What agency did the Foreign Assistance Act (1961) create?

The Foreign Assistance Act of 1961 established the United States Agency for International Development, commonly known as USAID. This agency was created to consolidate various international aid programs into a more cohesive structure to effectively manage and coordinate U.S. foreign assistance. USAID plays a crucial role in delivering aid to countries in need, addressing issues such as poverty, health care, education, and economic development. Its formation signified a strategic shift in U.S. foreign policy towards a focus on development assistance and building economic relationships worldwide.

In contrast, other options either refer to entities that did not arise from this legislation or existed prior to the act. The Department of Agriculture, for example, is a long-established agency focused primarily on domestic agricultural policies and programs rather than international assistance. The Development Loan Fund was an earlier program that did not evolve from the Foreign Assistance Act but rather was part of prior efforts in foreign aid. The International Cooperation Association, likewise, does not directly derive from this Act and is less recognized as a component of U.S. international development strategy. Thus, the establishment of USAID stands as a significant hallmark of the Foreign Assistance Act’s legacy.