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Pope Leo XIV faces funding challenges for cash-strapped Vatican

Pope Leo XIV faces funding challenges for cash-strapped Vatican
Pope Leo XIV is facing challenges to drum up the funds needed to pull his city-state out of the red. (Reuters)
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Updated 07 June 2025

Pope Leo XIV faces funding challenges for cash-strapped Vatican

Pope Leo XIV faces funding challenges for cash-strapped Vatican

VATICAN CITY: The world’s smallest country has a big budget problem.

The Vatican doesn’t tax its residents or issue bonds. It primarily finances the Catholic Church’s central government through donations that have been plunging, ticket sales for the Vatican Museums, as well as income from investments and an underperforming real estate portfolio.

The last year the Holy See published a consolidated budget, in 2022, it projected €770 million ($878 million), with the bulk paying for embassies around the world and Vatican media operations. In recent years, it hasn’t been able to cover costs.

That leaves Pope Leo XIV facing challenges to drum up the funds needed to pull his city-state out of the red.

Withering donations

Anyone can donate money to the Vatican, but the regular sources come in two main forms.

Canon law requires bishops around the world to pay an annual fee, with amounts varying and at bishops’ discretion “according to the resources of their dioceses.” US bishops contributed over one-third of the $22 million (€19.3 million) collected annually under the provision from 2021-2023, according to Vatican data.

The other main source of annual donations is more well-known to ordinary Catholics: Peter’s Pence, a special collection usually taken on the last Sunday of June. From 2021-2023, individual Catholics in the US gave an average $27 million (€23.7 million) to Peter’s Pence, more than half the global total.

American generosity hasn’t prevented overall Peter’s Pence contributions from cratering. After hitting a high of $101 million (€88.6 million) in 2006, contributions hovered around $75 million (€66.8 million) during the 2010’s then tanked to $47 million (€41.2 million) during the first year of the COVID-19 pandemic, when many churches were closed.

Donations remained low in the following years, amid revelations of the Vatican’s bungled investment in a London property, a former Harrod’s warehouse that it hoped to develop into luxury apartments. The scandal and ensuing trial confirmed that the vast majority of Peter’s Pence contributions had funded the Holy See’s budgetary shortfalls, not papal charity initiatives as many parishioners had been led to believe.

Peter’s Pence donations rose slightly in 2023 and Vatican officials expect more growth going forward, in part because there has traditionally been a bump immediately after papal elections.

New donors

The Vatican bank and the city state’s governorate, which controls the museums, also make annual contributions to the pope. As recently as a decade ago, the bank gave the pope around €55 million ($62.7 million) a year to help with the budget. But the amounts have dwindled; the bank gave nothing specifically to the pope in 2023, despite registering a net profit of €30 million ($34.2 million), according to its financial statements. The governorate’s giving has likewise dropped off.

Some Vatican officials ask how the Holy See can credibly ask donors to be more generous when its own institutions are holding back.

Leo will need to attract donations from outside the US, no small task given the different culture of philanthropy, said the Rev. Robert Gahl, director of the Church Management Program at Catholic University of America’s business school. He noted that in Europe there is much less of a tradition (and tax advantage) of individual philanthropy, with corporations and government entities doing most of the donating or allocating designated tax dollars.

Even more important is leaving behind the “mendicant mentality” of fundraising to address a particular problem, and instead encouraging Catholics to invest in the church as a project, he said.

Speaking right after Leo’s installation ceremony in St. Peter’s Square, which drew around 200,000 people, Gahl asked: “Don’t you think there were a lot of people there that would have loved to contribute to that and to the pontificate?”

In the US, donation baskets are passed around at every Sunday Mass. Not so at the Vatican.

Untapped real estate

The Vatican has 4,249 properties in Italy and 1,200 more in London, Paris, Geneva and Lausanne, Switzerland. Only about one-fifth are rented at fair market value, according to the annual report from the APSA patrimony office, which manages them. Some 70 percent generate no income because they house Vatican or other church offices; the remaining 10 percent are rented at reduced rents to Vatican employees.

In 2023, these properties only generated €35 million euros ($39.9) in profit. Financial analysts have long identified such undervalued real estate as a source of potential revenue.

