Cash Transfer Agreement

Jordan, United States Sign Annual U.S. Grant Agreement for

$845.1 Million to Support Jordan’s Budget

On Tuesday, December 12 Prime Minister Dr. Bisher Khasawneh and U.S. Ambassador to Jordan Yael Lempert witnessed the signing of a grant agreement for an $845.1 million cash transfer to support Jordan.  The agreement, between the Ministry of Planning and International Cooperation (MOPIC) and the United States Agency for International Development (USAID), is part of the United States’ economic assistance program to the Jordanian government under a memorandum of understanding (MOU) between the two countries. The MOU – a seven-year, $10.15 billion agreement –  was signed in September 2022.

The agreement was signed on behalf of the Jordanian government by Minister of Planning and International Cooperation Zeina Toukan and on behalf of the U.S. government by USAID Mission Director Leslie Reed.

Minister Toukan emphasized the strategic partnership between Jordan and the United States and the importance that Jordan places on developing its partnership with the United States across various fields. She expressed gratitude for the support, noting its role in advancing the implementation of Jordan’s inclusive economic growth and development reform initiatives.

Minister Toukan also noted that the cash grant agreement is part of the broader U.S. economic aid to Jordan, as detailed in the memorandum of understanding with the U.S. government.  The memorandum covers the years 2023 to 2029 and outlines the aid provided to the Kingdom to assist in financial and development planning.

In her remarks at the ceremony, Ambassador Lempert said that “U.S. assistance. including this $845.1 million cash transfer, demonstrates the deep and enduring commitment of the United States to the Jordanian people.  It supports Jordan’s home-grown reforms, aimed at reaching ambitious job creation goals, providing steadier financial footing for the country, strengthening the private sector as the primary engine of the economy, and helping mitigate the water crisis that is exacerbated by climate change. And with the assistance provided today, and over the course of our Memorandum of Understanding –  through which the U.S. intends to provide well over a billion dollars in assistance each year for seven years – our Jordanian partners can count on the United States to support them and to help make these goals real.”

USAID Mission Director Leslie Reed noted that the U.S.-Jordanian partnership brings widespread benefits to people in Jordan.  “We are working together to enhance the lives of millions across the Kingdom through improved access to health care, education, and water,” Reed said.

This memorandum, the fourth of its kind, is the largest and longest in the history of bilateral relations between Jordan and the United States.  Toukan said the memorandum formalizes the United States’ long-term support to Jordan’s national economic, administrative, and political reform efforts, as well as women’s participation in the workforce and Jordan’s support as a host of refugees from across the region.

The Minister stated that the economic aid under this agreement promises unprecedented levels of annual support.  The MOU states the United States’ intention to provide a minimum annual economic aid of not less than $1.035 billion starting in 2023, subject to availability of funds and Congressional appropriations.  This is provided both through direct budget support to Jordan’s treasury and through national priority development projects directly implemented by USAID in coordination with the Jordanian government.

The Minister explained that the cash grant agreement signed today includes an additional $200 million beyond the annual amount to which the U.S. Government committed in the MOU and that these funds will play a pivotal role in bolstering the monetary stability of the general budget and supporting economic development efforts.

According to the agreement, the minister said, the U.S. government will transfer the regular cash support grant as a direct support to Jordan’s public treasury account.  This transfer aims to bolster government initiatives in public finance, water, energy, education, health, public works, housing, local development, tourism, antiquities, and youth programs.

Video: Cash Transfer Agreement