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.

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Sweden slashes ODA budget amid domestic priorities

September 17, 2024 | Sweden, Education, Gender Equality, WASH & Sanitation, Climate, Global Health | Share this update

On September 17, 2024, Sweden announced a reduction in its ODA budget as part of the autumn budget proposition, marking a shift in the country's long-standing commitment to international development assistance.

Newly appointed Minister for International Development Cooperation Benjamin Dousa revealed that the annual ODA allocation will drop from SEK56 billion (US$5.4 billion) to SEK53 billion (US$5.1 billion) between 2026-2028. This represents a cut of SEK3 billion (US$291 million) per year compared to the 2023-2025 budget.

Dousa stated that Sweden is undergoing a restructuring process that focuses on efficiency to areas most in need. However, he declined to specify which areas of foreign assistance would face the most significant cuts.

The early announcement aims to give Sida time to adjust their priorities and operations.

Justifying the decision, Dousa pointed to pressing domestic challenges citing needs in policing, defense, and welfare services that could benefit from the redirected funds.

This reduction aligns with the government's earlier decision, made in partnership with the Sweden Democrats, to abandon Sweden's long-held goal of allocating 1% of its GNI to ODA.

Dousa acknowledged the difficulties in reaching a consensus among the four coalition parties but stressed their united front in making tough decisions. He assured that Ukraine would continue to be the largest recipient of Swedish assistance, underscoring the country's commitment to supporting nations in crisis.

News article - Article - Swedish Press (in Swedish)

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Germany announces US$148 million for food security in the Sahel

July 21, 2026 | Germany, Agriculture | Share this update

On July 21, 2026, German State Secretary Niels Annen launched the "Berlin Process for Food Security in the Sahel," including EUR130 million (US$148 million) for the Sahel Resilience Partnership in 2026, of which EUR120 million (US$137 million) will go to WFP and UNICEF.


The Berlin Process for Food Security in the Sahel is a framework involving regional partners and international organizations, including WFP, FAO, IFAD, and UNICEF. The initiative strengthens coordination and effectiveness of food security measures in Mauritania, Mali, Burkina Faso, Niger, and Chad, in line with ongoing UN reforms toward more integrated and results-oriented working methods.


Secretary Annen announced EUR130 million (US$148 million) has been earmarked for the Sahel Resilience Partnership in 2026, of which EUR120 million (US$137 million) will go to the WFP and UNICEF. The funds support integrated approaches to strengthening resilience, transforming agriculture, and creating economic and social opportunities for young people across the five Sahel countries. The Sahel Resilience Partnership brings together the WFP, UNICEF, and GIZ to support vulnerable communities, complementing Germany's bilateral contributions in the region for agriculture, food security, and drinking water.

Press release - Federal Ministry for Economic Cooperation and Development (in German)

Australia commits nearly US$18 million for Palestine

July 21, 2026 | Australia | Share this update

On July 21, 2026, the Australian government announced nearly AUD25 million (US$18 million) in funding for Gaza recovery and Palestinian Authority institutional strengthening, combining humanitarian assistance with governance and economic development support.


The package includes AUD15 million (US$10 million) to the UN Horizon Fund and AUD10 million (US$7 million) to the World Bank's PFRD.


The Horizon Fund channels UN agency resources toward rehabilitation of essential infrastructure, including water and sanitation, health, education, and housing, as well as debris clearance and explosive ordnance risk reduction. Australia's contribution complements more than AUD80 million (US$56 million) pledged to the Horizon Fund by France, Germany, Italy, the Netherlands, Norway, Sweden, Switzerland, and the UK. The PFRD supports the Palestinian Authority's public financial management and is backed by Japan, the UK, Canada, France, Sweden, Switzerland, and Iceland.


The announcement built on Australia's recognition of the State of Palestine in September 2025 and formed part of coordinated international efforts to advance a two-state solution.

Press release - Ministry of Foreign Affairs

Andy Burnham becomes British Prime Minister, appoints Ed Miliband as Foreign Secretary and Kirsty McNeill as FCDO Minister of State

July 20, 2026 | UK | Share this update

On July 20, 2026, Andy Burnham became Prime Minister of the United Kingdom after the resignation of Keir Starmer. Following the announcement, Burnham appointed Ed Miliband as Secretary of State for Foreign, Commonwealth and Development Affairs, replacing Yvette Cooper, and Kirsty McNeill as FCDO Minister of State.


Burnham, the UK's fifth prime minister in four years, previously served as a Member of Parliament for 16 years, and also served as Health Secretary, before becoming Mayor of Greater Manchester in 2017. Meanwhile, Ed Miliband previously held the role of Energy Secretary in Starmer's cabinet, and has represented Doncaster North in Parliament since 2005. In addition to Miliband's appointment, Kirsty McNeill was chosen as Minister of State within FCDO. Previously, McNeill served as Parliamentary Under Secretary of State for Scotland and was an Executive Director at Save the Children.


