The U.S. Department of State has already taken over USAID’s disaster response role, and it looks likely it will be responsible for much more aid funding going forward. Last week, Marco Rubio, who heads the department — as well as doing many other jobs — was in front of lawmakers defending his record so far.
With an increased focus on the State Department, we’ve looked at what its track record on development funding has been to this point.
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The state of State
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U.S. Secretary of State Marco Rubio had a busy week last week, answering questions in both the Senate and the House of Representatives over his record so far on aid. He insisted that he was “very proud” of the changes so far, and denied evidence that aid cuts had resulted in the deaths of children.
Former USAID administrators notably took a rather different view, criticizing Rubio for “cowardice” and attacking the record of his administration.
The court cases still continue against the government over its dismantling of USAID, but at the State Department itself, the operation to deliver aid in the future is just beginning to get going, with a handful of new roles available for former USAID staffers and a formal acknowledgment that the State Department is now responsible for disaster response.
With all of that in mind, my colleague Miguel Antonio Tamonan has broken down what the State Department funded in the past. Almost all of this funding appears to have continued, so it may provide some indication of what the State Department will prioritize going forward — despite the proclivity of the current administration for tearing everything up and starting again.
Read: Who are the State Department’s top development partners? (Pro)
ICYMI: Samantha Power attacks ‘cowardice’ of Rubio and ‘ignorance’ of DOGE
Background: Death, reform, and power — Rubio spars with Senate over USAID cuts
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Funding activity
We publish tenders, grants, and other funding announcements on our Funding Platform. Here are some of those that have been viewed the most in the past 10 days.
German funder BMZ is seeking firms to design, implement, and document a comprehensive support package for provincial-level green economy transformation in Indonesia.
The European Commission has announced €80 million ($91 million) in aid to support people in Yemen.
The Multilateral Investment Guarantee Agency has issued guarantees to the National Bank of Canada to support a $576.9 million loan to support women-led SMEs and retail loans for women in Cambodia.
Dutch funder NUFFIC has issued a call for proposals with a budget of €75,000 ($85,000) to enhance the knowledge and skills of professionals in Syria in the area of transitional justice.
The United Nations will provide a $1.5 million grant to promote peace and inclusion by equipping young leaders to drive change through intercultural dialogue, community projects, and policy influence worldwide.
The World Bank has approved $67.34 million to support work to foster a more dynamic civil service in the Philippines.
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Nonprofit killer, killed
Donald Trump’s “big, beautiful” tax bill continues on its way, containing any number of less-than-favorable clauses for development. But at least it’s been stripped of one element that the sector disliked — a “nonprofit killer” clause which allows the administration to label an NGO a “terrorist organization” and stop funding it, with relatively little evidence or ability to make an effective response.
But before we celebrate too much, it’s worth noting that it’s not gone for good. There are still major factions in the Republican Party who want to sign it into law.
“It keeps rising from the dead,” one advocate tells Devex.
Read: Trump's signature tax proposal passes without ‘nonprofit killer’ clause
Who spends the least?
Over past weeks, we’ve broken down which countries spend the least on development, compared to the amount they receive in aid. To complete the series, we’re bringing you a similar list of the countries that spend the least on their own development — at least as measured by government expenditure. It’s admittedly not a perfect measure, but it offers a picture of where the difficulties are likely to lie in the future.
Read: Which countries spend the least on their own development? (Pro)
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WHAssup?
Last week at the 78th World Health Assembly, future funding loomed large in the discussions. With the United States pulling back from the World Health Organization, the multilateral will have to cut its coat to suit its cloth, and that is going to mean difficult decisions down the road.
That being said, WHO has succeeded in raising a large portion of its base budget — more than at this time in previous years, apparently, although it’s not clear how significant that is.
And it wasn’t the only thing on the agenda: The signing of the pandemic treaty was a major milestone.
But it didn’t stop much of the discussion on the fringe of the assembly — including at Devex’s own event — focusing heavily on how things might be done more cost-effectively in future.
Read: All the news from WHA78
+ Tomorrow, we’ll be sending out a special edition newsletter to break down WHA’s key takeaways, vital resolutions, and what it all means for the future of health. Be the first to know by signing up for our daily Newswire no.
What next for AfDB?
A leadership contest concludes shortly at the African Development Bank, and we should know by the end of the week who will helm the organization from September onward.
It’s a big job. AfDB employs more than 2,000 people and has $318 billion in capital. As Africa increasingly argues that it wants to focus on trade and investment, not aid, the bank has a key role to play.
In the run-up to the election, three of the candidates have come together to pen an opinion piece for Devex outlining why they think the global financial system is structurally unfavorable to Africa, and what should be done about it.
My colleague Ayenat Mersie has been tracking the runners and riders.
Read: Inside the race to lead the African Development Bank
Opinion: Africa’s cost of capital crisis is a G20 test of global fairness
Related: Inside the United States’ new ‘trade, not aid’ strategy in Africa (Pro)
+ Ayenat will be in Abidjan, Côte d’Ivoire, this week for the AfDB presidential election. If you’d like to get in touch, send her an email at ayenat.mersie@devex.com.
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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.
