Colonel Russell P. "Red" Reeder conceived the idea of the Bronze Star Medal in 1943; he believed it would aid morale if captains of companies or of batteries could award a medal to deserving people serving under them.
Reeder felt another medal was needed as a ground equivalent of the Air Medal, and suggested calling the proposed new award the "Ground Medal".
The idea eventually rose through the military bureaucracy and gained supporters.
General George C. Marshall, in a memorandum to President Franklin D. Roosevelt dated 3 February 1944, wrote 
The fact that the ground troops, Infantry in particular, lead miserable lives of extreme discomfort and are the ones who must close in personal combat with the enemy, makes the maintenance of their morale of great importance.
The award of the Air Medal has had an adverse reaction on the ground troops, particularly the Infantry Riflemen who are now suffering the heaviest losses, air or ground, in the Army, and enduring the greatest hardships.

The Air Medal had been adopted two years earlier to raise airmen's morale.
President Roosevelt authorized the Bronze Star Medal by Executive Order 9419 dated 4 February 1944, retroactive to 7 December 1941.
This authorization was announced in War Department Bulletin No.
3, dated 10 February 1944.

President John F. Kennedy amended Executive Order 9419 per Executive Order 11046 dated 24 August 1962 to expand the authorization to include those serving with friendly forces.
This allowed for awards where US service members become involved in an armed conflict where the United States was not a belligerent.
At the time of the Executive Order, for example, the US was not a belligerent in Vietnam, so US advisers serving with the Republic of Vietnam Armed Forces would not have been eligible for the award.

Since the award criteria state that the Bronze Star Medal may be awarded to "any person ... while serving in any capacity in or with" the US Armed Forces, awards to members of foreign armed services serving with the United States are permitted.
Thus, a number of Allied soldiers received the Bronze Star Medal in World War II, as well as UN soldiers in the Korean War, Vietnamese and allied forces in the Vietnam War, and coalition forces in recent military operations such as the Persian Gulf War, War in Afghanistan, and the Iraq War.
A number of Bronze Star Medals with the "V" device were awarded to veterans of the Battle of Mogadishu.
Colonel Russell P. "Red" Reeder conceived the idea of the Bronze Star Medal in 1943; he believed it would aid morale if captains of companies or of batteries could award a medal to deserving people serving under them. Reeder felt another medal was needed as a ground equivalent of the Air Medal, and suggested calling the proposed new award the "Ground Medal". The idea eventually rose through the military bureaucracy and gained supporters. General George C. Marshall, in a memorandum to President Franklin D. Roosevelt dated 3 February 1944, wrote 
The fact that the ground troops, Infantry in particular, lead miserable lives of extreme discomfort and are the ones who must close in personal combat with the enemy, makes the maintenance of their morale of great importance. The award of the Air Medal has had an adverse reaction on the ground troops, particularly the Infantry Riflemen who are now suffering the heaviest losses, air or ground, in the Army, and enduring the greatest hardships.
The Air Medal had been adopted two years earlier to raise airmen's morale. President Roosevelt authorized the Bronze Star Medal by Executive Order 9419 dated 4 February 1944, retroactive to 7 December 1941. This authorization was announced in War Department Bulletin No. 3, dated 10 February 1944.
President John F. Kennedy amended Executive Order 9419 per Executive Order 11046 dated 24 August 1962 to expand the authorization to include those serving with friendly forces. This allowed for awards where US service members become involved in an armed conflict where the United States was not a belligerent. At the time of the Executive Order, for example, the US was not a belligerent in Vietnam, so US advisers serving with the Republic of Vietnam Armed Forces would not have been eligible for the award.
Since the award criteria state that the Bronze Star Medal may be awarded to "any person ... while serving in any capacity in or with" the US Armed Forces, awards to members of foreign armed services serving with the United States are permitted. Thus, a number of Allied soldiers received the Bronze Star Medal in World War II, as well as UN soldiers in the Korean War, Vietnamese and allied forces in the Vietnam War, and coalition forces in recent military operations such as the Persian Gulf War, War in Afghanistan, and the Iraq War. A number of Bronze Star Medals with the "V" device were awarded to veterans of the Battle of Mogadishu.
Bronze Star Medal