Donald Trump’s administration is expected to stop nearly all of the United States’ foreign aid budget, according to warnings issued to Cabinet ministers. Officials from the World Bank have informed International Development Secretary Anneliese Dodds that US-funded development projects worldwide could come to a halt as Trump prioritizes domestic spending over international aid.
$63 billion to foreign aid in 2023
In 2023, the United States allocated approximately $63 billion to foreign aid, accounting for about 1% of the federal budget. This marked a significant investment in international development projects. By comparison, the UK spent around £15.4 billion on overseas initiatives in the same year. However, under Rishi Sunak’s leadership as Chancellor during Boris Johnson’s tenure, the UK reduced its aid spending from 0.7% to 0.5% of GDP, a decision that has sparked debates among Labour MPs who advocate for raising the threshold back to 0.7%.
Foreign aid consists of financial resources, technical expertise, equipment, and supplies provided by the United States to other countries to support shared interests between the U.S. and the recipient nation and its citizens. Both Democratic and Republican administrations, along with members of Congress, have a longstanding tradition of supporting U.S. foreign assistance programs. As the world’s wealthiest country, the U.S. contributes more aid than any other nation, although its foreign aid constitutes a smaller percentage of its GDP compared to most other wealthy nations.
Future of developmental projects under Trump
The US and UK have collaborated on several international development initiatives, but with Trump poised to take office again, the future of these joint projects is becoming increasingly uncertain. Officials are concerned about the potential disruptions to these critical programs, which rely on continued funding from the US.
Richard Tice, Deputy Leader of Reform UK, voiced support for Trump’s stance, stating, “Donald Trump is taking the right approach and putting the people he was elected to serve first.” Tice criticized Labour’s position on foreign aid, claiming that while the party is committed to raising taxes and freezing pensioners’ benefits, it continues to send billions abroad in foreign aid. “Reform UK are the only party who are clear on this, we would slash foreign aid and put British people first,” he added.
