President Biden donates $4bn to W’Bank in support of ‘poorest nations’

US President Joe Biden has pledged $4 billion to the World Bank’s International Development Association fund, aimed at supporting the world’s poorest countries.

This three-year commitment, announced at the G20 summit in Rio de Janeiro on Monday, sets a new record, exceeding the $3.5 billion pledged during the previous replenishment in 2021.

The US Treasury is leading the ongoing IDA negotiations.

However, the future of Biden’s $4 billion pledge to the World Bank’s IDA fund is uncertain, as President-elect Donald Trump has previously advocated for reducing foreign aid.

Trump, working with Elon Musk on a government efficiency panel focused on cutting spending, may reassess the commitment.
Congress is expected to address the funding only after Trump takes office in January.

A spokesperson for Trump’s transition team declined to comment on whether the $4 billion pledge to the IDA fund would be upheld.

Earlier, in Rio de Janeiro, US Deputy National Security Adviser Jonathan Finer had called Biden’s announcement a “historic” commitment to the IDA replenishment.

Finer confirmed that President Biden plans to launch a bilateral clean energy partnership during a meeting with Brazilian President Luiz Inácio Lula da Silva on Tuesday.

The World Bank’s IDA fund, which offers grants and low-interest loans to the world’s poorest nations, is replenished every three years. A pledging conference for the fund is set for December 5-6 in Seoul.

World Bank President, Ajay Banga is advocating for a record replenishment of the IDA fund, targeting over $120 billion—up from the $93 billion secured in 2021.

In October, Banga noted that achieving this goal would require substantial increases in contributions from member countries.

Biden’s $4 billion pledge reflects a 14.3% rise from the US’s 2021 commitment, with other nations also announcing higher contributions.