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Why does the U.S. fund foreign aid? The United States spends approximately $37 billion dollars a year on foreign aid – just under 1% of our federal budget. THE FOREIGN AID PARADOX zeroes in on food aid to Haiti and how it affects American farming and shipping interests as well as Haiti ‘s own agricultural markets. The result: a surprising study in unintended consequences. Think U.S. foreign aid is just a big giveaway to other countries? Think again. Often, it benefits farmers, manufacturers and shippers right here at home. But U.S. aid is always good for the countries we give it to, right? Well, it ‘s not so simple.