	Introduction

U.S. foreign assistance is carried out by the State Department, the U.S. Agency for International Development (USAID), the Department of Defense (DOD) and several other federal government agencies. There is no overarching mechanism in place to coordinate or evaluate the broad range of foreign assistance activities. Nor is there consensus about the need for better coordination, though congressional interest in the issue appears to be increasing. 2410 , the Foreign Relations Authorization Act for Fiscal Years 2010 and 2011; H.R. 2139 , the Initiating Foreign Assistance Reform Act of 2009; and S. 1524 , the Foreign Assistance Revitalization and Accountability Act of 2009. This report discusses the many agencies involved with U.S. foreign assistance, the mechanisms currently in place to coordinate foreign aid programs, particularly those related to development assistance, and agency coordination issues that Congress may consider as part of foreign assistance reform. Recent Trends in Foreign Assistance

The Foreign Assistance Act of 1961 (FAA), as amended, authorized the consolidation of most foreign assistance programs under a new agency that would become the U.S. Agency for International Development (USAID). First, total U.S. foreign assistance spending across appropriations bills has grown considerably in current dollars since the September 11, 2001 terrorist attacks, from just over $15 billion in FY2001 to more than $45 billion in FY2007, including supplementals ( Table 1 ). U.S. Aid-Related Activities, by Agency

With so many entities administering foreign aid, often with different objectives, many aid experts have questioned whether these agencies are sometimes working at cross-purposes. Where agencies have similar objectives, there is concern that they may be duplicating each others' efforts. No single overarching mechanism coordinates the whole range of U.S. foreign assistance policies and programs, but several less comprehensive systems of coordination exist among various departments and agencies, such as National Security Council policy coordination committees, new information sharing technology systems, and inter-agency staff exchanges. There is no formal inter-agency coordination structure. Selected Coordination Options39

In the decades since the Foreign Assistance Act of 1961 became law, Congress, various Administrations, and a number of Commissions have reviewed the foreign aid programs and proposed ways to improve the coordination of U.S. foreign assistance, usually by consolidating or otherwise restructuring various agencies. The lack of a national strategy has been cited by many aid professionals as enabling the proliferation of incoherent development policies and aid programs. Some development experts believe that a single lead entity coordinating all U.S. foreign assistance could improve the effectiveness of American foreign aid and result in budget savings through improved efficiency. Legislative Activity

In the 111 th Congress, foreign assistance reform proposals incorporating aid coordination provisions have been introduced in both the House and Senate. The language on coordination in H.R.
In the decades since the Foreign Assistance Act of 1961 became law, Congress, various Administrations, and a number of Commissions, have reviewed U.S. foreign aid programs and proposed ways to improve the coordination and effectiveness of U.S. foreign assistance by consolidating or otherwise restructuring various agencies. Two recent trends in foreign assistance have renewed interest in this issue. First, foreign assistance funding has expanded considerably since the terrorist attacks of September 11, 2001, from just over $15 billion in FY2001 to more than $45 billion in FY2007, including supplemental appropriations. Second, there has been an increase during this same time period in the number of agencies implementing foreign assistance.
U.S. foreign assistance has long been carried out by multiple U.S. government agencies, including the State Department (State), the U.S. Agency for International Development (USAID), the Department of Defense (DOD) and many others, to a lesser extent. In 2007, 24 U.S. government agencies reported disbursing foreign assistance resources. With so many entities administering foreign aid, often with different objectives, many aid experts have questioned whether these agencies are working at cross-purposes. Where agencies have similar objectives, there is concern that they may be duplicating each others' efforts. There is no overarching mechanism in place for coordinating or evaluating this broad range of activities. There are, however, several less-comprehensive systems of coordination in place among various departments and agencies, using means as varied as National Security Council policy coordination committees, new information-sharing technology systems, and inter-agency staff exchanges.
There is little consensus among policy makers and aid experts about how best to improve coordination, or even the need for more formal coordination. Some argue that the multiple funding accounts and implementing agencies appropriately reflect the wide range of competencies that development programs require, as well as diverse U.S. foreign assistance objectives. Others say the lack of centralized coordination authority impedes U.S. foreign aid transparency, efficiency, and effectiveness. Still others argue that there has been insufficient evaluation of foreign assistance programs to know whether coordination is needed to improve program efficiency and effectiveness. Proposals aimed largely or in part at addressing these concerns include developing a national foreign assistance strategy, authorizing a new or existing agency to coordinate all foreign assistance programs, coordinating through the National Security Council, enhancing the ability of U.S. missions abroad to coordinate aid activities at the country level, separating strategic aid programs from development assistance programs, and enhancing monitoring and reporting activities.
In the 111th Congress, foreign assistance reform proposals incorporating aid coordination provisions have been introduced by leaders of both the House Foreign Affairs and Senate Foreign Relations Committees. On the House side, H.R. 2410, the Foreign Relations Authorization Act for Fiscal Years 2010 and 2011, and H.R. 2139, the Initiating Foreign Assistance Reform Act of 2009, both include provisions to improve inter-agency coordination of foreign assistance. On the Senate side, coordination provisions are included in S. 1524, the Foreign Assistance Revitalization and Accountability Act of 2009.
This report may be updated to reflect congressional action.