Host Country Financial Contribution
A Mandatory Reference for ADS Chapter 350
New Edition Date: 01/30/2024
Responsible Office: GC
File Name: 350maf_013024
Overview
There are two primary types of host country financial contributions:
1. FAA section 110. One type is the required host country minimum 25% contribution under section 110 of the Foreign Assistance Act of 1961, as amended (FAA). Section 110 states that:
“No assistance shall be furnished by the United States Government to a country under Sections 103 through 106 of this Act until the country provides assurance to the President, and the President is satisfied, that such country will provide at least 25 per centum of the costs of the entire program, project, or activity with respect to which such assistance is to be furnished, except that such costs borne by such country may be provided on an “in-kind” basis.”
2. Policy contribution. The other type is a host country contribution which Missions may decide to require in various amounts as a policy matter, either where the FAA section 110 statutory contribution has been waived, or where there is not a requirement for a FAA section 110 host country contribution (see below for further details).
It is important to be clear as to which type of host country contribution is being addressed because requirements may differ slightly.
