---
title: "Foreign Assistance Act of 1961 — Definition & Meaning"
description: "The Foreign Assistance Act of 1961 reorganized U.S. foreign aid, creating USAID and is crucial for policy researchers and diplomats alike."
url: "https://modeldiplomat.com/learn/glossary/foreign-assistance-act-of-1961"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The Foreign Assistance Act of 1961 is the foundational U.
- S.
- What agency did the Foreign Assistance Act of 1961 create?
- How does the FAA distinguish economic from military assistance?
- What human-rights conditions are embedded in the FAA?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

The Foreign Assistance Act of 1961 is the foundational U.S. statute that reorganized American foreign aid, separating military and economic assistance and creating the U.S. Agency for International Development.

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In 1961 President John F. Kennedy signed the Foreign Assistance Act, under whose authority Executive Order 10973 established USAID that November to administer U.S. economic development aid.

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