Trump Slashes US$555 Million in AfDB Aid

Oscar J Jeke
Zim Now Reporter

The Trump administration is moving to cut US$555 million in funding for the African Development Bank’s main development arm, signaling a major shift in U.S. foreign aid strategy.

The proposed budget, submitted to Congress on Friday, eliminates all U.S. contributions to the African Development Fund, which provides critical support to low-income countries across Africa.

In a statement, the White House said the ADF is “not currently aligned” with its policy priorities. The U.S. has supported the fund since 1976 and is the AfDB’s second-largest shareholder. Although some donor countries have reduced contributions in recent years, none have done so on this scale.

The move could destabilize the AfDB’s financial planning. The bank’s current US$8.9 billion funding cycle ends this year, and African nations had been pushing for a US$25 billion replenishment.

The cuts are likely to present an early challenge for the incoming AfDB president, set to be elected later this month as Akinwumi Adesina prepares to step down.

The ADF isn’t the only casualty. The U.S.-African Development Foundation, based in Washington, is being dissolved, while US$1.6 billion earmarked for United Nations and peacekeeping operations—deemed “wasteful” by the administration—is also being eliminated.

However, the budget proposal includes $3.2 billion over three years for the World Bank’s International Development Association. Though lower than the $4 billion proposed under former President Joe Biden, the commitment to IDA is seen by some analysts as a partial win.

Simultaneously, Trump is proposing a new US$3 billion investment fund for the U.S. International Development Finance Corporation, consistent with his stated focus on foreign aid that yields returns for American taxpayers.