Policy Updates

On July 28, 2025, Norway announced a contribution of NOK200 million (US$20 million) to support the Palestinian government in paying public employee salaries amid a severe economic crisis.

The announcement came as Norweigan Foreign Minister Espen Barth Eide attended a UN conference on the two-state solution. The funds are intended to help sustain essential services such as healthcare and education. The economic crisis has been exacerbated by the war in Gaza and Israel’s withholding of Palestinian tax revenues, which, according to Palestinian authorities, amount to NOK28 billion (US$2.7 billion) since October 2023.

The contribution brings Norway's total support to Palestine in 2025 to more than NOK1.1 billion (US$109 million).

On July 27, 2025, the foreign and defense ministers of Australia and the UK issued a joint statement in Darwin, Australia, reaffirming their shared commitment to the WPS agenda.

The statement, released ahead of the 25^th anniversary of the UN Security Council Resolution 1325, noted that the promise of the WPS agenda remains unfulfilled. The ministers expressed concern that women and girls continue to be disproportionately affected by conflict and that their exclusion from peace processes prevents lasting security. The nations also highlighted their concern about the use of conflict-related sexual violence as a tactic of war.

Both nations committed to the full implementation of the agenda, including to:

• Promote women’s leadership in all areas of peace and security;
• Support women-led organizations and human rights defenders in conflict settings;
• Strengthen accountability mechanisms to address sexual and gender-based violence; and
• Collaborate internationally to advocate for the WPS agenda.

On July 25, 2025, the UNOPS announced the delivery of critical equipment to Ukraine, part of a US$10 million project funded by the Republic of Korea's development agency, KOICA, to bolster emergency response in frontline communities.

The project aims to restore public services in high-risk areas of northeastern Ukraine's Sumy region, which have been heavily affected by the ongoing conflict. As of the announcement, deliveries included 49 of 60 buses and 43 of 100 power generators.

The buses are intended to facilitate civilian evacuations and restore access to essential services such as education and healthcare. The power generators were delivered to the SESU to ensure emergency operations can continue without interruption amid damage to local power infrastructure. Local officials expressed gratitude for the timely assistance.

On July 25, 2025, the US MCC announced significant cuts to its programming following the US administration’s foreign assistance review, stating that stated its portfolio will now align with the administration's 'America First' foreign policy, with specific details on mission and structure to become available following consultations with Congress.

The agency terminated programs in Cape Verde, Gambia, Indonesia, Kenya, Lesotho, Malawi, Mauritania, the Philippines, Senegal, Tanzania, Timor-Leste, Togo, and Zambia. The MCC board is set to determine the continuity of programs in Albania and Liberia in August 2025, and typically approves new compacts and grants at the end of the calendar year. Many canceled programs were smaller threshold grants.

The rationale for the cuts was described as unclear by former officials, especially concerning programs in the Philippines, Indonesia, and Zambia, which were frequent espoused as hurdles to growing Chinese influence. Senator Jeanne Shaheen, the top Democrat on the Senate Foreign Relations Committee, criticized the numerous program terminations, arguing that they would damage US alliances and cede regional influence.

The agency has lost about a third of staff since the start of the administration, however, the proposed fiscal year 2026 budget bill allocated the same level of funding to the MCC as it received in preceding years, indicating a modicum of bipartisan support.

On July 23, 2025, the US House Appropriations Committee advanced a US$46.2 billion 2026 spending bill for the State Department and foreign assistance, a 22% decrease from 2025 but significantly more than requested by US President Donald Trump.

The bill, advanced on a party-line vote, cuts over US$5.5 billion from economic development and global health programs and nearly US$4 billion from international organizations, reflecting some of the administration's priorities.

However, the legislation defied Trump's wishes for more drastic cuts by salvaging key programs. It provides more than four times the requested funding for international broadcasting and restores funding for programs the administration sought to eliminate, including anti-tropical disease initiatives, nutrition support, and Gavi. Funding for PEPFAR was set at over US$6.2 billion, more than double the administration's request.

Despite restoring this funding, the bill also included a measure to increase the executive branch's power to cancel congressionally approved spending by removing standard language that protects congressionally approved funds. The move drew sharp criticism from Democrats, who warned that the steep reductions in foreign assistance would allow countries such as China and Russia to increase their global influence.

Following the committee's approval, the bill will advance to the full House of Representatives for a vote. To become law, it must also pass the Senate and be signed by the president. The Senate will likely advance its own version, and differences would need to be reconciled before a final vote in both chambers.

