Federal spending · FY2021
International Affairs
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The International Affairs category encompasses U.S. government activities aimed at advancing national interests and promoting global stability through diplomacy, foreign assistance, and international engagement. Its core purpose is to foster a secure and prosperous world that benefits the United States by addressing transnational challenges, supporting democratic governance, promoting economic development, and providing humanitarian aid. Success is measured by the advancement of U.S. foreign policy objectives, the mitigation of global threats such as terrorism and pandemics, the strengthening of alliances, and the improvement of living conditions and opportunities in partner nations. Key agencies include the Department of State, the U.S. Agency for International Development (USAID), and contributions to international organizations. Major program streams involve economic and development assistance, security cooperation, public diplomacy, and humanitarian relief, all designed to project U.S. influence and values while addressing complex global issues that directly or indirectly affect American security and prosperity.
The problem
The International Affairs category, with FY2021 gross outlays of $74.6 billion, is classified as a 'warning' status, indicating elevated fiscal risk and structural pressure without asserting waste or mismanagement. This classification stems from the inherent complexities and potential for suboptimal resource allocation within a domain characterized by dynamic global conditions and diverse programmatic objectives. The warning status highlights the need for enhanced scrutiny regarding the trajectory and sustainability of spending, as well as the cost drivers influencing the overall outlay. Potential escalations to a 'leak' status could arise from insufficient program outcome measurement, fragmented oversight across multiple implementing agencies and international partners, or a lack of clear return on investment metrics for certain foreign assistance programs. Ensuring that expenditures effectively contribute to U.S. foreign policy objectives, promote stability, and deliver tangible benefits to recipient populations and American interests requires rigorous evaluation of program design, execution, and impact. The absence of trend data prevents a detailed analysis of specific cost escalations or emerging fiscal strains.
The solution
To mitigate the risks associated with the International Affairs budget and enhance its effectiveness, AI can be applied to several critical areas. An AI initiative could focus on developing sophisticated geopolitical risk assessment models that integrate diverse data streams (e.g., news sentiment, economic indicators, social media trends, conflict data) to predict regions or programs facing heightened instability, thereby enabling proactive adjustments to aid allocation and security protocols. Another application involves creating AI-driven platforms for real-time monitoring of development project progress and impact, utilizing satellite imagery, sensor data, and local reporting to assess outcomes against stated goals and identify implementation challenges early. Furthermore, AI can be employed to analyze the effectiveness of different foreign aid modalities (e.g., grants vs. loans, sector-specific investments) across various country contexts, identifying best practices and optimizing future aid architecture for maximum impact on development indicators and U.S. strategic interests. Finally, AI can enhance transparency and accountability by automatically cross-referencing financial disbursements with programmatic milestones and performance reports, flagging discrepancies for further investigation and ensuring funds are utilized as intended.
The biggest part of International Affairs is International development and humanitarian assistance: $38.6B (51.7%). Just 3 of the 5 areas below hold 96.6% of the money.
How to read it: Tap a row to open what's inside. Colours match the chart above, and each row's share is its part of the row it sits under.
| Where it went | Gross outlays | Share | Action |
|---|---|---|---|
| $38.6B51.7% | 51.7% | ||
| $26.7B35.8% | 35.8% | ||
| $6.8B9.1% | 9.1% | ||
| $1.7B2.3% | 2.3% | ||
| $836M1.1% | 1.1% |