'foreign-funded' is a compound of 'foreign' + 'funded'. 'foreign' originates from Old French, specifically the word 'forain', ultimately from Latin 'foris' where 'foris' meant 'outside'. 'funded' derives from the verb 'fund', which comes via Old French 'fond' from Latin 'fundus', where 'fundus' meant 'bottom' or 'estate'.

'foreign' passed into Middle English from Old French 'forain' and developed into modern English 'foreign'. 'fund' developed from Latin 'fundus' to Old French 'fond' (noun) and later became the English noun 'fund'; the verb 'to fund' (to provide money) arose in the early modern period and produced the past participle 'funded'. The compound originally appeared as two words ('foreign funded') and later became commonly hyphenated as 'foreign-funded' in modern usage.

Initially, 'foreign' meant 'outside' and 'fund' (from 'fundus') referred to 'a bottom/estate'; over time 'fund' gained the financial sense 'a sum of money provided', and the compound evolved to mean 'provided with money from abroad' (i.e., financed by foreign sources).