Cargo Preference Requirements Add to Costs of Title II Food-for-Peace Programs

In response to a congressional request, GAO estimated the costs to the federal government imposed by title II of Public Law 480 on cargo for the Food-for-Peace Program and determined the additional aid that could be delivered in the absence of the cargo preference requirement. Under the requirement, while the U.S. Government pays for virtually the entire cost of the commodities, U.S.-flag ships must carry at least 50 percent of the commodities to their destination.