A year of drastic reductions has reshaped US aid as we head into 2026, and the consequences are already alarming. The United States slashed its foreign aid budget in 2025 by more than half, leaving millions at heightened risk from malaria, malnutrition, and HIV. This retreat comes after a period when President Donald Trump pursued an “America First” stance, leading to the shuttering of USAID early in his term and a reorganization of how assistance is managed under the State Department.
Before these changes, the United States had been the world’s largest contributor to international development, disbursing about US$68 billion across 215 countries in 2024. Those funds supported hundreds of life-saving programs—from malaria prevention efforts in Kenya to HIV treatment initiatives in the Philippines.
Research from the Center for Global Development suggests that US foreign aid saves lives globally, preventing more than three million deaths each year in aggregate. A substantial portion of that impact comes from HIV/AIDS interventions and vaccines, which together account for roughly 1.65 million lives saved annually.
USAID officially ceased operations on July 1, with the State Department taking over management of the foreign aid budget. Government data indicate that disbursements fell to about US$32 billion in 2025, more than half below the 2024 level.
The reductions have had broad repercussions. Shortages of essential supplies—food, milk, sanitary pads, and diapers for refugees in places like Kenya and Lebanon—have tightens, while HIV treatment programs in several countries, including South Africa, Nigeria, Ukraine, and the Philippines, have been cut or scaled back.
Academic and industry analyses warn of dire outcomes if funding remains constrained. A Lancet study published in July projects that cutting USAID-supported programs could lead to more than 14 million additional deaths by 2030. Over the last two decades, USAID-funded efforts have helped avert some 91 million deaths globally, including about 30 million among children.
Forecasts from impactcounter.com, which uses data models to estimate the consequences of spending cuts, project further losses within a year. For example, depending on current trends, approximately 142,571 additional child deaths from pneumonia, 109,248 from diarrhea, and 134,534 from malnutrition could occur worldwide among children alone.
This report is provided with permission from Thomson Reuters Foundation, which continues to cover humanitarian issues, climate resilience, and related topics. For full context and updates, you can visit the Context News site.
Would you agree that these funding decisions reflect a sustainable path for global health and development, or do they risk undermining progress achieved over decades? What reforms or safeguards would you propose to ensure life-saving aid remains reliable and effective while balancing national priorities? And if you have a perspective on how donors should frame assistance to maximize long-term impact, share your views in the comments.
