Insights

Trump’s ‘America First’ Agenda Puts U.S. Aid to Africa at Risk

Trump’s ‘America First’ Agenda Puts U.S. Aid to Africa at Risk
Monday, 05 May 2025 11:22
  • U.S. plans to slash 2026 foreign aid by $49.1 billion, targeting global health, education, agriculture

  • $555 million cut to African Development Fund, U.N. peacekeeping missions defunded

  • New aid strategy focuses on U.S. interests, boosts DFC to counter China’s influence

The Trump administration unveiled its 2026 federal budget blueprint on May 2, and it is already raising concerns about how it could affect Africa. Beyond the line items and political rhetoric, the document reveals a shift in how the United States plans to engage with the world—Africa included.

One of the biggest red flags is the proposed elimination of the U.S. contribution to the African Development Fund. The cut amounts to $555 million, even though Washington had pledged $568 million during the fund’s last replenishment in 2022. While the fund’s short-term operations may not be immediately threatened, the message is clear: U.S. global funding priorities are being rewritten.

The broader picture is even starker. The budget proposes an 83.7% cut in funding for international and State Department programs, a drop of around $49.1 billion compared to 2025. Agencies that play a major role in Africa—including the State Department, Treasury-led programs, and international organizations—are expected to be hit hard. Key projects in health, education, and agriculture could be scaled back or even halted.

The White House justifies the cuts by saying U.S. development aid has been hijacked by what it calls “radical, left-wing priorities” such as climate change, diversity, equity, inclusion (DEI), and LGBTQ issues. The new plan would tie foreign aid more closely to U.S. national interests, with a focus on American taxpayers and national security.

Some of the most affected institutions are long-time U.S. partners. The budget removes all funding for U.N. peacekeeping missions, many of which are based in Africa. It also suspends or cancels contributions to the U.N., UNESCO, WHO, and IFAD. The World Health Organization, for example, has already signaled it may have to cut 40% of its staff due to the expected loss of U.S. funding.

The impact on humanitarian efforts could also be severe. The budget slashes $3.2 billion in emergency assistance for disaster response, migration, and refugee programs. These funds would be folded into a new International Humanitarian Assistance (IHA) account and a discretionary ERMA fund. Both would only be used when the aid directly serves U.S. foreign policy objectives.

Africa’s agricultural and environmental sectors are also in the crosshairs. The popular “Food for Peace” program would lose funding, as would U.S. contributions to the Global Environment Facility and Climate Investment Funds—key tools for sustainable development on the continent.

But it is not all about cuts. The budget also introduces new tools that reflect the administration’s strategic focus. The America First Opportunity Fund (A1OF), with $2.9 billion in funding, is designed to invest in regions where U.S. interests are at stake—particularly as a counterweight to China’s growing global influence. Africa is not named directly, but it is likely to be impacted by these shifts.

The administration also plans to strengthen the U.S. International Development Finance Corporation (DFC), increasing its budget by $2.8 billion. The DFC is already involved in more than 300 projects in Africa worth over $13 billion, and it may become the primary U.S. development tool on the continent—especially in strategic sectors like mining.

Another important move is a $3.2 billion pledge over three years to the International Development Association (IDA), the World Bank’s arm for low-income countries. Although smaller than the $4 billion promised under Joe Biden, it still represents a significant source of funding for Sub-Saharan Africa, the largest recipient of IDA support.

While some global health programs will be affected by budget cuts, the U.S. remains committed to the President’s Emergency Plan for AIDS Relief (PEPFAR). Funding for current recipient countries will continue, showing that Washington is not pulling back from every health commitment—especially those seen as critical for global and U.S. health security.

 
 
 
On the same topic
• South Africa, Tunisia, and Egypt top the 2025 AI Talent Readiness Index for Africa• North African countries outperform due to strong education and...
• Ghana secures 450,000 barrels of light crude oil from Nigeria to stabilize power supply• Additional stocks of heavy fuel and diesel procured to sustain...
• U.S. unveils a new trade-focused approach for Sub-Saharan Africa, moving away from aid• The strategy aims to link U.S. business interests with Africa’s...
The Islamic Development Bank (IsDB) approves $665.75 million for seven African countries as part of a broader $1.32 billion...
Most Read
01

The African Development Bank has approved a $304 million loan to Botswana to support the southe...

African Development Bank Approves $304 Million Loan to Support Botswana's Fiscal Stability and Economic Reforms 
02

BRVM and Africa50 signed a deal to create new infrastructure financing tools The plan inclu...

BRVM and Africa50 Partner to Fund Infrastructure in WAEMU
03

The Economic Community of West African States (ECOWAS) parliamentarians met in Lomé from May 6 to 9,...

ECOWAS Parliament Calls for Airfare Tax Cuts to Make Flying Affordable
04

Nigeria’s audit industry grew 65% in 2024, reaching 28.2 billion naira ($14.4 million). KPMG, EY,...

Big Four Hold 99% Share of Nigeria’s Audit Market in 2024
05

Africa’s digital economy is growing rapidly, and the demand for data storage, processing power, and ...

Safaricom and iXAfrica Launch East Africa’s AI-Ready Data Centre Services
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.