I got this off this page:
http://www.cies.org/about_fulb.htm
The Fulbright Program, the U.S. government's flagship program in international educational exchange, was proposed to the U.S. Congress in 1945 by then freshman Senator J. William Fulbright of Arkansas. In the aftermath of World War II, Senator Fulbright viewed the proposed program as a much-needed vehicle for promoting "mutual understanding between the people of the United States and the people of other countries of the world." His vision was approved by Congress and the program signed into law by President Truman in 1946.
Fulbright grants are made to U.S. citizens and nationals of other countries for a variety of educational activities, primarily university lecturing, advanced research, graduate study and teaching in elementary and secondary schools. Since the program’s inception, more than 250,000 participants --chosen for their leadership potential-- have had the opportunity to observe each other’s political, economic and cultural institutions.
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The primary source of funding for the Fulbright Program is an annual appropriation made by the United States Congress to the Department of State. Participating governments and host institutions in foreign countries and in the U.S. also contribute financially through cost-sharing and indirect support, such as salary supplements, tuition waivers and university housing. The Congressional appropriation for the Fulbright Program in fiscal year 2001 was $118.7 million. Foreign governments, through their binational commissions or foundations, contributed an additional $28 million directly to the Fulbright Program.
I still think the junior senator should have paid her way.