After a (slightly) quieter period in U.S. foreign assistance, we’re bringing you the latest on a rescissions package that has made its way through the U.S. Congress. And a rare good news story about aid that hasn’t been affected.
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Rescissions, decisions
After much debate, the United States Senate has pushed through a rescissions package which will strip billions from foreign aid that were already approved for fiscal 2025.
It’s the first package rescinding approved funding in three decades. But it probably won’t be the last.
There was a little bit of good news. The lawmakers removed a $400 million package affecting PEPFAR — the President’s Emergency Plan for AIDS Relief. But it doesn’t bode particularly well for future potential rescissions packages.
There are still battles to be fought in Congress, as the president seeks to reduce the foreign aid budget to around $38 billion in the fiscal year ending September 2025, and $28 billion the year after. We’re now at a point where U.S. charitable giving could surpass any government’s development assistance as the largest source of funding for aid.
The Trump administration also came in for heavy criticism in the Senate last week, after allowing almost $1 million in food aid to sit in a warehouse until it expired, meaning more federal budget must now be spent on burning it. A similar situation is occurring today, with almost $10 million in family planning and contraceptive commodities slated for burning, at further cost to the U.S. government.
Read: How the Senate saved PEPFAR — but still greenlit billions in aid cuts
Plus: US Congress clears Trump's $9 billion rescissions package
See also: Could US charitable giving eclipse the government as a source of aid? (Pro)
Funding activity
We publish tenders, grants, and other funding announcements on our Funding Platform. Here are some of those viewed the most in the past 10 days.
The United Nations has launched a $34.1 million initiative to enhance climate resilience in Madagascar.
The European Bank for Reconstruction and Development has announced a €50 million ($58.3 million) loan to improve infrastructure, energy management, and promote human capital recovery in Ukraine.
The World Bank has signed a $10 million loan agreement to promote inclusive economic growth; empower small entrepreneurs, including women entrepreneurs; and create jobs in Kazakhstan.
The African Development Bank is inviting qualified consulting firms to express interest in providing financial auditing services for a project in Mozambique.
Latin America and the Caribbean development bank CAF is seeking consulting services to design sewage systems and wastewater treatment plant(s) in Chile.
The Global Green Growth Institute is looking to engage an eligible service provider for travel management, transportation, and event management services in Kyrgyzstan.
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On the Bill
Once again, we’ve got a fantastic panel of events coming up for you this week at Devex.
The field is led by none other than Mark Suzman, CEO of the Gates Foundation, who’ll be speaking on Wednesday at noon ET (6 p.m. CET). The event will be open to anyone with a Devex registration, not just to our paid memberships. Book your spot here.
Meanwhile, our Pro members can also follow up on the events that we’ve held in the last few days.
I spoke to experts from the field of outcomes-based finance about the rapid growth of the sector, and all the changes that emerged from the fourth Financing for Development conference.
My colleague Raquel Alcega caught up with a new foundation funding tech for good — without the bureaucracy.
And she also has the inside track from another innovator trying new and different methods to invest in education.
+ If you’re interested in finding out what’s next, check out our other events this week. Tomorrow, Raquel will be speaking to a prominent Australian foundation that’s fast ramping up its African giving. And on Wednesday, we’ll be hearing about how AI is reshaping careers in aid.
DIY package
Over the past seven years, the IKEA Foundation has given out €1.1 billion in grants. Devex analyzed the data to find out which organizations received the most and where these organizations are located.
The foundation’s grantmaking has risen in the past few years due to a decision to spend on tackling the climate emergency. And we found that among countries and regions, India received the most spending.
Read: The IKEA Foundation’s top grantees (Pro)
+ Interested in more funding coverage? Explore our funding insights page. If you aren’t a Devex Pro member yet, start your 15-day free trial now to access all our exclusive reporting, analyses, events, and more.
Eurovision
In Europe, things are looking — potentially — a little more promising than they are across the pond. While individual countries have been cutting spending, the European Union appears to be moving in the opposite direction, with plans for a big boost to the overall seven-year budget, and to the development budget.
Altogether, the current proposal is for €200 billion to go to the Global Europe instrument — the main tool to fund external action.
There’s a few catches. First, the budget under discussion doesn’t start until 2028. Second, there’s a lot of horse trading to do before it’s finalized. And third, while it looks like there’s more funding coming, it’s also coming with more “Europe first” strings attached.
Meanwhile, in the U.K., there’s no more money, but there are some interesting proposals for aid reform. David Lammy, the foreign secretary, strengthened his calls for change when he gave evidence to a parliamentary committee last week. The U.K. does have a dedicated development minister, but right now it really seems to be Lammy calling the shots on what gets done in U.K. development.
Read: EU seeks major boost to development in budget amid ‘Europe First’ shift
Plus: UK foreign secretary strengthens his push for aid reform
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About the author
David Ainsworth@daveainsworth4
David Ainsworth is business editor at Devex, where he writes about finance and funding issues for development institutions. He was previously a senior writer and editor for magazines specializing in nonprofits in the U.K. and worked as a policy and communications specialist in the nonprofit sector for a number of years. His team specializes in understanding reports and data and what it teaches us about how development functions.
