Foreign Aid

Foreign aid is money that one country voluntarily transfers to another, which can take the form of a gift, a grant or a loan. In the United States, the term usually refers only to military and economic assistance the federal government provides to other governments. Broader definitions of aid include money transferred across borders by religious organizations, nongovernment organizations (NGOs) and foundations. Some have argued that remissions should be included, but they are rarely assumed to constitute aid.