Creation[edit]
In 1961, the Congress approved the Foreign Assistance Act of 1961 with President Kennedy's support, which retained the 1959 policy of international development as an independent U.S. objective and added an emphasis on the need for long-term efforts. Organizationally, the Act called for merging the ICA, the Development Loan Fund, and other foreign aid entities into a new agency.
To implement the Act, the Agency for International Development, or A.I.D. (subsequently re-branded as USAID), was created within the State Department. Its internal organization was adjusted to emphasize country-by-country programming. As in the previous change in Administration in 1953, a major reduction in staff took place.
The Peace Corps was also established at this time. In addition, the Fulbright educational and cultural exchange program was strengthened by the Fulbright-Hays Act of 196