In a speech following his appointment, Miliband outlined priorities including deepening the UK's strategic alliance with the EU, maintaining the alliance with the US, and upholding commitments to multilateral institutions such as NATO and the UN. He emphasized continued support for Ukraine, efforts to end the conflict in Iran and reopen the Strait of Hormuz, and pursuit of a sustainable peace in Palestine and Israel. Miliband also highlighted tackling the climate crisis, strengthening international development partnerships, and reforming international institutions as key priorities for FCDO.

Speech - UK GovernmentWeb Page - UK GovernmentNews article - BBC

Canada matches US$5 million in donations for Venezuela earthquake relief

July 17, 2026 | Canada | Share this update

On July 17, 2026, Secretary of State for International Development Randeep Sarai announced that , the Canadian government has matched CAD7 million (US$5 million) in donations for earthquake relief in Venezuela, bringing total Canadian humanitarian assistance in response to the earthquakes to CAD12 million (US$9 million).


The funds have been provided to the Canadian Red Cross and the Humanitarian Coalition in support of relief efforts following the June 24, 2026, earthquakes in Venezuela. The increase followed Canada's June 30, 2026, announcement of an initial CAD4 million (US$3 million) matching contribution, which was quickly reached.

Press release - Government of Canada

Sweden announces US$140 million for World Bank Ukraine facility

July 16, 2026 | Sweden | Share this update

The Swedish government announced SEK1.4 billion (US$140 million) in contributions to a new World Bank crisis facility for Ukraine on July 16, 2026, enabling new loans of approximately SEK4.2 billion (US$420 million) for the country's reconstruction and recovery.


The SEK1.4 billion (US$140 million) will go to the World Bank's Special Program for Ukraine Recovery 2.0 under the new IDA Crisis Facility 2.0. By leveraging the World Bank's balance sheet and capital market borrowing, Sweden's contribution enabled new loans of approximately SEK4.2 billion (US$420 million) to Ukraine. The contribution came in addition to a guarantee the government announced on May 29, 2026, which had already enabled new loans to Ukraine of approximately SEK2.5 billion (US$250 million).


The funding aims to support Ukraine's economic resilience during Russia's ongoing aggression, including maintaining public sector salaries, keeping the electricity grid intact, and sustaining essential services such as health care and education.

Press release - Government of Sweden

Canada announces investments and renewed commitments for cooperation in Brazil

July 14, 2026 | Canada | Share this update

Canadian Minister of Foreign Affairs Anita Anand concluded a trip to Brazil on July 14, 2026, announcing CAD125 million (US$88 million) in FinDev Canada investments in sustainable infrastructure and renewed bilateral commitments on wildfires, customs, and health.


Minister Anand met with Brazil's Minister of Foreign Affairs Mauro Vieira for the fifth Strategic Partnership Dialogue, covering global and regional issues, defense and security cooperation, and trade and investment. Anand announced CAD125 million (US$88 million) in FinDev Canada investments across two sustainable infrastructure projects.


FinDev Canada committed a US$30 million loan to Equatorial Maranhão Distribuidora de Energia, an electricity distribution company serving nearly three million customers in Maranhão, as part of a US$50 million co-financing package with Sumitomo Mitsui Banking Corporation. The loan will expand and enhance Equatorial Maranhão's grid distribution network, including in rural and low-income areas. FinDev Canada also committed a US$58 million loan to Acelen Renewable in Bahia to support construction and operation of a biorefinery producing sustainable aviation fuel and renewable diesel, with a feedstock processing capacity of 20,000 barrels per day. The investment formed part of a US$854 million construction facility that included the International Finance Corporation, IDB Invest, and KfW Development Bank, among others.


Anand and Vieira also signed a Customs Mutual Assistance Agreement to facilitate the sharing of customs information between the Canada Border Services Agency and Brazil's Special Secretariat of the Federal Revenue, strengthening trade security and efforts to combat customs offences. In addition, the ministers announced the recent signing of a Memorandum of Understanding on Health Sector Cooperation to deepen technical and scientific cooperation on health surveillance, immunization, and environmental health. Finally, the first operating plan was signed under their Memorandum of Understanding on Mutual Assistance and Integrated Fire Management, facilitating the entry of Brazilian firefighters into Canada for the upcoming fire season and enabling the exchange of technical assistance.

Press release - Government of CanadaPress release - Government of Canada

Spain-Guatemala Partnership Framework for Sustainable Development 2026-2030 signed

July 10, 2026 | Spain | Share this update

On July 10, 2026, Spain signed a new Partnership Framework for Sustainable Development with Guatemala, committing EUR267 million (US$304 million) in ODA for 2026–2030.


Spain's State Secretary for International Cooperation, Eva Granados Galiano, signed the Spain-Guatemala Partnership Framework for Sustainable Development 2026–2030 in Madrid alongside Guatemala's Deputy Minister for Foreign Affairs, María Luisa Ramírez Coronado, and the Secretary for Planning and Programming of the Presidency, Carlos Mendoza Alvarado. The signing took place within the framework of the 10th Spanish-Guatemalan Joint Commission on Cooperation.