On July 23, 2025, France's AFD and partners launched the EUR 11 million (US$13 million) second phase of the SAQIRH project, which will continue to support 19 primary healthcare centers across Lebanon amid the country's ongoing crises.

The project, funded by France through the AFD and implemented by PUI, AMEL, builds on the first phase of the program. Since 2020, the SAQIRH program has delivered over one million primary healthcare services to Lebanese and refugee communities.

The second phase will continue to provide consultations, medications, and diagnostic services while also strengthening the health system. Key objectives include to:

• Strengthen accreditation processes for PHCCs;
• Expand training opportunities for healthcare professionals;
• Improve supply chain management; and
• Integrate mental health and psychosocial support services into primary care.

On July 23, 2025, French Prime Minister François Bayrou presented the main elements of France’s 2026 Draft Budget, which aims to secure EUR44 billion (US$51.5 billion) in savings to reduce the national deficit from cuts, confirming the postponement of France's commitment to allocate 0.7% of its GNI to ODA by 2030.

The ODA budget line will be cut by EUR700 million (US$820 million), or 16%, in 2026, the third-largest reduction in the budget. This follows a cut of nearly EUR2.3 billion (US$2.7 billion) between 2024 and 2025. Focus 2030 projects these cuts will lower France's total ODA to EUR12 billion (US$14 billion), or 0.38% of GNI in 2026, its lowest level since 2016. The cuts come as the government plans to increase defense spending by EUR6.7 billion (US$7.8 billion).

The reductions have drawn criticism from numerous NGOs, including Oxfam and ONE France, which condemned the move as disproportionately affecting the world's most vulnerable populations. The government also abolished the Solidarity Fund for Development, which had directed revenue from financial transaction and airline ticket taxes to multilateral health and climate funds.

On July 22, 2025, the US announced its decision to withdraw from UNESCO, citing concerns over the agency's perceived anti-Israel bias and promotion of divisive causes.

The US State Department stated the withdrawal, effective December 2026, was due to UNESCO's agenda and its admission of Palestine as a member state. This marks the third time the US has left the agency, having last rejoined in 2023 after a 2018 departure under the previous Trump administration. The US first left in 1984 due to security concerns around the Soviet Union before rejoining in 2003.

Alongside its cultural programming, UNESCO supports a number of education, SRHR education, literacy, clean water, and gender equality initiatives. It also helps set standards for ocean protection and AI ethics and protect cultural heritage and education in conflict zones.

UNESCO’s Director-General Audrey Azoulay noted her regret over the decision but stated it was anticipated. She denied the accusations of anti-Israel bias, pointing to the agency's work on Holocaust education and fighting antisemitism. Azoulay noted that the reasons cited by the US were the same as cited in the previous departure, despite significant changes and reduced political tensions within the organization.

The withdrawal will impact UNESCO's budget, as the US contributes 8% of its funding. However, the agency has diversified its funding sources and stated that it does not anticipate any immediate staff layoffs.

On 22 July 2025, Germany presented its third Voluntary National Review, reaffirming its commitment to accelerating implementation of the 2030 Agenda at the 2025 High-level Political Forum on Sustainable Development in New York.

Represented by Parliamentary State Secretary Dr. Bärbel Kofler and her colleague from the Federal Environment Ministry Rita Schwarzelühr-Sutter, Germany emphasized the need for stronger international cooperation in the face of climate change, geopolitical tensions, and economic shocks.

The German delegation highlighted national progress on SDG 5 (gender equality) and SDG 7 (renewable energy), attributing these achievements to broad participation from civil society, youth, academia, and local governments. Germany also hosted a side event on SDG 14 (ocean protection), which explored pathways to scale marine conservation and promote sustainable maritime economies.

Citing the UN’s 2025 SDG report, which warns that only 20% of goals will be met without acceleration, Germany stressed that global partnerships and inclusive implementation are vital to achieving the 2030 Agenda.

On July 21, 2025, analysis from the Lowy Institute interactive Southeast Asia Aid Map highlighted the impact that major US and European ODA cuts are set to have on South-East Asia’s LICs.

Australia continues to provide targeted assistance in areas such as gender, climate, and disability, but its overall ODA contribution remains low compared to other OECD countries. The Lowy Institute warns that without renewed commitments from Western donors, long-term climate adaptation and poverty reduction efforts in South-East Asia may suffer.

Stakeholders are encouraged to review ODA strategies to ensure effective and equitable support for the region.