But Ward Fitzgerald, the president of the US-based Papal Foundation, which finances papal charities, said the Vatican should also be willing to sell properties, especially those too expensive to maintain. Many bishops are wrestling with similar downsizing questions as the number of church-going Catholics in parts of the US and Europe shrinks and once-full churches stand empty.

Toward that end, the Vatican recently sold the property housing its embassy in Tokyo’s high-end Sanbancho neighborhood, near the Imperial Palace, to a developer building a 13-story apartment complex, according to the Kensetsu News trade journal.

Yet there has long been institutional reluctance to part with even money-losing properties. Witness the Vatican announcement in 2021 that the cash-strapped Fatebenefratelli Catholic hospital in Rome, run by a religious order, would not be sold. Pope Francis simultaneously created a Vatican fundraising foundation to keep it and other Catholic hospitals afloat.

“They have to come to grips with the fact that they own so much real estate that is not serving the mission of the church,” said Fitzgerald, who built a career in real estate private equity.


Pro-Palestine narrative faces challenges at every level of US society, speakers tell convention

Pro-Palestine narrative faces challenges at every level of US society, speakers tell convention
Updated 7 sec ago

Pro-Palestine narrative faces challenges at every level of US society, speakers tell convention

Pro-Palestine narrative faces challenges at every level of US society, speakers tell convention
  • American-Arab Anti-Discrimination Committee presents awards for ‘courageous activism’
  • CodePink co-founder: ‘It’s our tax dollars and our bombs that are killing people’

DEARBORN: The pro-Palestine narrative faces challenges at every level of US society, speakers warned during panel discussions hosted by the American-Arab Anti-Discrimination Committee and attended by Arab News on Friday.

ADC officials presented awards for “courageous activism.” 

Jewish and Arab education professionals said schools are targets of pro-Israel activists who conflate Judaism with Zionism, and criticism of Israel with antisemitism, as well as vilify those who defend Palestinian or Arab rights.

“Many teachers are afraid to teach some aspects of the Middle East and the Arab world because of Palestine and criticism of Israel, and that has a negative impact on the US population,” said California teacher Dr. Samia Shoman.

Sim Kern, a Jewish teacher from Texas, agreed, saying politically manipulated class instruction feeds these biases that stay with Americans as they grow into adulthood. “There’s an immense lack of knowledge that Judaism and Zionism aren’t the same,” he added.

Medea Benjamin, co-founder of activist group CodePink, said the challenge against anti-Arab and anti-Palestinian biases is most pressing in US politics, among both Democrats and Republicans.

“Knowing what the Israelis are doing, it gives me a sense of responsibility — especially as a US citizen — to know that it’s our tax dollars and our bombs that are killing people,” she added. “As a member of the Jewish community, that makes me feel an extra sense of responsibility.”

Benjamin said her parents sent her to live in a kibbutz in Israel, where she first met Palestinians “and came to love them and their culture.”

In her protests, she has confronted members of the Senate and Congress with the same question: “Why do you support the genocide and killing of women and children in Gaza?”

Benjamin, who has been arrested and detained numerous times, posts their lack of responses on her social media accounts, including to nearly 300,000 followers on TikTok and 200,000 followers on X.

ADC officials presented awards to Benjamin and to Palestinian activist Hazami Barmada, who has confronted members of both the Trump and Biden administrations.

“My job is to simply hold up pictures and ask people as they walk in and out of the White House, ‘Is this something you’re proud of?” said Barmada, a social entrepreneur and strategy consultant for the UN and founder of The Barmada Group, a Washington-based consulting firm.

“The haunting question carried me into the streets not because taking a risk to stop the genocide wasn’t scary, but because not taking the risk felt like betraying not only Palestinian children but my own child.”

Barmada said she has been “spit on, repeatedly sued, dragged through federal court, harassed, doxxed, repeatedly assaulted, slapped, punched, arrested, and I even had a gun pulled on me.”

In one protest, she confronted former US Secretary of State Antony Blinken and his family, spilling fake blood in front of their home as they drove past in their black limousine.

Barmada asked how they could be so upset about fake blood when real blood is being spilled from civilians in Gaza because of US military and financial support to Israel.

She has confronted many other officials, as well as members of the national media who fail to report on the genocide.

Another panel featured speakers who addressed how “lawfare” is being waged against pro-Palestine activists in an effort to silence or stifle protests.

