U.S. President Joe Biden has pledged a historic $4 billion contribution to the World Bank’s International Development Association (IDA) fund, which supports the world’s poorest countries, according to two sources familiar with the announcement.
Biden revealed the commitment during a closed session at the Group of 20 (G20) summit in Rio de Janeiro, the sources said on Monday, speaking anonymously. The pledge marks a record U.S. contribution, surpassing the $3.5 billion pledged during the previous IDA replenishment round in December 2021.
The White House declined to comment on the announcement, leaving questions about whether U.S. President-elect Donald Trump will honor the pledge. Trump, who has previously advocated for cuts to foreign aid, is working with Tesla and SpaceX CEO Elon Musk on a government efficiency panel to reduce spending. Congress would likely consider the appropriation for the commitment only after Trump takes office in January.
‘Historic’ Commitment
Jonathan Finer, U.S. Deputy National Security Adviser, described the pledge as “historic” during a press briefing on the G20 summit. He also confirmed that Biden plans to announce a bilateral clean energy partnership with Brazilian President Luiz Inácio Lula da Silva during their meeting on Tuesday.
The IDA fund, which provides grants and low-interest loans to the poorest nations, undergoes replenishment every three years. The next pledging conference is set for December 6.
Record-Setting Goals
World Bank President Ajay Banga aims to exceed the $93 billion raised in 2021, citing increased demands from nations grappling with debt, climate crises, conflicts, and other challenges. In October, Banga expressed hope for a $120 billion replenishment, though reaching this target would require significant increases in contributions from donor countries.
Biden’s $4 billion commitment reflects a 14.3% increase from the U.S. contribution in 2021. Other countries have also announced substantial increases: Spain pledged to raise its contribution by 37% to €400 million ($423 million), while Denmark announced a 40% increase to approximately $492 million.
The U.S. commitment signals a push for global cooperation in addressing the urgent needs of the world’s most vulnerable populations, though its future implementation will depend on the incoming administration and congressional approval.
