The U.S. government gave $1.4 billion in foreign aid to 16 countries to which the U.S. owes at least $10 billion each, including China and Russia, in 2010. Senator Coburn has filed amendment #670 to S. 1619 to end foreign aid giveaways to China, Russia, and other wealthy nations that we owe at least $10 billion. The amendment would not cut off humanitarian assistance or defense related activities. This amendment would save U.S. taxpayers more than $1 billion this year, money that would otherwise be borrowed from China or Russia… and then returned.
An outline of U.S. foreign aid to nations the U.S. owes at least $10 billion prepared by the Congressional Research Service in a report requested by Dr. Coburn: here.
Here is the breakdown...
The U.S. government spent $27 million on foreign aid programs for China in 2010. This included nearly $2 million for economic development and $4 million for social services. China currently owns $1.1 trillion in U.S. debt. In 2007 China funded $18 billion worth of aid programs in Africa and $7 billion in Southeast Asia. Last month media reports stated Italy could seek Chinese assistance for their debt problems. While China is using its economic resources to gain influence, the U.S. is giving away tens of millions of dollars to China to spend on its domestic programs.
Other countries included:
- Brazil: owned $193.5 billion in Treasury securities and received $25 million in U.S. foreign aid
- Russia: owned $127.8 billion and received $71.5 million
- India: owned $39.8 billion and received $126.6 million
“Borrowing money from countries who receive our aid is dangerous for both the donor and recipient. If countries can afford to buy our debt perhaps they can afford to fund assistance programs on their own. At the same time, when we borrow from countries we are supposedly helping to develop we put off hard budget choices here at home. The status quo creates co-dependency and financial risk at home and abroad.” – Dr. Coburn