Biden's Historic $4 Billion Pledge to World Bank

By David Lawder and Andrea Shalal

WASHINGTON – U.S. President Joe Biden pledged a $4 billion contribution to the World Bank's International Development Association (IDA) fund for the world's poorest countries, according to sources familiar with the commitment. This announcement was made during a closed session of the Group of 20 summit in Rio de Janeiro.

The new amount represents a record high, significantly surpassing the previous $3.5 billion commitment made in December 2021. A White House spokesperson declined to comment on the IDA replenishment.

There is uncertainty about whether President-elect Donald Trump will honor Biden’s pledge, particularly given Trump’s prior proposals to cut foreign aid. Approval from the U.S. Congress for this funding is not likely to occur until after Trump takes office in January. A spokesperson for Trump's transition team was unavailable for immediate comment.

'Historic' Pledge

Earlier in Rio, U.S. Deputy National Security Adviser Jonathan Finer told reporters about Biden's intention to announce this ‘historic’ pledge to the IDA. Finer also indicated that Biden will establish a bilateral clean energy partnership with Brazilian President Luiz Inacio Lula da Silva during their meeting.

The IDA fund, which primarily provides grants and low-interest loans to low-income countries, is replenished every three years, with a pledging conference set for December 6.

World Bank President Ajay Banga aims to achieve a record funding amount exceeding the $93 billion raised in December 2021. There are increased demands from poorer nations, especially in Africa, facing severe debts and climate challenges. Banga noted that a $120 billion replenishment is feasible but requires significant increases in country contributions.

Biden’s new commitment is about 14.3% higher than the 2021 contribution. Additionally, at the IMF-World Bank annual meetings in October, Spain announced a 37% boost in its contribution to 400 million euros ($423 million), while Denmark revealed a 40% increase to approximately $492 million.

(This story has been corrected to clarify that Biden announces 'historic' pledge to IDA, not Trump, in paragraph 6.)