Transcript
A (0:04)
My name is David Ainsworth and you're listening to this Week in Global Development, hosted by myself, Dimitri Kamba and Advar Saldinger. And I'm joined by my colleagues Colm lynch and Advar Saldinga to talk all about budgets. This week we've got two different types of budget to discuss, a US Budget and a UN Budget and how the two of them kind of join together and maybe don't quite match up. So, Advar, let's turn to you first. Rather, to everybody's surprise, Congress has come together and successfully announced not a generous budget, but maybe a more generous budget than some people suggested. So tell us what's happened? How did this come to pass? What are the key kind of lines in this budget?
B (0:45)
Yeah, I think one of the interesting things and conversations I've had in the past few days is that really until it happened, it was unclear when or if we would get a budget agreement for sort of the foreign assistance foreign affairs budget for the US Government. And what we saw released on Sunday was a compromise bill. Essentially, both the US House and the Senate, Republicans and Democrats in both chambers came together and agreed on a bill that would fund foreign assistance going forward. And so I think, you know, one of the people I spoke to told me, you know, one of the big questions was, will, like, will there be foreign assistance going forward? Can there be a bipartisan consensus on foreign assistance going forward? And I think some of those answers have been, you know, some of those questions have been answered and I think the answer to some extent is yes. And this budget bill provides a roadmap forward that folks on both sides of the aisle in Congress want to see proceed. And so top line figures, this budget includes about $50 billion for what used to be called the State and Foreign Operations Appropriations Budget has a new name now, and it does look different than it did in the past. Many of the accounts that people were used to seeing don't exist anym or have been merged into new accounts. And so the bill does look different for people who look closely and that does make sort of year on year comparisons a little bit more difficult. But one of the things we know is that it is probably roughly a 16% cut from the fiscal year 2025 enacted levels. And one thing that's really important to note in this is that that is like a far cry. It's about $20 billion more than the Trump administration requested, which would have been a 47 point something percent cut. And so I think to a lot of people in the, in the Global Development community I've been speaking to. If you would ask them six months ago or maybe even a month ago if this would be the funding level in the bill, they probably would have been surprised. So I think people are very excited that the bill got done. And I think, you know, overwhelmingly, one of the things that I've heard from people is that the significance is less about what's actually in the billboard, but more about the fact that this bill is out there. I will obviously caveat by saying it still has to pass the House, it still has to pass the Senate, it still needs the president's signature. Nothing's guaranteed until it's done. And we've sort of seen that play out before. So we'll see. There is Also this looming January 30th deadline after the shutdown of the US government was restored with a temporary funding bill that gave Congress until January 30th to fund the government. They are kind of running up against that deadline, but at least from what I'm hearing from people, we do expect votes on this bill before then. So we'll see if that comes to fruition. Just a little bit of a rundown of the funding that's in the bill. One of the most significant, you know, sort of buckets of funding is really for global health programs. And there's $9.4 billion in total funding for global health. About 3.5 billion of that is for sort of general global health programs, child survival, immunization, nutrition, public health. And that includes actually funding for gavi, the vaccine alliance. And that is something that the administration has sort of hinted that it wouldn't fund. And so that is a pretty significant inclusion in this bill. So we'll see what happens there. And it also includes about $5.88 billion for HIV prevention, treatment, and control, including a $1.25 billion contribution to the Global Fund to Fight AIDS, tuberculosis and malaria. And I know that my colleague Sarah also did a sort of more detailed breakdown, because we actually do have a lot of detail of how Congress wants the global health budget to be allocated. So take, you know, take a look at that if you want sort of more details. There's also about $5.4 billion for humanitarian assistance, which is a new sort of consolidated budget line. And one of the things we see sort of throughout the bill, but also specifically in this humanitarian assistance bucket, is a lot of calls for additional reporting by the administration to Congress and for humanitarian assistance. One of the things they're really asking for is they're saying, state Department, you need to tell us how you're going to program, manage and monitor humanitarian assistance funding. They also call for Secretary of State Marco Rubo to implement a pilot program in three countries to assess the efficacy of humanitarian assistance delivery. I don't think we know a lot about what that means yet or what that pilot program would look like, but I think you do really see Congress calling for additional reporting and details for a lot of the funding that they're putting out there. And then the other sort of big bucket of funding is there. There used to be sort of a development assistance account that USAID administered and an economic support fund which, you know, comprised quite a bit of money. And I think the last budget it was, the two of them were almost $8 billion combined. So those two accounts don't exist anymore. But there is a new National Security Investment Programs account, and that's about 6.77 billion for and at least 15% of that has to be spent in Africa. And so that funds everything from sort of the Young African Leaders initiative, family planning, peace process monitoring, trade capacity building, combating child marriage programs, countering China. So it's kind of, I think that's where there's a lot of questions, what falls under that bucket? But I think if you read carefully and in my conversations with people, one thing that's stuck out is actually a lot of the programs that USAID used to do, obviously less funding for things like family planning. You don't see climate in this bill, that there is funding, for example, for the Global Environment Facility. But I think one of the things to note is that a lot of those programs, Congress would like to see them continue to exist. There's funding for education, there's funding for water, sanitation, and health. You know, a lot of these things, albeit they're being funded at lower levels, but they still want Congress is saying in this bill we still want and see a, you know, a role for the US to play in these areas. And, and one thing, you know, I think I'll hand it over to column in a minute. But one of the other things to look at in this bill is sort of funding for international organizations. There is funding in here, for example, for the World Bank's IDA, which is its fund for the poorest countries, 1.06 billion for IDA, which actually wasn't in the original House bill, but is in this final bill. And there's some funding for the Asian Development Fund and the African Development bank and the European bank for Reconstruction and Development. Notably, there is no funding for the African Development Fund, which is The African Development Bank's fund for poorest countries. And that probably isn't that surprising for some people because we know that the US did not pledge any funding for the ADF at its recent replenishment. So. But it is something that people have pointed out as sort of a loss. And then if we turn to some of, you know, one of the other things before I get to the UN and then hand it over to Colum. One of the things that was interesting to me is even some of the organizations that really came under fire this year, the US African Development foundation or American foundation, the US Institute for Peace, they actually all get funding this bill. So I think that's also something interesting. There's funding in there for the Millennium Challenge Corporation. So that's a little bit below what we've seen in previous years. And the US Development Finance, International Development Finance Corporation gets about the same amount of money as they got last year and the year before. So we see some things flat funded, some things are obviously cut. And if we look at the, at the U.N. i think, you know, one of the things that, that we've definitely seen is a shift in posture towards the United nations and international organizations in this administration and column. I know you'll see speak to that and sort of some of the things we've learned in recent weeks in terms of organizations the US wants to engage with and not. But top line funding numbers for international organization funding, which is a lot of United nations money, particularly for, you know, required contributions and that sort of thing. The budget includes nearly $1.4 billion and then there's about $1.23 billion for UN peacekeeping. And with that I'll probably hand it over to to you Colm, to talk a little bit more about what we're seeing from the un.
