As part of the G20 summit in Rio de Janeiro, U.S. President Joe Biden pledged a record $4 billion from the United States to the World Bank’s International Development Association to support the world’s poorest countries. This is the most significant commitment by the U.S. to IDA, almost doubling their previous pledges.

LARGEST U.S. COMMITMENT TO THE IDA

President Biden announced a commitment of $4 billion, a record, to the IDA, topping the United States commitment of $3.5 billion pledged in 2021. For instance, the IDA grants and low-interest loans to these countries, the world’s poorest countries, collect contributions from its members every three years to run its financial programs for aid. With this funding, it is essential for those countries that face such challenging issues as economic hardships, climate catastrophes, and ongoing conflicts.

The White House spokesperson declined to comment on the promise during the tense period preceding President-elect Donald Trump’s assumption of office last January. To date, Congress has also been unable to present a formal appropriation for approval. In this connection, the newly incoming administration remains uncertain if it will hold on to Biden’s pledge. This might most likely happen in case of harsh spending cuts.

More:Israeli Airstrikes on Damascus Result in 15 Fatalities Amid Escalating Tensions.

G20 Summit Summary: Biden’s Promise and New Alliances

Referring to the commitment as a “historic” contribution, US Deputy National Security Adviser Jonathan Finer said that in the administration’s view, the whole effort is part of a still larger agenda: that of helping vulnerable countries. In addition to commitments in IDA, Biden will also announce a clean energy partnership with the Brazilian President, Luiz Inácio Lula da Silva, on the sidelines of the G20 summit.

The IDA replenishment process, which is supposed to be concluded at a pledging conference set for December 6, targets more than what it did last time. World Bank President Ajay Banga may look forward to an all-time high of $120 billion driven by raging needs in places such as Africa, where nations are going to battle against piling debts, disasters caused by ecological imbalance, and more.

This would depend on higher commitments from several countries.

More Global Partners Add to the Pledge

This US pledge is part of a global effort by many international partners to strengthen support for the IDA. Spain has already pledged a 37% increase to €400 million ($423 million), while Denmark promised a 40% increase and brought its contribution up to about $492 million. Such increases demonstrate growing recognition of the urgent needs of some of the world’s most vulnerable populations.

Uncertainty Under the Trump Administration

While Biden’s promise is the watermark for U.S. foreign aid, the future of that aid is still being determined. The new year brings into office Donald Trump, who has also been open to reconsidering and possibly overhauling foreign aid commitments. According to reports, he will partner with the billionaire owner of Tesla and SpaceX, Elon Musk, to form a body in the government that will help top America’s spending, therefore influencing shares to IDA. All funding for that obligation may thus be left to Congress’s volition after his tenure.

It also comes at a critical moment as the world turns to issues of how to approach economic and environmental challenges by wealthier nations. What this commitment will bring to the United States under new leadership remains to be seen, but the pledge sets high parameters for future contributions to international development.

The result of these promises will strongly feature in the next IDA meeting and be put against this when financial aid is provided to the world’s poorest countries for the next three years.