Trump Cuts $500M from African Development Bank, Deepening Africa’s Financial Strain

The Trump administration’s proposed 2026 budget includes a significant reduction in U.S. support for the African Development Fund (ADF), which targets the continent’s poorest nations. The proposed cuts, totaling $555 million, would eliminate America’s payments to the ADF, a critical financing arm of the African Development Bank (AfDB). This shift aligns with Trump’s “America First” agenda, marking a retreat from multilateral foreign aid that has been central to U.S. involvement in Africa for over four decades.

Currently, the U.S. is the third-largest donor to the ADF, contributing around 6% of the fund’s total raised for the 2023-2025 funding cycle. With America’s withdrawal, the AfDB’s capacity to invest in health, education, and climate resilience projects across 40 African nations will be severely impacted. The ADF, established in 1972, has been vital in providing low-interest loans to fragile states, helping to support their development goals.

This decision also highlights a growing divide between U.S. and AfDB priorities, particularly in terms of climate policy. Trump’s administration has consistently opposed international climate initiatives, most notably withdrawing from the Paris Agreement, a stance in direct contrast to the AfDB’s focus on climate resilience for low-income countries. As the AfDB prepares for its annual meeting in late May, this funding loss is expected to unsettle its leadership, with the outgoing president likely to criticize the U.S. move.

The U.S. shift in priorities also reflects a broader trend toward bilateral and private-sector investment, as evidenced by the $3.2 billion pledge to the World Bank’s concessional arm and increased funding for the U.S. Development Finance Corporation (DFC). With Africa’s infrastructure needs growing rapidly, America’s decision underscores the financial challenges the continent faces, as it must now rely on other donors to fill the gap left by the U.S. withdrawal.