Treasury official says withdrawing the US from the IMF and World Bank would be a ‘step backward’

WASHINGTON — Withdrawing the United States from the International Monetary Fund (IMF) and the World Bank would be “a step backward,” a top U.S. Treasury official stated recently, emphasizing the importance of these organizations ahead of a presidential election that may bring uncertainty regarding America’s involvement in them.

As the annual meetings for these institutions approach, Jay Shambaugh, the undersecretary for international affairs, referenced a proposal linked to Project 2025 advocating for the U.S. to exit the IMF and World Bank if Donald Trump secures a victory in the upcoming election.

This proposal is part of a comprehensive plan devised by the Heritage Foundation, serving as a potential guideline for future Republican administrations. However, Trump has signaled that this proposal is not a part of his campaign agenda and that he is not obligated to adhere to its suggestions.

“There are those who have suggested the U.S. withdraw from these institutions; this would be a step backward for our economic security,” Shambaugh expressed during a speech at the Atlantic Council. He highlighted that without U.S. leadership, the nation would experience diminished influence and the institutions themselves would be weakened—a scenario he deemed unacceptable.

Traditionally acting as lenders of last resort, the IMF and World Bank extend billions in loans and assistance to support struggling economies and urge countries with deficits to enact reforms that foster stability and growth.

During a question-and-answer session, Shambaugh provided a measured response concerning the Project 2025 plan, citing the Hatch Act which limits political activity among federal employees. He remarked that over the years, there have been various proposals suggesting that withdrawing from these institutions would benefit the U.S. However, he contended, “I would just say I think the evidence suggests that’s entirely inaccurate.”

Within the expansive Project 2025 document, the authors suggest that the Treasury Department should “withdraw from both the World Bank and the IMF and terminate its financial contribution to both institutions,” arguing that they merely act as costly middle-men, with U.S. funds often not reaching those in need.

[p]Vice President Kamala Harris and Democratic allies have leveraged Project 2025 as a consistent critique against Trump. Although Trump has distanced himself from Heritage’s conservative framework, many former aides and allies played key roles in formulating this transitional plan.

Danielle Alvarez, a senior adviser for the Trump campaign, affirmed, “Only President Trump and the campaign, and NOT any other organization or former staff, represent policies for the second term.” She further stated that the 20 commitments featured on his campaign website are the sole policies endorsed by Trump. When the campaign was pressed for clarity regarding a potential withdrawal from the financial institutions, they did not respond.

The annual meetings for the IMF and World Bank are scheduled to take place in Washington this month.