WASHINGTON – A senior U.S. Treasury official expressed concerns on Friday about the potential repercussions of the United States withdrawing from the International Monetary Fund (IMF) and the World Bank. This statement comes ahead of a presidential election that may bring uncertainty regarding America’s role within these institutions.
Jay Shambaugh, the undersecretary for international affairs, spoke out in anticipation of the annual meetings of both organizations, suggesting that the Project 2025 proposal—which advocates for U.S. withdrawal from the IMF and World Bank should Donald Trump be re-elected—would represent a significant setback. This proposal is part of a framework developed by the Heritage Foundation, envisioned as a guide for a future Republican administration, although Trump has indicated that he does not endorse its tenets as part of his campaign agenda.
Shambaugh remarked at the Atlantic Council that “there are voices urging the U.S. to exit these institutions; such a move would definitely hinder our economic security.” He emphasized that losing U.S. leadership would diminish Washington’s influence and ultimately destabilize these vital organizations, which are crucial in supporting economies in distress.
The IMF and World Bank often act as lenders of last resort, providing significant loans and assistance to stabilize struggling nations while advocating for necessary reforms aimed at fostering economic resilience and expansion.
When asked during a Q&A session about the Project 2025 initiative, Shambaugh was cautious in his remarks, referencing the Hatch Act, which limits partisan political activities for federal employees. He highlighted that over the years, various proposals to withdraw from these entities have arisen, but he asserted that data indicates the contrary—that such a withdrawal would be misguided.
The Project 2025 document—spanning over 1,000 pages—advocates for the Treasury Department to “withdraw from both the World Bank and the IMF and cease financial contributions to these organizations,” positing that they create unnecessary intermediaries that can misdirect U.S. funding before it reaches those in need.
Vice President Kamala Harris and her Democratic colleagues have effectively used Project 2025 as a focal point against Trump, who has asserted he was not familiar with the Heritage Foundation’s strategic outline, despite the involvement of numerous allies and former team members in its formation.
Danielle Alvarez, a senior adviser for the Trump campaign, countered by stating that “only President Trump and his campaign, and NOT any external organization or former staff, represent the policies for a second term.” She claimed that the 20 commitments outlined on his campaign site are the sole policies sanctioned by Trump for a potential second term. The campaign has yet to clarify whether Trump would advocate for the withdrawal from these financial institutions.
The annual meetings for the IMF and World Bank are set to take place in Washington this month, bringing further attention to the discussion surrounding U.S. involvement in these crucial global financial entities.
