Trump’s budget includes $4.15b for World Bank’s fund for poorest countries

WASHINGTON – US President Donald Trump on May 2 asked Congress to approve US$3.2 billion (S$4.15 billion) in contributions to the World Bank’s International Development Association (IDA), which provides low- or zero-interest loans to the world’s poorest countries.

International finance experts hailed the sum, to be paid over three years, as a welcome surprise, given recent worries that Mr Trump could skip making any contribution to the IDA.

Former president Joe Biden had pledged to contribute US$4 billion, but that money has not yet been transferred.

The new amount is lower, but will still help the World Bank get close to its goal of raising US$100 billion for the IDA by leveraging countries’ contributions, sources familiar with the process said. The final decision rests with the US Congress.

When asked if the Trump administration would stick to the US$4 billion pledge, Treasury Secretary Scott Bessent had indicated that the sum would be decided in the budget, and that much depended on World Bank president Ajay Banga and the head of the International Monetary Fund getting back to basics.

The budget proposal unveiled by Mr Trump on May 2

cuts foreign aid by US$49 billion, a senior official with the Office of Management and Budget told reporters.

Documents released by the White House showed a cut of US$555 million in funds for the African Development Bank and the African Development Fund, which were “not currently aligned to administration priorities”.

The budget proposal did include the US$3.2 billion for IDA, adding that other donors and institutions should take on more of the costs.

“This fulfils the President’s promise to no longer dole out foreign aid dollars with no return on investment for the American people,” the document said. REUTERS