The law panel included Amy Greer, an attorney with Dratel & Lewis; Amir Makled, an attorney with Hall Makled Law; Edward Mitchell, deputy director of the Council on American-Islamic Relations; and Jenin Younes, ADC’s national legal director.

ADC also presented awards to Celine Semaan on behalf of environmental and social justice nonprofit organization Slow Factory, Hamza Ali on behalf of film production and distribution company Watermelon Pictures, media personality Hussein Hachema, former Michigan State Rep. Abraham Aiyash, and the Yemeni-American founder of the Haraz Coffee chain, Hamzah Nasser.

The evening was capped by music performed by a Middle Eastern ensemble, and by a live taping of the show “We’re Not Kidding with Mehdi & Friends,” hosted by journalist Mehdi Hasan with his guest, Egyptian comedian Bassem Youssef.

They discussed the hypocrisy of how the US defends free speech and morality “except when the issue is Palestine.”


FBI fires agents photographed kneeling during 2020 racial justice protest, AP sources say

FBI fires agents photographed kneeling during 2020 racial justice protest, AP sources say
Updated 34 min 1 sec ago

FBI fires agents photographed kneeling during 2020 racial justice protest, AP sources say

FBI fires agents photographed kneeling during 2020 racial justice protest, AP sources say
  • That’s according to three people familiar with the matter who spoke on condition of anonymity to The Associated Press
  • The bureau had reassigned the agents last spring but has since fired them. The FBI declined to comment

WASHINGTON: The FBI has fired agents who were photographed kneeling during a racial justice protest in Washington that followed the 2020 death of George Floyd at the hands of Minneapolis police officers, three people familiar with the matter said Friday.
The bureau last spring had reassigned the agents but has since fired them, said the people, who insisted on anonymity to discuss personnel matters with The Associated Press.
The number of FBI employees terminated was not immediately clear, but two people said it was roughly 20.
The photographs at issue showed a group of agents taking the knee during one of the demonstrations following the May 2020 killing of Floyd, a death that led to a national reckoning over policing and racial injustice and sparked widespread anger after millions of people saw video of the arrest. The kneeling had angered some in the FBI but was also understood as a possible de-escalation tactic during a period of protests.
The FBI Agents Association confirmed in a statement late Friday that more than a dozen agents had been fired, including military veterans with additional statutory protections, and condemned the move as unlawful. It called on Congress to investigate and said the firings were another indication of FBI Director Kash Patel’s disregard for the legal rights of bureau employees.
“As Director Patel has repeatedly stated, nobody is above the law,” the agents association said. “But rather than providing these agents with fair treatment and due process, Patel chose to again violate the law by ignoring these agents’ constitutional and legal rights instead of following the requisite process.”
An FBI spokesman declined to comment Friday.
The firings come amid a broader personnel purge at the bureau as Patel works to reshape the nation’s premier federal law enforcement agency.
Five agents and top-level executives were known to have been summarily fired last month in a wave of ousters that current and former officials say has contributed to declining morale.
One of those, Steve Jensen, helped oversee investigations into the Jan. 6, 2021, riot at the US Capitol. Another, Brian Driscoll, served as acting FBI director in the early days of the Trump administration and resisted Justice Department demands to supply the names of agents who investigated Jan. 6.
A third, Chris Meyer, was incorrectly rumored on social media to have participated in the investigation into President Donald Trump’s retention of classified documents at his Mar-a-Lago estate in Palm Beach, Florida A fourth, Walter Giardina, participated in high-profile investigations like the one into Trump adviser Peter Navarro.
A lawsuit filed by Jensen, Driscoll and another fired FBI supervisor, Spencer Evans, alleged that Patel communicated that he understood that it was “likely illegal” to fire agents based on cases they worked but was powerless to stop it because the White House and the Justice Department were determined to remove all agents who investigated Trump.
Patel denied at a congressional hearing last week taking orders from the White House on whom to fire and said anyone who has been fired failed to meet the FBI’s standards.


