Uganda Loses Shs604Bn in Foreign Aid Following US Funding Cuts

Uganda has lost over Shs604 billion in foreign aid following the United States government's decision to cut funding across the globe. 

The cuts, which were implemented after U.S. President’s executive order on January 20, 2025, have particularly impacted crucial health programs in Uganda, including HIV/AIDS, Malaria, Tuberculosis, and nutrition services, as well as the payment of salaries for health sector staff.

Dr. Ruth Aceng, Uganda's Minister of Health, revealed this development during a meeting with the Parliament’s Health Committee to discuss the 2025/26 Ministerial Policy Statement for the health sector. She emphasized that the funding cuts had left a significant gap in the country's health budget, and called on Parliament to take action to source alternative funds to bridge this shortfall.

“This withdrawal of foreign funding has severely affected several key health programs in Uganda. The US decision led to a loss of over Shs604 billion, which has hindered our efforts in combating major health issues, including HIV/AIDS, malaria, and tuberculosis, as well as nutrition and health sector salaries,” Dr. Aceng stated.

In response to the cuts, the Ministry of Health has already begun integrating the affected services into routine healthcare provisions offered at local health facilities. Additionally, a cabinet paper has been prepared for discussion, with an urgent call for action.

Dr. Aceng further appealed to Parliament to mobilize resources that would help close the funding gap, thereby reducing Uganda's reliance on foreign aid. The Minister urged the country to aim for greater self-reliance in financing its health sector to ensure sustainable development in the face of international aid reductions.

As Uganda continues to grapple with this financial setback, the government's next steps will be closely watched, with a focus on finding lasting solutions to safeguard the nation’s healthcare system.