The purpose of the Marshall Plan, officially known as the European Recovery Program, was to aid in the reconstruction of European economies after the devastation of World War II. Announced in 1947, it aimed to prevent the spread of communism by stabilizing countries through financial support, which included grants and loans. The U.S. provided over $12 billion (around $130 billion today) to help rebuild infrastructure, boost industries, and promote political stability in Western Europe, ultimately contributing to the region's rapid post-war recovery.