How USTDA-Funded Projects Support the U.S. Economy

Written By Emily Keshap

Nicholus Steward | January 30, 2025

In an era of intensifying global competition, the United States must leverage every available tool to sustain its economic leadership, safeguard national security, and ensure prosperity for American workers and businesses. The U.S. Trade and Development Agency (USTDA) plays a critical role in this effort by promoting trade, fostering high-paying jobs, and enhancing U.S. global competitiveness. More than an economic agency, USTDA serves as a strategic counterweight to foreign adversaries, whose state-controlled initiatives threaten free markets and fair competition. By connecting U.S. companies to international infrastructure opportunities, USTDA ensures that American enterprises—not foreign competitors—drive the development of critical global industries. Aligned with the U.S. government’s priorities of economic leadership, deregulation, and strategic competition, USTDA’s initiatives support job creation, industry growth, and national security while reinforcing U.S. influence in global trade. 

Vernonburg Group has had the privilege of working with USTDA on pilot projects and feasibility studies in multiple countries, supporting U.S. exporters and local digital infrastructure providers. These initiatives have helped bring affordable and commercially sustainable, high-speed internet connectivity to tens of millions of people in unserved communities, expanding economic opportunities and improving quality of life. We take this opportunity to further detail the many benefits that USTDA delivers.

 

1. Generating U.S. Exports and Expanding Global Trade

  • USTDA serves as a force multiplier for U.S. trade. Every $1 invested by USTDA generates an average of $231 in U.S. exports, providing tangible economic returns for American industries.

  • A private-sector-led approach to trade expansion. USTDA ensures that American companies—not foreign state-backed competitors—secure infrastructure and development contracts abroad, increasing demand for U.S.-made goods.

  • Countering China’s Belt and Road Initiative. USTDA supports strategic infrastructure projects in emerging markets that provide alternatives to China’s predatory debt-trap diplomacy.

Example: USTDA's support for Brazil's rail infrastructure modernization facilitated more than $1 billion in U.S. exports from companies across multiple states.

Example: USTDA supported a submarine cable project to build 10,000 mile cable system from Singapore to France beating out its main competitor for the project – Huawei Technologies.

 

2. Supporting High-Paying American Jobs

  • USTDA promotes domestic job creation through global engagement. The agency facilitates exports of U.S. products, increasing demand for American manufacturing, engineering, and technology jobs.

  • Reducing reliance on government handouts by strengthening the private sector. By helping American businesses access foreign markets, USTDA drives private-sector employment growth, reducing dependency on federal economic intervention.

  • State-by-state benefits. USTDA’s projects support jobs in key U.S. industries, from energy (Texas, Oklahoma) to technology (California, North Carolina) and manufacturing (Ohio, Michigan).

Example: USTDA's partnership with Senegal's national utility, Senelec, led to a project with Illinois-based Weldy Lamont Associates, supporting approximately 500 U.S. jobs across 10 states.

 

3. Strengthening U.S. Global Competitiveness

  • Strategic competition is key. USTDA ensures that U.S. companies—not state-backed enterprises from China and other countries—win key infrastructure projects worldwide.

  • Promoting economic freedom over foreign dependency. USTDA investments encourage free-market principles in emerging economies, fostering long-term demand for U.S. technology and industry expertise.

  • Ensuring American technology opportunities. By funding feasibility studies and pilot projects, USTDA helps American companies shape global technology standards, promoting choice in the global market and reducing countries’ dependence on Chinese alternatives.

Example: USTDA grants enabled U.S. firms to provide cybersecurity solutions for Latin America’s financial sector, strengthening digital infrastructure in alignment with U.S. security interests.

 

4. Empowering Small and Medium-Sized Enterprises (SMEs)

  • USTDA levels the playing field for U.S. small businesses. SMEs often lack the resources to compete for international contracts without USTDA-backed feasibility studies and trade missions.

  • Reducing regulatory burdens abroad. USTDA programs help U.S. businesses navigate foreign markets, cutting through excessive regulations that hinder American entrepreneurship.

  • Decentralizing economic growth. USTDA’s support extends beyond major corporations, empowering American innovators and business owners in all 50 states.

Example: USTDA's "Making Global Local" initiative collaborates with over 90 local trade promotion organizations across 33 states to connect U.S. businesses, many of which are SMEs, with foreign buyers. This program enhances SMEs' ability to compete for international contracts by providing access to global opportunities and reducing barriers to entry.  

 

5. Promoting Economic Stability and Strategic Partnerships

  • USTDA is an alternative to reckless foreign aid spending. While some traditional foreign aid has been found to fund wasteful projects, USTDA investments promote private-sector-led growth, ensuring long-term economic partnerships.

  • Advancing America’s long-term energy security. By supporting U.S. energy exports (LNG, renewables), USTDA reduces reliance on adversarial suppliers such as China and Russia.

  • Resisting China’s economic coercion. USTDA strengthens global trade networks, ensuring that developing economies choose free-market, U.S.-led development over debt-laden Chinese investments.

Example: USTDA-backed LNG projects in Eastern Europe have helped reduce European reliance on Russian gas, aligning with broader U.S. national security objectives.

 

Conclusion: USTDA as a U.S. Private Sector Led Economic Tool

  • Drives economic growth through private-sector expansion, not government intervention.

  • Supports American jobs without massive government spending.

  • Counters China’s influence by promoting U.S. free enterprise abroad.

  • Advances  U.S.-style free markets and counters efforts to install command and control economies.

  • Ensures that taxpayer-backed investments yield real and significant economic returns.

  • Strengthens the private sector’s role in global markets rather than relying on bureaucratic government-led programs.

As the United States navigates rising economic and geopolitical challenges, investing in USTDA is a strategic decision that advances American economic leadership, national security, and free-market growth. USTDA serves as a powerful engine for strengthening U.S. global competitiveness by promoting fair trade, fostering job creation, and countering authoritarian economic models. Through its public-private partnerships, the agency delivers tangible benefits to American industries and workers, reinforcing economic independence and expanding opportunities for U.S. businesses abroad. Supporting USTDA is not merely about increasing exports—it is about maintaining America’s role as a global leader in innovation, trade, and economic freedom.

Emily Keshap
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