Policy Updates

On March 28, 2025, the US administration announced plans to merge USAID into the State Department, dissolving it as an independent agency and reducing staffing to a statutory minimum of 15 positions, and additionally detailed specific cuts to USAID grants and multilateral funding.

Congress must pass new legislation to officially eliminate the agency. The State Department will create an Office of Global Food Security to manage food security and humanitarian programs previously handled by USAID. The remaining global health programs will be supervised by the Bureau of Global Health Security and Diplomacy. Other programs will be managed by regional bureaus within the State Department.

Deputy administrator of policy and programs at USAID Jeremy Lewin informed staff that employment contracts would be severed by July 1 or September 2, 2025. By July 1, 2025, the State Department will fully take over USAID’s remaining programming. By September 2, 2025, USAID’s operations will transfer to State or shut down completely.

The administration also provided Congress with documents listing 5,341 terminated USAID programs and 898 active ones, detailing that 86% of programs have been terminated, slightly more than the 83% cut reported on March 10, 2025. The total value of terminated programs is US$75.9 billion, with US$48.2 billion already obligated and US$27.7 billion yet to be assigned.

UN institutions and other multilaterals saw steep cuts, with terminated awards totaling US$4.1 billion to 14 UN agencies, the IBRD, and Gavi.

On December 1, 2024, the Norwegian government and the SV reached an agreement on the 2025 state budget with a notable focus on domestic issues, particularly climate initiatives and social welfare programs.

The ODA budget for 2025 is set at NOK53 billion (US$4.9 billion), marking a slight increase from the NOK52.9 billion (US$4.7 billion) proposed in October. Although the overall allocation for ODA remains relatively unchanged, there are modest increases in specific areas, including civil society initiatives, disarmament and nuclear safety efforts, peace organizations, and humanitarian initiatives.

Domestically, the SV achieved significant gains, securing NOK7 billion (US$644 million) in additional funding for social welfare programs and climate initiatives. The largest portion of this funding is allocated to increasing child benefits, reflecting the SV’s focus on supporting families. Importantly, these new investments are financed through increased use of oil revenues, avoiding budgetary cuts to other programs or services.

On November 27, 2024, Australian Department of Foreign Affairs and Trade announced an allocation of US$57 million to the Towards Universal SRHR in the Indo-Pacific Program.

Program partners UNICEF, the UNFPA, Marie Stopes International, and the International Planned Parenthood Federation would work to improve information, education and the quality of services on reproductive and sexual health.

This program aims to advance the rights of women and girls in Southeast Asia, and work to eliminate violence against girls and women.

On November 26, 2024, the Swedish government approved an additional SEK50 million (US$5 million) in funding to UNFPA to support its operations in Ukraine; the funding is intended to address the impact of Russia's invasion on SRHR.

Sweden's SEK50 million (US$5 million) contribution from the ODA budget will be channeled through UNFPA's Humanitarian Thematic Fund to support operations in Ukraine.

According to Swedish Minister for International Development Cooperation Benjamin Dousa, Russian attacks have compromised access to essential healthcare, particularly maternal care and safe abortion services in the regions affected by the war. The need for humanitarian assistance has risen during winter, with many forced to flee Ukraine. Dousa noted that the support will help to support safe maternity care by building birthing rooms that are better equipped to withstand Russia’s attacks.

On November 22, 2024, the Norwegian government proposed a NOK1.5 billion (US$137 million) increase to the international development budget for the Nansen Program, focused on supporting Ukraine.

This adjustment was intended to ensure that the country meets its target of allocating 1% of GNI to ODA in 2024. According to Norweigan Minister of International Development Anne Beathe Tvinnereim, Ukraine remains the largest recipient of Norwegian ODA, with the funds primarily aimed at bolstering critical energy security and preparing for the winter season.

Additionally, lower refugee-related costs in Norway have made NOK930 million (US$85 million) available for other global development initiatives. Of these funds, NOK176 million (US$16 million) is allocated to the Middle East.

Increased funding is earmarked for sectors such as health and education, each receiving NOK100 million (US$9 million). Additional priorities include renewable energy, food security, and development efforts in Afghanistan, Sudan, Myanmar, Haiti, and Colombia.

On November 18, 2024, Norway announced its contribution to the World Bank's IDA for the period 2026-2028 during Norweigan Prime Minister Jonas Gahr Støre's attendance at the G20 meeting in Rio de Janeiro.

The Norwegian pledge represents an increase of 50% compared to previous replenishment periods. Norway committed NOK5 billion (US$454 million) in this round, which is an increase from NOK3.4 billion (US$303 million) in the previous round.

According to Støre, the Norwegian funding will be used to help provide people with food and access to electricity, as well as to implement measures to address climate change.

Norweigan Minister of International Development Anne Beathe Tvinnereim says that the IDA is one of Norway's most powerful tools in the fight against poverty. She declared that increased support to the IDA is a means of translating the Africa strategy launched in August, 2024, into action by enabling Norway to promote efforts to increase food security and enhance climate-resilient agriculture, areas in which the IDA plays a key role.

