Policy Updates

The Donor Tracker team regularly brings you the most important policy and funding news across issue areas in the form of Policy Updates.

Sweden slashes ODA budget amid domestic priorities

September 17, 2024 | Sweden, Education, Gender Equality, WASH & Sanitation, Climate, Global Health | Share this update

On September 17, 2024, Sweden announced a reduction in its ODA budget as part of the autumn budget proposition, marking a shift in the country's long-standing commitment to international development assistance.

Newly appointed Minister for International Development Cooperation Benjamin Dousa revealed that the annual ODA allocation will drop from SEK56 billion (US$5.4 billion) to SEK53 billion (US$5.1 billion) between 2026-2028. This represents a cut of SEK3 billion (US$291 million) per year compared to the 2023-2025 budget.

Dousa stated that Sweden is undergoing a restructuring process that focuses on efficiency to areas most in need. However, he declined to specify which areas of foreign assistance would face the most significant cuts.

The early announcement aims to give Sida time to adjust their priorities and operations.

Justifying the decision, Dousa pointed to pressing domestic challenges citing needs in policing, defense, and welfare services that could benefit from the redirected funds.

This reduction aligns with the government's earlier decision, made in partnership with the Sweden Democrats, to abandon Sweden's long-held goal of allocating 1% of its GNI to ODA.

Dousa acknowledged the difficulties in reaching a consensus among the four coalition parties but stressed their united front in making tough decisions. He assured that Ukraine would continue to be the largest recipient of Swedish assistance, underscoring the country's commitment to supporting nations in crisis.

News article - Article - Swedish Press (in Swedish)

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ONE Campaign considers legal challenge to UK ODA cuts

May 13, 2025 | UK | Share this update

On May 13, 2025, the ONE Campaign took legal steps to challenge the UK government’s decision to reduce its foreign ODA spending from 0.7% to 0.5% of GN in a pre-action letter sent to the FCDO, where ONE argues that the cuts may violate the International Development (Official Development Assistance Target) Act 2015, which enshrined the 0.7% ODA commitment in law.

The UK government claims the reduction is a temporary response to exceptional fiscal pressures. However, ONE contends that the legal conditions for reducing the target have not been met, and that the government has failed to provide adequate justification for the move.

The organization warns that the;abbrODA cut undermines the UK ’s credibility and leadership in global development, and could have severe humanitarian consequences for vulnerable populations. The legal challenge reflects wider concerns in the development sector about the UK ’s retreat from its international obligations.

Press release - ONE Campaign

Canadian ODA leaders express renewed commitment to supporting ODA

May 12, 2025 | Canada | Share this update

On May 12, 2025, Canadian ODA leaders expressed optimism regarding the Liberal Party's recent foreign ODA pledges, emphasizing the importance of sustained and strategic international assistance.

The Liberals committed to maintaining Canada's international humanitarian assistance budget at a minimum of US$800 million annually, with a focus on supporting vulnerable women and girls.

Executive Director of the Canadian Foodgrains Bank Andy Harrington highlighted that Canada's continued commitment sends a powerful message to other nations, notably the US, regarding the Trump administration's large ODA cuts. He hopes Canada will leverage its position as host of the upcoming G7 summit to encourage other countries to bolster their commitments to sustainable development and humanitarian assistance.

Executive Director of the Manitoba Council for International Cooperation Janice Hamilton echoed this sentiment, emphasizing that international assistance not only supports global development but also enhances Canada's security and economy. She pointed out that investments in global assistance can prevent crises from reaching Canadian borders and create economic opportunities through trade links with the Global South.

CEO of Cooperation Canada Kate Higgins acknowledged domestic economic concerns but cautioned against turning inward. She stressed that global engagement is vital for Canada's economic resilience, security, and international credibility.

Central Committee Canada's Anna Vogt of Mennonite and Cuso International's Nicolas Moyer both emphasized the need for Canada to play a leadership role in peacebuilding and to innovate its ODA strategies to address current global challenges effectively.

News article - Canadian Affairs

Norway pledges US$55 million to support Ukrainian, Moldovan refugees

May 9, 2025 | Norway | Share this update

On May 9, 2025, Norway announced that it is allocating NOK580 million (US$55 million) to support people displaced by Russia’s war in Ukraine.

The funds will go to the UNHCR to assist refugees in Ukraine and Moldova, providing essentials like shelter, protection, and basic services. This is part of Norway’s broader humanitarian response and commitment to international solidarity with Ukraine.

Press release - Norweigan Government

Germany pledges additional US$43 million in humanitarian assistance in Ukraine

May 9, 2025 | Germany | Share this update

On May 9, 2025, German Foreign Minister Johann Wadephu pledged an additional EUR40 million (US$43 million) in humanitarian assistance to Ukraine during a EU meeting in Lviv, underscoring Germany's continued support for Ukraine amid ongoing conflict.

The assistance package aims to address urgent needs, including medical assistance, shelter, and essential supplies for those affected by the war. Wadephul emphasized the importance of European solidarity.

News article - Converseer

Germany announces shifts in development policy

May 7, 2025 | Germany | Share this update

On May 7, 2025, German Development Minister Svenja Schulze announced that Germany is shifting from traditional humanitarian assistance toward long-term development partnerships, aiming to reduce reliance on international development assistance workers by scaling down foreign deployments, focusing instead on funding local actors and state structures to build sustainable systems.

This move aligns with broader EU development goals and Germany’s emphasis on efficiency, local ownership, and geopolitical strategy. Critics warn the change may weaken rapid response capacity.

