link to page 1 
Updated April 27, 2023
International Financial Institutions: FY2024 Budget Request
For FY2024, the Biden Administration is requesting $4.04
non-concessional financing, which provides market-based
billion for the international financial institutions (IFIs).
loans to middle-income and some low-income countries.
These include the International Monetary Fund (IMF), the
Nearly 80% of the budget request for the MDBs is for the
multilateral development banks (MDBs), and associated
concessional lending facilities. The FY2024 request
multilateral trust funds focused on climate change and food
includes annual installments towards multi-year pledges,
security. The FY2024 request for the IFIs is 70% more than
including: $1.48 billion to the International Development
the amount in FY2023 ($2.36 billion, Figure 1), and
Association (IDA), the World Bank’s concessional lending
accounts for about 6% of the total FY2024 Department of
facility; $224 million for the African Development Fund,
State, Foreign Operations, and Related Programs (SFOPS)
the concessional lending facility of the African
budget request.
Development Bank; and $107.2 million for the Asian
Development Fund, the concessional lending arm of the
U.S. funding for the IFIs is administered by the Treasury
Asian Development Bank.
Department, which is responsible for managing U.S.
participation in these institutions. Congress authorizes and
The request also includes annual installments towards
appropriates U.S. contributions to the IFIs. The Senate
previously negotiated, multi-year capital increases of two
Committee on Foreign Relations and the House Committee
MDB non-concessional lending facilities. Specifically, the
on Financial Services are responsible for managing MDB
Administration is requesting $233.3 million for
authorization legislation. The SFOPS Subcommittees of the
the International Bank for Reconstruction and
House and Senate Committees on Appropriations manage
Development (IBRD), the World Bank’s non-concessional
the relevant appropriations legislation. Over the past several
lending facility, and $54.6 million for non-concessional
decades, authorizations and appropriations for U.S.
lending by the African Development Bank. U.S.
contributions to the IFIs have been included in annual
contributions to capital increases protect U.S. voting shares
SFOPS appropriations or larger omnibus appropriations
at these institutions.
acts.
Additionally, the budget request includes two new MDB
Figure 1. Treasury’s International Programs Budget
funding initiatives. The first is $75 million for a new capital
Request
increase at the Inter-American Investment Corporation
(ICC, also called IDB Invest). The ICC is part of the Inter-
American Development Bank (IADB), which focuses on
private sector development. The second is $119.3 million
for two new programs at the Asian Development Bank:
(1) the Innovative Finance Facility for Climate in Asia and
the Pacific and (2) the Energy Transition Mechanism
Partnership Trust Fund.
Energy and Environmental Trust Funds
U.S. funding for multilateral climate change and
environmental initiatives has varied over time, and the
Source: U.S. Treasury Department, International Programs
Administration is requesting $1.42 billion for FY2024, up
Congressional Justification for Appropriations, FY2024.
from $275 million enacted in FY2023. Specifically, the
Overview of the FY2024 Request
Administration is requesting
More than half of the Treasury international programs
$800 million for the Green Climate Fund (GCF),
request—$2.29 billion—is U.S. funding to the MDBs,
which is established within the framework of the United
which finance development projects in low- and middle-
Nations Framework Convention on Climate Change
income countries. The second largest portion of the request
(UNFCCC) to assist developing countries in adaptation
is $1.42 billion for multilateral energy and environmental
and mitigation practices to counter climate change (the
trust funds, more than five times the amount enacted in
State Department budget request includes an additional
FY2023 ($275.2 million). Together, the MDBs and the trust
$800 million for the GCF);
funds focused on energy and the environment account for
$425 million for the Clean Technology Fund (CTF),
about 90% of the FY2024 request.
which provides concessional resources to be combined
Multilateral Development Banks
with MDB resources to support clean energy, climate
Most of the MDBs provide two types of financial
adaptation, and sustainable land use;
assistance: concessional financing, which provides grants
$168.2 million for the Global Environment Facility,
and low-cost loans to the world’s poorest countries, and
which provides mostly grants to developing countries to
https://crsreports.congress.gov
International Financial Institutions: FY2024 Budget Request
address biodiversity, land degradation, chemical waste,
of U.S. participation in the New Arrangements to Borrow
and other environmental issues; and
(NAB). The $480 bil ion NAB is a borrowing arrangement
$27 million for Resilient Development Trust Funds,
between 38 IMF members, including the United States. The
MDB-managed trust funds focused on building
NAB supplements core IMF resources. The NAB is
resilience to natural disasters and extreme weather.
currently authorized through 2025.
