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The Department of State (State) and the U.S. Agency for International Development (USAID) implement a broad range of U.S. government activities and programs overseas, including the conduct of diplomacy, development and security assistance, and efforts to combat terrorism and narcotics trafficking, among others. The President has requested approximately $55.7 billion for State and USAID in fiscal year 2012, an increase of nearly 8 percent over fiscal year 2010 funding levels. This testimony discusses four cross-cutting areas of U.S. foreign policy as implemented by State and USAID: (1) investments in key partner nations, (2) building the capacity of U.S. agencies to advance foreign policy priorities, (3) contractor oversight and accountability, and (4) strategic planning and performance measurement. This statement is based on GAO's extensive body of work on foreign operations issues, including fieldwork in Iraq, Afghanistan, Pakistan, Mexico, and numerous other locations .

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