Washington: President Donald Trump has requested that Congress approve a $3.2 billion contribution to the World Bank’s International Development Association (IDA), aimed at providing low- or zero-interest loans to the world’s poorest nations. This contribution, set to be disbursed over three years, came as a welcome surprise to international finance experts who had been concerned that Trump’s administration might forgo funding for IDA altogether.
Former President Joe Biden had previously committed to a $4 billion contribution, but those funds have not yet been allocated. While Trump’s proposed contribution is smaller, it brings the World Bank closer to its goal of raising $100 billion for IDA through leveraged contributions from various countries, according to sources familiar with the negotiations. However, the final approval for this amount rests with the U.S. Congress.
When asked about the $4 billion commitment made during the previous administration, Treasury Secretary Scott Bessent suggested that the sum would be clarified within the current budget. The final amount will largely depend on actions taken by World Bank President Ajay Banga and the head of the International Monetary Fund (IMF), who are working to refocus these institutions on their core missions.
Clemence Landers, Vice President at the Center for Global Development, praised the $3.2 billion proposal for IDA. “The U.S. IDA number stands out as a rare bright spot in a budget full of drastic cuts to the U.S. foreign assistance apparatus,” she remarked. “There has been significant speculation about the U.S. role in the international financial institutions under Trump, and whether the U.S. would pay into IDA at all.”
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In line with Trump’s broader fiscal plans, the budget proposal also cuts foreign aid by $49 billion, as confirmed by a senior official from the Office of Management and Budget. Documents released by the White House show a reduction of $555 million in funds for the African Development Bank and the African Development Fund, citing that these funds are “not currently aligned” with the administration’s priorities.
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The budget also emphasized the need for other donors and institutions to assume a larger share of the financial burden. “This fulfills the President’s promise to no longer dole out foreign aid dollars with no return on investment for the American people,” the White House document stated.
