President Joe Biden has allocated $4 billion to help the world's poorest countries through the World Bank's International Development Association (IDA).
This fund provides financial support, such as grants and low-interest loans, to countries facing challenges such as debt, climate problems and conflict.
Biden made this announcement at the G20 meeting in Rio de Janeiro. The contribution recorded a high number for the United States (US) with 14.3% higher than in 2021.
Other countries also increased their contributions. For example, Spain and Denmark recently announced higher funding commitments.
IDA funds are renewed every three years to meet growing demand.
World Bank President Ajay Banga aims to raise $120 billion overall this year, a significant increase from the $93 billion pledged in 2021.
However, Biden may face challenges in following through on his wish as Congressional approval is required, and with changes in leadership.
The next discussion on this funding is planned for December in Seoul.
