section_path: Creation
section_name: Creation
paragraph_text: Creation
  
  Congress passed the Foreign Assistance Act on September 4, 1961, which reorganized U.S. foreign assistance programs and mandated the creation of an agency to administer economic aid. The goal of this agency was to counter Soviet Union influence during the Cold War and to advance U.S. soft power through socioeconomic development. USAID was subsequently established by the executive order of President John F. Kennedy, who sought to unite several existing foreign assistance organizations and programs under one agency. USAID by law is placed under "the direct authority and policy guidance of the Secretary of State ".
  
  Congress established USAID as a functionally independent executive agency with the Foreign Affairs Reform and Restructuring Act of 1998, which gave the President 60 days to abolish or reorganize USAID. During that time, President Bill Clinton reorganized USAID and retained its independence from the U.S. Department of State.
  
  Congress authorizes USAID's programs in the Foreign Assistance Act, which Congress supplements through directions in annual funding appropriation acts and other legislation. As an official component of U.S. foreign policy, USAID operates subject to the guidance of the president, secretary of state, and the National Security Council.
  
  Congress passed the Foreign Assistance Act on September 4, 1961, which reorganized U.S. foreign assistance programs and mandated the creation of an agency to administer economic aid. The goal of this agency was to counter Soviet Union influence during the Cold War and to advance U.S. soft power through socioeconomic development. USAID was subsequently established by the executive order of President John F. Kennedy, who sought to unite several existing foreign assistance organizations and programs under one agency. USAID by law is placed under "the direct authority and policy guidance of the Secretary of State ".
  
  Congress established USAID as a functionally independent executive agency with the Foreign Affairs Reform and Restructuring Act of 1998, which gave the President 60 days to abolish or reorganize USAID. During that time, President Bill Clinton reorganized USAID and retained its independence from the U.S. Department of State.
  
  Congress authorizes USAID's programs in the Foreign Assistance Act, which Congress supplements through directions in annual funding appropriation acts and other legislation. As an official component of U.S. foreign policy, USAID operates subject to the guidance of the president, secretary of state, and the National Security Council.