Giving Compass' Take:

· According to IRIN News, the Trump administration has enforced new conditions and limits on foreign aid funding through the UN and other Public International Organizations.

· How does this news affect USAID funding and efforts? What does this mean for global development efforts? 

· Here's how to help civil society organizations navigate financial sustainability within the philanthropic sector.

The rule change, previously unreported, takes aim at USAID’s funding for Public International Organizations (PIOs), a category that includes UN agencies like UNICEF as well as the World Bank and the African Union.

According to the new rules, any PIO grant over $5 million must now be vetted at the very top, in the office of USAID Administrator Mark Green. The threshold for Green to have to vet any other types of grant is $40 million. Former USAID officials say the low limit for PIOs will slow approval of UN financing, could create backlogs, and may leave funding more vulnerable to political interference.

The move comes as Trump’s administration is cutting UN funding in Iraq to redirect it to Christians and other minorities, and as it announces a new religious freedom initiative. Green has been directed by US Vice-President Mike Pence to prioritise earmarking for such causes.

An internal USAID manual (section 300 of the automated directives system, or ADS) was updated, effective from 27 June, to require all PIO funding decisions to meet the range of new policy criteria. USAID contends that it is just bringing PIOs in line with other recipients, but development sector analysts say the move means UN funding could be diverted elsewhere or dry up considerably.

In a statement to IRIN, a USAID official, who asked not to be named due to agency policy, said the change is to “ensure senior leaders examine high-dollar-value acquisitions and assistance and PIO proposals prior to solicitation to encourage more rigorous competition, creativity, and innovation.”

Read the full article about foreign aid funded through the UN by Samuel Oakford at IRIN News.