Government Approves $845 Million U.S. Grant, Endorses Wide-Ranging Reforms

Amman: The Cabinet, led by Prime Minister Jaafar Hassan, has approved a significant U.S. grant agreement, as well as a series of economic, industrial, aviation, and social reform measures. This move signals a strategic partnership between Jordan and the United States, facilitating the transfer of $845 million as direct budget support to the Treasury for 2025.

According to Jordan News Agency, the Cabinet authorized the Minister of Planning and International Cooperation to sign the grant agreement on behalf of the government. Additionally, the Cabinet introduced a zero customs duty and a 16% sales tax on postal parcels with a customs value not exceeding JD 200. This measure is intended to stimulate domestic spending and ensure fair competition in the local market.

The Cabinet has also endorsed recommendations to amend tariff schedules to support Jordanian industries, aiming to expand and ensure fair competition between domestic and imported products. This includes adjusting tariffs on imports that have local alternatives to protect national industry, while excluding food products with no domestic alternatives.

In support of domestic industries, the government has implemented various measures, including revising electricity-connection rules funded by the "Fils Al-Reef" tariff and offering incentives to new industrial projects. Moreover, steps have been taken to reduce energy costs in industrial cities, such as supplying natural gas to the Zarqa Industrial Estate.

Among other decisions, the Cabinet approved the settlement of 719 outstanding tax cases, aligning with the recommendations from the competent committee. This effort aims to help businesses and investors regularize their tax status. In terms of social services, the Cabinet approved the draft Teachers' Clubs Regulation for 2025, focusing on improving services and extending benefits to teachers and staff in licensed private educational institutions.

Furthermore, the Cabinet approved the Staff Regulation of the Greater Amman Municipality (GAM) for 2025 and endorsed the draft amended Civil Aviation Fees Regulation for 2025. These regulations aim to enhance operational efficiency and support sustainable infrastructure development.

In the energy sector, the Cabinet amended a 2019 decision to include helium as a high-value resource among rare earth minerals. A memorandum of understanding was approved between the Ministry of Energy and Mineral Resources and Hotspur Helium to explore helium in the Dead Sea region.

The Cabinet also authorized the Ministry of Local Administration to proceed with priority projects funded through savings, including road paving and waste-management improvements. Additionally, the Second National Strategy for Media and Information Literacy for 2026-2029 was approved, aiming to counter fake news and build a digitally literate society.

Lastly, the Cabinet approved a memorandum of understanding between Jordan's National Cybersecurity Center and Qatar's National Cybersecurity Agency, as well as an MoU on agricultural cooperation with Yemen.

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