5 million for the Peace Corps, and about $82 million for the Department of the Treasury for international affairs technical assistance and debt restructuring. • $205 million for the Democracy Fund, an initiative that promotes democracy globally. • $100 million for the United States Emergency Refugee and Migration Assistance Fund. Title IV: International Security Assistance Total approved budget: $8.9 billion The largest chunk of this budget line, worth $6.2 billion, will go to military financing programs, including $3.3 billion for Israel. Another $119.2 million is set aside for international military education and training. It also gives $1.4 billion for narcotics control and other law enforcement-related programs, such as combating human and wildlife trafficking and cybercrime, and another $1.2 billion for anti-terrorism, demining, and related programs. Title V: Multilateral Assistance Total approved budget: $1.9 billion This sets the budget for international financial institutions and multilateral funds, including: • $1.3 billion contribution to the World Bank Group, of which $1.07 billion is for the International Development Association, 22.8% less than the $1.38 billion enacted budget for IDA in the previous fiscal year. It also includes $150.2 million for the Global Environment Facility, a flat movement from the previously enacted budget. • $87.5 million to the European Bank for Reconstruction and Development, which did not receive funding in 2025. • $54.6 million to the African Development Bank, an almost $200 million dip from previous levels, driven by the nonallocation of budget to the African Development Fund. • $43.6 million to the Asian Development Fund, a flat movement from the previous enacted budget. Title VI: Export and Investment Assistance Total approved budget: $723.3 million Around $723.3 million is appropriated for three government agencies: $562.5 million to the U.S. International Development Finance Corporation, although when we include rescissions, the total amount appropriated for DFC in the bill jumps to $983.3 million. The U.S. Trade and Development Agency gets $87 million, and the Export-Import Bank of the United States gets $73.9 million . Title VII: General Provisions Total approved budget: -$1.6 billion The last portion of the budget bill contains several rescissions — the removal of previously awarded funds — with the largest from the Consular and Border Security Programs, worth $900 million, and MCC, worth $661.3 million. Try out Devex Pro Funding today with a free five-day trial, and explore funding opportunities from over 850 sources in addition to our analysis and news content.