Cutting off US aid to the African Development Fund: Challenges and Hopes.
In line with President Donald Trump’s “America First” policy, the US government has recently proposed to Congress a complete elimination of US funding for the African Development Fund, the grant-making arm of the African Development Bank (AfDB). In its 2026 budget proposal to Congress, the US government justified the reduction as not being in line with “government priorities.” The US budget bill targets a total of $555 million in aid to African multilateral institutions, including the African Development Bank. The Trump administration says it wants to focus US funding through the US Development Finance Corporation (DFC) on cost-effective investment vehicles and eliminate funding for climate, equity or governance.
The immediate consequence of this move is a huge gap in the capacity to finance projects in sub-Saharan Africa, particularly in the agriculture, infrastructure, health and climate sectors, according to the State Department’s Office of Economic Diplomacy. The decision also weakens America’s strategic weight in African development policy. It also sends a worrying signal to the continent at a time when financial needs have never been more urgent.
The proposal would, in particular, mean the end of US financial support for the African Development Bank, a decision that could have serious consequences for millions of people in sub-Saharan Africa. The White House intends to redirect US funds to “more profitable” investment vehicles through the US International Development Finance Corporation, which focuses on private investment returns. The Trump administration believes that current multilateral aid, especially that focused on climate, gender equality, or democratic governance, is too “ideological or radical,” unnecessary, or inconsistent with government policy.
The African Development Bank, supported by 32 international donors, is the preferred financing pillar for 37 of the poorest countries in Africa. The organization is particularly active in rural areas, projects on water access, education and combating climate change. The end of US support would disrupt funding cycles and push other donor countries into the abyss of withdrawing aid.