Policy Updates

On November 18, 2024, US President Joe Biden made a pledge of US$4 billion to the World Bank's IDA 21^st replenishment.

The World Bank is seeking a total of US$120 billion, an amount that would require significantly higher contributions by many countries.

The pledge was made during a G20 closed-door session in Brazil, and is a significant jump from the US' previous pledge of US$3.5 billion. However, a vote on the appropriation for the pledge will likely not happen until President-elect Donald Trump takes office. He has promised to cut federal spending, including US ODA.

On November 14, 2024,development experts speculated on the direction that US global development policy will take under his President-elect Donald Trump's administration.

Trump has selected US Senator Marco Rubio to be his next Secretary of State. Rubio has traditionally supported global engagement but draws a sharp connecting line to protecting US national interests. However, development experts pointed to Rubio's general support of ODA and his interest in transparency.

Trump announced his intent to nominate Elise Stefanik, a member of the US House of Representives, as the next UN ambassdor. Stefanik, a loyal Trump supporter and a sharp critic of the UN, is now declining to address her previous support for Ukraine and its bid to join NATO. During her tenure in the House, she has called for funding cuts to the UN. Overall, she has little diplomatic experience but is expected to follow Trump's policies closely.

Other significant nominations to be confirmed are the Administrator to USAID and the CEO of DFC.

On November 14, 2024, USAID announced a series of investments totaling US$54 million with the private sector to mobilize climate finance at COP29.

Building on previous successes which mobilized US$30 billion for climate finance to address development since 2021, USAID announced US$9 million for USAID's EDGE Fund, all for different investments in climate funds.

USAID will also invest US$28 million for the Columbia Invest for Climate activity and an additional US$6 million to the Partnership for Green Investments in Southeast Asia.

On November 11, 2024, Japan and the US released it's strategy to enable the ADB to increase climate-related lending by up to US$7.2 billion over the next five years.

Japan has committed a sovereign guarantee of US$600 million, while the US provides US$1 billion, marking the first-ever use of sovereign guarantees specifically for climate finance. These guarantees will allow the ADB to lend more for climate initiatives without requiring new capital from member countries, setting a precedent for other development banks to follow.

This initiative supports the ADB’s long-term goal of providing US$100 billion in climate finance by 2030. Projects benefiting from this expanded lending include a sustainable aviation fuel program in Pakistan, partially funded by US$45 million from the ADB under this scheme. The guarantees will extend for 25 years, providing stability for long-term climate investments while addressing pressing environmental challenges in affected nations.

Japan’s leadership in this effort aligns with its broader commitment to addressing global climate issues. The ADB is sharing its model with other MDBs, including the WB and EIB, to enhance climate-related financing mechanisms. This approach responds to the estimated need for over US$2 trillion annually by 2030 to enable LMICs to transition to clean energy and adapt to a changing climate.

On November 6, 2024, the results of the 2024 US Presidential Election were announced with former US President Donald Trump (Republican) as the winner, leaving many development experts to speculate on how the upcoming Trump administration will impact US development policies and funding.

From his previous term in 2016-2020, Trump was not supportive of the multilateral system, including the UN. Many of his previous decisions were reversed by the Biden administration, such as budget cuts to USAID, and will likely be reinstated upon his return to office.

Trump's presidency could impact Global Health in particular by once again withdrawing from the WHO, reinstating the Global Gag, and cutting funding for UNFPA. Climate funding, an already a contentious issue on Capitol Hill, faces an uncertain future.

Localization is one of the areas where there may be bipartisan agreement. Faith-based organizations and private sector partners working with the DFC are also groups that may find favor in the next administration.

On November 1, 2024, USAID announced that it would provide an additional US$27 million to the GFF as part of the US strategy to support health workers and advance primary health care, bringing the total US investment since 2023 to more than US$30 million.

The GFF trust fund and investors groups are meeting next week in Abuja, Nigeria. With this latest funding round, the US now has a seat on the GFF Trust Committee and will have a voice in the GFF strategic vision and grant approval.

The GFF is a multi-stakeholder initiative that works with 36 low and middle income countries in African, Asia, and Latin America which have the highest mortality rates for maternal, child, and newborns coupled with significant financing gaps.

On October 31, 2024, USAID released a new disability policy 2024 Nothing Without Us: USAID Disability Policy that represents a comprehensive rewrite of the 1997 USAID disability policy.

USAID Administrator Samantha Power noted how the framing of disability issues has changed since the original policy was released, moving from one of dependence and charity to one in which society should allow full inclusion of everyone. There are more than 1.3 billion people globally living with disabilities, and they are frequently affected disproportionately by issues such as hunger, climate change, disease, and conflict.

The new USAID policy will address disabilities in all of its work. The disability framework will be updated to remove societal barriers that bar inclusion. It will promote inclusion in its programming and activities. People with disabilities will also be included in all phases of the programming cycle and innovative, promising approaches will be elevated throughout USAID's programs.

On October 31, 2024, a joint event by the CGD and the MFAN saw US development experts recommend priorities and policies for the next US administration. The discussion was framed by a set of detailed recommendations released by MFAN.

The document, Building on a Legacy of Progress: Opportunities to Reform U.S. Foreign Assistance, covers a range of issues, including improved coordination with other national and global partners, creating a stronger path for country partners to transition to self-reliance, catalyzing innovation and strategic risk taking, and elevating transparency and evidence for better accountability.

The event included remarks by two former USAID Administrators, Mark Green and Gayle Smith, followed by a panel of senior former US government officials who reflected on their own experience, the need for a stronger US development experts to recommend priorities and policies for development approaches that meet the times, and their priorities for the future.

On October 26, 2024, USAID Administrator Samantha Power announced that USAID will provide an additional US$572 million to help displaced people in Burkina Faso, Cameroon, Chad, Mali, Niger, and Nigeria.

The assistance will provide emergency assistance of food, water, shelter, and health care through USAID partners.

The region has been hit with multiple crises, including violence, flooding, and starving children. Other factors, including costs of transporting aid, blockades by extremists, the prohibition of cash transfers, and violence against citizens, hinder the provision of humanitarian assistance.

Power called on all donors to contribute assistance and work towards a safe environment so that assistance can be provided.

The contribution brings US funding to the region to US$1.2 billion in FY2025.

On October 23, 2024, USAID Administrator Samantha Power announced a series of investments for Cambodia during an official visit to Cambodia.

The assistance includes US$29 million through the US Feed the Future program to strengthen agricultural programs, including climate-smart technologies, new efforts to help with the conservation of biodiversity of the lower Mekong River basin, support to civil society and the media, and a grant from the US Department of Labor to help disabled and vulnerable workers.

In a separate appearance, Power announced US$17 million in health assistance. The resources include a 5-year program to fight tuberculosis, one of USAID's largest-ever direct awards to a Cambodian organization. The US also committed US$1 million to end childhood lead poisoning and US$17 for a range of demining activities.