Russia says seized three villages in east Ukraine

Russia says seized three villages in east Ukraine
Updated 51 min 41 sec ago

Russia says seized three villages in east Ukraine

Russia says seized three villages in east Ukraine
  • Russia on Saturday claimed to have captured three villages in eastern Ukraine, as its forces slowly grind through Ukrainian defenses in costly battles

MOSCOW: Russia on Saturday claimed to have captured three villages in eastern Ukraine, as its forces slowly grind through Ukrainian defenses in costly battles.
Russian forces are slowly but steadily gaining ground in fierce meter-for-meter skirmishes for largely devastated areas in eastern Ukraine, with few inhabitants or intact buildings left.
Moscow has captured about 0.8 percent of Ukraine’s total land area since the beginning of the year, according to Russia’s Ministry of Defense.
The villages of Derylove and Maiske were seized in the Donetsk region, Moscow’s army said in a statement, while the settlement of Stepove was taken in the Dnipropetrovsk region.
Ukraine said an overnight Russian barrage killed one person and wounded 12 in the southeastern Kherson region, and damaged railways in the neighboring Odesa region.
Russia said an oil pumping station in the Chuvashia republic suspended operation after a Ukrainian drone strike deep behind the front line.
Kyiv has been targeting Russian refineries for months, calling the attacks fair retribution for Moscow’s own barrages and an attempt to cut off energy revenues that fund Russia’s army.
Diplomatic efforts to stop the war, now nearing its fourth year, have faltered, with US President Donald Trump recently floating the idea that Ukraine may be able to take back all of its lost land from Russia, which vowed to press on the offensive.


UNESCO designates 26 new biosphere reserves amid biodiversity challenges and climate change

UNESCO designates 26 new biosphere reserves amid biodiversity challenges and climate change
Updated 27 September 2025

UNESCO designates 26 new biosphere reserves amid biodiversity challenges and climate change

UNESCO designates 26 new biosphere reserves amid biodiversity challenges and climate change
  • The new reserves include an Indonesian archipelago that’s home to over 75 percent of earth’s coral species and a stretch of Icelandic coast with 70 percent of the nation’s plant life
  • UNESCO says the reserves require scientists, residents and government officials to work together to balance conservation and research with economic growth and cultural needs

NEW YORK: An Indonesian archipelago that’s home to three-fourths of Earth’s coral species, a stretch of Icelandic coast with 70 percent of the country’s plant life and an area along Angola’s Atlantic coast featuring savannahs, forests and estuaries are among 26 new UNESCO-designated biosphere reserves.
The United Nations cultural agency says the reserves — 785 sites in 142 countries, designated since 1971 — are home to some of the planet’s richest and most fragile ecosystems. But biosphere reserves encompass more than strictly protected nature reserves; they’re expanded to include areas where people live and work, and the designation requires that scientists, residents and government officials work together to balance conservation and research with local economic and cultural needs.
“The concept of biosphere reserves is that biodiversity conservation is a pillar of socioeconomic development” and can contribute to the economy, said António Abreu, head of the program, adding that conflict and misunderstanding can result if local communities are left out of decision-making and planning.
The new reserves, in 21 countries, were announced Saturday in Hangzhou, China, where the program adopted a 10-year strategic action plan that includes studying the effects of climate change, Abreu said.
Biodiversity hot spots
The new reserves include a 52,000-square-mile (135,000-square-kilometer) area in the Indonesian archipelago, Raja Ampat, home to over 75 percent of earth’s coral species as well as rainforests and rare endangered sea turtles. The economy depends on fishing, aquaculture, small-scale agriculture and tourism, UNESCO said.
On Iceland’s west coast, the Snæfellsnes Biosphere Reserve’s landscape includes volcanic peaks, lava fields, wetlands, grasslands and the Snæfellsjökull glacier. The 1,460-square-kilometer (564 square-mile) reserve is an important sanctuary for seabirds, seals and over 70 percent of Iceland’s plant life — including 330 species of wildflowers and ferns. Its population of more than 4,000 people relies on fishing, sheep farming and tourism.
And in Angola, the new Quiçama Biosphere Reserve, along 206 kilometers (128 miles) of Atlantic coast is a “sanctuary for biodiversity” within its savannahs, forests, flood plains, estuaries and islands, according to UNESCO. It’s home to elephants, manatees, sea turtles and more than 200 bird species. Residents’ livelihoods include livestock herding, farming, fishing, honey production.
Collaboration is key
Residents are important partners in protecting biodiversity within the reserves, and even have helped identify new species, said Abreu, the program’s leader. Meanwhile, scientists also are helping to restore ecosystems to benefit the local economy, he said.
For example, in the Philippines, the coral reefs around Pangatalan Island were severely damaged because local fishermen used dynamite to find depleted fish populations. Scientists helped design a structure to help coral reefs regrow and taught fishermen to raise fish through aquaculture so the reefs could recover.
“They have food and they have also fish to sell in the markets,” said Abreu.
In the African nation of São Tomé and Príncipe, a biosphere reserve on Príncipe Island led to restoration of mangroves, which help buffer against storm surges and provide important habitat, Abreu said.
Ecotourism also has become an important industry, with biosphere trails and guided bird-watching tours. A new species of owl was identified there in recent years.
This year, a biosphere reserve was added for the island of São Tomé, making the country the first entirely within a reserve.
Climate and environmental concerns
At least 60 percent of the UNESCO biosphere reserves have been affected by extreme weather tied to climate change, which is caused primarily by the burning of fossil fuels such as coal and gas, including extreme heat and drought and sea-level rise, Abreu said.
The agency is using satellite imagery and computer modeling to monitor changes in coastal zones and other areas, and is digitizing its historical databases, Abreu said. The information will be used to help determine how best to preserve and manage the reserves.
Some biosphere reserves also are under pressure from environmental degradation.
In Nigeria, for example, habitat for a dwindling population of critically endangered African forest elephants is under threat as cocoa farmers expand into Omo Forest Reserve, a protected rainforest and one of Africa’s oldest and largest UNESCO Biosphere Reserves. The forest is also important to help combat climate change.
The Trump administration in July announced that the US would withdraw from UNESCO as of December 2026, just as it did during his first administration, saying US involvement is not in the national interest. The US has 47 biosphere reserves, most in federal protected areas.


