The US Treasury has committed $667 million for a global Pandemic Fund hosted by the World Bank, a third of the $2 billion the fund hopes to raise.
There’s just one hurdle: A divided Congress has to sign off on the funds. It’s unlikely that fiscal hawks will approve of the significant contribution, and a party change in the White House would likely further impact the contribution amount.
In the meantime, the US Treasury is using its pledge to try and galvanize more investments from G20 nations, namely a doubling of previous stated commitments from existing donors. Treasury Secretary Janet Yellen called on new financiers to enter the fold in a statement Wednesday.
The federal agency is hoping for “additional support in the coming months” ahead of an October meeting of finance and health ministers in Brazil.
Germany is heeding the call, contributing $54 million. Svenja Schulze, the country’s Minister for Economic Cooperation and Development, called the commitment a significant step up for the country.
The Pandemic Fund is meant to mainly help low- and middle-income countries shore up their pandemic preparedness infrastructure. It was unveiled in November 2022 as part of the G20 summit in Indonesia, at a time when the Covid-19 pandemic was more so on the front burner for global leaders. It disbursed $338 million across 37 countries in 2023 and is in the middle of fielding more proposals for another $500 million tranche.
“The Pandemic Fund has shown itself to have tremendous potential as a catalytic mechanism in the fight against global pandemics, including crowding additional money into projects and seeking diversified funding streams,” US Global AIDS Coordinator John Nkengasong said in a statement.
The fund’s focus on pandemic and healthcare infrastructure operates in parallel with other related global health efforts that have centered on vaccine development. The Coalition for Epidemic Preparedness Innovations has been at the forefront, partnering with the likes of Moderna, Bavarian Nordic and the University of Oxford in recent months to help finance the development of, and access to, new vaccines.