US President Joe Biden has pledged a record $4 billion contribution to the World Bank's International Development Association (IDA) fund, aimed at supporting the world's poorest countries, according to two sources familiar with the commitment.
Biden made the announcement during a closed session at the Group of 20 summit in Rio de Janeiro, significantly exceeding the $3.5 billion the US committed during the previous IDA replenishment in December 2021.
A White House spokesperson declined to comment on the pledge. It's unclear whether the incoming President, Donald Trump, will honor Biden's commitment, as Trump has previously proposed cuts to foreign aid, and his new government efficiency panel, led by billionaire Elon Musk, is expected to focus on reducing US spending. Congressional approval for the commitment is unlikely until after Trump assumes office in January.
At the G20 summit, US Deputy National Security Adviser Jonathan Finer described Biden's pledge as "historic" and confirmed that Biden would also announce a bilateral clean energy partnership with Brazilian President Luiz Inácio Lula da Silva.
The IDA fund, which provides grants and low-interest loans to the poorest nations, is replenished every three years. The next pledging conference is scheduled for December 6. World Bank President Ajay Banga is targeting a record replenishment, possibly exceeding the $93 billion secured in 2021, as the poorest countries face increasing challenges, including debt burdens, climate crises, and conflicts.
Biden’s $4 billion pledge represents a 14.3% increase over the US contribution in 2021. Other nations, such as Spain and Denmark, have also announced significant increases in their contributions to the IDA fund.
