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Trump Proposes $3.2 Billion for World Bank Fund, Scaling Back Biden’s $4 Billion Pledge

Trump Proposes $3.2 Billion for World Bank Fund, Scaling Back Biden’s $4 Billion Pledge

by | May 3, 2025 | Latest International News | 0 comments

In a significant shift in U.S. international development funding, President Donald Trump on Friday, May 2, 2025, requested $3.2 billion for the World Bank’s International Development Association (IDA) as part of his annual federal budget proposal. The IDA provides low- or zero-interest loans and grants to the world’s poorest nations, and the U.S. remains its largest single contributor.

Trump’s proposal marks a $0.8 billion reduction from former President Joe Biden’s 2022 pledge of $4 billion. That commitment, made during the 20th replenishment round of the IDA, has yet to be fully disbursed, prompting concerns from international development experts and recipient countries alike.

In a statement from the White House, the Trump administration argued that the $3.2 billion figure was “fiscally responsible and aligned with America’s strategic priorities.” The proposal would support IDA’s mission through the 2025–2028 cycle, focusing on health, infrastructure, climate adaptation, and crisis response in over 70 eligible countries.

Critics argue that reducing the commitment undermines U.S. leadership in global poverty reduction at a time when debt burdens, climate disasters, and geopolitical instability are exacerbating hardship in many developing nations. Development economists warn that the funding gap could limit the IDA’s capacity to provide life-saving resources in sub-Saharan Africa, Southeast Asia, and fragile conflict zones.

Trump, who is seeking re-election in 2026, has historically taken a skeptical view of multilateral institutions, often questioning their effectiveness and value to American taxpayers. However, his 2025 budget proposal notably maintains substantial funding for select global programs, including this revised IDA contribution — a move some analysts interpret as an attempt to bolster international credibility without overextending the federal budget.

On Capitol Hill, reactions were mixed. Republican lawmakers generally welcomed the proposal, emphasizing fiscal discipline. Democratic leaders, meanwhile, criticized the rollback from Biden’s promise, urging Congress to increase the appropriation and honor the full $4 billion.

“The United States cannot afford to step back from its leadership role in the fight against global poverty,” said Senator Elizabeth Warren. “This is not just a moral imperative, but a matter of global stability and national interest.”

The World Bank welcomed the proposed contribution but hinted that it hoped for a higher final figure. “Every dollar counts, especially now,” said a spokesperson. “We continue to work closely with all donors to meet our collective goals.”

Congress will deliberate on the proposal in the coming weeks, and amendments may be made before the final version is signed into law. For now, the debate over Trump World Bank funding 2025 is poised to become a prominent point of discussion in both international circles and domestic policy forums.

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