Policy Updates

On July 1, 2025, US Secretary of State Marco Rubio announced the official closure of USAID, following its rapid dismantling since US President Donald Trump’s return to office in January 2025.

Rubio claimed that the end of USAID eliminates waste and redirects funds for measurable returns. Many Democrats as well as the American Foreign Service Association condemned the move as unconstitutional and inhumane, and former US presidents Barack Obama and George W. Bush lauded the agency and criticized the announcement of closure. The shutdown comes after a Lancet study warned that US foreign assistance cuts could cause over 14 million additional global deaths, including 4.5 million children.

Of the US$120 billion in USAID contracts at the start of January 2025, US$69 billion in programming remains, covering 580 humanitarian, 167 health, 65 economic, and 79 other initiatives. The State Department will now oversee foreign assistance distribution, promising greater accountability and alignment with administration policy. The FBI is set to take over former USAID headquarters in Washington, DC.

On July 1, 2025, the Swedish government has freed up nearly SEK1.7 billion (US$177 million) to strengthen its civilian and humanitarian support to Ukraine and respond to other global humanitarian needs, reprioritizing funds from the 2025 ODA budget, including the phasing-out of development strategies for Afghanistan and the Asia-Pacific region.

The reallocation reflects the government’s commitment to respond flexibly to international crises. Minister for International Development Cooperation and Foreign Trade Johan Forssell emphasized the need to reinforce support for Ukraine while addressing rising global humanitarian demands.

Since Russia’s full-scale invasion in 2022, Sweden has provided approximately SEK12.8 billion (US$1.3 billion) in civilian and humanitarian support to Ukraine. The newly announced funds will supplement these efforts, ensuring continued assistance amid ongoing conflict and broader international challenges.

On June 30, 2025, Canadian Secretary of State Randeep Sarai announced Canada’s support for new blended finance initiatives totaling US$17 million at the Fourth International Conference on Financing for Development.

The pledge included:

• CAD10 million (US$7 million) for a blended finance accelerator to support gender-responsive investment in emerging markets;
• CAD5 million (US$4 million) to help developing countries improve domestic resource mobilization in the digital economy; and
• CAD2 million (US$1 million) to support SDG-aligned national financing strategies with the UNDP.

Canada also endorsed the Sevilla Platform for Action on private capital mobilization.

On June 30, 2025, Spanish Foreign Minister José Manuel Albares reaffirmed Spain’s commitment to global health with an increased pledge of EUR145 million (US$166 million) to the Global Fund to Fight AIDS, Tuberculosis and Malaria for the 2026–2028 period, at the Fourth International Conference on Financing for Development in Seville.

This marks a rise from the previous EUR130 million (US$149 million) contribution, demonstrating Spain’s intent to bolster support amid a global decline in health financing.

Albares emphasized the Global Fund’s role in saving over 65 million lives and its capacity to strengthen health systems in vulnerable regions. He also stressed the importance of sustained multilateral cooperation, particularly in light of warnings from the WHO about reduced global investment in health. Spain’s renewed funding aligns with its broader commitment to inclusive, rights-based international development.

On June 29, 2025, Canadian Secretary of State Randeep Sarai concluded her visit to Ghana, announcing CAD13 million (US$9 million) in new funding to expand the EMPLOY project, aimed at improving vocational and technical skills training for Ghanaian youth, particularly women.

The initiative supports economic empowerment through education in trades such as solar panel installation and machinery operation. The visit also highlighted Canada’s broader partnerships in climate-smart agriculture, gender equality, and green entrepreneurship.

On June 27, 2025, the Swedish government adopted a new development cooperation strategy for gender equality and the freedom and empowerment of women and girls, with a total budget of SEK800 million (US$84 million) covering the period 2025–2028.

The strategy will be implemented by Sida and targets global, regional, and national levels, with a strong focus on local ownership and rights-based approaches.

The strategy outlines four primary objectives:

• Combat sexual and gender-based violence and challenge harmful norms;
• Promote women’s and girls’ economic empowerment and access to equal rights;
• Strengthen political participation and societal influence of women and girls; and
• Improve access to disaggregated data for gender-sensitive policy and programming.

Aligned with Sweden’s broader ODA priorities and global frameworks like the EU Gender Action Plan, the strategy emphasizes intersectional analysis, transparency, and collaboration with civil society and the private sector. It is designed to respond to growing global pushback against gender equality.

On June 26, 2025, UNICEF commended South Korea's contribution to the organization of US$142 million in 2024 despite declining global ODA trends, highlighting their commitment to placing children’s rights as a priority funding area at the 19^th Annual Policy Consultation in New York.

Particular focus in the consultation was placed on expanding assistance to Africa. Korea pledged to leverage both financial resources and technical expertise to bolster global child welfare. The consultation also reinforced partnerships in health, climate, AI and tech-enabled development (through the GIGA initiative), and private-sector engagement.

The meeting concluded with the launch of a donor-visibility platform to highlight Korea’s contributions to UNICEF’s mission.

On June 25, 2025, German Development Minister Reem Alabali-Radovan announced a EUR600 million (US$688 million) contribution to Gavi to support global immunization through 2030, at Gavi's replenishment conference held in Brussels.

Alabali-Radovan emphasized that investing in vaccine access is both a humanitarian and economic priority, underscoring Germany’s long-standing role in strengthening global health systems. The funding will help immunize hundreds of millions of children and build more resilient healthcare infrastructure in low-income countries.

On June 25, 2025, US Secretary of Health and Human Services Robert F. Kennedy Jr. announced via video at Gavi’s pledging conference in Brussels that the US will halt contributions to Gavi until the organization re-earns public trust.

The US previously pledged at least US$1.6 billion to support Gavi from 2026 to 2030, which is now uncertain. The US is one of Gavi’s six founding donors and has contributed US$3.9 billion since 2001, plus US$4 billion to COVAX, making up around 13% of Gavi’s funding.

The Trump administration’s 2026 budget request excludes Gavi funding, citing the organization’s US$7 billion reserve, however, Congress, not the administration, ultimately decides funding for Gavi. Congress did approve US$300 million for 2025, which the administration has proposed to rescind.

Critics argue that ending US support would reverse gains in global vaccination, put millions of children at risk, and damage US credibility in global health. Gavi estimates that without US funding, 75 million children may miss vaccinations and 1.2 million children could die over five years. Gavi has faced shortfalls in its US$11.9 billion budget target for 2026–2030, only securing US$9 billion in pledges at the replenishment event.

On June 24, 2025, the German government presented the draft 2025 budget which considers reducing its ODA budget as defense spending increases to meet NATO commitments, with ODA expected to drop to EUR10.3 billion (US$11.8 billion), down from EUR11.5 billion (US$13.1 billion) in 2024 and EUR13.8 billion (US$15.8 billion) in 2022.

Meanwhile, Germany plans to raise defense spending to 2.4% of GDP in 2025, exceeding the NATO target. The shift comes amid concerns about future US support under Trump's administration and aims to strengthen European security.

However, humanitarian organizations have raised concerns that these cuts could further undermine Germany’s longstanding commitments to global development and crisis response.