The Administration is also seeking authorization to exempt
Other Funding Requests
bonds issued by IDA from regulations by the Securities and
In addition to the MDBs, energy, and the environment, the
Exchange Commission (SEC), similar to the exemption that
FY2024 budget request includes funding for a variety of
IBRD bonds are granted. The Administration requested this
international economic programs. Specifically, the request
authorization in its FY2022 and FY2023 budget proposals, and
includes:
legislation that would allow these exemptions was also
introduced in February 2023 (H.R. 1161), as well as in the
$122 million for multilateral food security programs,
117th Congress (H.R. 8484).
including the International Fund for Agricultural
Development (IFAD), a MDB focused on agricultural
development, and the Global Agriculture and Food
Potential Policy Questions for Congress
Security Program (GAFSP), a multilateral financing
The FY2024 budget request for the IFIs is 70% higher
platform focused on food and nutrition security.
than the amount enacted in FY2023. Why is U.S.
$52 million for U.S. participation in multilateral debt
support of the IFIs a good use of U.S. taxpayer funds?
initiatives, primarily through the Common Framework
How does the Administration evaluate the effectiveness
on Debt Treatments (Common Framework) and the Paris
of multilateral environmental funds and determine the
Club, a group of governments (excluding China) that
appropriate level of U.S. commitments to these funds?
negotiate debt relief for developing countries.
Both the World Bank and the IMF are trying to increase
$50 million that the Treasury Department could use
financing to combat climate change. How should these
flexibly to support initiatives at the IFIs and other
organizations consider climate change in the context of
international organizations to meet “new and emergent
economic development and macroeconomic stability?
priority needs.”
Why does the Treasury Department require a new fund
$40 million for a first-time contribution by the United
to meet “new and emergent” needs at the IFIs?
States to the Global Infrastructure Facility (GIF), a
global collaboration platform to address support
Why does IDB Invest need a capital increase? How does
infrastructure development projects. (The Obama
IDB Invest help advance U.S. interests?
Administration requested funding for the GIF in FY2017
Would the exemption of IDA bonds from SEC
but no appropriations were made).
regulations pose any risks to the U.S. financial system
$45 million for Treasury’s Office of Technical
and U.S. taxpayers?
Assistance (OTA), a small office that provides technical
To what extent does IMF financial support for low-
assistance to developing countries in a variety of
income countries complement or duplicate World Bank
economic and financial policy areas.
financing for low-income countries?
Authorization Requests
What are the needs of low-income countries for debt
relief? To what extent are private investors and China
For FY2024, the Administration is not requesting any
participating constructively in debt negotiations?
appropriations for the International Monetary Fund (IMF), but
is seeking two authorization requests.
How does the technical assistance provided by the
Treasury Department to developing countries support
Authorization to use previously appropriated funds: The
Biden Administration is requesting authorization to use
U.S. interests? How are the funding allocation decisions
FY2023 appropriations of $20 mil ion to extend loans from
made?
Treasury’s Exchange Stabilization Fund (ESF) to IMF funds
Under the Administration’s budget request, U.S. unmet
focused on developing countries. The specific IMF funds
commitments to the MDBs would increase from $3.2
include the IMF’s Poverty and Growth Trust Fund (PRGT),
billion to $3.5 billion. Unmet commitments are the
which provides concessional lending to low-income
difference between the amount pledged by the United
countries, and the IMF's Resilience and Sustainability Trust
States and the amount provided (through appropriations)
(RST), which provides long-term financing to low- and
by the United States. How do unmet financial
middle-income countries to address long-term challenges
commitments to the IFIs impact U.S. leadership in the
(such as climate change and pandemic preparedness). This
global economy?
authorization request was included in Treasury’s FY2023
budget request but was not included in the final
Rebecca M. Nelson, Specialist in International Trade and
appropriations legislation.
Finance
Extension of U.S. participation in IMF supplemental
Martin A. Weiss, Specialist in International Trade and
fund: The Administration is requesting a five year-extension
Finance
https://crsreports.congress.gov
International Financial Institutions: FY2024 Budget Request
IF11902
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF11902 · VERSION 4 · UPDATED