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Sources of IAF funds

IAF’s resources come from Congressional appropriations, the Social Progress Trust Fund, private donations, and inter-agency reimbursements with other federal foreign assistance agencies. In addition, our grantee partners make a significant contribution to cover the cost of the programs IAF supports.


The IAF has received $22.5 million or more every year for the last ten years except 2013 due to sequestration.

Social Progress Trust Fund

For much of its history, the IAF has received a supplement to its Congressional appropriation in the form of receipts from the Social Progress Trust Fund (SPTF). These have averaged $8.67 million annually over the life of the fund. SPTF funds consist of repayments for loans that were made to Latin American countries under the Alliance for Progress program. These loans are reaching the end of their repayment periods, and SPTF funds will diminish significantly over the next several years.

Private Donations

At the IAF, we continue to prioritize diversifying funding sources by engaging the business and philanthropic sectors. For example, our recent initiative to respond to community needs after earthquakes devastated areas of Mexico leverages funds from partners such as the Mott Foundation, the Silicon Valley Community Foundation, El Paso Community Foundation and the International Community Foundation.

Inter-Agency Transfers

The last three Appropriations Acts have included the authority to transfer $22 million from the Development Assistance account to support the U.S. Strategy for Engagement in Central America. The IAF is included among the implementing agencies listed in the strategy and it continues to participate in the Inter-agency Policy Committee that coordinates its execution.

In the last five years, the U.S. Department of State has partnered with the IAF via two Inter-Agency Agreements: the Inter-American Social Protect Network and the Americas Partnership for Social Inclusion and Equality, as part of executing U.S. commitments at the Summits of the Americas.

Grantee Counterpart Contributions

Our cost-effective model of grantmaking requires counterpart commitment from community partners for each project we fund. Through this counterpart commitment, the IAF foreign assistance investment is more than matched by investments made or mobilized by these partners. On average, our partners bring $1.31 of counterpart resources for every $1.00 of IAF support.

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