Trump Cuts $555 Million from African Development Bank Fund

The Trump administration has announced plans to cut the United States’ entire $555 million contribution to the African Development Fund (ADF), signaling a major shift in U.S. foreign aid policy. The proposed cuts, submitted to Congress on Friday, would eliminate funding for the ADF in the next fiscal year, with the White House stating that the fund is “not currently aligned” with American priorities.

The ADF, a key arm of the African Development Bank (AfDB), provides critical support to low-income and fragile African nations. Washington’s decision to withdraw comes as the fund’s current $8.9 billion three-year cycle nears its end. African countries had hoped to increase funding through a $25 billion replenishment push. The sudden withdrawal of the U.S.—a founding contributor and the AfDB’s second-largest shareholder—creates a significant shortfall and threatens the fund’s future operations.

The move is part of President Trump’s broader effort to overhaul the U.S. foreign aid framework, favoring what he calls “return-on-investment” aid policies. A senior administration official said the decision reflects a commitment to no longer “dole out foreign aid dollars with no return for the American people.”

While the U.S. is retreating from the ADF, it has proposed a $3.2 billion contribution over three years to the World Bank’s International Development Association—lower than the $4 billion offered under President Biden, but still notable given the cuts elsewhere. Analysts see this as a partial balancing act, aimed at shifting responsibility to other international donors while maintaining a limited global development role.

The ADF is not alone in facing cuts. The Trump administration’s latest budget also eliminates the Washington-based U.S.-African Development Foundation—long viewed with skepticism by Republican lawmakers—and slashes $1.6 billion from U.N. peacekeeping missions, which have been labeled “wasteful.”

In contrast, Trump is doubling down on the U.S. International Development Finance Corporation (DFC), a Trump-era creation. The DFC is set to receive a $3 billion fund increase, reflecting Trump’s preference for investment-style aid that aligns with U.S. commercial and strategic interests.

The timing of the ADF cut adds pressure to the African Development Bank, which is preparing for leadership elections later this month. Current president Akinwumi Adesina is set to step down after serving two terms. His successor will inherit a weakened donor landscape and a funding gap that could delay or derail key infrastructure and poverty alleviation projects across Africa.

While some donors have trimmed aid in recent years, none have done so as drastically as the United States. The move, though expected by close watchers of Trump’s foreign policy, is still likely to send shockwaves through African development circles and international financial institutions.

As Washington redefines its role in global development, the message is clear: foreign aid without strategic return is no longer business as usual under Trump 2.0.