A total of NOK600 million (US$54 million) of Norway’s contribution will also be set aside to be used over three years to promote food security.

On November 18, 2024, Canadian Minister of International Development Ahmed Hussen announced that the UNGA’s 6^th resolution on ending child, early, and forced marriage, spearheaded by Canada and Zambia, was adopted.

This was the 10^th anniversary of Canada and Zambia’s partnership leading the resolution together, which received broad cross-regional support from 123 co-sponsors.

Despite global progress in reducing child, early, and forced marriage since 2014, the impact of global crises, including conflicts, economic shocks, climate change risk increasing the vulnerability of millions of girls, and threaten their human rights.

On November 7, 2024, Canada announced a total of CAD231 million (US$166 million) to support a series of flagship initiatives for peace and security in Africa, as well as building stronger and mutually beneficial partnerships by supporting economic empowerment, climate change action, and gender equality.

The funding was announced by Canadian Minister of Foreign Affairs, Minister of International Development, and Minister of International Trade and Economic Development on the margins of the Canada-African Union Commission High-Level Dialogue in Toronto, Ontario.

Canadian Minister of International Development Ahmed Hussen announced nearly CAD177 million (US$127 million) in funding to advance women’s and youth’s economic and social empowerment, support climate-change adaptation, and skills enhancement through the following projects:

• Supporting the UPSNJP - CAD75 million (US$54 million);
• Leading on funding the Renewed Women's Voice and Leadership in Crisis- and Conflict-affected Contexts - CAD25 million (US$18 million);
• Advancing women and youth’s economic and social empowerment in Senegal - CAD20 million (US$14 million);
• Backing the Climate Resilience through Empowering Women project - CAD15 million (US$11 million);
• Providing resources to AWBG - CAD14 million (US$10 million);
• Contributing to the United Nations Multi-Donor Trust Fund for Kenya - CAD10 million (US$7 million);
• Contributing to FIRST - CAD10 million (US$7 million);
• Strengthening the South Africa Skills Enhancement Program - CAD5 million (US$4 million); and
• Supporting Morocco's WESE - CAD2 million (US$1 million).

Hussen also announced initiatives to strengthening partnership to reduce poverty, provide humanitarian assistance, support economic development, and empowering youth by:

• Creating a new Africa trade and development program at GAC which will support development initiatives that contribute to food security, job creation, gender equality, and environmental sustainability; and
• Enhancing and expanding education and skills training programming to harness economic empowerment.

Additionally, Canadian Minister of Foreign Affairs Mélanie Joly announced CAD54 million (US$39 million) in funding for flagship initiatives and projects in the following key focus areas: peace and security, good governance, strengthened people-to-people ties, and enhancing Canada’s diplomatic footprint. This includes by:

• Supporting youth and women in peace processes;
• Supporting community-led conflict-prevention in Darfur and civilian-led political process throughout Sudan;
• Investing in counterterrorism capacity and threat resilience;
• Working to prevent violent extremism and support SGBV;
• Naming a Special Envoy for Africa and for the Sahel; and
• Formalizing Canada’s relationship with the AU Commission through a new memorandum of understanding.

On November 6, 2024, the results of the 2024 US Presidential Election were announced, with former US President Donald Trump (Republican) as the winner, leaving many development experts to speculate on how the upcoming Trump administration will impact US development policies and funding.

From his previous term in 2016-2020, Trump was not supportive of the multilateral system, including the UN. Many of his previous decisions were reversed by the Biden administration, such as budget cuts to USAID, and will likely be reinstated upon his return to office.

Trump's presidency could impact Global Health in particular by once again withdrawing from the WHO, reinstating the Global Gag, and cutting funding for UNFPA. Climate funding, an already contentious issue on Capitol Hill, faces an uncertain future.

Localization is one of the areas where there may be bipartisan agreement. Faith-based organizations and private sector partners working with the DFC are also groups that may find favor in the next administration.

On October 22, 2024, the G7 of the ministerial meeting on Development occurred in Pescara and took place until October 24, 2024.

In the communiqué released, the Ministers expressed support for a successful 2025 replenishment for Gavi and the GF.Furthermore, the communiqué focuses on multi-stakeholder engagement and innovation against malnutrition, focusing on childhood stunting and wasting. The Ministers call for a Nutrition for Growth Summit that will take place in Paris on 27-28 March, 2025, concerning development financing.

The G7 Ministers recognize the Fourth UN Conference on Financing for Development in 2025 as a crucial moment to forge a global consensus around a modernized development finance architecture that will accelerate progress on the SDGs.

The Civil Society engagement group, the C7, reacted with a statement in which they expressed appreciation for the political commitment of the G7 countries; nevertheless, they expressed concern about the lack of financial commitment to support the implementation of development policies and the increase of ODA.