Policy Updates

On April 11, 2024, the US announced that it will provide an additional US$25 million in assistance to refugees in the Uganda. The resources from both the Department of State and USAID will go to the UN High Commission on Refugees and the WFP.

The resources will be used to support food, health care, and education, as well as other emergency support to refugees whom have fled South Sudan, the DRC, Somalia, and Sudan. The US noted that Uganda has the highest number of refugees in Africa, having received more than 130,000 refugees in 2023.

The US separately called out a 2024 ruling of the Ugandan court, which had upheld a controversial anti-homosexual law, stating that the US was committed to ensuring that all assistance would be delivered without discrimination.

In advance of the Paris International Humanitarian Conference for Sudan and it Neighbors, Power also announced an additional US$100 million in emergency assistance for the 25 million people who have been affected by the civil war in Sudan. Five million people are close to famine and eight million have been displaced. USAID also called out the violence being perpetrated on the people of Sudan by both sides of the armed conflict. The emergency assistance will include food, nutrition, and other services. This brings total US humanitarian assistance for Sudan to over US$1 billion.

On March 22, 2024, the US foreign assistance budget for FY2024, which should have been passed before October 1, 2023, finally cleared the Congress and was signed by US President Joe Biden as part of a six-part appropriations package that required strong Democratic support in the US House to pass.

Foreign assistance funding saw an overall 6% cut to funding across various funding lines.

Humanitarian funding through USAID increased by US$800 million. PEPFAR's funding remained level and also received one-year authorization, which global health advocates had strongly pushed for. Other global health programs saw level funding, and Gavi received a US$10 million increase.

Other development accounts, such as programs for WASH, democracy, and education were cut. Global heath security saw a decrease of US$200 million. The World Bank's IDA allocation was cut by US$50 million. UNRWA, the Palestinian refugee agency, was reduced to zero.

The boost to humanitarian and refugee support seen in the US in 2023 came at the cost of developmental programs. Advocates criticized that with this, the US is funding the shorter term at the cost of solving longer-term problems. Given acute global needs and crises, development experts expressed concern about the trade-offs that will be necessary with the new development budget cuts.

On 13 March 2024, Sweden announced a new agreement between Sida and the USAID, which is set to advance sustainable development initiatives, prioritizing local initiatives and engaging the private sector closely.

The agreement was officially sealed in Washington DC on 4 March by Sida's Director-General Jakob Granit and USAID Deputy Administrator Isobel Coleman.

The agreement, slated to span the next four years, introduces new focus areas including digitalization, cybersecurity, the enhancement of global public goods like food security, climate action, and the improvement of transparency and oversight in development.

On January 27, 2024, it was announced that the UK has joined the US and other nations in freezing its funding for the UNRWA for Palestinians in the Near East in light of allegations that 12 UNRWA staff took part in the October 7, 2023 attack by Hamas on Israel.

The UK government noted that while it remains committed to getting vital humanitarian aid to people in Gaza, it was temporarily pausing future funding while the allegations are reviewed. The UK was the third-largest donor to UNRWA in 2020, but its funding fell sharply in 2021 and 2022. No recorded funding was delivered in 2023.

Assistance workers and Palestinian advocates have stated that freezing funding could have dire impact on humanitarian relief to Gaza.

On January 23, 2024, the MCC, an independent foreign assistance agency established in 2004 by former US President George W. Bush, reached a 20-year milestone.

The MCC, which focuses on reducing poverty through economic growth, has led a different approach from other US foreign assistance agencies. It establishes five-year grant agreements, known as compacts, that address constraints to growth through sectoral approaches, including infrastructure, agriculture, education, and governance.

In order to qualify for MCC grants, LICs and LMICs must pass the MCC scorecard, which measures partners against 20 indicators ranging from governance, corruption, human rights, investments in health care and education, and fostering trade. Once partner countries reach eligibility, implementation of the compact is turned over to partner governments to ensure a country-owned approach to the grant.

Since its inception, the MCC has signed 46 compacts with 31 countries for a program total of US$17 billion. It has also signed dozens of 'threshold programs', which can function as MCC precursor programs to help partner countries reach eligibility. The MCC was recently granted authority to pursue regional programs and has pushed for legislation that would expand the number of potential partner countries.

The program's West African investments, which were approved in 2018, have faced setbacks since their inception following intense regional turmoil. US Senate approval of private board members has also been delayed in 2023 and 2024 by a difficult political climate in the US.

On January 17, 2024, at the World Economic Forum, USAID Administrator Samantha Power called for the elimination of lead poisoning in consumer goods, which she described as a much neglected, very traceable poison that kills at least 1.6 million people a year.

Most lead poisoning deaths occur in low- and middle- income countries. Even when nonfatal, lead poisoning can cause severe brain damage, educational impairments, and reduced productivity. Global funding to mitigate lead poisoning stands at only US$15 million per year.

Power called upon donors to create and enforce regulations to curb lead poisoning in products including paint, spices, and cosmetics. She emphasized that this could not only save many lives, but also prevent severe impairments and improve educational outcomes. Power also noted that available solutions are highly cost-effective.

