In a notable move, President Donald Trump’s 2025 budget proposal includes a $3.2 billion contribution over three years to the World Bank’s International Development Association (IDA), which provides concessional loans and grants to the world’s poorest countries. This allocation, though lower than former President Joe Biden’s $4 billion pledge, has been welcomed by international development experts as a positive development amid broader cuts to foreign aid.
Clemence Landers, Vice President at the Center for Global Development, described the IDA funding as a rare highlight in a budget otherwise marked by a $49 billion cut to foreign aid. The proposed contribution would assist the World Bank in approaching its $100 billion target for IDA through contribution leveraging, contingent upon Congressional approval.
However, the budget proposal also includes a $555 million reduction in funding for the African Development Bank and the African Development Fund, citing misalignment with the administration’s priorities.
Treasury Secretary Scott Bessent indicated that the final decision on the IDA contribution would depend on reform efforts by the World Bank and the International Monetary Fund to refocus on their primary missions.
This development underscores the Trump administration’s approach to foreign aid, aiming to align contributions with clear returns for the American public. While the proposed IDA funding is a positive step, the broader context of significant cuts to foreign aid and other international development programs raises questions about the future direction of U.S. engagement in global development efforts.
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