Policy Updates

On August 13, 2025, a US court ruled that the Trump administration could continue to withhold billions of dollars in foreign assistance, clearing the way for the administration to cut already-appropriated spending for foreign assistance.

The court found that development organizations that receive government funding do not have cause to challenge the funding cuts. The decision overturned a lower court’s March 2025 order that had required the administration to continue processing foreign assistance payments, including nearly US$4 billion for global health activities through September 2025 and more than US$6 billion for HIV/AIDS programs through 2028. The new ruling noted that the administration had already paid out substantially to existing contracts since the lower court's ruling in March 2025.

The panel also ruled that under the Impoundment Control Act of 1974, only the GAO, Congress's independent watchdog, could legally challenge the president’s efforts to withhold foreign assistance funding. The Impoundment Control Act of 1974 was enacted to limit the president's power to withhold funding that has been appropriated by Congress. While the GAO has the power to sue to force the release of funds, it has not yet done so.

On August 7, 2025, the US Department of State announced a US$93 million grant to UNICEF to provide lifesaving food aid to nearly a million children suffering from malnutrition across 13 countries.

The grant will provide 11,000 metric tons of American-made RUTF for approximately 800,000 children through June 2026 in Haiti, Mali, Niger, Ethiopia, Sudan, South Sudan, Nigeria, Madagascar, Central African Republic, Democratic Republic of Congo, Djibouti, Kenya, and Chad and support the transport of an additional 1,200 metric tons of abbrRUTF for 87,000 children. However, UNICEF noted that a further two-to-three-month delay is expected before the products are delivered. UNICEF USA President and CEO Michael J. Nyenhuis welcomed the commitment, which according to a department spokesperson will draw down the entire prepositioned stock of RUTF.

The funding was authorized after months of delays and is UNICEF's first large grant for 2025 from the US. The amount is less than half of what the US government has typically allocated for this purpose. In 2024, the former USAID spent about US$200 million on similar work.

The US has historically funded roughly half of the world's supply of RUTF, and the US funding freeze in early 2025 severely disrupted the global supply chain of nutrition commodities. US funds for 2025 still have not yet been released to manufacturers, the WFP, transporters, or many organizations that operate malnutrition programs. In Nigeria, the WFP has had to shut down 150 clinics, and other assistance organizations reported similar clinic closures and dangerously low supplies across Africa and Asia that put thousands of children's lives in immediate danger.

On August 1, 2025, the French health ministry stated it could not legally intervene to stop the planned destruction of US$10 million in contraceptives held in Belgium, which were purchased by the USAID under former President Joe Biden and set to be destroyed by the administration of President Donald Trump, despite strong public outcry to intervene.

The US decision sparked criticism in France, with rights groups and left-wing politicians urging their government to halt the plan. France's health ministry, however, stated it had no legal basis to seize the products, as the products are not drugs of major therapeutic interest and no supply shortage exists in France. Multiple organizations, including MSI Reproductive Choices, offered to purchase the contraceptives at no cost to the US government, but their offers were rejected.

The contraceptives, mostly long-acting products like IUDs and birth control implants, were intended for countries in SSA and stored in Geel, Belgium. A US State Department spokesperson stated the decision to incinerate the unexpired products was based on the Mexico City Policy. The policy, reinstated in early 2025 by the Trump administration, prohibits providing assistance to NGOs that perform or promote abortions, though none of the products held in Belgium align with that description. The destruction was estimated by the US State Department to cost US$167,000.

On July 28, 2025, Norway announced a contribution of NOK200 million (US$20 million) to support the Palestinian government in paying public employee salaries amid a severe economic crisis.

The announcement came as Norweigan Foreign Minister Espen Barth Eide attended a UN conference on the two-state solution. The funds are intended to help sustain essential services such as healthcare and education. The economic crisis has been exacerbated by the war in Gaza and Israel’s withholding of Palestinian tax revenues, which, according to Palestinian authorities, amount to NOK28 billion (US$2.7 billion) since October 2023.

The contribution brings Norway's total support to Palestine in 2025 to more than NOK1.1 billion (US$109 million).

On July 23, 2025, the US House Appropriations Committee advanced a US$46.2 billion 2026 spending bill for the State Department and foreign assistance, a 22% decrease from 2025 but significantly more than requested by US President Donald Trump.

The bill, advanced on a party-line vote, cuts over US$5.5 billion from economic development and global health programs and nearly US$4 billion from international organizations, reflecting some of the administration's priorities.

However, the legislation defied Trump's wishes for more drastic cuts by salvaging key programs. It provides more than four times the requested funding for international broadcasting and restores funding for programs the administration sought to eliminate, including anti-tropical disease initiatives, nutrition support, and Gavi. Funding for PEPFAR was set at over US$6.2 billion, more than double the administration's request.

Despite restoring this funding, the bill also included a measure to increase the executive branch's power to cancel congressionally approved spending by removing standard language that protects congressionally approved funds. The move drew sharp criticism from Democrats, who warned that the steep reductions in foreign assistance would allow countries such as China and Russia to increase their global influence.

Following the committee's approval, the bill will advance to the full House of Representatives for a vote. To become law, it must also pass the Senate and be signed by the president. The Senate will likely advance its own version, and differences would need to be reconciled before a final vote in both chambers.