The new framework is the main bilateral cooperation planning instrument between the two countries for the 2026–2030 period. Compared with the previous framework, it broadens the strategic focus from combating chronic child malnutrition toward sustainable territorial development, recognizing that malnutrition stems from multidimensional causes requiring comprehensive responses linked to local economic development, decent employment, and access to basic services. The framework also reinforces commitments to women's rights, including through the prevention of violence, access to care systems, decent work, sexual and reproductive rights, and social protection.


Spain plans to channel EUR267 million (US$304 million) in ODA to Guatemala over the 2026–2030 period through instruments including technical, bilateral, triangular, multilateral, and decentralized cooperation, as well as financing mechanisms supporting infrastructure and access to credit for SMEs. The framework was developed through a consultation process with public institutions and civil society organizations in both countries, with particular attention to the participation of Indigenous Peoples.

Press release - Ministry of Foreign Affairs, European Union and Cooperation

Switzerland’s Thomas Gass appointed new OECD DAC Chair

July 8, 2026 | Switzerland | Share this update

On July 8, 2026, Switzerland's Thomas Gass was appointed Chair of the OECD's DAC, succeeding Denmark's Carsten Staur, with Gass set to take up the position in early 2027.


Gass, currently Ambassador of Switzerland and Head of Mission in Hanoi, Viet Nam, will take up the position in early 2027. He succeeds Carsten Staur of Denmark, who served as Chair since March 2023.


Gass previously served as Assistant Director-General and Head of the South Cooperation Department of the Swiss Agency for Development and Cooperation (2018-2022), Ambassador and Head of Mission in Kathmandu, Nepal (2009-2013), Co-Chair of the Global Partnership for Effective Development Co-operation (2019-2022), and Assistant Secretary-General for Policy Coordination and Inter-Agency Affairs in the United Nations Department of Economic and Social Affairs (2013-2017). Gass holds a PhD in Natural Sciences and a Master of Science in Agricultural Engineering from ETH-Zurich.

Press release - OECD

UN organizations in Germany release statement against proposed German ODA cuts

July 7, 2026 | Germany | Share this update

Six UN organizations in Germany have called on members of the German Bundestag to revise the 2027 federal budget draft, warning that EUR1.05 billion (US$1.2 billion) earmarked for humanitarian assistance, equivalent to 0.19% of the total budget, falls far short of what global crises demand.


Following the Cabinet's adoption of the 2027 federal budget draft, UNHCR, UNICEF, UNDP, UNFPA, IOM, and WFP issued a joint statement urging the Bundestag to revise the draft during the parliamentary process. The organizations argued that the draft budget did not reflect the current global situation or Germany's international responsibilities.


The draft budget proposed further cuts to development cooperation, particularly in areas that BMZ prioritized in its new strategy. The budget line for crisis management, reconstruction, and infrastructure faced a reduction of nearly 39% compared to the previous year, which the organizations warned would significantly weaken basic services, including education, nutrition, and the reconstruction of health and water supplies.


The EUR1.05 billion (US$1.2 billion) allocated for humanitarian assistance in 2027 followed a halving of funding in the 2026 fiscal year, leaving humanitarian funding at a sustained low. The organizations noted that the consequences of cuts by Germany and other donor countries were already visible: withdrawal from crisis regions weakened structures and programs that alleviated acute suffering, contained crises, reduced the root causes of displacement and forced migration, and promoted long-term stability. Despite reform efforts to improve efficiency and coordination, UN organizations stated they would reach fewer people with reduced funding.


The organizations also cited the escalating conflict in the Middle East as compounding the impact of cuts, noting that it drove up the costs of assistance and food production through rising energy prices and restricted supply chains. They argued that, given Germany's economic strength and commitment to multilateralism and human rights, Germany should continue to play a central role in preventing and managing global crises, and that sustained and strong contributions to humanitarian assistance and development cooperation were essential, including in Germany's own interest in a more stable and secure future.

Press release - International Organization for Migration

Norway increases support for Venezuela by US$2 million following earthquake

June 30, 2026 | Norway | Share this update

On June 30, 2026, Norway increased emergency assistance for Venezuela’s earthquake response by NOK20 million (US$2.0 million), split equally between UNHCR and IFRC to provide protection, shelter, health care, and other vital services.


The Ministry of Foreign Affairs said the allocation will support immediate relief following the June 24 earthquakes that struck northern Venezuela, where authorities declared a state of emergency and rescue operations continue.


Funding to the IFRC will prioritize clean water, health care, and other life-saving efforts. Support to UNHCR will establish centers offering assistance, information, psychosocial support, and basic household items for affected people.


Press release - Government of Norway (in Norwegian)

Disclaimer

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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