Policy Updates

The Donor Tracker team regularly brings you the most important policy and funding news across issue areas in the form of Policy Updates.

Biden proposes US$70.5 billion budget for US foreign assistance

March 9, 2023 | US, Agriculture, Climate, Global Health, Gender Equality | Share this update

On March 9, 2023, US President Joe Biden released his FY2024 "skinny" budget, which proposed an 11% increase in US foreign assistance for a total amount of US$70.5 billion.

A more detailed budget is expected during the week of March 13, 2023. As the starting point of the annual appropriations process, experts expect Biden's budget will be met with stiff opposition by Republican leaders in the US House of Representatives.

Development advocates applauded the budget but also recognized the long road ahead, especially given the House Republican's proported plan to seek a 45% cut in foreign assistance.

Biden's priorities included funding to compete with China, climate and infrastructure, and modest increases in global health and humanitarian funding.

Funds to bolster competition with China included a new US$2 billion infrastructure fund, a new US$2 billion fund to invest in the Indo-Pacific region, and other funding to the State Department and USAID to strengthen partnerships in that region. The budget also included a US$2 billion increase for the US DFC to allow for more equity investments.

Climate finance also featured in Biden's budget. Proposed increases included a US$3 billion initiative to help countries adapt and manage impacts of climate change by 2030, US$1.6 billion for the Green Climate Fund, and US$1.2 billion in loans to the World Bank's Clean Technology Fund.

The budget also requested US$10.5 billion in humanitarian funding as well as over US$1 billion for food security and agricutural programs. Global health and security received a US$370 million increase for a total of US$10.5 billion, including US$1.2 billion for health security and US$2 billion for the Global Fund. Funding for PEPFAR, which faces a crucial reauthorization test in 2023, was slightly reduced to US$6.7 billion.

The budget also proposed US$3 billion for gender equity and equality programs.

Finally, the proposal included a US$8 billion request to fund the State Department and USAID, including funding for more staffing, new missions, reforms, and improved expertise and diversity.

Observers shared the expectation that the appropriations process will be long and complex, given the need to negotiate between a Republican-led House and a Democratic Senate. US foreign assistance, which has historically had strong bipartisan support, faces an uncertain future. Appropriations for FY2024 are supposed to be finalized by September 30, 2023, but most expect negotiations to extend past the deadline.

News article - DevexPress release - The White House

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US State Department begins mass layoffs

July 14, 2025 | US | Share this update

On July 14, 2025, US Secretary of State Marco Rubio began mass layoffs at the State Department as part of a reorganization aimed at creating a leaner foreign policy force.


Notices were sent to 1,107 civil servants and 246 foreign service officers, with nearly 3,000 expected to leave. The cuts have notably impacted the CARE office, responsible for Afghan relocations, and the bureau of population, refugees, and migration.


The move drew strong criticism from Democrats and former diplomats, who argue that downsizing puts national security at risk and threatens to worsen worldwide humanitarian crises. Rubio, also the presidential national security adviser, announced plans in April 2025 to eliminate 132 offices and merge 137 others within the State Department.


In early July 2025, Rubio formalized the closure of the USAID and transferred about 250 staff to the State Department. These staff appear mostly unaffected by the cuts, which have focused on offices previously slated for dissolution.

News article - The Hill

UK Government faces pressure to honor ODA pledge

July 13, 2025 | UK | Share this update

On July 13, 2025, campaigners and ODA experts urged the Labour government to fulfil its pledge to restore the UK’s global leadership in international development in a Guardian editorial, which emphasized the urgency of reversing cuts and addressing worsening global inequalities.

The editorial notes that, in the first half of 2025, key donors, including the UK, have continued to reduce ODA budgets, while many LICs now spend more on debt repayment than on healthcare or education. Campaigners argue that Labour should prioritize debt relief, reform international tax systems, and support grassroots-led solutions.

Romilly Greenhill, CEO of Bond, stressed that the global economic system is broken and requires immediate reform. Diana Francis of Peace Direct underlined the growing interconnection between climate breakdown, conflict, and underfunded humanitarian responses, adding that solidarity and cooperation are more important than ever.

The editorial calls on Labour to act decisively - or risk falling short of its own promises.

The Guardian

Japan, UNDP present innovative mine action technology in Ukraine

July 11, 2025 | Japan | Share this update

On July 11, 2025, JICA and the UNDP hosted a two-day demonstration in Ukraine to showcase advanced technologies supporting humanitarian mine action, which was held in collaboration with the SESU and featured:

  • ALIS, a Japanese-developed ground-penetrating radar system, presented by its inventor Prof. Motoyuki Sato;
  • Heavy demining machinery donated by Japan through JICA; and
  • AI -powered drone-based scanning developed by Ukrainian company UADamage

Participants included representatives from Ukraine’s Ministry of Economy, SESU, national mine action operators, and UNDP staff. The demonstration aimed to enhance local capacity and inform the operational deployment of new technologies.

UNDP Ukraine emphasized the importance of innovation in accelerating safe, effective demining, while JICA reiterated Japan’s commitment to supporting Ukraine’s humanitarian mine action.

Press release - UNDP

US approves 2025 reconciliation bill

July 10, 2025 | US | Share this update

On July 4, 2025, US President Donald Trump approved the US FY2025 reconciliation bill, which contains sweeping tax cuts, reductions to public services, US$25 billion to a new missile defense system, and increased border and defense spending.


Two controversial provisions, an escalating foundation tax and a clause allowing the Treasury secretary to label nonprofits as terrorist organizations, were removed.


