What's Happening?
A division of the U.S. Agency for International Development (USAID), previously eliminated by the Trump administration, has been reestablished as an independent nonprofit called the DIV Fund. This transformation
is supported by $48 million from two private donors. The DIV Fund aims to continue its international development work, which was previously halted due to cuts in foreign funding. The fund will focus on identifying and scaling affordable and efficient interventions, with a budget of $25 million annually, which is slightly more than half of its previous budget at USAID. The DIV Fund's efforts are bolstered by its ability to attract philanthropic funding, including a significant grant from Coefficient Giving, a San Francisco-based funder.
Why It's Important?
The relaunch of the DIV Fund as a nonprofit is significant as it represents a rare continuation of international development efforts following substantial cuts to foreign aid by the Trump administration. The fund's ability to secure private funding highlights the importance of philanthropic support in sustaining development initiatives that were previously government-funded. This development could influence how international aid is structured, potentially leading to more reliance on private funding and partnerships with local governments. The DIV Fund's focus on cost-effective interventions could set a precedent for future aid programs, emphasizing efficiency and sustainability.
What's Next?
The DIV Fund plans to open applications for new grants, aiming to generate innovative ideas for development interventions. It also intends to collaborate with major donors like the World Bank to expand its impact. The fund's future relationship with the U.S. government remains uncertain, but it is open to potential collaborations. As Congress has recently allocated $50 billion for foreign assistance, there may be opportunities for the DIV Fund to align with government priorities and secure additional support.
