This paper examines three major shifts in U.S. foreign assistance since 2000 that have had major impacts on USAID programming decisions in forestry. The first reflects a heightened awareness of the role development plays in meeting U.S. national security objectives. The second is a trend toward privatizing foreign assistance — adopting a new economic paradigm for sustainable development. The third supports the U.S. Government and USAID commitment to use local or indigenous expertise in implementing their programmes. Taken together, these changes will likely have profound effects on how USAID operates and funds programme development in all sectors, including forestry, in the coming years. This paper also presents examples of current programmes which illustrate programming trends within the forest sector.