Policy Updates

On July 14, 2025, US Secretary of State Marco Rubio began mass layoffs at the State Department as part of a reorganization aimed at creating a leaner foreign policy force.

Notices were sent to 1,107 civil servants and 246 foreign service officers, with nearly 3,000 expected to leave. The cuts have notably impacted the CARE office, responsible for Afghan relocations, and the bureau of population, refugees, and migration.

The move drew strong criticism from Democrats and former diplomats, who argue that downsizing puts national security at risk and threatens to worsen worldwide humanitarian crises. Rubio, also the presidential national security adviser, announced plans in April 2025 to eliminate 132 offices and merge 137 others within the State Department.

In early July 2025, Rubio formalized the closure of the USAID and transferred about 250 staff to the State Department. These staff appear mostly unaffected by the cuts, which have focused on offices previously slated for dissolution.

On July 13, 2025, campaigners and ODA experts urged the Labour government to fulfil its pledge to restore the UK’s global leadership in international development in a Guardian editorial, which emphasized the urgency of reversing cuts and addressing worsening global inequalities.

The editorial notes that, in the first half of 2025, key donors, including the UK, have continued to reduce ODA budgets, while many LICs now spend more on debt repayment than on healthcare or education. Campaigners argue that Labour should prioritize debt relief, reform international tax systems, and support grassroots-led solutions.

Romilly Greenhill, CEO of Bond, stressed that the global economic system is broken and requires immediate reform. Diana Francis of Peace Direct underlined the growing interconnection between climate breakdown, conflict, and underfunded humanitarian responses, adding that solidarity and cooperation are more important than ever.

The editorial calls on Labour to act decisively - or risk falling short of its own promises.

On July 11, 2025, JICA and the UNDP hosted a two-day demonstration in Ukraine to showcase advanced technologies supporting humanitarian mine action, which was held in collaboration with the SESU and featured:

• ALIS, a Japanese-developed ground-penetrating radar system, presented by its inventor Prof. Motoyuki Sato;
• Heavy demining machinery donated by Japan through JICA; and
• AI -powered drone-based scanning developed by Ukrainian company UADamage

Participants included representatives from Ukraine’s Ministry of Economy, SESU, national mine action operators, and UNDP staff. The demonstration aimed to enhance local capacity and inform the operational deployment of new technologies.

UNDP Ukraine emphasized the importance of innovation in accelerating safe, effective demining, while JICA reiterated Japan’s commitment to supporting Ukraine’s humanitarian mine action.

On July 4, 2025, US President Donald Trump approved the US FY2025 reconciliation bill, which contains sweeping tax cuts, reductions to public services, US$25 billion to a new missile defense system, and increased border and defense spending.

Two controversial provisions, an escalating foundation tax and a clause allowing the Treasury secretary to label nonprofits as terrorist organizations, were removed.

Remittances from the US, which reached US$685 billion in 2024, now face a 1% tax, lower than the initially proposed 5% but still expected to reduce remittance flows by 1.6%. Experts raised concerns that the remittances tax may push migrants to riskier, illicit channels to send money. The tax applies to all senders, including US citizens.

With regard to philanthropy, all taxpayers can now deduct up to US$1,000 in charitable giving, however, wealthy donors face a lower deduction rate (35% vs. 37%), potentially reducing philanthropic giving by US$41–61 billion over a decade according to projections from Indiana University’s Lilly School of Philanthropy. Businesses must now donate at least 1% of taxable income to qualify for deductions, likely cutting corporate giving by US$4.5 billion annually according to EY.

The bill also cuts renewable energy spending. Under the Paris Agreement, the US aimed for a 50% emissions cut by 2030, but Princeton University now projects only a 2% reduction under the new law.

On July 9, 2025, the Swedish government earmarked SEK8.2 billion (US$858 million) in its 2025 budget to support development and humanitarian efforts in the world’s poorest nations, financing sustainable development, crisis preparedness, and long-term resilience via priority regions and countries most affected by poverty and fragility.

The funding will be channeled through Sida to reinforce climate adaptation, health systems, education, gender equality, and inclusive governance. The initiative reflects Sweden’s long-standing commitment to vulnerable communities and its ability to respond flexibly to global challenges.

Minister for International Development Cooperation and Foreign Trade Johan Forssell highlighted that this budgetary commitment strengthens Sweden’s readiness to address crises while promoting equitable development outcomes.

On July 9, 2025, Canada pledged a CAD7 million (US$5 million) contribution to a new technical assistance project in the Republic of Moldova aimed at empowering rural women and promoting climate resilience.

The initiative, titled Advancing Climate Resilience and Women’s Empowerment in Moldova, will enhance access to training and resources in agroforestry and climate-smart agriculture. It focuses on supporting women entrepreneurs in rural areas by strengthening leadership, financial inclusion, and business development capacities.

This project reflects Canada’s broader commitment to gender equality and sustainable development, and follows ongoing Canadian support to Moldova in areas such as governance and economic resilience. It builds on Canada’s broader engagement, including a recently announced CAD120 million (US$88 million) sovereign loan to bolster Moldova’s financial resilience.

On July 8, 2025, according to statements made in Parliament, the UK FCDO will reduce its staff by 15–25% by 2029, leading Bond to responding with warnings that the cuts risk undermining the UK’s global development role.

Bond’s Director of Policy and Advocacy Gideon Rabinowitzs noted that development staff are likely to bear the brunt of the reductions, exacerbating already strained capacity following previous ODA cuts and the merger of DFID and FCO. He warned that further reductions will diminish the department’s development expertise and harm the UK’s credibility as a global partner.

Bond emphasized that restoring the UK’s leadership in international development requires investment in staff and skills. The proposed cuts, it argued, move in the opposite direction and threaten the government’s ability to deliver effective ODA and uphold its international commitments.

On July 4, 2025, Australia and Fiji signed an elevated Vuvale Partnership, strengthening cooperation across five key areas. These include:

• People-to-people ties;
• Economic resilience;
• Security;
• Regional engagement; and
• Development.

The agreement deepens labor mobility, trade and investment links, and cybersecurity cooperation. It agrees to increase Australia’s bilateral development assistance to Fiji by AUD40 million (US$26 million) over four years ,focusing on thematic areas such as global health, taking the total to just under AUD500 million (US$326 million) from 2025 to 2029.

On July 4, 2025, GCA convened a Funders Forum at its Rotterdam headquarters to assess progress and shape the future of the AAAP, which has mobilized over US$17 billion in climate adaptation investments across Africa, intending to reach US$25 billion by the end of 2025.

The forum brought together key partners including the BMGF, UK FCDO, GIZ, NORAD, and MDBs.

The AAAP attendees reviewed an evaluation by BCG, which measured progress across key priority areas such as food security, water and nature, resilient infrastructure, and youth engagement. Participants also discussed initiatives on health, education, and urban resilience, including upcoming “People’s Adaptation Plans” in 11 African and 10 Bangladeshi cities. Over 70% of AAAP projects now incorporate gender-responsive and inclusive strategies.

On July 3, 2025, the Netherlands contributed US$2 million to the UNDP to launch the second phase of the PIAJY II, renewing support that builds on earlier efforts that enabled the resolution of over 1,300 community disputes through restorative justice approaches.

With a continued focus on Aden and Mukalla, the funding will strengthen local justice systems by enhancing mediation services, improving civil documentation access, and linking informal mechanisms with formal institutions. Special attention will be given to supporting women and vulnerable groups in navigating justice.

This contribution reflects the Netherlands’ long-term commitment to promoting inclusive, people-centered justice in Yemen and supporting broader peacebuilding and rule of law efforts.