Remittances from the US, which reached US$685 billion in 2024, now face a 1% tax, lower than the initially proposed 5%, expected to reduce remittance flows by 1.6%. Experts raised concerns that the remittances tax may push migrants to riskier, illicit channels to send money. The tax applies to all senders, including US citizens.


With regard to philanthropy, all taxpayers can now deduct up to US$1,000 in charitable giving, however, wealthy donors face a lower deduction rate (35% vs. 37%), potentially reducing philanthropic giving by US$41–61 billion over a decade according to projections from Indiana University’s Lilly School of Philanthropy. Businesses must now donate at least 1% of taxable income to qualify for deductions, likely cutting corporate giving by US$4.5 billion annually, according to EY.


The bill also cuts renewable energy spending. Under the Paris Agreement, the US aimed for a 50% emissions cut by 2030, but Princeton University now projects only a 2% reduction under the new law.

News article - Devex

Sweden allocates US$858 million to support poverty reduction

July 9, 2025 | Sweden, Gender Equality, Climate, Global Health | Share this update

On July 9, 2025, the Swedish government earmarked SEK8.2 billion (US$858 million) in its 2025 budget to support development and humanitarian efforts in the world’s poorest nations, financing sustainable development, crisis preparedness, and long-term resilience via priority regions and countries most affected by poverty and fragility.

The funding will be channeled through Sida to reinforce climate adaptation, health systems, education, gender equality, and inclusive governance. The initiative reflects Sweden’s long-standing commitment to vulnerable communities and its ability to respond flexibly to global challenges.

Minister for International Development Cooperation and Foreign Trade Johan Forssell highlighted that this budgetary commitment strengthens Sweden’s readiness to address crises while promoting equitable development outcomes.

Press release - Sida

Canada pledges US$5 million for technical assistance project in Moldova

July 9, 2025 | Canada, Climate, Agriculture, Gender Equality | Share this update

On July 9, 2025, Canada pledged a CAD7 million (US$5 million) contribution to a new technical assistance project in the Republic of Moldova aimed at empowering rural women and promoting climate resilience.

The initiative, titled Advancing Climate Resilience and Women’s Empowerment in Moldova, will enhance access to training and resources in agroforestry and climate-smart agriculture. It focuses on supporting women entrepreneurs in rural areas by strengthening leadership, financial inclusion, and business development capacities.

This project reflects Canada’s broader commitment to gender equality and sustainable development, and follows ongoing Canadian support to Moldova in areas such as governance and economic resilience. It builds on Canada’s broader engagement, including a recently announced CAD120 million (US$88 million) sovereign loan to bolster Moldova’s financial resilience.

Press release - Global Affairs CanadaPress release - Global Affairs Canada

UK FCDO to cut workforce by up to 25% by 2029

July 8, 2025 | UK | Share this update

On July 8, 2025, according to statements made in Parliament, the UK FCDO will reduce its staff by 15–25% by 2029, leading Bond to responding with warnings that the cuts risk undermining the UK’s global development role.

Bond’s Director of Policy and Advocacy Gideon Rabinowitzs noted that development staff are likely to bear the brunt of the reductions, exacerbating already strained capacity following previous ODA cuts and the merger of DFID and FCO. He warned that further reductions will diminish the department’s development expertise and harm the UK’s credibility as a global partner.

Bond emphasized that restoring the UK’s leadership in international development requires investment in staff and skills. The proposed cuts, it argued, move in the opposite direction and threaten the government’s ability to deliver effective ODA and uphold its international commitments.

News article - Bond

Australia and Fiji elevate Vuvale Partnership

July 4, 2025 | Australia, Global Health | Share this update

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.

Press release - Australian Government

GCA hosts Funders Forum to advance climate adaptation finance

July 4, 2025 | UK, Norway, Germany, Climate | Share this update

On July 4, 2025, GCA convened a Funders Forum at its Rotterdam headquarters to assess progress and shape the future of the AAAP, which has mobilized over US$17 billion in climate adaptation investments across Africa, intending to reach US$25 billion by the end of 2025.

The forum brought together key partners including the BMGF, UK FCDO, GIZ, NORAD, and MDBs.

The AAAP attendees reviewed an evaluation by BCG, which measured progress across key priority areas such as food security, water and nature, resilient infrastructure, and youth engagement. Participants also discussed initiatives on health, education, and urban resilience, including upcoming “People’s Adaptation Plans” in 11 African and 10 Bangladeshi cities. Over 70% of AAAP projects now incorporate gender-responsive and inclusive strategies.

Netherlands contributes US$2 million to expand justice access in Yemen

July 2, 2025 | Netherlands | Share this update

On July 3, 2025, the Netherlands contributed US$2 million to the UNDP to launch the second phase of the PIAJY II, renewing support that builds on earlier efforts that enabled the resolution of over 1,300 community disputes through restorative justice approaches.

With a continued focus on Aden and Mukalla, the funding will strengthen local justice systems by enhancing mediation services, improving civil documentation access, and linking informal mechanisms with formal institutions. Special attention will be given to supporting women and vulnerable groups in navigating justice.

This contribution reflects the Netherlands’ long-term commitment to promoting inclusive, people-centered justice in Yemen and supporting broader peacebuilding and rule of law efforts.

Press release - UNDP

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US$ amounts are cited directly from sources; in the absence of an official conversion, they are calculated using the previous week's average of the US Federal Reserve's daily exchange rates.

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