May 22, 2017 - 14:17 AMT
U.S. may convert many overseas military grants to loans

U.S. President Donald Trump’s budget proposal this week will include provisions to end many foreign military grants administered by the State Department and replace them with loans, a move that could affect up to $1 billion in aid to dozens of countries if Congress approves, U.S. officials said, according to The Wall Street Journal.

An internal State Department memo reviewed by The Wall Street Journal names Pakistan, Tunisia, Lebanon, Ukraine, Colombia, Philippines and Vietnam as among countries that could be affected.

Typically, the State Department’s Office of Security Assistance receives about $6 billion to dispense as military aid grants. That sum includes $3.1 billion for Israel, about $350 million for Jordan and about $1.3 billion for Egypt. Those grants will be preserved in the 2018 budget, officials said.

Pakistan, which usually receives about $265 million in grant assistance, will see that number go down to about $100 million under the new budget, officials said.

Most other countries will see their assistance converted from grants to loans.

The United States foreign aid is aid given by the United States government to other governments. It can be divided into two broad categories: military aid and economic assistance.