US Budget Plan Also Proposes Major Cuts in Foreign Aid, Raising Global Attention
Washington, D.C. — In a surprising move, former U.S. President Donald Trump has requested Congress to approve a $3.2 billion contribution to the World Bank’s International Development Association (IDA), a fund that provides low- or no-interest loans to the world’s poorest countries.
Reuters reported that the government would distribute the proposed contribution over a span of three years. Although Trump has often expressed skepticism toward international aid, financial experts have welcomed the announcement as a “pleasant surprise.” Previously, many had raised concerns that the Trump administration might withhold support entirely.
While Biden pledged $4 billion but has not fulfilled it, experts believe Trump’s offer will significantly help the World Bank move toward achieving its $100 billion fundraising goal through global contributions.
Congress Holds the Final Say
The proposal is now in the hands of the U.S. Congress will determine whether to approve the funding. When asked if the Trump administration would honour Biden’s earlier pledge, Treasury Secretary Scott Bessent noted that the final figure will depend on the broader budget plan, adding, “A lot depends on whether World Bank President Ajay Banga and the IMF leadership get back to basics.”
Budget Cuts Raise Questions About Global Priorities
Trump’s broader budget plan, unveiled on Friday, includes a $49 billion reduction in foreign aid, sparking debate over America’s global development role. The African Development Bank and the African Development Fund are among the targets, with proposed cuts totaling $555 million. Officials explained that these institutions are “not currently aligned to Administration priorities.”
Despite these reductions, the budget preserves the $3.2 billion for IDA. According to Reuters, the Trump administration is also encouraging other nations and international bodies to contribute more generously to global development.
In the official budget document, the administration stated:
“This fulfils the President’s promise to no longer dole out foreign aid dollars with no return on investment for the American people.”
As the world watches closely, Trump’s latest proposal suggests a shift in tone—balancing fiscal conservatism with selective support for key international institutions.