On July 22, 2025, the UK's FCDO released a self-assessment which revealed that 2025-2026 health spending will be cut by nearly 46% to GBP527 million (US716 million), with significant impacts on women's health programs.

The reduction is part of a larger plan to decrease the UK's ODA budget from 0.5% of its GNI to just 0.3%. The assessment indicated spending reductions in Africa for women’s health, health systems, and emergency response.

CSOs expressed concern over the lack of detail on specific program cuts, including those for SRHR. An analysis by the Guttmacher Institute showed a 30% cut in family planning assistance could cause 1.1 million more unintended pregnancies. Further cuts are expected, potentially decreasing the aid budget by over GBP3 billion (US$4.1 billion) by 2028.

On July 22, 2025, the US announced its decision to withdraw from UNESCO, citing concerns over the agency's perceived anti-Israel bias and promotion of divisive causes.

The US State Department stated the withdrawal, effective December 2026, was due to UNESCO's agenda and its admission of Palestine as a member state. This marks the third time the US has left the agency, having last rejoined in 2023 after a 2018 departure under the previous Trump administration. The US first left in 1984 due to security concerns around the Soviet Union before rejoining in 2003.

Alongside its cultural programming, UNESCO supports a number of education, SRHR education, literacy, clean water, and gender equality initiatives. It also helps set standards for ocean protection and AI ethics and protect cultural heritage and education in conflict zones.

UNESCO’s Director-General Audrey Azoulay noted her regret over the decision but stated it was anticipated. She denied the accusations of anti-Israel bias, pointing to the agency's work on Holocaust education and fighting antisemitism. Azoulay noted that the reasons cited by the US were the same as cited in the previous departure, despite significant changes and reduced political tensions within the organization.

The withdrawal will impact UNESCO's budget, as the US contributes 8% of its funding. However, the agency has diversified its funding sources and stated that it does not anticipate any immediate staff layoffs.

On July 22, 2025, the UK's FCDO published its Annual Report and Accounts for 2024 to 2025, which CSO Bond warns of a concerning outlook for communities most in need of assistance.

The document, which contains forward-looking budgets for the current financial year (2025-26) and reported figures for UK ODA spending for 2024-25, outlines the first reductions in a phased plan to lower the ODA budget to 0.3% of GNI by 2027. According to Bond's analysis, the FCDO’s programme ODA budget is set to fall from GBP9.3 billion (US$12.6 billion) in 2024/25 to GBP8.7 billion (US$11.8 billion) in 2025/26. It will decrease further to GBP6.8 billion (US$9.2 billion) in 2026/27 and GBP6.2 billion (US$8.4 billion) in 2027/28, a total decrease of over GBP3 billion (US$4.1 billion).

Bond's analysis highlights that the cuts will disproportionately affect the poorest countries. Bilateral assistance to Africa is being cut by 12% (GBP184 million or US$250 million) in the current financial year. Funding is also being reduced for several countries facing major humanitarian crises, including Ethiopia (25% reduction), South Sudan (23%), and Somalia (27%). Budgets for Sudan and the Occupied Palestinian Territories, both stated government priorities, are also seeing cuts of 18% and 21%, respectively. The FCDO has pointed to a GBP85 million (US$115 million) crisis reserve, but Bond questions why previous spending levels were not maintained given the scale of the crises.

Thematic funding is also facing significant reductions. Funding for health ill be cut by 46% (GBP448 million or US$603 million), and the budget for Education, Gender & Equality will be reduced by 42% (GBP206 million or US$278 million). Bond's equality impact assessment found that 11 of the 13 programs proposed for closure were focused on gender equality or disability inclusion, and that the cuts will likely have negative impact on children.

On July 14-15, 2025, JICA signed grant agreements worth a total ofJPY3.2 billion (US$22 million), one agreement of JPY2.5 billion (US$17 million) to the Republic of Vanuatu, and an agreement with UNICEF for the Project for the Eradication of Poliomyelitis in Afghanistan JPY714 million (US$5 million).

The agreement with the Republic Of Vanuatu aims to rebuild key economic infrastructure affected by the earthquake, promote disaster-resilient socio-economic development by reconstructing the Tagabe Bridge, and provide maintenance equipment. The program is led by MIPU and the Ministry of Health. The initiative seeks to contribute to the SDGs, specifically, SDG 9 (industry, innovation, and infrastructure), SDG 11 (sustainable cities and communities), and SDG 13 (climate action).

The Project for the Eradication of Poliomyelitis in Afghanistan, supports vaccine procurement and technical assistance to help reduce polio among children, and advance SDG 3 (good health and well-being).

On July 4, 2025, Australia and Fiji signed an elevated Vuvale Partnership, strengthening cooperation across five key areas. These include:

• People-to-people ties;
• Economic resilience;
• Security;
• Regional engagement; and
• Development.

The agreement deepens labor mobility, trade and investment links, and cybersecurity cooperation. It agrees to increase Australia’s bilateral development assistance to Fiji by AUD40 million (US$26 million) over four years ,focusing on thematic areas such as global health, taking the total to just under AUD500 million (US$326 million) from 2025 to 2029.