USAID's 80 missions are slated to work to introduce new regulations and advocate for lead mitigation by partner governments. As part of the commitment, the US has now joined the Global Alliance to Eliminate Lead Paint. USAID also announced US$4 million to support local governments' efforts to address lead poisoning, including through special efforts targeted to protect children.

On October 11, 2023, USAID announced US$130 million in new investments for girls' empowerment as part of its celebration of International Day of the Girl.

USAID's investment is intended to address the barriers that allow girls to be educated, healthy, safe from violence and empowered both economically and socially in order to create conditions for girls to fully engage and thrive in their communities.

The investments included addressing GBV to prevent child marriages and provide other services in at least six different countries, including US$15 million for these services in Bangladesh. Additional funding is slated to promote girls' health, as well as address the barriers to healthcare that girls face. The funds included promoting access to sexual education and SRHR services.

USAID also announced plans to provide funding for investments in girls' education, intended to advance gender equality through educational efforts, including new investments to support access to leadership fields in STEM to address climate and other global challenges.

At the Paris Summit for a New Global Financing Pact, the EU announced several pledges and partnerships to support partner countries in adapting to climate change.

In partnership with France, Germany, the UK, and Canada, the EU launched a new Just Energy Transition Partnership with Senegal. With the help of international development banks and other partners, the group aimed to mobilize EUR2.5 billion (US$2.7 billion) to diversify Senegal's power supply and increase domestic access to renewable energy.

The EU, via the Team Europe initative also provided an additional EUR300 million (US$328 million) to Rwanda's Resilience and Sustainability Facility. Building on existing commitments of US$319 million made through the IMF, the funding included commitments from the EIB, AFD, IDC, and other partners. The funding was allocated to projects to bolster the capacity to author and enact policy changes to respond to climate change.

Additionally, the EIB announced an EUR10 million (US$11 million) loan to Barbados for healthcare resilience. The pledge also included a commitment to improve partnership on WASH, renewable energy, and climate change.

On May 24, 2023, Civil Society 7 released its review of the May 2023 G7 Hiroshima Summit.

The report looked at six topics, including the nuclear disarmament, climate and environmental justice, the transition to a fair economy, global health, humanitarian aid and conflict, and a resilient and open society, and presented the following findings:

• Nuclear Disarmament: The G7 summit did not focus on nuclear disarmament, and its leaders did not show any commitment to starting time-bound negotiations. While condemning Russia’s nuclear threats, they justified their own nuclear weapons as being for defense and deterrence;
• Climate and Environmental Justice: The G7 summit acknowledged the need to strengthen adaptation measures, enhance resilience support for vulnerable groups, and increase support to the most vulnerable countries for avoiding, minimizing, and addressing losses and damages. It emphasized the reduction of greenhouse gas emissions, including non-CO2 gases, and reaffirmed commitment to global methane reduction efforts. However, the report argued that the G7’s approach to climate change, in particular its descriptions of fossil fuels, is far from ideal;
• Transition to a Fair Economy: The G7 summit prioritized “economic security” from its perspective rather than focusing on resolving challenges faced by partner countries. It aimed to decouple supply chains from China, but such decoupling could impose additional burdens on developing countries. The summit lacked strong commitments regarding debt restructuring, international negotiations, and debt cancellation. It also weakened the organization's stance on business and human rights;
• Global Health: The G7 summit fell short of expectations due to time constraints and limitations imposed by Japan. It failed to address intellectual property rights as a key factor in addressing the pandemic and ensuring equitable access to therapeutics. The summit lacked specific commitments, and its focus was more on ordering and reaffirming previous pledges rather than providing the required funding and technological contributions;
• Humanitarian Aid and Conflict: The G7 summit's commitment of US$21 billion in support, with particular focus on addressing food crises and prioritizing education, was welcomed. However, apart from this financial commitment, the summit lacked clear and concrete commitments. It failed to mention the importance of strengthening local leadership and access to humanitarian aid and protection; and
• Resilient and Open Society: The G7 summit did not address the concept of an open society or democracy in its statements. It neglected to discuss civic space and shrinking civil society, and its focus on democracy mainly revolved around countering information warfare. The summit did not address issues like digital space safety, fake news, freedom of expression, or topics covered in previous G7 meetings. The treatment of non-regular immigrants and their dire situations was a significant problem. The summit lacked references to freedom of expression and did not improve citizen participation or support for civil society organizations.

C7 aims to achieve a society envisioned by the SDGs that leaves no one behind, and its criticism of the G7 Hiroshima Summit was presented as a means of holding leaders to account for their role in building a better world.

On February 16, 2023, USAID Samantha Power announced that the US pledged an additional US$43 million to the Education Cannot Wait (ECW) initiative.

The funds, which will come from both USAID and the State Department, are subject to availability.

ECW is a global fund for educational emergencies. Power made the annoucement during ECW's High-Level Financing Conference in Geneva, Switzerland.

Since 2017, the US has pledged US$145 million to ECW.