WASHINGTON (CNN) -- The Clinton administration is proposing a $1.6 billion aid package to help Colombia, Peru and Bolivia fight a war on illegal drugs and corruption.

U.S. Drug Policy Coordinator Barry McCaffrey announced the package Tuesday.

"This money is aimed at helping those nations' economies, judicial systems, police and armed forces, in hopes of re-establishing the rule of law," McCaffrey told CNN during an interview at the White House.

In a statement, U.S. President Bill Clinton said the aid was "urgently needed" to keep illegal drugs out of the United States.

Secretary of State Madeleine Albright, who officially announced the package at the White House, said Colombian President Andres Pastrana "deserves our support."

Colombia already ranks third in overall U.S. military assistance, and the new program is expected to raise American involvement there to new heights. The overall aid package for the current fiscal year is about $300 million.

The proposed funds would help train special counter-narcotics battalions, purchase 30 Blackhawk and 33 Huey helicopters, and provide other support.

The money would also help Colombia upgrade its intelligence gathering and increase the eradication of coca crops, the key ingredient in cocaine production.

In turn, the package would work to promote alternative crops and jobs and increase protection of human rights and reform the judicial system.

The new package reflects the cooperative relationship the administration has established with Pastrana since he assumed office 17 months ago. The administration had limited dealings with his predecessor, Ernesto Samper, accusing him of having links to narco-traffickers.

U.S. officials welcomed a controversial decision by Colombian authorities late last year to resume the extradition of drug kingpins wanted in the United States.

Pastrana came to Washington last September saying his country needed $3.5 billion in assistance over three years to supplement $4 billion in locally generated funds to attack the country's myriad problems.

Reporter Kathleen Koch, The Associated Press and Reuters contributed to this report.