"The 112th Congress is focused on cost-cutting measures to reduce the budget deficit. How it deals with the second-ranking U.S. aid recipient, Pakistan--which is important to U.S. national security interests but that some say lacks accountability--will be key. Pakistan has been among the leading recipients of U.S. foreign assistance both historically and in FY2010, and most experts list the country among the most strategically important for U.S. policy makers. Recent major developments--including the killing of Al Qaeda founder Osama bin Laden in Pakistan--have put strains on bilateral relations, making uncertain the future direction of U.S. aid to Pakistan. For many lawmakers, the issue will be how to balance considerations about Pakistan's strategic importance to the United States with the pervasive and mounting distrust in the U.S.-Pakistan relationship and with budget deficit-reduction pressures. […] In addition to these ongoing programs, in mid-2010 the United States pledged an additional $592 million in emergency and recovery aid, plus more than $95 million of in-kind aid after extensive flooding resulted in a severe humanitarian crisis that affected an estimated 20 million Pakistanis. In October 2010, Secretary of State Hillary Clinton announced the Administration's intention to increase U.S. Foreign Military Financing for Pakistan to $2 billion over a five-year period, a $100 million annual increase from the current level. This would have to go through the congressional appropriation and authorization process. This report will be updated as congressional actions on aid to Pakistan unfold in the 112th Congress. For broader discussion of U.S.-Pakistan relations, see CRS [Congressional Research Service] Report R41307, 'Pakistan: Key Current Issues and Developments', and CRS Report R41832, 'Pakistan-U.S. Relations: A Summary.'"
CRS Report for Congress, R41856