Seychelles president seeks a second term as people vote in African tourist haven

Seychelles president seeks a second term as people vote in African tourist haven
Updated 27 September 2025

Seychelles president seeks a second term as people vote in African tourist haven

Seychelles president seeks a second term as people vote in African tourist haven

VICTORIA, Seychelles: The people of Seychelles voted Saturday in an election to choose a new leader and parliament, with President Wavel Ramkalawan seeking a second term in Africa’s smallest country.
Ramkalawan’s chief political rival, Patrick Herminie of the United Seychelles Party, is a veteran lawmaker and parliamentary speaker from 2007 to 2016.
Polls opened at 7 a.m. in a sign of what was expected to be a strong voter turnout in the tourist haven, where the president is elected for a five-year term.
Long lines formed at many polling stations across the country Saturday. Electoral authorities said all stations opened on time and voting was proceeding smoothly.
Ramkalawan, an Anglican priest who later became involved in politics, became the first opposition leader since 1976 to defeat the ruling party when he made his sixth bid for the presidency in 2020.
The ruling Linyon Demokratik Seselwa party campaigned on economic recovery, social development and environmental sustainability.
If no contender receives more than 50 percent of the vote, the two top candidates go into a runoff. Just over 77,000 people are registered to vote in Seychelles.
The 115-island archipelago in the Indian Ocean has become synonymous with luxury and environmental travel, which has bumped Seychelles to the top of the list of Africa’s richest countries by gross domestic product per capita, according to the World Bank.
The economy also has fueled a growing middle class and opposition to the ruling party.
With its territory spread across about 390,000 square kilometers (150,579 square miles), Seychelles is especially vulnerable to climate change including rising sea levels, according to the World Bank and the UN Sustainable Development Group.
Another concern for voters is a growing drug crisis. A 2017 United Nations report described the country as a major drug transit route. The 2023 Global Organized Crime Index said the island nation has one of the world’s highest rates of heroin addiction.
An estimated 6,000 people out of Seychelles’ population of 120,000 use the drug, while independent analysts say addiction rates approach 10 percent. Most of the country’s population lives on the island of Mahé, home to the capital Victoria.
Critics say Ramkalawan has largely failed to rein in the drug crisis. His rival, Herminie, also was criticized for failing to stem the addiction rates while serving as chairman of the national Agency for the Prevention of Drug Abuse and Rehabilitation from 2017 until 2020.