Trump's Surprise IDA Contribution Amid Budget Cuts

President Donald Trump proposed a $3.2 billion contribution to the World Bank's International Development Association (IDA), contrasting his overall foreign aid cuts. This move signals a commitment to aid the world's poorest nations, despite a reduction from the previous administration's $4 billion pledge.

President Donald Trump has unexpectedly requested Congress to approve a $3.2 billion contribution to the World Bank's International Development Association (IDA). This entity is crucial in providing low- or no-interest loans to impoverished nations.

While international finance experts lauded Trump's proposal, it will ultimately be determined by Congress. The contribution, to be distributed over three years, stands lower than the $4 billion pledge made by former President Joe Biden, yet it still aids IDA's $100 billion fundraising goal.

Simultaneously, Trump's budget plan revealed significant foreign aid cuts, sparing funds for IDA but slashing $555 million intended for African Development initiatives, aligning aid with domestic priorities.

(With inputs from agencies.)