News article - Euractiv

UN criticizes US-led Gaza relief plan

May 7, 2025 | US | Share this update

On May 7, 2025, US Middle East envoy Steve Witkoff informed the UNSC of a new US plan to address the humanitarian crisis in Gaza in coordination with Israel, creating Secure Distribution Sites managed by a new Geneva-based organization, GHF, with the aim of delivering assistance directly to civilians.

The plan would replace the UN in its role as primary coordinator of humanitarian assistance in the region. A representative for UN Secretary-General António Guterres confirmed they had not been notified of the contents of the briefing, prompting criticism from Witkoff over UN relief agencies' opposition to the plan.

The exchange has further strained relations between the US and UN. The growing rift reduces the likelihood that the US will reconsider the proposed 87% cut to UN funding outlined in the Trump administration's 2026 budget request. If enacted, this reduction would significantly impact the UN’s operational and financial capacity.

The initiative has sparked controversy, with concerns raised about its potential impact on existing development structures and the politicization of humanitarian assistance. Proponents contend that this allows assistance to bypass Hamas interference, which has previously been accused of complicating assistance distribution.

On May 12, 2025, the Trump administration confirmed their advancement with the plan. The announcement comes as the Netherlands and France place pressure of the EU to reconsider the EU-Israel Association Agreement, which requires adherence to human rights standards in Article 2, as a result of the humanitarian assistance blockade where nearly 500,000 Gazans face catastrophic hunger.

News article - DEVEXNews article - DEVEXNews article - RFIVideo - Euronews

Global philanthropic coalition launches US$600 million Beginnings Fund

May 1, 2025 | | Share this update

On May 1, 2025, a coalition of global philanthropic organizations launched the US$600 million Beginnings Fund to improve maternal and newborn survival across sub-Saharan Africa. Led by the BMGF and the Mohamed bin Zayed Foundation for Humanity, the initiative aims to save 300,000 lives and improve care for 34 million mothers and babies by 2030.

The fund will support targeted, low-cost interventions in hospitals across ten countries, including Kenya, Nigeria, Ethiopia, and Ghana. It focuses on preventable causes of death such as infections, hemorrhaging, and respiratory issues, particularly in high-burden healthcare facilities.

Of the total commitment, US$500 million will go directly toward implementing the program, while an additional US$100 million will support complementary maternal and child health efforts. The fund prioritizes collaboration with local governments and health systems to ensure sustainable, locally led solutions.

The initiative is being launched at a time of significant global ODA cutbacks, raising concerns about setbacks in maternal and child health progress. The WHO warned that declining investments could reverse years of improvements in mortality rates.

The fund is headquartered in Nairobi and supported by additional partners, including the Children’s Investment Fund Foundation, Delta Philanthropies, and the ELMA Foundation.

News article - ReutersNews article - Candid

UK considers reducing IDA pledge commitment

April 29, 2025 | UK | Share this update

On April 29, 2025, The Straights Times reported that the UK is reconsidering its GBP2 billion (US$2.5billion) commitment to the World Bank’s IDA, this move follows a shift in government priorities, with funds redirected from foreign assistance to bolster defense spending amidst heightened security concerns in Europe.

The pledged amount, which marked a 40% increase from the previous commitment, was announced in November 2024. However, the Labour government is now reviewing their ODA budget under Development Minister Jenny Chapman, with potential reductions to the IDA contribution being considered.

Critics argue this would represent a significant departure from the UK’s historical leadership in global development under previous governments.

News article - The Straights Times

Canadian Liberal Party secures fourth consecutive term in 2025 election

April 28, 2025 | Canada | Share this update

On April 28, 2025, Canada's Liberal Party, led by Mark Carney, secured a fourth consecutive term in the 2025 federal election, winning 168 seats—just shy of the 172 needed for a majority. Carney capitalized on rising tensions with US President Donald Trump, whose trade threats galvanized Canadian voters concerned about national sovereignty.

The Conservative Party, under Pierre Poilievre, achieved its best performance since 2011 with 144 seats and 41% of the vote, however Poilievre lost his own seat to Liberal Bruce Fanjoy. The Bloc Québécois secured 23 seats, while the New Democratic Party (NDP) faced a significant decline, winning only 7 seats. NDP leader Jagmeet Singh lost his Burnaby Central seat and subsequently announced his resignation.

Despite falling short of a majority, the Liberals are expected to form a minority government, likely relying on alliances to pass legislation.

News article - The Guardian

Sweden pledges US$2 million to the WFP in Afghanistan

April 28, 2025 | Sweden, Nutritious Food Systems, Maternal, Newborn, and Child Health | Share this update

On April 28, 2025, SIDA contributed EUR2million (US$2 million) to Afghanistan through the WFP and to support critical nutrition programs, which will enable the WFP to distribute over 550 metric tons of specialized nutritious food to 125,000 Afghan mothers and children over three months to combat malnutrition.

Between 2021 and 2024, SIDA contributed over EUR32million (US$35million) to WFP, establishing itself as a top donor. WFP remains a critical lifeline for Afghan women and children, who make up over half of the 12 million people reached by WFP in Afghanistan in 2024.

This partnership underscores Sweden's commitment to addressing Afghanistan's nutrition crisis and ensuring vulnerable populations receive the support they need.

News article - WFP

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US$ amounts are cited directly from sources; in the absence of an official conversion, they are calculated using the previous week's average of the US Federal Reserve's daily exchange rates.

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