Trump Surprises with $3.2 Billion IDA Contribution

President Trump has proposed a $3.2 billion contribution to the World Bank's International Development Association, a move praised by international finance experts. Though less than former President Biden's pledged amount, this sum is seen as significant in helping the Bank reach its $100 billion goal for aiding impoverished nations.

In a move that has caught many by surprise, President Donald Trump has proposed a substantial $3.2 billion contribution to the World Bank's International Development Association (IDA). The IDA is critically important, providing low- or zero-interest loans to some of the world's most impoverished countries. Trump's decision is particularly noteworthy given previous concerns that he might abstain from contributing altogether.

International finance experts have welcomed this announcement, labeling it a positive step forward. Although this contribution is less than the $4 billion promised by former President Joe Biden, it is expected to play a crucial role in helping the IDA reach its ambitious $100 billion funding target through strategic leveraging of global contributions.

The final allocation of the proposed funds will require approval from Congress. Meanwhile, documents from the White House reveal significant cuts in foreign aid, including a $555 million reduction in US financial support to the African Development Bank and the African Development Fund. This aligns with the administration's priorities and a strategic shift in foreign aid distributions.

(With inputs from agencies.)